,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #debc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,decemb] #a1 #bjag,mr4
 ,neal introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,ways &       
,means1 & 9 addition to ! ,committee on 
,education & ! ,work=ce1 = a p]iod to be
 subsequ5tly det]m9$ by ! ,speak]1 9 ea*
 case = consid]ation ( su* provisions z 
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to exp& retirem5t 
plan cov]age1 increase retirem5t        
security1 & = o!r purposes4  #a4 ,%ort  
title2 table ( cont5ts  7a7 ,%ort title 
,?is ,act may be cit$ z ! ,automatic    
,retirem5t ,plan ,act ( #bjag4  7b7     
,table ( cont5ts ,! table ( cont5ts (   
?is ,act is z foll[s3  ,sec4 #a4 ,%ort  
title2 table ( cont5ts4 ,sec4 #b4       
,employ]s requir$ to ma9ta9 automatic   
contribution plan4 ,sec4 #c4            
,def]ral-only arrangem5ts4 ,sec4 #d4    
,nondiscrim9ation te/+ *anges to        
facilitate high] contributions4 ,sec4   

#e4 ,multiple employ] plans4 ,sec4 #f4  
,limitation on employ] liability4 ,sec4 
#g4 ,portability ( lifetime income      
options4 ,sec4 #h4 ,increase 9 cr$it    
limitation = small employ] p5sion plan  
/>tup co/s4 ,sec4 #i4 ,small employ]    
automatic enrollm5t cr$it4 ,sec4 #aj4   
,treatm5t ( automatic contribution plans
 "u ,/ate law4 ,sec4 #aa4 ,mat*+ paym5ts
 = elective def]ral & ,,ira             
contributions by c]ta9 individuals4     
,sec4 #ab4 ,au?ority to require report+4
  #b4 ,employ]s requir$ to ma9ta9       
automatic contribution plan  7a7        
,automatic contribution plan ,section   
#dad ( ! ,int]nal ,rev5ue ,code ( #aihf 
is am5d$ by add+ at ! end ! foll[+3     
7aa7 ,automatic contribution plan ,=    
purposes ( ?is title--  7#a7 ,9 g5]al ,!
 t]m automatic contribution plan means a
 def9$ contribution plan t-- 7,a7 is    
describ$ 9 clause 7i71 7ii71 or 7iv7 (  
section #bai7;g77#e77;,a71  7,b7 is     
describ$ 9 p>agraph 7#b71 &  7,c7 meets 
! eligibility1 inve/m5t1 lifetime       

income1 & fee requirem5ts describ$ 9    
p>agraphs 7#c71 7#d71 7#e71 & 7#f71     
respectively1 ( ?is subsection4  7#b7   
,plan describ$ ,a plan is describ$ 9 ?is
 p>agraph if ! plan is "o ( ! foll[+3   
7,a7 ,def]ral only ,a def]ral only      
arrangem5t t meets ! requirem5ts (      
section #dja7k77#ad74  7,b7 #djc7;b7    
plan ,a #djc7;b7 plan t-- 7i7 meets !   
requirem5ts ( section #dja7k77#ad71 or  
7ii7 w\ld be describ$ 9 subp>agraph 7,c7
 )\t reg>d to ! ref]5ces to section     
#daf4  7,c7 ,te/+ automatic contribution
 plan ,a plan t--  7i7 w\ld qualify z a 
plan describ$ 9 subp>agraph 7,a71 except
 t su* plan all[s employ] contributions1
 &  7ii7 satisfies sections             
#dja7k77#c77;,a77ii71 #dja7m77#b71 &    
#daf tak+ into acc\nt all applicable    
rules1 includ+--  7,i7 p>agraphs 7#aa71 
7#ab71 & 7#ac7 ( section #dja7k71       
7,,ii7 p>agraphs 7#aj71 7#aa71 & 7#ab7 (
 section #dja7m71 &  7,,iii7 section    
#daf7;g77#d77;,h74  7,d7 ,gr&fa!r$      
automatic contribution plan ,a plan     

describ$ 9 clause 7i71 7ii71 7iv71 7v71 
or 7vi7 ( section #bai7;g77#e77;,a7 t-- 
7i7 is ma9ta9$ by an employ] z ( ! date 
( enactm5t ( ! ,automatic ,retirem5t    
,plan ,act ( #bjag1  7ii7 has be5       
ma9ta9$ by su* employ] 7or a pr$ecessor 
employ]7 = at lea/ #a ye> be=e su* date 
( enactm5t1 &  7iii7 except z provid$ by
 ! ,secret>y1 has n _h its cov]age or   
b5efits sub/antially decreas$ = any plan
 ye> beg9n+ aft] su* date ( enactm5t4   
7#c7 ,eligibility requirem5ts  7,a7 ,9  
g5]al ,subject to subp>agraph 7,b71 !   
eligibility requirem5ts describ$ 9 ?is  
p>agraph are t all employees ( ! employ]
 are eligible to p>ticipate 9 an        
automatic contribution plan ma9ta9$ by !
 employ]4  7,b7 ,c]ta9 exclusions       
,subp>agraph 7,a7 %all n apply to !     
foll[+3 7i7 ,individuals less ?an #ba   
ye>s old ,! employ] may1 b ne$ n1       
include an employee :o has n atta9$ age 
#ba 9 an automatic contribution plan    
ma9ta9$ by ! employ]4  7ii7 ,c]ta9 o!r  
employees ,! employ] may1 b ne$ n1      

include an employee describ$ 9 section  
#daj7;b77#c7 9 an automatic contribution
 plan ma9ta9$ by ! employ]4  7iii7 ,"p  
"t employees1 etc ,no employee may be   
treat$ z ineligible 9 an automatic      
contribution plan ma9ta9$ by ! employ]  
solely by reason ( work+ on a "p-"t1    
tempor>y1 or seasonal basis1 except z   
o!rwise provid$ 9 ?is subp>agraph4  7iv7
 ,new employee ,! employ] may1 b ne$ n1 
exclude an employee f an automatic      
contribution plan ma9ta9$ by ! employ]  
until ! fir/ day ( ! second cal5d> mon? 
beg9n+ on or aft] ! day ! individual    
beg9s "w = ! employ]4  7v7 ,seasonal or 
tempor>y employees ,! employ] may1 b ne$
 n1 exclude an employee f an automatic  
contribution plan ma9ta9$ by ! employ]  
to ! ext5t t su* employee is n expect$  
to "w dur+ m ?an ?ree mon?s dur+ !      
#ab-mon? p]iod />t+ :5 su* employee w\ld
 o!rwise be requir$ to be eligible "u   
su* plan4  7,c7 ,special rules =        
controll$ gr\ps ,eligible employees )9  
an employ] ne$ n be eligible to         

p>ticipate 9 ! same automatic           
contribution plan4 ,= purposes ( ?is    
subsection1 ! t]m employ] %all include  
all employ]s treat$ z a s+le employ] "u 
subsection 7b71 7c71 7m71 or 7o7 (      
section #dad4  7,d7 ,special rules =    
gr&fa!r$ plans ,?is p>agraph %all n     
apply to a plan describ$ 9 p>agraph     
7#b77;,d7 until ! six? plan ye> beg9n+  
on or aft] ! date ( enactm5t ( !        
,automatic ,retirem5t ,plan ,act (      
#bjag4 ,9 ! case ( an eligible employ]  
7z def9$ 9 section #djh7p77#b77;,c77i771
 eigh? %all be sub/itut$ = six? 9 !     
prec$+ s5t5ce4  7#d7 ,inve/m5t          
requirem5ts ,except 9 ! case ( a plan t 
is an automatic contribution plan by    
reason ( p>agraph 7#b77;,d71 any        
inve/m5t made 9 ! abs5ce ( an inve/m5t  
election by a p>ticipant or b5efici>y   
%all be inve/$ 9 accordance )           
regulations prescrib$ by ! ,secret>y (  
,labor "u section #djd7;c77#e7 ( !      
,employee ,retirem5t ,income ,security  
,act ( #aigd4  7#e7 ,lifetime income    

requirem5ts ,except 9 ! case ( a plan t 
is an automatic contribution plan by    
reason ( p>agraph 7#b77;,d71 ! lifetime 
income requirem5ts describ$ 9 ?is       
p>agraph are--  7,a7 ,gu>ante$ income = 
life available ,a plan %all n be treat$ 
z an automatic contribution plan unless 
! plan p]mits p>ticipants to elect to   
receive at lea/ #ej p]c5t ( _! ve/$     
acc\nt balance 9 a =m ( di/ribution     
describ$ 9 section                      
#dja7;a77#ch77;,b77iii74  7,b7          
,exceptions ,?is p>agraph %all n apply )
 respect to any p>ticipant ^: ve/$      
acc\nt balance is #e1jjj or less at ! "t
 ( di/ribution4  7#f7 ,fee requirem5ts  
,"u ! fee requirem5ts ( ?is p>agraph1 no
 p>ticipant may be *>g$ unreasonable    
fees solely on ! basis t ! p>ticipant's 
balance 9 an automatic contribution plan
 is small or solely on ! basis t        
adoption ( su* a plan by ! employee's   
employ] is m&atory4  4  7b7 ,excise tax 
= failure ,to ma9ta9 automatic          
contribution plan ,*apt] #dc ( su* ,code

 is am5d$ by add+ at ! end ! foll[+ new 
section3  #dihj;,j4 ,failure to ma9ta9  
automatic contribution plan  7a7 ,g5]al 
rule  7#a7 ,9 g5]al ,!re is h]eby impos$
 a tax on ! failure ( an employ] to make
 eligible to p>ticipate 9 an automatic  
contribution plan ma9ta9$ by ! employ]  
any employee ( ! employ] :o1 "u ! t]ms (
 section #dad7;aa71 w\ld be requir$ to  
be eligible to p>ticipate 9 an automatic
 contribution plan ma9ta9$ by ! employ]4
  7#b7 ,exceptions  7,a7 ,p>agraph 7#a7 
%all n apply to an employ] to ! ext5t   
su* employ] p>ticipates 9 an arrangem5t 
"u a qualifi$ ,/ate law "u section      
#ead7;f77#b7 ( ! ,employee ,retirem5t   
,income ,security ,act ( #aigd4  7,b7   
,p>agraph 7#a7 %all n apply to an       
employ] ) respect to any employee :o is 
eligible to p>ticipate 9 a diff]5t      
automatic contribution plan ?an "o or m 
o!r employees ( ! employ]4  7b7 ,am\nt (
 tax  7#a7 ,9 g5]al ,! am\nt ( ! tax    
impos$ by subsection 7a7 on any failure 
) respect to an employee %all be #aj =  

ea* day 9 ! noncompliance p]iod )       
respect to su* failure4  7#b7           
,noncompliance p]iod ,= purposes ( ?is  
section1 ! t]m noncompliance p]iod      
means1 ) respect to any failure1 !      
p]iod-- 7,a7 beg9n+ on ! date su*       
failure fir/ occurs1 &  7,b7 end+ on !  
e>li] (-- 7i7 ! date su* failure is     
correct$1 or  7ii7 ) respect to any     
employ]1 ! date t is #c mon?s aft] ! la/
 date on :i* ! employee is requir$ to be
 eligible to p>ticipate 9 an automatic  
contribution plan ma9ta9$ by su*        
employ]4  7c7 ,limitations on am\nt (   
tax  7#a7 ,tax n to apply :]e failure n 
discov]$ ex]cis+ reasonable dilig5ce ,no
 tax %all be impos$ by subsection 7a7 on
 any failure dur+ any p]iod = :i* x is  
e/abli%$ to ! satisfaction ( ! ,secret>y
 t none ( ! p]sons ref]r$ to 9          
subsection 7e7 knew t su* failure exi/$4
  7#b7 ,tax n to apply to failures      
correct$ )9 #i mon?s ,no tax %all be    
impos$ by subsection 7a7 on any failure 
if-- 7,a7 su* failure 0 due to          

reasonable cause & n to willful neglect1
 &  7,b7 su* failure is correct$ dur+ ! 
#i-mon? p]iod beg9n+ on ! fir/ date any 
( ! p]sons ref]r$ to 9 subsection 7e7   
knew t su* failure exi/$4  7#c7 ,ov]all 
limitation = un9t5tional failures ,9 !  
case ( failures :i* are due to          
reasonable cause & n to willful         
neglect-- 7,a7 ,g5]al rule ,! tax impos$
 by subsection 7a7 = failures dur+ !    
taxable ye> ( ! employ] %all n exce$    
#ejj1jjj4  7,b7 ,taxable ye>s 9 ! case (
 c]ta9 controll$ gr\ps ,= purposes ( ?is
 subp>agraph1 if n all p]sons :o are    
treat$ z a s+le employ] = purposes ( ?is
 section h ! same taxable ye>1 ! taxable
 ye>s tak5 into acc\nt %all be det]m9$  
"u pr9ciples simil> to ! pr9ciples (    
section #aefa4  7#d7 ,waiv] by ,secret>y
 ,9 ! case ( a failure :i* is due to    
reasonable cause & n to willful neglect1
 ! ,secret>y may waive "p or all ( ! tax
 impos$ by subsection 7a7 to ! ext5t t !
 paym5t ( su* tax w\ld be excessive     
relative to ! failure involv$4  7d7 ,tax

 n ,to apply 9 c]ta9 cases ,?is section 
%all n apply 9 ! case (-- 7#a7 any      
failure ( an employ] to meet !          
requirem5ts ( subsection 7a7 ) respect  
to any employee if ! failure ) respect  
to su* employee occurr$ dur+ ! cal5d>   
ye> imm$iately foll[+ a cal5d> ye> dur+ 
:i* all employ]s ma9ta9+ su* plan       
normally employ$ #aj or few] employees  
on a typical bus9ess day1  7#b7 any     
gov]nm5tal plan 7)9 ! mean+ ( section   
#dad7;d771  7#c7 any *ur* plan 7)9 !    
mean+ ( section #dad7;e771 or  7#d7     
employ]s t h n be5 9 exi/5ce = ?ree     
ye>s1 tak+ into acc\nt all pr$ecessor   
employ]s4  7e7 ,liability = tax ,!      
employ] %all be liable = ! tax impos$ by
 subsection 7a7 on a failure4 ,all      
employ]s1 det]m9$ )\t reg>d to          
subsection 7f77#b71 %all be jo9tly &    
sev]ally liable = ! liability ( any o!r 
employ] ) :i* !y are aggregat$ "u       
subsection 7f77#b74  7f7 ,def9itions ,= 
purposes ( ?is section-- 7#a7 ! t]m     
automatic contribution plan has ! mean+ 

giv5 su* t]m "u section #dad7;aa71 &    
7#b7 ! t]m employ] includes all employ]s
 treat$ z a s+le employ] "u subsection  
7b71 7c71 7m71 or 7o7 ( section #dad4  4
  7c7 ,cl]ical am5dm5t ,! table (       
sections = *apt] #dc ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new item3  ,sec4      
#dihj;,j4 ,failure to ma9ta9 automatic  
contribution plan4  4  7d7 ,effective   
date  7#a7 ,9 g5]al ,! am5dm5ts made by 
subsection 7a7 %all apply to ye>s beg9n+
 aft] ,decemb] #ca1 #bjag4  7#b7 ,delay$
 effective date  7,a7 ,l>ge employ]s    
,except z provid$ 9 subp>agraph 7,b71 ! 
am5dm5ts made by subsections 7b7 & 7c7  
%all apply to ye>s beg9n+ aft] ,decemb] 
#ca1 #bjai4  7,b7 ,small employ]s ,9 !  
case ( an eligible employ] 7z def9$ 9   
section #djh7p77#b77;,c77i7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf71 ! am5dm5ts made
 by subsections 7b7 & 7c7 %all apply to 
ye>s beg9n+ aft] ,decemb] #ca1 #bjba4   
#c4 ,def]ral-only arrangem5ts  7a7 ,9   
g5]al ,subsection 7k7 ( section #dja ( !

 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by add+ at ! end ! foll[+ new p>agraph3
  7#ad7 ,def]ral-only arrangem5t  7,a7  
,9 g5]al ,a def]ral-only arrangem5t %all
 be treat$ z meet+ ! requirem5ts (      
p>agraph 7#c77;,a77ii74  7,b7           
,def]ral-only arrangem5t ,= purposes (  
?is p>agraph1 ! t]m def]ral-only        
arrangem5t means any ca% or def]r$      
arrangem5t :i* meets--  7i7 ! automatic 
def]ral requirem5ts ( subp>agraph 7,c71 
7ii7 ! elective contribution requirem5t 
( subp>agraph 7,d71 &  7iii7 !          
requirem5ts ( subp>agraph 7,e7 (        
p>agraph 7#ac74  7,c7 ,automatic def]ral
  7i7 ,9 g5]al ,! requirem5ts ( ?is     
subp>agraph are met if1 "u ! arrangem5t1
 ea* employee eligible to p>ticipate 9 !
 arrangem5t :o is n contribut+ or is    
contribut+ less ?an ! qualifi$ p]c5tage 
applicable to an eligible employee 9 !  
fir/ ye> ( eligibility is treat$ z hav+ 
elect$ 9 applicable ye>s to h ! employ] 
make elective contributions 9 an am\nt  
equal to ! qualifi$ p]c5tage (          

comp5sation applicable "u clause 7iii74 
,9 ! abs5ce ( an election out z describ$
 9 clause 7ii71 su* election %all1 z    
adju/$ "u clause 7iii71 rema9 9 effect =
 all subsequ5t ye>s1 reg>dless ( :e!r   
su* ye>s are applicable ye>s4  7ii7     
,election out ,! election treat$ z hav+ 
be5 made "u clause 7i7 %all cease to    
apply ) respect to any employee if su*  
employee makes an affirmative election--
  7,i7 to n h su* contributions made1 or
  7,,ii7 to make elective contributions 
at a level specifi$ 9 su* affirmative   
election4  7iii7 ,qualifi$ p]c5tage ,=  
purposes ( ?is subp>agraph1 ) respect to
 any employee1 ! t]m qualifi$ p]c5tage  
means1 9 lieu ( ! mean+ giv5 su* t]m 9  
p>agraph 7#ac77;,c77iii71 any p]c5tage  
det]m9$ "u ! arrangem5t if su* p]c5tage 
is appli$ uni=mly & is--  7,i7 at lea/  
#f p]c5t1 b n great] ?an #aj p]c5t1 dur+
 ! p]iod end+ on ! la/ day ( ! fir/ plan
 ye> :i* beg9s aft] ! date on :i* ! fir/
 elective contribution describ$ 9 clause
 7i7 is made ) respect to su* employee  

7disreg>d+ any elective contribution    
made = any prec$+ ye> t prec$$ a ye> 9  
:i* ! employee made an affirmative      
election describ$ 9 clause 7ii771       
7,,ii7 at lea/ #g p]c5t dur+ ! fir/ plan
 ye> foll[+ ! plan ye> describ$ 9       
subclause 7,i71  7,,iii7 at lea/ #h     
p]c5t dur+ ! fir/ plan ye> foll[+ ! plan
 ye> describ$ 9 subclause 7,,ii71       
7,,iv7 at lea/ #i p]c5t dur+ ! fir/ plan
 ye> foll[+ ! plan ye> describ$ 9       
subclause 7,,iii71 &  7,v7 ,at lea/ #aj 
p]c5t dur+ any subsequ5t plan ye>4  7iv7
 ,applicable ye> e ?ird ye>  7,i7 ,9    
g5]al ,= purposes ( ?is subp>agraph1 !  
t]m applicable ye> means1 ) respect to  
an employee1 su* employee's fir/ plan   
ye> ( eligibility "u ! arrangem5t1 & all
 subsequ5t plan ye>s ( eligibility4     
7,,ii7 ,exception ,foll[+ any applicable
 ye> ( ! employee 7det]m9$ aft] !       
application ( ?is subclause71 ! plan may
 elect to treat ! next "o or two plan   
ye>s z n be+ applicable ye>s ) respect  
to su* employee4  7,d7 ,elective        

contributions  7i7 ,9 g5]al ,!          
requirem5ts ( ?is subp>agraph are met if
 "u ! plan conta9+ ! arrangem5t-- 7,i7 !
 only contributions :i* may be made are 
elective contributions ( employees :o   
are eligible to p>ticipate 9 !          
arrangem5t1 &  7,,ii7 ! aggregate am\nt 
( su* elective contributions :i* may be 
made ) respect to any employee = any    
cal5d> ye> %all n exce$ #h1jjj4  7ii7   
,co/ ( liv+ adju/m5t ,9 ! case ( any    
cal5d> ye> beg9n+ aft] ,decemb] #ca1    
#bjah1 ! #h1jjj am\nt "u clause 7i7 %all
 be adju/$ 9 ! same mann] z co/ ( liv+  
adju/m5ts are made "u section           
#djb7;g77#d71 except t #bjag %all be    
sub/itut$ = #bjje4  7iii7 ,cross ref]5ce
 ,= cat*-up contributions = individuals 
age #ej or ov]1 see section #dad7v74  4 
7b7 ,cat*-,up contributions =           
individuals age #ej & ov]  7#a7 ,clause 
7i7 ( section #dad7v77#b77;,b7 ( su*    
,code is am5d$ by ins]t+ 1 #dja7k77#ad71
 aft] #dja7k77#aa74  7#b7 ,section      
#dad7v77#b77;,b7 ( su* ,code is am5d$ by

 add+ at ! end !re( ! foll[+ clause3    
7iii7 9 ! case ( an applicable employ]  
plan describ$ 9 section #dja7k77#ad71 ! 
applicable doll> am\nt is #a1jjj4  4    
7#c7 ,section #dad7v77#b77;,c7 ( su*    
,code is am5d$ by-- 7,a7 by /rik+       
7,b77i7 & & ins]t+ 7,b77i71 & by ins]t+ 
aft] subp>agraph 7,b77ii7 ! foll[+3 1 & 
! #a1jjj am\nt describ$ 9 subp>agraph   
7,b77iii71 &  7,b7 ins]t+ aft] #bjje !  
foll[+3 7! cal5d> qu>t] beg9n+ ,july #a1
 #bjag1 9 ! case ( ! #a1jjj am\nt       
describ$ 9 subp>agraph 7,b77iii774  7c7 
,simplifi$ report+ ,section             
#ajd7;a77#b77;,a7 ( ! ,employee         
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajbd7;a77#b77 is  
am5d$ by ins]t+ or = any p5sion plan :i*
 is a def]ral-only arrangem5t describ$ 9
 section #dja7k77#ad77;,b7 ( ! ,int]nal 
,rev5ue ,code ( #aihf be=e ! p]iod at ! 
end4  7d7 ,plans n treat$ z top-,heavy  
plans ,clause 7i7 ( section             
#daf7;g77#d77;,h7 ( su* ,code is am5d$  
by /rik+ or #dja7k77#ac7 & ins]t+       

#dja7k77#ac71 or #dja7k77#ad74  7e7     
,effective date ,! am5dm5ts made by ?is 
section %all apply to plan ye>s beg9n+  
aft] ,decemb] #ca1 #bjag4  #d4          
,nondiscrim9ation te/+ *anges to        
facilitate high] contributions  7a7 ,9  
g5]al ,clause 7iii7 ( section           
#dja7k77#ac77;,c7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by /rik+ 1 does n
 exce$ #aj p]c5t1 & is at lea/ & ins]t+ 
& is4  7b7 ,con=m+ am5dm5ts  7#a7       
,subclause 7,i7 ( section               
#dja7k77#ac77;,c77iii7 ( su* ,code is   
am5d$ by /rik+ #c p]c5t & ins]t+ at lea/
 #c p]c5t1 b n great] ?an #aj p]c5t14   
7#b7 ,subclause 7,,ii7 ( section        
#dja7k77#ac77;,c77iii7 ( su* ,code is   
am5d$ by /rik+ #d p]c5t & ins]t+ at lea/
 #d p]c5t4  7#c7 ,subclause 7,,iii7 (   
section #dja7k77#ac77;,c77iii7 ( su*    
,code is am5d$ by /rik+ #e p]c5t &      
ins]t+ at lea/ #e p]c5t4  7#d7          
,subclause 7,,iv7 ( section             
#dja7k77#ac77;,c77iii7 ( su* ,code is   
am5d$ by /rik+ #f p]c5t & ins]t+ at lea/

 #f p]c5t4  7c7 ,mat*+ contributions    
,clause 7i7 ( section #dja7m77#aa77;,b7 
( su* ,code is am5d$ by /rik+ #f &      
ins]t+ #aj4  7d7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to plan ye>s beg9n+ aft] ,decemb] #ca1  
#bjag4  #e4 ,multiple employ] plans  7a7
 ,qualification requirem5ts  7#a7 ,9    
g5]al ,section #dac ( ! ,int]nal ,rev5ue
 ,code ( #aihf1 z am5d$ by ?is ,act1 is 
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7g7 ,application (         
qualification requirem5ts = c]ta9       
multiple employ] plans ) pool$ plan     
provid]s  7#a7 ,9 g5]al ,except z       
provid$ 9 p>agraph 7#b71 a def9$        
contribution plan to :i* subsection 7c7 
applies %all n be treat$ z fail+ to meet
 ! requirem5ts "u ?is title applicable  
to a plan describ$ 9 section #dja7;a7 or
 to a plan t consi/s ( individual       
retirem5t acc\nts describ$ 9 section    
#djh 7includ+ by reason ( subsection 7c7
 !re(71 :i*ev] is applicable1 m]ely     
because "o or m employ]s ( employees    

cov]$ by ! plan fail to take su* actions
 z are requir$ ( su* employ]s = ! plan  
to meet su* requirem5ts if ! plan--     
7,a7 is sponsor$ by employ]s all ( :i* h
 bo? a common int]e/ o!r ?an hav+ adopt$
 ! plan & control ( ! plan1 or  7,b7 9 !
 case ( a plan n describ$ 9 subp>agraph 
7,a71 has a pool$ plan provid]4  7#b7   
,limitations  7,a7 ,9 g5]al ,p>agraph   
7#a7 %all n apply to any plan unless !  
t]ms ( ! plan provide t 9 cases (       
employ]s fail+ to take ! actions        
describ$ 9 p>agraph 7#a7--  7i7 ! assets
 ( ! plan attributable to employees ( ! 
employ] w be transf]r$ to a plan ma9ta9$
 only by ! employ] 7or its successor71  
to an eligible retirem5t plan z def9$ 9 
section #djb7;c77#h77;,b7 = ea*         
individual ^: acc\nt is transf]r$1 or to
 any o!r arrangem5t t ! ,secret>y       
det]m9es is appropriate1 unless !       
,secret>y det]m9es x is 9 ! be/ int]e/s 
( su* employees to reta9 ! assets 9 !   
plan1 &  7ii7 ! employ] describ$ 9      
clause 7i7 7& n ! plan ) respect to :i* 

! failure occurr$ or any o!r p>ticipat+ 
employ] 9 su* plan7 %all1 except to !   
ext5t provid$ by ! ,secret>y1 be liable 
= any liabilities ) respect to su* plan 
attributable to employees ( ! employ]4  
7,b7 ,failures by pool$ plan provid]s   
,if ! pool$ plan provid] ( a plan       
describ$ 9 p>agraph 7#a77;,b7 does n    
p]=m sub/antially all ( ! adm9i/rative  
duties :i* are requir$ ( ! provid] "u   
p>agraph 7#c77;,a77i7 = any plan ye>1 ! 
,secret>y1 9 ! ,secret>y's own          
discretion1 may provide t ! det]m9ation 
z to :e!r ! plan meets ! requirem5ts "u 
?is title applicable to a plan describ$ 
9 section #dja7;a7 or to a plan t       
consi/s ( individual retirem5t acc\nts  
describ$ 9 section #djh 7includ+ by     
reason ( subsection 7c7 !re(71 :i*ev] is
 applicable1 %all be made 9 ! same mann]
 z w\ld be made )\t reg>d to p>agraph   
7#a74  7#c7 ,pool$ plan provid] ,=      
purposes ( ?is subsection-- 7,a7 ,9     
g5]al ,! t]m pool$ plan provid] means1 )
 respect to any plan1 a p]son :o--  7i7 

is designat$ by ! t]ms ( ! plan z a nam$
 fiduci>y 7z def9$ 9 section            
#djb7;a77#b7 ( ! ,employee ,retirem5t   
,income ,security ,act ( #aigd71 z !    
plan adm9i/rator1 & z ! p]son           
responsible to p]=m all adm9i/rative    
duties 7includ+ conduct+ prop] te/+ )   
respect to ! plan & employees ( ea*     
p>ticipat+ employ]7 :i* are reasonably  
necess>y to ensure t--  7,i7 ! plan     
meets any requirem5t applicable "u !    
,employee ,retirem5t ,income ,security  
,act ( #aigd or ?is title to a plan     
describ$ 9 section #dja7;a7 or to a plan
 t consi/s ( individual retirem5t       
acc\nts describ$ 9 section #djh 7includ+
 by reason ( subsection 7c7 !re(71      
:i*ev] is applicable1 &  7,,ii7 ea*     
p>ticipat+ employ] takes su* actions z !
 ,secret>y or su* p]son det]m9es are    
necess>y = ! plan to meet ! requirem5ts 
describ$ 9 subclause 7,i71 includ+      
provid+ to su* p]son any disclosures or 
o!r in=mation :i* ! ,secret>y may       
require or :i* su* p]son o!rwise        

det]m9es is necess>y to adm9i/] ! plan  
or to all[ ! plan to meet su*           
requirem5ts1  7ii7 regi/]s z a pool$    
plan provid] ) ! ,secret>y1 & provides  
su* o!r in=mation to ! ,secret>y z !    
,secret>y may require1 be=e beg9n+      
op]ations z a pool$ plan provid]1  7iii7
 ackn[l$ges 9 writ+ t su* p]son is a    
nam$ fiduci>y 7)9 ! mean+ ( section     
#djb7;a77#b7 ( ! ,employee ,retirem5t   
,income ,security ,act ( #aigd71 & !    
plan adm9i/rator1 ) respect to ! plan1 &
  7iv7 is responsible = ensur+ t all    
p]sons :o h&le assets (1 or :o are      
fiduci>ies (1 ! plan are bond$ 9        
accordance ) section #dab ( ! ,employee 
,retirem5t ,income ,security ,act (     
#aigd4  7,b7 ,audits1 exam9ations1 &    
inve/igations ,! ,secret>y may p]=m     
audits1 exam9ations1 & inve/igations (  
pool$ plan provid]s z may be necess>y to
 en=ce & c>ry out ! purposes ( ?is      
subsection4  7#d7 ,guidance  7,a7 ,9    
g5]al ,! ,secret>y %all issue su*       
guidance z ! ,secret>y det]m9es         

appropriate to c>ry out ?is subsection1 
includ+ guidance--  7i7 to id5tify !    
adm9i/rative duties & o!r actions       
requir$ to be p]=m$ by a pool$ plan     
provid] "u ?is subsection1  7ii7 :i*    
describes ! proc$ures to be tak5 to     
t]m9ate a plan :i* fails to meet !      
requirem5ts to be a plan describ$ 9     
p>agraph 7#a71 includ+ ! prop] treatm5t 
(1 & actions ne$$ to be tak5 by1 any    
p>ticipat+ employ] ( ! plan & ! assets &
 liabilities ( ! plan ) respect to      
employees ( t employ]1 &  7iii7 id5tify+
 appropriate cases to :i* ! rules (     
p>agraph 7#b77;,a7 w apply to employ]s  
fail+ to take ! actions describ$ 9      
p>agraph 7#a74  ,! ,secret>y %all take  
into acc\nt "u clause 7iii7 :e!r !      
failure ( an employ] or pool$ plan      
provid] to provide any disclosures or   
o!r in=mation1 or to take any o!r       
action1 necess>y to adm9i/] a plan or to
 all[ a plan to meet requirem5ts        
applicable to ! plan "u section #dja7;a7
 or #djh1 :i*ev] is applicable1 has     

cont9u$ ov] a p]iod ( "t t cle>ly       
demon/rates a lack ( commitm5t to       
compliance4  7,b7 ,prospective          
application ,any guidance issu$ by !    
,secret>y "u ?is p>agraph %all n apply  
to any action or failure occurr+ be=e ! 
issuance ( su* guidance4  7#e7 ,model   
plan ,no lat] ?an ,june #cj1 #bjah1 !   
,secret>y %all1 9 consultation ) !      
,secret>y ( ,labor :5 appropriate1      
publi% model plan language :i* meets !  
requirem5ts ( ?is subsection & (        
p>agraphs 7#dc7 & 7#dd7 ( section #c ( !
 ,employee ,retirem5t ,income ,security 
,act ( #aigd & :i* may be adopt$ 9 ord] 
= a plan to be treat$ z a plan describ$ 
9 p>agraph 7#a77;,b74 ,su* model plans  
%all also include options "u :i* !y c be
 us$ by plans t are n pool$ employ]     
plans4  4  7#b7 ,con=m+ am5dm5t         
,p>agraph 7#c7 ( section #dac7;b7 ( su* 
,code is am5d$ by /rik+ section #dja7;a7
 & ins]t+ sections #dja7;a7 & #djh7;c74 
7#c7 ,te*nical am5dm5t ,subsection 7c7 (
 section #djh ( su* ,code is am5d$ by   

ins]t+ aft] p>agraph 7#b7 ! foll[+ new  
p>agraph3  7#c7 ,!re is a sep>ate       
acc\nt+ = any int]e/ ( an employee or   
memb] 7or sp\se ( an employee or memb]7 
9 a ,ro? ,,ira4  4  7b7 ,no common      
int]e/ requir$ = pool$ employ] plans    
,section #c7b7 ( ! ,employee ,retirem5t 
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajjb7b77 is am5d$ by add+ at 
! end ! foll[+3  7,c7 ,a pool$ employ]  
plan %all be treat$ z-- 7i7 a s+le      
employee p5sion b5efit plan or s+le     
p5sion plan1 &  7ii7 a plan to :i*      
section #baj7;a7 applies4  4  7c7 ,pool$
 employ] plan & provid] def9$  7#a7 ,9  
g5]al ,section #c ( ! ,employee         
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajjb7 is am5d$ by 
add+ at ! end ! foll[+3  7#dc7 ,pool$   
employ] plan  7,a7 ,9 g5]al ,! t]m pool$
 employ] plan means a plan-- 7i7 :i* is 
an individual acc\nt plan e/abli%$ or   
ma9ta9$ = ! purpose ( provid+ b5efits to
 ! employees ( two or m employ]s2  7ii7 
:i* is a plan describ$ 9 section        

#dja7;a7 ( ! ,int]nal ,rev5ue ,code (   
#aihf :i* includes a tru/ exempt f tax  
"u section #eja7;a7 ( su* ,code or a    
plan t consi/s ( individual retirem5t   
acc\nts describ$ 9 section #djh ( su*   
,code 7includ+ by reason ( subsection   
7c7 !re(72 &  7iii7 ! t]ms ( :i* meet ! 
requirem5ts ( subp>agraph 7,b74  ,su*   
t]m %all n include a plan ) respect to  
:i* all ( ! p>ticipat+ employ]s h bo? a 
common int]e/ o!r ?an hav+ adopt$ ! plan
 & control ( ! plan4  7,b7 ,requirem5ts 
= plan t]ms ,! requirem5ts ( ?is        
subp>agraph are met ) respect to any    
plan if ! t]ms ( ! plan--  7i7 designate
 a pool$ plan provid] & provide t !     
pool$ plan provid] is a nam$ fiduci>y ( 
! plan2  7ii7 designate "o or m tru/ees 
meet+ ! requirem5ts ( section           
#djh7;a77#b7 ( ! ,int]nal ,rev5ue ,code 
( #aihf 7o!r ?an a p>ticipat+ employ]7  
to be responsible = collect+            
contributions to1 & hold+ ! assets (1 ! 
plan & require su* tru/ees to implem5t  
writt5 contribution collection proc$ures

 t are reasonable1 dilig5t1 & sy/ematic2
  7iii7 except z provid$ 9 section      
#djd7;e71 provide t ea* p>ticipat+      
employ] reta9s fiduci>y responsibility  
=--  7,i7 ! selection & monitor+ 9      
accordance ) section #djd7;a7 ( ! p]son 
designat$ z ! pool$ plan provid] & any  
o!r p]son :o1 9 addition to ! pool$ plan
 provid]1 is designat$ z a nam$ fiduci>y
 ( ! plan2 &  7,,ii7 to ! ext5t n       
o!rwise delegat$ to ano!r fiduci>y by ! 
pool$ plan provid] & subject to !       
provisions ( section #djd7;c71 !        
inve/m5t & managem5t ( t portion ( !    
plan's assets attributable to !         
employees ( t p>ticipat+ employ]2  7iv7 
provide t a p>ticipat+ employ]1 or a    
p>ticipant or b5efici>y1 is n subject to
 unreasonable re/rictions1 fees1 or     
p5alties ) reg>d to ceas+ p>ticipation1 
receipt ( di/ributions1 or o!rwise      
transf]r+ assets ( ! plan 9 accordance )
 section #bjh or p>agraph               
7#dd77;,c77i77,,ii72  7v7 require-- 7,i7
 ! pool$ plan provid] to provide to     

p>ticipat+ employ]s any disclosures or  
o!r in=mation :i* ! ,secret>y may       
require1 includ+1 z applicable1 any     
disclosures or o!r in=mation to         
facilitate ! selection or any monitor+ (
 ! pool$ plan provid] by p>ticipat+     
employ]s2 &  7,,ii7 ea* p>ticipat+      
employ] to take su* actions z !         
,secret>y or ! pool$ plan provid]       
det]m9es are necess>y to adm9i/] ! plan 
or = ! plan to meet any requirem5t      
applicable "u ?is ,act or ! ,int]nal    
,rev5ue ,code ( #aihf to a plan describ$
 9 section #dja7;a7 ( su* ,code or to a 
plan t consi/s ( individual retirem5t   
acc\nts describ$ 9 section #djh ( su*   
,code 7includ+ by reason ( subsection   
7c7 !re(71 :i*ev] is applicable1 includ+
 provid+ any disclosures or o!r         
in=mation :i* ! ,secret>y may require or
 :i* ! pool$ plan provid] o!rwise       
det]m9es is necess>y to adm9i/] ! plan  
or to all[ ! plan to meet su*           
requirem5ts2 &  7vi7 provide t any      
disclosure or o!r in=mation requir$ to  

be provid$ "u clause 7v7 may be provid$ 
9 electronic =m & w be design$ to ensure
 only reasonable co/s are impos$ on     
pool$ plan provid]s & p>ticipat+        
employ]s4  7,c7 ,exceptions ,! t]m pool$
 employ] plan does n include-- 7i7 a    
multiemploy] plan2  7ii7 a plan e/abli%$
 be=e ,janu>y #a1 #bjaf1 unless ! plan  
adm9i/rator elects t ! plan w be treat$ 
z a pool$ employ] plan & ! plan meets ! 
requirem5ts ( ?is title applicable to a 
pool$ employ] plan e/abli%$ on or aft]  
su* date2 &  7iii7 a plan ) respect to  
:i* all ( ! p>ticipat+ employ]s h bo? a 
common int]e/ o!r ?an hav+ adopt$ ! plan
 & control ( ! plan4  7#dd7 ,pool$ plan 
provid]  7,a7 ,9 g5]al ,! t]m pool$ plan
 provid] means a p]son :o-- 7i7 is      
designat$ by ! t]ms ( a pool$ employ]   
plan z a nam$ fiduci>y1 z ! plan        
adm9i/rator1 & z ! p]son responsible = !
 p]=mance ( all adm9i/rative duties     
7includ+ conduct+ prop] te/+ ) respect  
to ! plan & employees ( ea* p>ticipat+  
employ]7 :i* are reasonably necess>y to 

ensure t--  7,i7 ! plan meets any       
requirem5t applicable "u ?is ,act or !  
,int]nal ,rev5ue ,code ( #aihf to a plan
 describ$ 9 section #dja7;a7 ( su* ,code
 or to a plan t consi/s ( individual    
retirem5t acc\nts describ$ 9 section    
#djh ( su* ,code 7includ+ by reason (   
subsection 7c7 !re(71 :i*ev] is         
applicable2 &  7,,ii7 ea* p>ticipat+    
employ] takes su* actions z ! ,secret>y 
or pool$ plan provid] det]m9es are      
necess>y = ! plan to meet ! requirem5ts 
describ$ 9 subclause 7,i71 includ+      
provid+ ! disclosures & in=mation       
describ$ 9 p>agraph 7#dc77;,b77v77,,ii72
  7ii7 regi/]s z a pool$ plan provid] ) 
! ,secret>y1 & provides to ! ,secret>y  
su* o!r in=mation z ! ,secret>y may     
require1 be=e beg9n+ op]ations z a pool$
 plan provid]2  7iii7 ackn[l$ges 9 writ+
 t su* p]son is a nam$ fiduci>y1 & !    
plan adm9i/rator1 ) respect to ! pool$  
employ] plan2 &  7iv7 is responsible =  
ensur+ t all p]sons :o h&le assets (1 or
 :o are fiduci>ies (1 ! pool$ employ]   

plan are bond$ 9 accordance ) section   
#dab4  7,b7 ,audits1 exam9ations1 &     
inve/igations ,! ,secret>y may p]=m     
audits1 exam9ations1 & inve/igations (  
pool$ plan provid]s z may be necess>y to
 en=ce & c>ry out ! purposes ( ?is      
p>agraph & p>agraph 7#dc74  7,c7        
,guidance  7i7 ,9 g5]al ,! ,secret>y    
%all issue su* guidance z ! ,secret>y   
det]m9es appropriate to c>ry out ?is    
p>agraph & p>agraph 7#dc71 includ+      
guidance--  7,i7 to id5tify !           
adm9i/rative duties & o!r actions       
requir$ to be p]=m$ by a pool$ plan     
provid] "u ei!r su* p>agraph2 &  7,,ii7 
:i* requires 9 appropriate cases t if a 
p>ticipat+ employ] fails to take !      
actions requir$ "u subp>agraph          
7,a77i77,,ii7--  7aa7 ! assets ( ! plan 
attributable to employees ( ! p>ticipat+
 employ] are transf]r$ to a plan ma9ta9$
 only by ! p>ticipat+ employ] 7or its   
successor71 to an eligible retirem5t    
plan z def9$ 9 section #djb7;c77#h77;,b7
 ( ! ,int]nal ,rev5ue ,code ( #aihf =   

ea* individual ^: acc\nt is transf]r$1  
or to any o!r arrangem5t t ! ,secret>y  
det]m9es is appropriate 9 su* guidance2 
&  7bb7 ! p>ticipat+ employ] describ$ 9 
item 7aa7 7& n ! plan ) respect to :i* !
 failure occurr$ or any o!r p>ticipat+  
employ] 9 su* plan7 %all1 except to !   
ext5t provid$ 9 su* guidance1 be liable 
= any liabilities ) respect to su* plan 
attributable to employees ( ! p>ticipat+
 employ]4  ,! ,secret>y %all take into  
acc\nt "u subclause 7,,ii7 :e!r !       
failure ( an employ] or pool$ plan      
provid] to provide any disclosures or   
o!r in=mation1 or to take any o!r       
action1 necess>y to adm9i/] a plan or to
 all[ a plan to meet requirem5ts        
describ$ 9 subp>agraph 7,a77i77,,ii7 has
 cont9u$ ov] a p]iod ( "t t cle>ly      
demon/rates a lack ( commitm5t to       
compliance4 ,! ,secret>y may waive !    
requirem5ts ( subclause 7,,ii77aa7 9    
appropriate circum/ances if ! ,secret>y 
det]m9es x is 9 ! be/ int]e/s ( !       
employees ( ! p>ticipat+ employ]        

describ$ 9 su* clause to reta9 ! assets 
9 ! plan ) respect to :i* ! employ]'s   
failure occurr$4  7ii7 ,prospective     
application ,any guidance issu$ by !    
,secret>y "u ?is subp>agraph %all n     
apply to any action or failure occurr+  
be=e ! issuance ( su* guidance4  7,d7   
,aggregation rules ,= purposes ( ?is    
p>agraph-- 7i7 ,9 g5]al ,9 det]m9+ :e!r 
a p]son meets ! requirem5ts ( ?is       
p>agraph to be a pool$ plan provid] )   
respect to any plan1 all p]sons :o are  
memb]s ( ! same controll$ gr\p & :o p]=m
 s]vices = ! plan %all be treat$ z "o   
p]son4  7ii7 ,memb]s ( common gr\p      
,p]sons %all be treat$ z memb]s ( ! same
 controll$ gr\p if su* p]sons are treat$
 z a s+le employ] "u subsection 7c7 or  
7d7 ( section #baj4  4  7#b7 ,bond+     
requirem5ts = pool$ employ] plans ,! la/
 s5t5ce ( section #dab7;a7 ( ! ,employee
 ,retirem5t ,income ,security ,act (    
#aigd 7#bi ,u4,s4,c4 #aaab7;a77 is am5d$
 by ins]t+ or 9 ! case ( a pool$ employ]
 plan 7z def9$ 9 section #c7dc7 aft]    

section #djg7;d77#a774  7#c7 ,con=m+ &  
te*nical am5dm5ts ,section #c ( !       
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #ajjb7 is   
am5d$-- 7,a7 9 p>agraph 7#af77;,b7--    
7i7 by /rik+ or at ! end ( clause 7ii72 
&  7ii7 by /rik+ ! p]iod at ! end &     
ins]t+ 1 or 7iv7 9 ! case ( a pool$     
employ] plan1 ! pool$ plan provid]42 &  
7,b7 by /rik+ ! second p>agraph 7#da74  
7d7 ,effective date  7#a7 ,9 g5]al ,!   
am5dm5ts made by ?is section %all apply 
to ye>s beg9n+ aft] ,decemb] #ca1 #bjai4
  7#b7 ,rule ( con/ruction ,no?+ 9 !    
am5dm5ts made by subsection 7a7 %all be 
con/ru$ z limit+ ! au?ority ( !         
,secret>y ( ! ,treasury or ! ,secret>y's
 delegate 7det]m9$ )\t reg>d to su*     
am5dm5t7 to provide = ! prop] treatm5t (
 a failure to meet any requirem5t       
applicable "u ! ,int]nal ,rev5ue ,code (
 #aihf ) respect to "o employ] 7& its   
employees7 9 a multiple employ] plan4   
#f4 ,limitation on employ] liability    
,section #djd ( ! ,employee ,retirem5t  

,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajba et seq47 is am5d$ by    
add+ at ! end ! foll[+3  7e7  7#a7 ,an  
eligible employ] 7z def9$ 9 section     
#djh7p77#b77;,c77i7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf7 %all n be a fiduci>y 9  
any respect ) respect to a pool$ employ]
 plan1 includ+ ) respect to ! selection 
or monitor+ ( any plan s]vice provid] or
 any inve/m5t "u ! plan1 if ! pool$ plan
 provid]--  7,a7 receives no m ?an      
reasonable comp5sation = its s]vices1 z 
agre$ to by ! eligible employ]1 &  7,b7 
agrees 9 ! plan docum5t to-- 7i7 comply 
) all requirem5ts applicable to a pool$ 
plan provid] "u ?is title1 &  7ii7      
assume1 ) respect to su* eligible       
employ] z agre$ to by ! eligible        
employ]1 all fiduci>y responsibility )  
respect to ! plan n reta9$ by ! eligible
 employ]1 &  7,c7 notifies ! eligible   
employ] ( its obligations "u ! pool$    
employ] plan4  7#b7 ,not)/&+ p>agraph   
7#a71 eligible employ]s p>ticipat+ 9 su*
 a pool$ employ] plan %all be           

responsible =--  7,a7 meet+ ! enrollm5t 
requirem5ts applicable to su* employ] "u
 ! plan1  7,b7 transmitt+ contributions 
to ! plan 9 accordance ) ! t]ms ( !     
plan1  7,c7 provid+ su* in=mation &     
assi/ance z is )9 ! sole control ( !    
eligible employ] & is ne$$ by ! plan to 
op]ate 9 accordance ) ! plan docum5t1 & 
7,d7 provid+ su* o!r in=mation or       
assi/ance 9 accordance ) regulations    
prescrib$ by ! ,secret>y4  4  #g4       
,portability ( lifetime income options  
7a7 ,9 g5]al ,subsection 7a7 ( section  
#dja ( ! ,int]nal ,rev5ue ,code ( #aihf 
is am5d$ by ins]t+ aft] p>agraph 7#cg7 !
 foll[+ new p>agraph3  7#ch7            
,portability ( lifetime income & manag$ 
acc\nt options  7,a7 ,9 g5]al ,a tru/   
=m+ "p ( a def9$ contribution plan %all 
n be treat$ z fail+ to con/itute a      
qualifi$ tru/ "u ?is section solely by  
reason ( all[+--  7i7 qualifi$          
di/ributions ( a lifetime income        
inve/m5t or a manag$ acc\nt inve/m5t1 or
  7ii7 di/ributions ( a lifetime income 

inve/m5t 9 ! =m ( a qualifi$ plan       
di/ribution annuity contract1  on or    
aft] ! date t is #ij days prior to !    
date on :i* su* lifetime income inve/m5t
 or su* manag$ acc\nt inve/m5t is no    
long] au?oriz$ to be held z an inve/m5t 
option "u ! plan except z may o!rwise be
 provid$ by regulations4  7,b7          
,def9itions ,= purposes ( ?is           
subsection-- 7i7 ! t]m qualifi$         
di/ribution means a direct              
tru/ee-to-tru/ee transf] to an eligible 
retirem5t plan 7z def9$ 9 section       
#djb7;c77#h77;,b771 z describ$ 9 section
 #dja7;a77#ca77;,a71 & 9 ! case ( a     
manag$ acc\nt inve/m5t1 ! eligible      
retirem5t plan mu/ be ma9ta9$ by !      
acc\nt manag] ( su* manag$ acc\nt       
inve/m5t1  7ii7 ! t]m lifetime income   
inve/m5t means an inve/m5t option t is  
design$ to provide an employee )        
election rights-- 7,i7 t are n uni=mly  
available ) respect to o!r inve/m5t     
options "u ! plan1 &  7,,ii7 t are to a 
lifetime income feature available ?r\gh 

a contract or o!r arrangem5t (f]$ "u !  
plan or "u ano!r eligible retirem5t plan
 7z def9$ 9 section #djb7;c77#h77;,b77  
?r\gh a direct tru/ee-to-tru/ee transf] 
to su* o!r eligible retirem5t plan "u   
section #dja7;a77#ca77;,a71  7iii7 ! t]m
 lifetime income feature means-- 7,i7 a 
feature t gu>antees a m9imum level (    
income annually 7or m frequ5tly7 = at   
lea/ ! rema9d] ( ! life ( ! employee or 
! jo9t lives ( ! employee & ! employee's
 designat$ b5efici>y1 or  7,,ii7 an     
annuity payable on behalf ( ! employee  
"u :i* paym5ts are made 9 sub/antially  
equal p]iodic paym5ts 7n less frequ5tly 
?an annually7 ov] ! life ( ! employee or
 ! jo9t lives ( ! employee & !          
employee's designat$ b5efici>y1  7iv7 ! 
t]m qualifi$ plan di/ribution annuity   
contract means an annuity contract      
pur*as$ = a p>ticipant & di/ribut$ to ! 
p>ticipant by a plan describ$ 9         
subp>agraph 7,b7 ( section #djb7;c77#h7 
7)\t reg>d to clauses 7i7 & 7ii7 !re(71 
7v7 ! t]m manag$ acc\nt inve/m5t means  

an inve/m5t option "u :i* ! assets ( !  
employee's individual acc\nt are manag$ 
by an acc\nt manag]1 apply+ g5]ally     
accept$ inve/m5t !ories1 to a*ieve v>y+ 
degrees ( long-t]m appreciation &       
capital pres]vation bas$ on ! employee's
 age1 t>get retirem5t date or life      
expectancy1  7vi7 ! t]m acc\nt manag]   
means an inve/m5t manag] 7)9 ! mean+ (  
section #c7ch7 ( ! ,employee ,retirem5t 
,income ,security ,act71 &  7vii7 a     
lifetime income inve/m5t or manag$      
acc\nt inve/m5t is treat$ z no long]    
au?oriz$ to be held z an inve/m5t "u !  
plan if su* treatm5t applies to all plan
 p>ticipants or to a class ( su*        
p>ticipants1 z det]m9$ 9 any reasonable 
mann]4  4  7b7 ,ca% or def]r$ arrangem5t
 ,clause 7i7 ( section #dja7k77#b77;,b7 
( su* ,code is am5d$ by /rik+ or at !   
end ( subclause 7,,iv71 by /rik+ & at ! 
end ( subclause 7,v7 & ins]t+ or1 & by  
add+ at ! end ( clause 7i7 ! foll[+3    
7,,vi7 ) respect to am\nts inve/$ 9 a   
lifetime income inve/m5t 7z def9$ 9     

section #dja7;a77#ch77;,b77ii77 or a    
manag$ acc\nt inve/m5t 7z def9$ 9       
section #dja7;a77#ch77;,b77v771 ! date t
 is #ij days prior to ! date t su*      
lifetime income inve/m5t or su* manag$  
acc\nt inve/m5t may no long] be held z  
an inve/m5t option "u ! plan 7)9 ! mean+
 ( section #dja7;a77#ch77;,b77vii771    
provid$ t any di/ribution "u ?is        
subclause mu/ be 9 ! =m ( a qualifi$    
di/ribution 7z def9$ 9 section          
#dja7;a77#ch77;,b77i77 or1 9 ! case ( a 
lifetime income inve/m5t1 a qualifi$    
plan di/ribution annuity contract 7z    
def9$ 9 section #dja7;a77#ch77;,b77iv771
 &  4  7c7 ,section #djc7;b7 plans  7#a7
 ,annuity contracts ,p>agraph 7#aa7 (   
section #djc7;b7 ( su* ,code is am5d$ by
 /rik+ or at ! end ( subp>agraph 7,b71  
by /rik+ ! p]iod at ! end ( subp>agraph 
7,c71 & by ins]t+ 1 or1 & by add+ at !  
end ! foll[+3  7,d7 ) respect to am\nts 
inve/$ 9 a lifetime income inve/m5t 7z  
def9$ 9 section #dja7;a77#ch77;,b77ii77 
or a manag$ acc\nt inve/m5t 7z def9$ 9  

section #dja7;a77#ch77;,b77v771 ! date t
 is #ij days prior to ! date t su*      
lifetime income inve/m5t or su* manag$  
acc\nt inve/m5t may no long] be held z  
an inve/m5t option "u ! plan 7)9 ! mean+
 ( section #dja7;a77#ch77;,b77vii771    
provid$ t any di/ribution "u ?is        
subp>agraph mu/ be 9 ! =m ( a qualifi$  
di/ribution 7z def9$ 9 section          
#dja7;a77#ch77;,b77i77 or1 9 ! case ( a 
lifetime income inve/m5t1 a qualifi$    
plan di/ribution annuity contract 7z    
def9$ 9 section #dja7;a77#ch77;,b77iv774
  4  7#b7 ,cu/odial acc\nts ,clause 7ii7
 ( section #djc7;b77#g77;,a7 ( su* ,code
 is am5d$ to read z foll[s3  7ii7 "u !  
cu/odial acc\nt1 no su* am\nts may be   
paid or made available to any di/ributee
 7unless su* am\nt is a di/ribution to  
:i* section #gb7t77#b77;,g7 applies7    
be=e--  7,i7 ! employee dies1  7,,ii7 ! 
employee atta9s age #ei1  7,,iii7 !     
employee has a sev]ance f employm5t1    
7,,iv7 ! employee becomes disabl$ 7)9 ! 
mean+ ( section #gb7m77#g771  7,v7 9 !  

case ( contributions made pursuant to a 
sal>y r$uction agreem5t 7)9 ! mean+ (   
section #caba7;a77#e77;,d771 ! employee 
enc\nt]s f9ancial h>d%ip1 or  7,,vi7 )  
respect to am\nts inve/$ 9 a lifetime   
income inve/m5t 7z def9$ 9 section      
#dja7;a77#ch77;,b77ii77 or a manag$     
acc\nt inve/m5t 7z def9$ 9 section      
#dja7;a77#ch77;,b77v771 ! date t is #ij 
days prior to ! date t su* lifetime     
income inve/m5t or su* manag$ acc\nt    
inve/m5t may no long] be held z an      
inve/m5t option "u ! plan 7)9 ! mean+ ( 
section #dja7;a77#ch77;,b77vii771       
provid$ t any di/ribution "u ?is        
subp>agraph mu/ be 9 ! =m ( a qualifi$  
di/ribution 7z def9$ 9 section          
#dja7;a77#ch77;,b77i77 or1 9 ! case ( a 
lifetime income inve/m5t1 a qualifi$    
plan di/ribution annuity contract 7z    
def9$ 9 section #dja7;a77#ch77;,b77iv774
  4  7d7 ,eligible def]r$ comp5sation   
plans ,subp>agraph 7,a7 ( section       
#deg7;d77#a7 ( su* ,code is am5d$ by    
/rik+ or at ! end ( clause 7ii71 by     

ins]t+ or at ! end ( clause 7iii71 & by 
add+ aft] clause 7iii7 ! foll[+3  7iv7 )
 respect to am\nts inve/$ 9 a lifetime  
income inve/m5t 7z def9$ 9 section      
#dja7;a77#ch77;,b77ii77 or a manag$     
acc\nt inve/m5t 7z def9$ 9 section      
#dja7;a77#ch77;,b77v771 ! date t is #ij 
days prior to ! date t su* lifetime     
income inve/m5t or su* manag$ acc\nt    
inve/m5t may no long] be held z an      
inve/m5t option "u ! plan 7)9 ! mean+ ( 
section #dja7;a77#ch77;,b77vii771       
provid$ t any di/ribution "u ?is        
subp>agraph mu/ be 9 ! =m ( a qualifi$  
di/ribution 7z def9$ 9 section          
#dja7;a77#ch77;,b77i77 or1 9 ! case ( a 
lifetime income inve/m5t1 a qualifi$    
plan di/ribution annuity contract 7z    
def9$ 9 section #dja7;a77#ch77;,b77iv771
  4  7e7 ,effective date ,! am5dm5ts    
made by ?is section %all apply to plan  
ye>s beg9n+ aft] ,decemb] #ca1 #bjag4   
#h4 ,increase 9 cr$it limitation = small
 employ] p5sion plan />tup co/s  7a7 ,9 
g5]al ,p>agraph 7#a7 ( section #de;,e7b7

 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ to read z foll[s3  7#a7 = ! fir/  
cr$it ye> & ea* ( ! #d taxable ye>s     
imm$iately foll[+ ! fir/ cr$it ye>1 !   
great] (--  7,a7 #ejj1 or  7,b7 ! less] 
(--  7i7 #bej = ea* employee ( !        
eligible employ] :o is n a highly       
comp5sat$ employee 7z def9$ 9 section   
#dad7q77 & :o is eligible to p>ticipate 
9 ! eligible employ] plan ma9ta9$ by !  
eligible employ]1 or  7ii7 #e1jjj1 &  4 
7b7 ,special rule = employ]s ) #be or   
few] employees ,subsection 7a7 ( section
 #de;,e ( su* ,code is am5d$ by ins]t+  
be=e ! p]iod at ! end ! foll[+3 7#ajj   
p]c5t ( su* co/s 9 ! case ( an eligible 
employ] ) #be or few] employees1 z      
det]m9$ by sub/itut+ #be = #ajj 9       
section #djh7p77#b77;,c77i774  7c7      
,automatic contribution plan ,p>agraph  
7#b7 ( section #de;,e7d7 ( su* ,code is 
am5d$ by /rik+ a qualifi$ employ] plan  
)9 ! mean+ ( section #digb7;d7 & ins]t+ 
an automatic contribution plan )9 !     
mean+ ( section #dad7;aa74  7d7 ,con=m+ 

*ange ,p>agraph 7#b7 ( section #de;,e7d7
 ( su* ,code is am5d$ by add+ at ! end  
!re( ! foll[+3 ,= purposes ( ?is        
section1 ! t]m qualifi$ employ] plan has
 ! mean+ giv5 su* t]m "u section        
#digb7;d744  7e7 ,effective date ,!     
am5dm5t made by ?is section %all apply  
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjag4  #i4 ,small employ]         
automatic enrollm5t cr$it  7a7 ,9 g5]al 
,subp>t ,d ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #de,s4 ,auto-enrollm5t   
cr$it = retirem5t sav+s options provid$ 
by small employ]s  7a7 ,9 g5]al ,=      
purposes ( section #ch1 9 ! case ( an   
eligible employ]1 ! retirem5t           
auto-enrollm5t cr$it det]m9$ "u ?is     
section = any taxable ye> is an am\nt   
equal to--  7#a7 #ejj = any taxable ye> 
occurr+ dur+ ! cr$it p]iod1 &  7#b7 z]o 
= any o!r taxable ye>4  7b7 ,cr$it p]iod
 ,= purposes ( subsection 7a7-- 7#a7 ,9 
g5]al ,! cr$it p]iod ) respect to any   

eligible employ] is ! #e-taxable-ye>    
p]iod beg9n+ ) ! fir/ taxable ye> = :i* 
! employ] adopts an automatic           
contribution plan 7z def9$ 9 section    
#dad7;aa771 det]m9$ )\t reg>d to a plan 
describ$ 9 section #dad7;aa77#b77;,d7   
7relat+ to a gr&fa!r$ automatic         
contribution plan74  7#b7 ,ma9t5ance (  
arrangem5t ,no taxable ye> ) respect to 
an employ] %all be treat$ z occurr+ )9 !
 cr$it p]iod unless ! arrangem5t        
describ$ 9 section #dja7k77#ad77;,c7 is 
includ$ 9 ! plan = su* ye>4  7c7        
,eligible employ] ,= purposes ( ?is     
section1 ! t]m eligible employ] has !   
mean+ giv5 su* t]m 9 section            
#djh7p77#b77;,c77i74  4  7b7 ,cr$it ,to 
be "p ( g5]al bus9ess cr$it ,subsection 
7b7 ( section #ch ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by /rik+ plus at 
! end ( p>agraph 7#ce71 by /rik+ ! p]iod
 at ! end ( p>agraph 7#cf7 & ins]t+ 1   
plus1 & by add+ at ! end ! foll[+ new   
p>agraph3  7#cg7 9 ! case ( an eligible 
employ] 7z def9$ 9 section #de,s7c771 ! 

retirem5t auto-enrollm5t cr$it det]m9$  
"u section #de,s7a74  4  7c7 ,cl]ical   
am5dm5t ,! table ( sections = subp>t ,d 
( "p ,,iv ( sub*apt] ,a ( *apt] #a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#de,r ! foll[+ new item3  ,sec4 #de,s4  
,auto-enrollm5t cr$it = retirem5t sav+s 
options provid$ by small employ]s4  4   
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjag4  #aj4  
,treatm5t ( automatic contribution plans
 "u ,/ate law  7a7 ,9 g5]al ,section    
#ead ( ! ,employee ,retirem5t ,income   
,security ,act ( #aigd 7#bi ,u4,s4,c4   
#aadd7 is am5d$ by add+ at ! end !      
foll[+3  7f7 ,automatic contribution    
plans  7#a7 ,9 g5]al ,if an employ]     
ma9ta9s an automatic contribution plan  
7z def9$ 9 section #dad7;aa7 ( !        
,int]nal ,rev5ue ,code ( #aihf7 t       
satisfies ! requirem5ts ( section       
#dad7;aa77#c7 7)\t reg>d to subp>agraph 
7,d7 !re(71 ! employ]--  7,a7 %all n be 

subject to any requirem5t impos$ by a   
,/ate or political subdivision !re( to  
contribute to an individual retirem5t   
plan 7z def9$ 9 section #ggja7;a77#cg7 (
 ! ,int]nal ,rev5ue ,code ( #aihf7      
e/abli%$ & ma9ta9$ pursuant to a payroll
 d$uction sav+s program ( a ,/ate or    
political subdivision !re(1 &  7,b7 %all
 n be requir$ to p>ticipate 9 any mann] 
9 su* a payroll d$uction sav+s program4 
7#b7 ,qualifi$ ,/ate law exception ,?is 
subsection %all n apply ) respect to any
 employ] to ! ext5t t su* employ]       
p>ticipates 9 an arrangem5t "u a        
qualifi$ ,/ate law4  7#c7 ,qualifi$     
,/ate law ,= purposes ( ?is subsection--
 7,a7 ,9 g5]al ,! t]m qualifi$ ,/ate law
 means a ,/ate law t--  7i7 0 enact$    
be=e ! date ( enactm5t ( ! ,automatic   
,retirem5t ,plan ,act ( #bjag1  7ii7    
7,i7 requires c]ta9 employ]s to         
contribute to1 or p>ticipate 91 an      
individual retirem5t plan 7z def9$ 9    
section #ggja7;a77#cg7 ( su* ,code7     
e/abli%$ & ma9ta9$ pursuant to a payroll

 d$uction sav+s program ( ! ,/ate1 or   
7,,ii7 all[s c]ta9 employ]s to          
contribute to1 or p>ticipate 91 a plan  
describ$ 9 section #dac7;c7 ( su* ,code 
e/abli%$ & ma9ta9$ by ! ,/ate1 &  7iii7 
is n sup]s$$ by ?is title 7det]m9$ )\t  
reg>d to ?is subsection74  7,b7         
,exception ,if a ,/ate law describ$ 9   
subp>agraph 7,a77ii7 is am5d$ aft] !    
date ( enactm5t ( ! ,automatic          
,retirem5t ,plan ,act ( #bjag to        
mat]ially exp& ! scope ( ! requirem5t   
describ$ 9 subp>agraph 7,a77ii77,i7 or !
 availability ( a plan describ$ 9       
subp>agraph 7,a77ii77,,ii71 ! ,/ate law 
%all1 z ( ! effective date ( su*        
am5dm5t1 cease to treat$ z a qualifi$   
,/ate law4  4  7b7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to plan ye>s beg9n+ aft] ,decemb] #ca1  
#bjag4  #aa4 ,mat*+ paym5ts = elective  
def]ral & ,,ira contributions by c]ta9  
individuals  7a7 ,9 g5]al ,sub*apt] ,b (
 *apt] #fe ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ by add+ at ! end ! foll[+

 new section3  #fdcc4 ,mat*+ paym5ts =  
elective def]ral & ,,ira contributions  
by c]ta9 individuals  7a7 ,9 g5]al  7#a7
 ,all[ance ( cr$it ,any eligible        
individual :o makes qualifi$ retirem5t  
sav+s contributions = ! taxable ye> %all
 be all[$ a cr$it = su* taxable ye> 9 an
 am\nt equal to ! applicable p]c5tage ( 
s mu* ( ! qualifi$ retirem5t sav+s      
contributions made by su* eligible      
individual = ! taxable ye> z does n     
exce$ #a1jjj4  7#b7 ,paym5t ( cr$it ,!  
cr$it "u ?is section %all be paid by !  
,secret>y z a contribution 7z soon z    
practicable aft] ! eligible individual  
has fil$ a tax return = ! taxable ye>7  
to ! applicable retirem5t vehicle ( !   
eligible individual4  7b7 ,applicable   
p]c5tage ,= purposes ( ?is section--    
7#a7 ,9 g5]al ,except z provid$ 9       
p>agraph 7#b71 ! applicable p]c5tage is 
#ej p]c5t4  7#b7 ,phase\t ,! p]c5tage "u
 p>agraph 7#a7 %all be r$uc$ 7b n bel[  
z]o7 by ! numb] ( p]c5tage po9ts :i*    
be>s ! same ratio to #ej p]c5tage po9ts 

z--  7,a7 ! excess (-- 7i7 ! taxpay]'s  
modifi$ adju/$ gross income = su*       
taxable ye>1 ov]  7ii7 ! applicable     
doll> am\nt1 be>s to  7,b7 ! phase\t    
range4  ,if any r$uction det]m9$ "u ?is 
p>agraph is n a :ole p]c5tage po9t1 su* 
r$uction %all be r\nd$ to ! next l[e/   
:ole p]c5tage po9t4  7#c7 ,applicable   
doll> am\nt2 phase\t range  7,a7 ,jo9t  
returns ,except z provid$ 9 subp>agraph 
7,b7-- 7i7 ! applicable doll> am\nt is  
#fe1jjj1 &  7ii7 ! phase\t range is     
#bj1jjj4  7,b7 ,o!r returns ,9 ! case   
(--  7i7 a head ( a h\sehold 7z def9$ 9 
section #b7;b771 ! applicable doll>     
am\nt & ! phase\t range %all be  ( !    
am\nts applicable "u subp>agraph 7,a7 7z
 adju/$ "u subsection 7g771 &  7ii7 any 
taxpay] :o is n fil+ a jo9t return & :o 
is n a head ( a h\sehold 7z s def9$71 ! 
applicable doll> am\nt & ! phase\t range
 %all be  ( ! am\nts applicable "u      
subp>agraph 7,a7 7z s adju/$74  7c7     
,eligible individual ,= purposes ( ?is  
section-- 7#a7 ,9 g5]al ,! t]m eligible 

individual means any individual if su*  
individual has atta9$ ! age ( #ah z ( ! 
close ( ! taxable ye>4  7#b7 ,dep5d5ts &
 full-"t /ud5ts n eligible ,! t]m       
eligible individual %all n include--    
7,a7 any individual ) respect to :om a  
d$uction "u section #aea is all[$ to    
ano!r taxpay] = a taxable ye> beg9n+ 9 !
 cal5d> ye> 9 :i* su* individual's      
taxable ye> beg9s1 &  7,b7 any          
individual :o is a /ud5t 7z def9$ 9     
section #aeb7;f77#b774  7d7 ,qualifi$   
retirem5t sav+s contributions ,=        
purposes ( ?is section--  7#a7 ,9 g5]al 
,! t]m qualifi$ retirem5t sav+s         
contributions means1 ) respect to any   
taxable ye>1 ! sum (-- 7,a7 ! am\nt ( ! 
qualifi$ retirem5t contributions 7z     
def9$ 9 section #bai7;e77 made by !     
eligible individual1  7,b7 ! am\nt (--  
7i7 any elective def]rals 7z def9$ 9    
section #djb7;g77#c77 ( su* individual1 
&  7ii7 any elective def]ral (          
comp5sation by su* individual "u an     
eligible def]r$ comp5sation plan 7z     

def9$ 9 section #deg7;b77 ( an eligible 
employ] describ$ 9 section              
#deg7;e77#a77;,a71 &  7,c7 ! am\nt (    
volunt>y employee contributions by su*  
individual to any qualifi$ retirem5t    
plan 7z def9$ 9 section #digd7;c774     
,su* t]m %all n include any am\nt       
attributable to a paym5t "u subsection  
7a74  7#b7 ,r$uction = c]ta9            
di/ributions  7,a7 ,9 g5]al ,! qualifi$ 
retirem5t sav+s contributions det]m9$ "u
 p>agraph 7#a7 = a taxable ye> %all be  
r$uc$ 7b n bel[ z]o7 by ! aggregate     
di/ributions receiv$ by ! individual    
dur+ ! te/+ p]iod f any entity ( a type 
to :i* contributions "u p>agraph 7#a7   
may be made4  7,b7 ,te/+ p]iod ,=       
purposes ( subp>agraph 7,a71 ! te/+     
p]iod1 ) respect to a taxable ye>1 is ! 
p]iod :i* includes--  7i7 su* taxable   
ye>1  7ii7 ! #b prec$+ taxable ye>s1 &  
7iii7 ! p]iod aft] su* taxable ye> &    
be=e ! due date 7includ+ ext5sions7 =   
fil+ ! return ( tax = su* taxable ye>4  
7,c7 ,except$ di/ributions ,!re %all n  

be tak5 into acc\nt "u subp>agraph      
7,a7-- 7i7 any di/ribution ref]r$ to 9  
section #gb7p71 #dja7k77#h71            
#dja7m77#f71 #djb7;g77#b71 #djd7k71 or  
#djh7;d77#d71  7ii7 any di/ribution to  
:i* section #djh7;d77#c7 or             
#djh;,a7d77#c7 applies1 &  7iii7 any    
portion ( a di/ribution if su* portion  
is transf]r$ or paid 9 a rollov]        
contribution 7z def9$ 9 section         
#djb7;c71 #djc7;a77#d71 #djc7;b77#h71   
#djh;,a7e71 or #deg7;e77#af77 to an     
acc\nt or plan to :i* qualifi$ retirem5t
 contributions c be made4  7,d7         
,treatm5t ( di/ributions receiv$ by     
sp\se ( individual ,= purposes ( det]m9+
 di/ributions receiv$ by an individual  
"u subp>agraph 7,a7 = any taxable ye>1  
any di/ribution receiv$ by ! sp\se ( su*
 individual %all be treat$ z receiv$ by 
su* individual if su* individual & sp\se
 file a jo9t return = su* taxable ye> & 
= ! taxable ye> dur+ :i* ! sp\se        
receives ! di/ribution4  7e7 ,applicable
 retirem5t sav+s vehicle  7#a7 ,9 g5]al 

,! t]m applicable retirem5t sav+s       
vehicle means-- 7,a7 an acc\nt or plan  
elect$ by ! eligible individual "u      
p>agraph 7#b71 or  7,b7 if no su*       
election is made1 a retirem5t bond      
pur*as$ by ! ,secret>y = ! b5efit ( !   
eligible individual4  7#b7 ,o!r         
retirem5t vehicles ,an eligible         
individual may elect to h ! am\nt       
det]m9$ "u subsection 7a7 contribut$ to 
an acc\nt or plan :i*--  7,a7 is a ,ro? 
,,ira 7z def9$ 9 section #djh;,a71 or a 
designat$ ,ro? acc\nt 7)9 ! mean+ (     
section #djb;,a7 ( an applicable        
retirem5t plan 7z def9$ 9 section       
#djb;,a7e77#a771  7,b7 is = ! b5efit ( !
 eligible individual1  7,c7 accepts     
contributions made "u ?is section1 &    
7,d7 is designat$ by su* individual 79  
su* =m & mann] z ! ,secret>y may        
provide7 on ! return ( tax = ! taxable  
ye>4  7#c7 ,retirem5t bond  7,a7 ,9     
g5]al ,= purposes ( ?is section1 ! t]m  
retirem5t bond means a bond issu$ "u    
*apt] #ca ( title #ca1 ,unit$ ,/ates    

,code1 :i* by its t]ms1 or by           
regulations prescrib$ by ! ,secret>y "u 
su* *apt]--  7i7 provides = int]e/ to be
 cr$it$ at rates t take into acc\nt !   
expect$ duration ( ! funds inve/$ 9     
retirem5t bonds & at rates det]m9$ or   
adju/$ 9 a mann] & ) suffici5t frequ5cy 
to provide sub/antial protection f      
inflation1  7ii7 is n transf]able1 &    
7iii7 is design$ = inve/m5t = retirem5t4
  7,b7 ,ro? ,,ira rules applicable ,!   
provisions ( ?is title applicable to a  
,ro? ,,ira1 includ+ provisions relat+ to
 contributions1 hold+ & di/ributions1   
%all apply to a retirem5t bond1 except z
 det]m9$ by ! ,secret>y4  7,c7          
,regulations ,! ,secret>y may issue su* 
regulations z are necess>y to c>ry out !
 purposes ( ?is section1 includ+--  7i7 
e/abli%m5t ( proc$ures to communicate to
 individuals ! importance ( inve/m5t    
div]sification & ! transf] option       
describ$ 9 clause 7ii71  7ii7 simplifi$ 
proc$ures "u :i* hold]s ( retirem5t     
bonds may p]iodically *oose to h ! bonds

 or _! proce$s transf]r$ to available   
,ro? ,i,r,as1 &  7iii7 means by :i*     
individuals may elect 7or be treat$ z   
elect+7 :e!r to h retirem5t bonds or _! 
proce$s s transf]r$4  ,any su* transf]  
%all be treat$ z a rollov] contribution 
= purposes ( section #djh7;d77#c7 7o!r  
?an subp>agraph 7,b7 !re(74  7f7 ,o!r   
def9itions & special rules  7#a7        
,modifi$ adju/$ gross income ,= purposes
 ( ?is section1 ! t]m modifi$ adju/$    
gross income means adju/$ gross income--
 7,a7 det]m9$ )\t reg>d to sections     
#iaa1 #ica1 & #icc1 &  7,b7 det]m9$ )\t 
reg>d to any exclusion or d$uction all[$
 = any qualifi$ retirem5t sav+s         
contribution made dur+ ! taxable ye>4   
7#b7 ,treatm5t ( contributions ,9 ! case
 ( any contribution "u subsection       
7a77#b7-- 7,a7 except z o!rwise provid$ 
9 ?is section or by ! ,secret>y "u      
regulations1 su* contribution %all be   
treat$ 9 ! same mann] z a contribution  
made by ! individual on ^: behalf su*   
contribution 0 made1  7,b7 su*          

contribution %all n be treat$ z income  
to ! taxpay]1 &  7,c7 su* contribution  
%all n be tak5 into acc\nt ) respect to 
any applicable limitation "u sections   
#djb7;g77#a71 #djc7;b71 #djh7;a77#a71   
#djh7;b77#b77;,b71 #djh;,a7c77#b71      
#dad7v77#b71 #dae7;c71 or #deg7;b77#b74 
7#c7 ,treatm5t ( qualifi$ plans1 etc ,a 
plan or arrangem5t to :i* a contribution
 is made "u ?is section %all n be treat$
 z violat+ any requirem5t "u section    
#dja1 #djc1 #djh1 or #deg solely by     
reason ( accept+ su* contribution4  7#d7
 ,errone\s cr$its ,if any contribution  
is errone\sly paid "u subsection        
7a77#b71 ! am\nt ( su* errone\s paym5t  
%all be treat$ z an und]paym5t ( tax4   
7g7 ,inflation adju/m5ts  7#a7 ,9 g5]al 
,9 ! case ( any taxable ye> beg9n+ 9 a  
cal5d> ye> aft] #bjah1 ea* ( ! doll>    
am\nts 9 subsections 7a77#b7 &          
7b77#c77;,a77i7 %all be increas$ by an  
am\nt equal to--  7,a7 su* doll> am\nt1 
multipli$ by  7,b7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = !      

cal5d> ye> 9 :i* ! taxable ye> beg9s1   
det]m9$ by sub/itut+ cal5d> ye> #bjag = 
cal5d> ye> #aiib 9 subp>agraph 7,b7     
!re(4  7#b7 ,r\nd+ ,any increase det]m9$
 "u p>agraph 7#a7 %all be r\nd$ to !    
ne>e/ multiple (-- 7,a7 #ajj 9 ! case ( 
an adju/m5t ( ! am\nt 9 subsection      
7a77#b71 &  7,b7 #a1jjj 9 ! case ( an   
adju/m5t ( ! am\nt 9 subsection         
7b77#c77;,a77i74  4  7b7 ,promotion &   
guidance  7#a7 ,promotion ,! ,secret>y (
 ! ,treasury 7or ! ,secret>y's delegate7
 %all educate taxpay]s on ! b5efits     
provid$ "u section #fdcc ( ! ,int]nal   
,rev5ue ,code ( #aihf4  7#b7 ,guidance  
,n lat] ?an ,decemb] #ca1 #bjag1 !      
,secret>y ( ! ,treasury 7or !           
,secret>y's delegate7 %all issue        
guidance on ! implem5tation &           
adm9i/ration ( ! am5dm5ts made by ?is   
section4  7c7 ,paym5t au?ority ,section 
#acbd7;b77#b7 ( title #ca1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ or #fdca &    
ins]t+ #fdca1 or #fdcc4  7d7            
,defici5cies ,section #fbaa7;b77#d7 is  

am5d$ by /rik+ & #fdca & ins]t+ #fdca1 &
 #fdcc4  7e7 ,con=m+ am5dm5ts  7#a7     
,section #be;,b ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$ by /rik+         
subsections 7a7 ?r\gh 7f7 & ins]t+ !    
foll[+3  ,= paym5t ( cr$it relat$ to    
qualifi$ retirem5t sav+s contributions1 
see section #fdcc4 4  7#b7 ,! table (   
sections = sub*apt] ,b ( *apt] #fe ( su*
 ,code is am5d$ by add+ at ! end !      
foll[+ new item3  ,sec4 #fdcc4 ,mat*+   
paym5ts = elective def]ral & ,,ira      
contributions by c]ta9 individuals4  4  
7f7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjag4  #ab4  
,au?ority to require report+  7a7       
,report+ "u ,int]nal ,rev5ue ,code      
,subsection 7a7 ( section #fjeh ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end !re( ! foll[+3 ,!      
,secret>y may by regulation require !   
inclusion 9 su* annual return ( su*     
in=mation z may be necess>y or          
appropriate to det]m9e ! effects ( !    

alt]native me?ods ( satisfy+ applicable 
nondiscrim9ation requirem5ts1 :i* are   
describ$ 9 subsections 7k77#ac71        
7k77#ad71 7m77#aa71 & 7m77#ab7 ( section
 #dja1 on ! contribution levels (       
employees :o are n highly comp5sat$     
employees 7z def9$ 9 section #dad7q7744 
7b7 ,report+ "u employee retirem5t      
income security act ( #aigd ,section    
#ajd7;a77#b77;,a7 ( ! ,employee         
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajdb7;a77#b771 z  
am5d$ by section #c7;c71 is fur!r am5d$ 
by ins]t+ be=e ! p]iod at ! end !re( !  
foll[+3 1 except t 9 ! case ( su* a     
def]ral-only arrangem5t conta9$ 9 a     
p5sion plan ) at lea/ #ajj p>ticipants1 
! ,secret>y may require su* report+ z is
 necess>y or appropriate ) respect to   
s]vice provid]s1 inve/m5t options1 &    
fees1 b n 9 excess ( any report+        
applicable to o!r arrangem5ts44