,i #aaeth ,,congress #ast ,session ,h4 ,r4 #ciaj ,,in ,,the ,,house ,,of ,,representatives ,october #b1 #bjag,mr4 ,neal 7for himself and ,mr4 ,bishop of ,michigan7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to make lifetime income and managed account options of defined contribution retirement savings plans portable4 #a4 ,portability of lifetime income and managed account options 7a7 ,in general ,subsection 7a7 of section #dja of the ,internal ,revenue ,code of #aihf is amended by inserting after paragraph 7#cg7 the following new paragraph3 7#ch7 ,portability of lifetime income and managed account options 7,a7 ,in general ,a trust forming part of a defined contribution plan shall not be treated as failing to constitute a qualified trust under this section solely by reason of allowing-- 7i7 qualified distributions of a lifetime income investment or a managed account investment1 or 7ii7 distributions of a lifetime income investment in the form of a qualified plan distribution annuity contract1 on or after the date that is #ij days prior to the date on which such lifetime income investment or such managed account investment is no longer authorized to be held as an investment option under the plan except as may otherwise be provided by regulations4 7,b7 ,definitions ,for purposes of this subsection-- 7i7 the term qualified distribution means a direct trustee-to-trustee transfer to an eligible retirement plan 7as defined in section #djb7;c77#h77;,b771 as described in section #dja7;a77#ca77;,a71 and in the case of a managed account investment1 the eligible retirement plan must be maintained by the account manager of such managed account investment1 7ii7 the term lifetime income investment means an investment option that is designed to provide an employee with election rights-- 7,i7 that are not uniformly available with respect to other investment options under the plan1 and 7,,ii7 that are to a lifetime income feature available through a contract or other arrangement offered under the plan or under another eligible retirement plan 7as defined in section #djb7;c77#h77;,b77 through a direct trustee-to-trustee transfer to such other eligible retirement plan under section #dja7;a77#ca77;,a71 7iii7 the term lifetime income feature means-- 7,i7 a feature that guarantees a minimum level of income annually 7or more frequently7 for at least the remainder of the life of the employee or the joint lives of the employee and the employee's designated beneficiary1 or 7,,ii7 an annuity payable on behalf of the employee under which payments are made in substantially equal periodic payments 7not less frequently than annually7 over the life of the employee or the joint lives of the employee and the employee's designated beneficiary1 7iv7 the term qualified plan distribution annuity contract means an annuity contract purchased for a participant and distributed to the participant by a plan described in subparagraph 7,b7 of section #djb7;c77#h7 7without regard to clauses 7i7 and 7ii7 thereof71 7v7 the term managed account investment means an investment option under which the assets of the employee's individual account are managed by an account manager1 applying generally accepted investment theories1 to achieve varying degrees of long-term appreciation and capital preservation based on the employee's age1 target retirement date or life expectancy1 7vi7 the term account manager means an investment manager 7within the meaning of section #c7ch7 of the ,employee ,retirement ,income ,security ,act71 and 7vii7 a lifetime income investment or managed account investment is treated as no longer authorized to be held as an investment under the plan if such treatment applies to all plan participants or to a class of such participants1 as determined in any reasonable manner4 4 7b7 ,cash or deferred arrangement ,clause 7i7 of section #dja7k77#b77;,b7 of such ,code is amended by striking or at the end of subclause 7,,iv71 by striking and at the end of subclause 7,v7 and inserting or1 and by adding at the end of clause 7i7 the following3 7,,vi7 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii77 or a managed account investment 7as defined in section #dja7;a77#ch77;,b77v771 the date that is #ij days prior to the date that such lifetime income investment or such managed account investment may no longer be held as an investment option under the plan 7within the meaning of section #dja7;a77#ch77;,b77vii771 provided that any distribution under this subclause must be in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or1 in the case of a lifetime income investment1 a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv771 and 4 7c7 ,section #djc7;b7 plans 7#a7 ,annuity contracts ,paragraph 7#aa7 of section #djc7;b7 of such ,code is amended by striking or at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c71 and by inserting 1 or1 and by adding at the end the following3 7,d7 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii77 or a managed account investment 7as defined in section #dja7;a77#ch77;,b77v771 the date that is #ij days prior to the date that such lifetime income investment or such managed account investment may no longer be held as an investment option under the plan 7within the meaning of section #dja7;a77#ch77;,b77vii771 provided that any distribution under this subparagraph must be in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or1 in the case of a lifetime income investment1 a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv774 4 7#b7 ,custodial accounts ,clause 7ii7 of section #djc7;b77#g77;,a7 of such ,code is amended to read as follows3 7ii7 under the custodial account1 no such amounts may be paid or made available to any distributee 7unless such amount is a distribution to which section #gb7t77#b77;,g7 applies7 before-- 7,i7 the employee dies1 7,,ii7 the employee attains age #ei1 7,,iii7 the employee has a severance from employment1 7,,iv7 the employee becomes disabled 7within the meaning of section #gb7m77#g771 7,v7 in the case of contributions made pursuant to a salary reduction agreement 7within the meaning of section #caba7;a77#e77;,d771 the employee encounters financial hardship1 or 7,,vi7 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii77 or a managed account investment 7as defined in section #dja7;a77#ch77;,b77v771 the date that is #ij days prior to the date that such lifetime income investment or such managed account investment may no longer be held as an investment option under the plan 7within the meaning of section #dja7;a77#ch77;,b77vii771 provided that any distribution under this subparagraph must be in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or1 in the case of a lifetime income investment1 a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv774 4 7d7 ,eligible deferred compensation plans ,subparagraph 7,a7 of section #deg7;d77#a7 of such ,code is amended by striking or at the end of clause 7ii71 by inserting or at the end of clause 7iii71 and by adding after clause 7iii7 the following3 7iv7 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii77 or a managed account investment 7as defined in section #dja7;a77#ch77;,b77v771 the date that is #ij days prior to the date that such lifetime income investment or such managed account investment may no longer be held as an investment option under the plan 7within the meaning of section #dja7;a77#ch77;,b77vii771 provided that any distribution under this subparagraph must be in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or1 in the case of a lifetime income investment1 a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv771 4 7e7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjag4