,i #aae? ,,congress #a/ ,session ,h4 ,r4 #debd ,,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 exp& retirem5t cov]age1 pres]ve retirem5t income1 simplify rules relat$ to retirem5t plans1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,retirem5t ,plan ,simplification & ,enhancem5t ,act ( #bjag4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,title ,i--,exp&+ ,cov]age & ,increas+ ,retirem5t ,sav+s ,sec4 #aja4 ,modification ( automatic enrollm5t safe h>bor4 ,sec4 #ajb4 ,secure def]ral arrangem5ts4 ,sec4 #ajc4 ,facilitat+ automatic enrollm5t4 ,sec4 #ajd4 ,cr$it = employ]s ) respect to modifi$ safe h>bor requirem5ts4 ,sec4 #aje4 ,qualifi$ ca% or def]r$ arrangem5ts mu/ all[ long-t]m employees work+ m ?an #ejj b less ?an #a1jjj h\rs p] ye> to p>ticipate4 ,sec4 #ajf4 ,sep>ate application ( top heavy rules to def9$ contribution plans cov]+ "p-"t employees4 ,sec4 #ajg4 ,opportunity to claim ! sav]'s cr$it on =m #ajdj;,,ez4 ,sec4 #ajh4 ,additional "t to adopt a qualifi$ plan4 ,sec4 #aji4 ,repeal ( maximum age = traditional ,,ira contributions4 ,sec4 #aaj4 #fj-;day rollov] to inh]it$ individual retirem5t plan ( nonsp\se b5efici>y4 ,sec4 #aaa4 ,increase 9 age = requir$ beg9n+ date = m&atory di/ributions4 ,sec4 #aab4 ,increase 9 cr$it limitation = small employ] p5sion plan />tup co/s4 ,sec4 #aac4 ,safe h>bor = corrections ( employee elective def]ral failures4 ,sec4 #aad4 ,economically t>get$ inve/m5ts4 ,sec4 #aae4 ,small imm$iate f9ancial inc5tives = contribut+ to a plan4 ,title ,,ii--,pres]vation ( ,income ,sec4 #bja4 ,availability ( di/ribution options4 ,sec4 #bjb4 ,portability ( lifetime income & manag$ acc\nt options4 ,sec4 #bjc4 ,qualify+ longevity annuity contracts4 ,sec4 #bjd4 ,remove requir$ m9imum di/ribution b>ri]s = life annuities4 ,title ,,iii--,simplification & ,cl>ification ( ,qualifi$ ,retirem5t ,plan ,rules ,sec4 #cja4 ,exception f requir$ di/ributions :]e aggregate retirem5t sav+s d n exce$ #bej1jjj4 ,sec4 #cjb4 ,expansion ( employee plans compliance resolution sy/em4 ,sec4 #cjc4 ,review & report to ! congress relat+ to report+ & disclosure requirem5ts4 ,sec4 #cjd4 ,consolidation ( def9$ contribution plan notices4 ,sec4 #cje4 ,p]=mance b5*m>ks = asset allocation funds4 ,sec4 #cjf4 ,p]mit nonsp\sal b5efici>ies to roll assets to plans4 ,sec4 #cjg4 ,elim9ate ! fir/ day ( ! mon? requirem5t4 ,sec4 #cjh4 ,(fice ( p>ticipant & plan sponsor advocate4 ,sec4 #cji4 ,simplify+ #djb7;f7 notices4 ,sec4 #caj4 ,guidance relat$ to c]ta9 ov]paym5t rec\pm5t practices4 ,sec4 #caa4 ,rules relat+ to election ( safe h>bor #dja7k7 /atus4 ,sec4 #cab4 ,use ( =feitures to fund safe h>bor contributions4 ,sec4 #cac4 ,treatm5t ( cu/odial acc\nts on t]m9ation ( section #djc7;b7 plans4 ,title ,,iv--,def9$ b5efit plan re=ms ,sec4 #dja4 ,ca% balance4 ,sec4 #djb4 ,align+ use ( lookback mon?s to det]m9e int]e/ rates4 ,sec4 #djc4 ,align+ employ] p5sion contribution due date ) corporate return due date4 ,sec4 #djd4 ,cl>ification ( ! role ( ! ,p>ticipant & ,plan ,sponsor ,advocate4 ,i ,exp&+ ,cov]age & ,increas+ ,retirem5t ,sav+s #aja4 ,modification ( automatic enrollm5t safe h>bor 7a7 ,9 g5]al 7#a7 ,removal ( #aj-p]c5t cap ,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 7#b7 ,con=m+ am5dm5ts 7,a7 ,subclause 7,i7 ( section #dja7k77#ac77;,c77iii7 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 is am5d$ by /rik+ #d p]c5t & ins]t+ at lea/ #d p]c5t4 7,c7 ,subclause 7,,iii7 ( section #dja7k77#ac77;,c77iii7 is am5d$ by /rik+ #e p]c5t & ins]t+ at lea/ #e p]c5t4 7,d7 ,subclause 7,,iv7 ( section #dja7k77#ac77;,c77iii7 is am5d$ by /rik+ #f p]c5t & ins]t+ at lea/ #f p]c5t4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #ajb4 ,secure def]ral 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 ,alt]native me?od = secure def]ral arrangem5ts to meet nondiscrim9ation requirem5ts 7,a7 ,9 g5]al ,a secure def]ral arrangem5t %all be treat$ z meet+ ! requirem5ts ( p>agraph 7#c77;,a77ii74 7,b7 ,secure def]ral arrangem5t ,= purposes ( ?is p>agraph1 ! t]m secure def]ral arrangem5t means any ca% or def]r$ arrangem5t :i* meets ! requirem5ts ( subp>agraphs 7,c71 7,d71 & 7,e7 ( p>agraph 7#ac71 except z modifi$ by ?is p>agraph4 7,c7 ,qualifi$ p]c5tage ,= purposes ( ?is p>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-- 7i7 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 p>agraph 7#ac77;,c77i7 is made ) respect to su* employee1 7ii7 at lea/ #g p]c5t dur+ ! fir/ plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 7iii7 at lea/ #h p]c5t dur+ ! second plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 7iv7 at lea/ #i p]c5t dur+ ! ?irds plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 & 7v7 at lea/ #aj p]c5t dur+ any subsequ5t plan ye>4 7,d7 ,mat*+ contributions 7i7 ,9 g5]al ,= purposes ( ?is p>agraph1 an arrangem5t %all be treat$ z hav+ met ! requirem5ts ( p>agraph 7#ac77;,d77i7 if & only if ! employ] makes mat*+ contributions on behalf ( ea* employee :o is n a highly comp5sat$ employee 9 an am\nt equal to ! sum (-- 7,i7 #ajj p]c5t ( ! elective contributions ( ! employee to ! ext5t t su* contributions d n exce$ #a p]c5t ( comp5sation1 7,,ii7 #ej p]c5t ( s mu* ( su* contributions z exce$ #a p]c5t b d n exce$ #f p]c5t ( comp5sation1 plus 7,,iii7 #be p]c5t ( s mu* ( su* contributions z exce$ #f p]c5t b d n exce$ #aj p]c5t ( comp5sation4 7ii7 ,application ( rules = mat*+ contributions ,! rules ( clause 7ii7 ( p>agraph 7#ab77;,b7 & clauses 7iii7 & 7iv7 ( p>agraph 7#ac77;,d7 %all apply = purposes ( clause 7i7 b ! rule ( clause 7iii7 ( p>agraph 7#ab77;,b7 %all n apply = su* purposes4 ,! rate ( mat*+ contribution = ea* increm5tal def]ral mu/ be at lea/ z high z ! rate specifi$ 9 clause 7i71 & may be high]1 s long z su* rate does n increase z an employee's rate ( elective contributions increases4 4 7b7 ,mat*+ contributions & employee contributions ,subsection 7m7 ( section #dja ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ p>agraph 7#ac7 z p>agraph 7#ad7 & by ins]t+ aft] p>agraph 7#ab7 ! foll[+ new p>agraph3 7#ac7 ,alt]native me?od = secure def]ral arrangem5ts ,a def9$ contribution plan %all be treat$ z meet+ ! requirem5ts ( p>agraph 7#b7 ) respect to mat*+ contributions & employee contributions if ! plan-- 7,a7 is a secure def]ral arrangem5t 7z def9$ 9 subsection 7k77#ad771 7,b7 meets ! requirem5ts ( clauses 7ii7 & 7iii7 ( p>agraph 7#aa77;,b71 & 7,c7 provides t mat*+ contributions on behalf ( any employee may n be made ) respect to an employee's contributions or elective def]rals 9 excess ( #aj p]c5t ( ! employee's comp5sation4 4 7c7 ,con=m+ am5dm5t ,subp>agraph 7,h7 ( section #daf7;g77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 9 clause 7i71 by /rik+ section #dja7k77#ab7 or #dja7k77#ac7 & ins]t+ p>agraph 7#ab71 7#ac71 or 7#ad7 ( section #dja7k71 & 7#b7 9 clause 7ii71 by /rik+ section #dja7m77#aa7 or #dja7m77#ab7 & ins]t+ p>agraph 7#aa71 7#ab71 or 7#ac7 ( section #dja7m74 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjag4 #ajc4 ,facilitat+ automatic enrollm5t ,! ,secret>y ( ! ,treasury %all promulgate regulations or o!r guidance t-- 7#a7 simplify & cl>ify ! rules reg>d+ ! tim+ ( p>ticipant notices requir$ "u section #dja7k77#ac77;,e7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 ) specific application to-- 7,a7 plans t all[ employees to be eligible = p>ticipation imm$iately ^u beg9n+ employm5t2 & 7,b7 employ]s ) multiple payroll & adm9i/rative sy/ems2 & 7#b7 simplify & cl>ify ! automatic escalation rules "u sections #dja7k77#ac77;,c77iii7 & #dja7k77#ad77;,c7 ( ! ,int]nal ,rev5ue ,code ( #aihf 9 ! context ( employ]s ) multiple payroll & adm9i/rative sy/ems4 ,su* regulations or guidance %all address ! p>ticul> case ( employees )9 ! same plan :o are subject to diff]5t notice tim+ & diff]5t p]c5tage requirem5ts1 & provide assi/ance = plan sponsors 9 manag+ su* cases4 #ajd4 ,cr$it = employ]s ) respect to modifi$ safe h>bor requirem5ts 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 ,cr$it = small employ]s ) respect to modifi$ safe h>bor requirem5ts = automatic contribution arrangem5ts 7a7 ,g5]al rule ,= purposes ( section #ch1 9 ! case ( a small employ]1 ! safe h>bor adoption cr$it det]m9$ "u ?is section = any taxable ye> is ! am\nt equal to ! total ( ! employ]'s mat*+ contributions "u section #dja7k77#ad77;,d7 dur+ ! taxable ye> on behalf ( employees :o are n highly comp5sat$ employees1 subject to ! limitations ( subsection 7b74 7b7 ,limitations 7#a7 ,limitation ) respect to comp5sation ,! cr$it det]m9$ "u subsection 7a7 ) respect to contributions made on behalf ( an employee :o is n a highly comp5sat$ employee %all n exce$ #b p]c5t ( ! comp5sation ( su* employee = ! taxable ye>4 7#b7 ,limitation ) respect to ye>s ( p>ticipation ,cr$it %all be det]m9$ "u subsection 7a7 ) respect to contributions made on behalf ( an employee :o is n a highly comp5sat$ employee only dur+ ! fir/ #e ye>s su* employee p>ticipates 9 ! qualifi$ automatic contribution arrangem5t4 7c7 ,def9itions 7#a7 ,9 g5]al ,any t]m us$ 9 ?is section :i* is also us$ 9 section #dja7k77#ad7 %all h ! same mean+ z :5 us$ 9 su* section4 7#b7 ,small employ] ,! t]m small employ] means an eligible employ] 7z def9$ 9 section #djh7p77#b77;,c77i774 7d7 ,d5ial ( d\ble b5efit ,no d$uction %all be all[able "u ?is title = any contribution ) respect to :i* a cr$it is all[$ "u ?is section4 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 ! safe h>bor adoption cr$it det]m9$ "u section #de,s4 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 add+ aft] ! item relat+ to section #de,r ! foll[+ new item3 ,sec4 #de,s4 ,cr$it = small employ]s ) respect to modifi$ safe h>bor requirem5ts = automatic contribution arrangem5ts4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s t include any portion ( a plan ye> beg9n+ aft] ,decemb] #ca1 #bjag4 #aje4 ,qualifi$ ca% or def]r$ arrangem5ts mu/ all[ long-t]m employees work+ m ?an #ejj b less ?an #a1jjj h\rs p] ye> to p>ticipate 7a7 ,p>ticipation requirem5t 7#a7 ,9 g5]al ,subp>agraph 7,d7 ( section #dja7k77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7,d7 :i* does n require1 z a condition ( p>ticipation 9 ! arrangem5t1 t an employee complete a p]iod ( s]vice ) ! employ] 7or employ]s7 ma9ta9+ ! plan ext5d+ beyond ! close ( ! e>li] (-- 7i7 ! p]iod p]mitt$ "u section #daj7;a77#a7 7det]m9$ )\t reg>d to subp>agraph 7,b77i7 !re(71 or 7ii7 subject to ! provisions ( p>agraph 7#ad71 ! fir/ p]iod ( #c consecutive #ab-mon? p]iods dur+ ea* ( :i* ! employee has at lea/ #ejj h\rs ( s]vice4 4 7#b7 ,special rules ,section #dja7k7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ae7 ,special rules = p>ticipation requirem5t = long-t]m1 "p-"t work]s ,= purposes ( p>agraph 7#b77;,d77ii7-- 7,a7 ,age requirem5t mu/ be met ,p>agraph 7#b77;,d77ii7 %all n apply to an employee unless ! employee has met ! requirem5t ( section #daj7;a77#a77;,a77i7 by ! close ( ! la/ ( ! #ab-mon? p]iods describ$ 9 su* p>agraph4 7,b7 ,nondiscrim9ation & top-heavy rules n to apply 7i7 ,nondiscrim9ation rules ,9 ! case ( employees :o are eligible to p>ticipate 9 ! arrangem5t solely by reason ( p>agraph 7#b77;,d77ii7-- 7,i7 not)/&+ subsection 7a77#d71 an employ] %all n be requir$ to make nonelective or mat*+ contributions on behalf ( su* employees ev5 if su* contributions are made on behalf ( o!r employees eligible to p>ticipate 9 ! arrangem5t1 & 7,,ii7 an employ] may elect to exclude su* employees f ! application ( subsection 7a77#d71 p>agraph 7#c71 subsection 7m77#b71 & section #daj7;b74 7ii7 ,top-heavy rules ,an employ] may elect to exclude all employees :o are eligible to p>ticipate 9 a plan ma9ta9$ by ! employ] solely by reason ( p>agraph 7#b77;,d77ii7 f ! application ( ! ve/+ & b5efit requirem5ts "u subsections 7b7 & 7c7 ( section #daf4 7iii7 ,ve/+ ,= purposes ( det]m9+ :e!r an employee describ$ 9 clause 7i7 has a non=feitable "r to employ] contributions 7o!r ?an contributions describ$ 9 p>agraph 7#c77;,d77i77 "u ! arrangem5t1 ea* #ab-mon? p]iod = :i* ! employee has at lea/ #ejj h\rs ( s]vice %all be treat$ z a ye> ( s]vice4 7iv7 ,employees :o become full-"t employees ,?is subp>agraph %all cease to apply to any employee z ( ! fir/ plan ye> beg9n+ aft] ! plan ye> 9 :i* ! employee meets ! requirem5ts ( section #daj7;a77#a77;,a77ii7 )\t reg>d to p>agraph 7#b77;,d77ii74 7,c7 ,exception = employees "u collectively b>ga9$ plans1 etc ,p>agraph 7#b77;,d77ii7 %all n apply to employees describ$ 9 section #daj7;b77#c74 7,d7 ,special rules 7i7 ,"t ( p>ticipation ,! rules ( section #daj7;a77#d7 %all apply to an employee eligible to p>ticipate 9 an arrangem5t solely by reason ( p>agraph 7#b77;,d77ii74 7ii7 #ab-mon? p]iods #ab-mon? p]iods %all be det]m9$ 9 ! same mann] z "u ! la/ s5t5ce ( section #daj7;a77#c77;,a74 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjag1 except t1 = purposes ( section #dja7k77#b77;,d77ii7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by su* am5dm5ts71 #ab-mon? p]iods beg9n+ be=e ,janu>y #a1 #bjah1 %all n be tak5 into acc\nt4 #ajf4 ,sep>ate application ( top heavy rules to def9$ contribution plans cov]+ "p-"t employees 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #daf7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 7,c7 ,sep>ate application to employees n meet+ age & s]vice requirem5ts ,if employees n meet+ ! age or s]vice requirem5ts ( section #daj7;a77#a7 7)\t reg>d to subp>agraph 7,b7 !re(7 are cov]$ "u a plan ( ! employ] :i* meets ! requirem5ts ( p>agraphs 7,a7 & 7,b7 sep>ately ) respect to su* employees1 su* employees may be exclud$ f consid]ation 9 det]m9+ :e!r any plan ( ! employ] meets ! requirem5ts ( subp>agraphs 7,a7 & 7,b74 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ajg4 ,opportunity to claim ! sav]'s cr$it on =m #ajdj;,,ez ,! ,secret>y ( ! ,treasury %all modify ! =ms = ! return ( tax ( individuals 9 ord] to all[ individuals claim+ ! cr$it "u section #be;,b ( ! ,int]nal ,rev5ue ,code ( #aihf to file 7& claim su* cr$it on7 ,=m #ajdj;,,ez4 #ajh4 ,additional "t to adopt a qualifi$ plan 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 ,! adoption ( a plan by ! applicable date %all n cause a plan to fail to meet ! requirem5ts ( ?is section = a plan ye>4 ,= purposes ( ! prec$+ s5t5ce1 ! t]m applicable date means ! due date 7includ+ ext5sions7 = fil+ ! ,f$]al income tax return = ! employ]'s taxable ye> 9 :i* ends ! plan ye> = :i* ! plan is effective4 ,an employ] may elect to h a plan adopt$ 9 accordance ) ?is p>agraph be treat$ z e/abli%$ by ! end ( ! employ]'s taxable ye> = purposes ( apply+ section #djd7;a74 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjag4 #aji4 ,repeal ( maximum age = traditional ,,ira contributions 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #bai7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is repeal$4 7b7 ,con=m+ am5dm5t ,subsection 7c7 ( section #djh;,a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ p>agraph 7#d7 & by r$esignat+ p>agraphs 7#e71 7#f71 & 7#g7 z p>agraphs 7#d71 7#e71 & 7#f71 respectively4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to contributions made = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjag4 #aaj4 #fj-;day rollov] to inh]it$ individual retirem5t plan ( nonsp\se b5efici>y 7a7 ,9 g5]al ,section #djb7;c77#aa7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subp>agraph 7,b7 z subp>agraph 7,c7 & by /rik+ subp>agraph 7,a7 & ins]t+ ! foll[+3 7,a7 ,9 g5]al ,if-- 7i7 any portion ( a di/ribution attributable to an employee is paid aft] ! dea? ( ! employee to an individual :o is a designat$ b5efici>y 7z def9$ by section #dja7;a77#i77;,e77 ( ! employee & :o is n ! surviv+ sp\se ( ! employee1 & 7ii7 su* portion is transf]r$ or paid to an individual retirem5t plan 9 a transf] or paym5t meet+ ! requirem5ts ( subp>agraph 7,b71 ! prec$+ provisions ( ?is subsection %all apply to su* di/ribution 9 ! same mann] z if ! designat$ b5efici>y 7 ! employee4 7,b7 ,requirem5ts = transf] ( di/ribution ,! requirem5ts ( ?is subp>agraph are met ) respect to ! portion ( any di/ribution if-- 7i7 su* portion is transf]r$ or paid to an individual retirem5t plan describ$ 9 clause 7i7 or 7ii7 ( p>agraph 7#h77;,b7 e/abli%$ = ! purposes ( receiv+ ! di/ribution on behalf ( ! designat$ b5efici>y1 7ii7 su* individual retirem5t plan is e/abli%$ z an inh]it$ individual retirem5t acc\nt or individual retirem5t annuity 7)9 ! mean+ ( section #djh7;d77#c77;,c771 :i*ev] is applicable1 & 7iii7 notice is provid$ to ! tru/ee1 insurance company1 or o!r provid] ( ! individual retirem5t plan t su* individual retirem5t plan is be+ e/abli%$ z an inh]it$ individual retirem5t acc\nt or individual retirem5t annuity4 ,section #dja7;a77#i77;,b7 7o!r ?an clause 7iv7 !re(7 %all apply to su* individual retirem5t plan4 4 7b7 ,rollov] treatm5t = inh]it$ acc\nts ,section #djh7;d77#c77;,c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 7iii7 ,exception = qualifi$ transf]s to ano!r inh]it$ acc\nt ,clause 7i7 %all n apply to any portion ( a di/ribution out ( an inh]it$ individual retirem5t acc\nt or inh]it$ individual retirem5t annuity if su* portion is paid to ano!r su* individual retirem5t plan or annuity b only if ! requirem5ts ( subp>agraphs 7,a71 7,b71 & 7,e7 ( ?is p>agraph1 & ! requirem5ts ( section #djb7;c77#aa77;,b71 are met ) respect to su* transf] or paym5t4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ,decemb] #ca1 #bjag4 #aaa4 ,increase 9 age = requir$ beg9n+ date = m&atory di/ributions 7a7 ,increase 9 age = requir$ beg9n+ date 7#a7 ,9 g5]al ,subclause 7,i7 ( section #dja7;a77#i77;,c77i7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7,i7 ! fir/ cal5d> ye> 9 :i* ! employee atta9s ! applicable age = su* cal5d> ye>1 or 4 7#b7 ,special rule = own]s ,subclause 7,i7 ( section #dja7;a77#i77;,c77ii7 ( su* ,code is am5d$ by /rik+ 9 :i* ! employee atta9s age #gja_/b & ins]t+ describ$ 9 clause 7i77,i7 ) respect to ! employee4 7b7 ,m&atory di/ribution age ,p>agraph 7#i7 ( section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ at ! end ! foll[+ new subp>agraph3 7,h7 ,applicable age ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,! applicable age is-- 7,i7 = cal5d> ye>s be=e #bjai1 age #gja_/b1 7,,ii7 = cal5d> ye>s #bjai1 #bjbj1 #bjba1 #bjbb1 & #bjbc1 age #ga1 7,,iii7 = cal5d> ye>s #bjbd1 #bjbe1 #bjbf1 #bjbg1 & #bjbh1 age #gb1 7,,iv7 = cal5d> ye> #bjbi1 age #gc1 & 7,v7 = cal5d> ye>s aft] #bjbi1 ! age z adju/$ "u clause 7ii74 7ii7 ,adju/m5t ,! ,secret>y %all adju/ ! age "u clause 7i77,,iv7 = cal5d> ye> #bjcj & ea* succe$+ cal5d> ye> 9 a mann] proportional to increases 9 ! life expectancy ( an individual :o atta9$ age #gc 9 ! cal5d> ye> prec$+ ! cal5d> ye> = :i* ! adju/m5t is be+ made z comp>$ to ! life expectancy ( an individual :o atta9$ age #gc 9 #bjbh4 ,! applicable age = any cal5d> ye> z adju/$ "u ?is clause-- 7,i7 %all be applicable only ) respect to employees ^: requir$ beg9n+ date has n occurr$ z ( ,decemb] #ca ( ! ye> prec$+ su* ye>1 & 7,,ii7 %all be r\nd$ to ! next l[e/ :ole numb]4 7iii7 ,life expectancies ,! life expectancies "u clause 7ii7 %all be det]m9$ on a unisex basis 9 accordance ) life expectancies und]ly+ ! tables describ$ 9 section #dcj7;h77#c77;,a74 4 7c7 ,sp\se b5efici>ies ,subclause 7,i7 ( section #dja7;a77#i77;,b77iv7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ age #gja_/b & ins]t+ ! applicable age4 7d7 ,con=m+ am5dm5t ,subsection 7b7 ( section #djh ( su* ,code is am5d$ by /rik+ age #gja_/b & ins]t+ ! applicable age det]m9$ "u section #dja7;a77#i77;,h7 ) respect to su* individual4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to cal5d> ye>s beg9n+ aft] ,decemb] #ca1 #bjag4 #aab4 ,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 #dae7q77 & :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 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjag4 #aac4 ,safe h>bor = corrections ( employee elective def]ral failures 7a7 ,9 g5]al ,section #dad ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7aa7 ,correct+ automatic contribution errors 7#a7 ,9 g5]al ,any plan or arrangem5t %all n fail to satisfy any requirem5t ( ?is sub*apt] or section #deg solely by reason ( a correct$ error4 7#b7 ,correct$ error def9$ ,= purposes ( ?is subsection1 ! t]m correct$ error means a reasonable adm9i/rative error 9 implem5t+ an automatic enrollm5t or automatic escalation feature 9 accordance ) ! t]ms ( an eligible automatic contribution arrangem5t 7z def9$ "u subsection 7w77#c771 provid$ t ! implem5tation failure is correct$ by ! date t is #i mon?s aft] ! end ( ! plan ye> dur+ :i* ! failure occurr$4 ,su* correction may occur be=e or aft] ! p>ticipant has t]m9at$ employm5t & may occur )\t reg>d to :e!r ! error is id5tifi$ by ! ,secret>y4 4 7b7 ,effective date ,! am5dm5t made by ?is ,act %all apply ) respect to any errors ) respect to :i* ! date ref]r$ to 9 section #dad7;aa7 7z add$ by ?is section7 is aft] ! date ( enactm5t ( ?is ,act4 #aad4 ,economically t>get$ inve/m5ts ,subsection 7a7 ( section #djd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#c7 ,a fiduci>y %all n fail to satisfy ! requirem5ts ( ?is subsection solely by reason ( tak+ into acc\nt economic1 social1 & gov]nance factors 9 connection ) an inve/m5t or inve/m5t /rategy1 b only if ! fiduci>y prud5tly det]m9es ! inve/m5t is appropriate bas$ solely on economic consid]ations1 includ+ ^? d]iv$ f su* factors4 4 #aae4 ,small imm$iate f9ancial inc5tives = contribut+ to a plan 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dja7k77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 7o!r ?an a de m9imus f9ancial inc5tive7 aft] any o!r b5efit4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply ) respect to taxable ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 ,,ii ,pres]vation ( ,income #bja4 ,availability ( di/ribution options 7a7 ,lifetime income inve/m5ts ,by ! date t is "o ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all issue f9al regulations "u :i* x is cl>ifi$ t any specifi$ age or s]vice condition 7or comb9ation ( age & s]vice conditions7 ) respect to a lifetime income inve/m5t 7z def9$ 9 section #dja7;a77#ch77;,b77ii77 "u a def9$ contribution plan %all be disreg>d$ 9 det]m9+ :e!r su* lifetime income inve/m5t is curr5tly available to an employee = purposes ( ,treasury ,regulation section #a4dja7;a77#d7-d7;b7 7or any successor provision74 7b7 ,en=cem5t ,z ( ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all adm9i/] & en=ce ! law 9 accordance ) subsection 7a7 ) respect to plan ye>s beg9n+ be=e1 on1 or aft] ! date ( enactm5t ( ?is ,act4 7c7 ,effective date ,?is section %all take effect z ( ! date ( enactm5t ( ?is ,act4 #bjb4 ,portability ( lifetime income & manag$ acc\nt 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 #bjc4 ,qualify+ longevity annuity contracts 7a7 ,9 g5]al ,by ! date t is "o ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all am5d ! regulation issu$ by ! ,dep>tm5t ( ! ,treasury relat+ to ,longevity ,annuity ,contracts #gi ,f$4 ,reg4 #cgfcc 7,july #b1 #bjad71 z foll[s3 7#a7 ,repeal #be-p]c5t premium limit ,! ,secret>y %all am5d ,q,a-#ag7;b77#c7 ( #bf ,c4,f4,r4 section #a4dja7;a77#i7-f & ,q,a-#ab7;b77#c7 ( #bf ,c4,f4,r4 section #a4djh-h to elim9ate ! requirem5t t premiums = qualify+ longevity annuity contracts be limit$ to #be p]c5t ( an individual's acc\nt balance1 & to make su* correspond+ *anges to ! regulations & relat$ =ms z necess>y to reflect ! elim9ation ( ?is requirem5t4 7#b7 ,increase doll> limitation 7,a7 ,! ,secret>y %all am5d ,q,a-#ag7;b77#b77;i7 ( #bf ,c4,f4,r4 section #a4dja7;a77#i7-f & ,q,a-#ab7;b77#b77;i7 ( #bf ,c4,f4,r4 section #a4djh-h to increase ! doll> limitation on premiums = qualify+ longevity annuity contracts f #abe1jjj to #bjj1jjj1 & to make su* correspond+ *anges to ! regulations & relat$ =ms z necess>y to reflect ?is increase 9 ! doll> limitation4 7,b7 ,! ,secret>y %all am5d ,q,a-#ag7;d77#b77;i7 ( #bf ,c4,f4,r4 section #a4dja7;a77#i7-f to provide t1 9 ! case ( cal5d> ye>s beg9n+ on or aft] ,janu>y #a ( ! second ye> foll[+ ! ye> ( enactm5t ( ?is ,act1 ! #bjj1jjj doll> limitation 7z increas$ by subp>agraph 7,a77 w be adju/$ at ! same "t & 9 ! same mann] z ! limits are adju/$ "u section #dae7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 except t ! base p]iod %all be ! cal5d> qu>t] beg9n+ ,july #a ( ! ye> ( enactm5t ( ?is ,act1 & any increase to su* doll> limitation t is n a multiple ( #aj1jjj w be r\nd$ to ! next l[e/ multiple ( #aj1jjj4 7#c7 ,facilitate jo9t & survivor b5efits ,! ,secret>y %all am5d ,q,a-#ag7;c7 ( #bf ,c4,f4,r4 section #a4dja7;a77#i7-f1 & make su* correspond+ *anges to ! regulations & relat$ =ms z necess>y1 to provide t 9 ! case ( a qualify+ longevity annuity contract t 0 pur*as$ ) jo9t & survivor annuity b5efits = ! individual & 8 or h] sp\se t 7 p]missible "u ! regulations at ! "t ! contract 0 orig9ally pur*as$1 a divorce occurr+ aft] ! orig9al pur*ase & be=e ! annuity paym5ts comm5ce "u ! contract w n affect ! p]missibility ( ! jo9t & survivor annuity b5efits or o!r b5efits "u ! contract1 or require any adju/m5t to ! am\nt or duration ( b5efits payable "u ! contract1 provid$ t a qualifi$ dome/ic relations ord] 7)9 ! mean+ ( section #dad7p7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 or a divorce or sep>ation in/rum5t 7)9 ! mean+ ( section #ga7;b77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf7-- 7,a7 provides t ! =m] sp\se is entitl$ to ! survivor b5efits "u ! contract2 7,b7 does n modify ! treatm5t ( ! =m] sp\se z ! b5efici>y "u ! contract :o is entitl$ to ! survivor b5efits2 or 7,c7 does n modify ! treatm5t ( ! =m] sp\se z ! measur+ life = ! survivor b5efits "u ! contract4 7b7 ,effective dates1 en=cem5t1 & int]pretations 7#a7 ,effective dates 7,a7 ,p>agraphs 7#a7 & 7#b7 ( subsection 7a7 %all be effective ) respect to contracts pur*as$ or receiv$ 9 an ex*ange on or aft] ! date ( enactm5t ( ?is ,act4 7,b7 ,p>agraph 7#c7 ( subsection 7a7 %all be effective ) respect to contracts pur*as$ or receiv$ 9 an ex*ange on or aft] ,july #b1 #bjad4 7#b7 ,en=cem5t & int]pretations ,prior to ! date t ! ,secret>y ( ! ,treasury issues f9al regulations pursuant to subsection 7a7-- 7,a7 ! ,secret>y %all adm9i/] & en=ce ! law 9 accordance ) subsection 7a7 & ! effective dates 9 p>agraph 7#a7 ( ?is subsection2 & 7,b7 taxpay]s may rely ^u _! reasonable good fai? int]pretations ( subsection 7a74 #bjd4 ,remove requir$ m9imum di/ribution b>ri]s = life annuities 7a7 ,9 g5]al ,p>agraph 7#i7 ( section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by section #aaa ( ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,i7 ,c]ta9 increases 9 paym5ts "u a comm]cial annuity ,no?+ 9 ?is section %all prohibit a comm]cial annuity 7)9 ! mean+ ( section #cdje7;e77#f77 t is issu$ 9 connection ) any eligible retirem5t plan 7)9 ! mean+ ( section #djb7;c77#h77;,b77 f provid+ "o or m ( ! foll[+ types ( paym5ts on or aft] ! annuity />t+ date3 7i7 annuity paym5ts t increase by a con/ant p]c5tage1 appli$ n less frequ5tly ?an annually1 at a rate t is less ?an #e p]c5t p] ye>1 7ii7 a lump sum paym5t t-- 7,i7 results 9 a %ort5+ ( ! paym5t p]iod ) respect to an annuity or a full or p>tial commutation ( ! future annuity paym5ts1 provid$ t su* lump sum is det]m9$ us+ reasonable actu>ial me?ods & assumptions1 z det]m9$ 9 good fai? by ! issu] ( ! contract1 or 7,,ii7 accel]ates ! receipt ( annuity paym5ts t are s*$ul$ to be receiv$ )9 ! ensu+ #ab mon?s1 reg>dless ( :e!r su* accel]ation %ort5s ! paym5t p]iod ) respect to ! annuity1 r$uces ! doll> am\nt ( b5efits to be paid "u ! contract1 or results 9 a susp5sion ( annuity paym5ts dur+ ! p]iod be+ accel]at$1 7iii7 an am\nt :i* is 9 ! nature ( a divid5d or simil> di/ribution1 provid$ t ! issu] ( ! contract det]m9es su* am\nt bas$ on a reasonable comp>ison ( ! actu>ial factors assum$ :5 calculat+ ! initial annuity paym5ts & ! issu]'s exp]i5ce ) respect to ^? factors1 or 7iv7 a f9al paym5t ^u dea? t does n exce$ ! excess ( ! total am\nt ( ! consid]ation paid = ! annuity paym5ts1 less ! aggregate am\nt ( prior di/ributions or paym5ts f or "u ! contract4 4 7b7 ,regulations & en=cem5t 7#a7 ,regulations ,by ! date t is "o ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all am5d ! regulation issu$ by ! ,dep>tm5t ( ! ,treasury relat+ to ,requir$ ,di/ributions f ,retirem5t ,plans1 #fi ,f$4 ,reg4 #ccbhh 7,june #ae1 #bjjd71 & make any correspond+ am5dm5ts to o!r regulations1 9 ord] to-- 7,a7 con=m su* regulations to subsection 7a71 includ+ by elim9at+ ! types ( paym5ts describ$ 9 subsection 7a7 f ! scope ( ! requirem5t 9 ,q,a-#ad7;c7 ( #bf ,c4,f4,r4 section #a4dja7;a77#i7-f t ! total future expect$ paym5ts mu/ exce$ ! total value be+ annuitiz$2 7,b7 am5d ,q,a-#ad7;c7 ( #bf ,c4,f4,r4 section #a4dja7;a77#i7-f to provide t a comm]cial annuity t provides an initial paym5t t is at lea/ equal to ! initial paym5t t w\ld be requir$ f an individual acc\nt pursuant to #bf ,c4,f4,r4 section #a4dja7;a77#i7-e w be deem$ to satisfy ! requirem5t 9 ,q,a-#ad7;c7 ( #bf ,c4,f4,r4 section #a4dja7;a77#i7-f t ! total future expect$ paym5ts mu/ exce$ ! total value be+ annuitiz$2 & 7,c7 am5d ,q,a-#ad7;e77#c7 ( #bf ,c4,f4,r4 section #a4dja7;a77#i7-f to provide t ! total future expect$ paym5ts "u a comm]cial annuity are det]m9$ us+ ! tables or o!r actu>ial assumptions t ! issu] ( ! contract actually uses 9 pric+ ! premiums & b5efits ) respect to ! contract1 provid$ t su* tables or o!r actu>ial assumptions are reasonable4 7#b7 ,en=cem5t ,z ( ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all adm9i/] & en=ce ! law 9 accordance ) subsections 7a7 & 7b7 ) respect to taxable ye>s beg9n+ be=e1 on1 or aft] ! date ( enactm5t ( ?is ,act4 7c7 ,effective date ,?is section %all take effect z ( ! date ( enactm5t ( ?is ,act4 ,,iii ,simplification & ,cl>ification ( ,qualifi$ ,retirem5t ,plan ,rules #cja4 ,exception f requir$ di/ributions :]e aggregate retirem5t sav+s d n exce$ #bej1jjj 7a7 ,9 g5]al ,section #dja7;a77#i7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am$5d$ by sections #aaa & #bjd1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,j7 ,exception f requir$ m9imum di/ributions dur+ life ( employee or b5efici>y :]e assets d n exce$ #bej1jjj 7i7 ,9 g5]al ,if1 z ( a measurem5t date1 ! aggregate value ( ! entire int]e/ ( an employee "u all applicable eligible retirem5t plans does n exce$ #bej1jjj1 !n1 dur+ any succe$+ cal5d> ye> beg9n+ be=e ! next measurem5t date-- 7,i7 ! requirem5ts ( subp>agraph 7,a7 %all n apply to ! employee1 & 7,,ii7 ! requirem5ts ( subp>agraph 7,b7 %all n apply to ! employee's designat$ b5efici>y ) respect to ! designat$ b5efici>y's int]e/ 9 ! int]e/ ( ! deceas$ employee4 7ii7 ,applicable eligible retirem5t plan ,= purposes ( ?is subp>agraph1 ! t]m applicable eligible retirem5t plan means an eligible retirem5t plan 7z def9$ 9 section #djb7;c77#h77;,b77 & any o!r plan1 contract1 or arrangem5t to :i* ! requirem5ts ( ?is p>agraph apply4 7iii7 ,special rule = b5efits paid z a life annuity f def9$ b5efit plan ,9 det]m9+ ! aggregate value "u clause 7i71 !re %all n be tak5 into acc\nt ! value ( any b5efits "u a def9$ b5efit plan t1 on ! measurem5t date1 are be+ paid z a life annuity4 7iv7 ,measurem5t date 7,i7 ,initial measurem5t dates ,! initial measurem5t date = an employee is ! la/ day ( ! cal5d> ye> prec$+ ! e>li] (-- 7aa7 ! cal5d> ye> 9 :i* ! employee atta9s ! applicable age1 or 7bb7 ! cal5d> ye> 9 :i* ! employee dies4 7,,ii7 ,subsequ5t measurem5t dates ,if1 9 a cal5d> ye>1 an employee to :om subp>agraph 7,a7 or 7,b7 does n apply by reason ( clause 7i7 receives contributions1 rollov]s1 or transf]s ( am\nts1 or accrues additional b5efits "u a def9$ b5efit plan1 t 7 n previ\sly tak5 into acc\nt 9 apply+ ?is subp>agraph1 !n ! la/ day ( t cal5d> ye> %all be a new measurem5t date & a new det]m9ation %all be made z to :e!r clause 7i7 applies to su* employee4 7v7 ,det]m9ation ( value ,= purposes ( ?is subp>agraph-- 7,i7 ,9 g5]al ,except z provid$ 9 subclause 7,,ii71 ! value ( an employee's int]e/ 9 a plan is ! acc\nt balance ( su* plan4 7,,ii7 ,def9$ b5efit plans ,! value ( def9$ b5efit plan b5efits %all be det]m9$ 9 accordance ) ! applicable int]e/ rate & applicable mortality rate assumptions "u section #dag7;e71 except t ! value %all be equal to ! am\nt ( ! s+le sum paym5t payable to ! ext5t available "u ! plan4 7vi7 ,phase-out ( exception ,9 ! case ( an employee ^: aggregate balance describ$ 9 clause 7i7 z ( a measurem5t date exce$s ! doll> am\nt 9 effect "u su* clause by less ?an #aj1jjj1 ! requir$ di/ributions "u ?is p>agraph = cal5d> ye>s beg9n+ aft] su* measurem5t date & be=e ! next measurem5t date %all be equal to ! am\nt :i* be>s ! same ratio to ! requir$ di/ributions o!rwise det]m9$ "u ?is p>agraph z-- 7,i7 ! am\nt by :i* su* aggregate balance exce$s su* doll> am\nt s 9 effect1 be>s to 7,,ii7 #aj1jjj4 7vii7 ,co/ ( liv+ adju/m5ts ,! ,secret>y %all adju/ annually ! #bej1jjj am\nt specifi$ 9 clause 7i7 = increases 9 ! co/-(-liv+ at ! same "t & 9 ! same mann] z adju/m5ts "u section #dae7;d72 except t ! base p]iod %all be ! cal5d> qu>t] beg9n+ ,july #a1 #bjag1 & any increase :i* is n a multiple ( #e1jjj %all be r\nd$ to ! next l[e/ multiple ( #e1jjj4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to initial measurem5t dates occurr+ on or aft] ,decemb] #ca1 #bjag4 #cjb4 ,expansion ( employee plans compliance resolution sy/em 7a7 ,9 g5]al ,n lat] ?an "o ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all modify ! ,employee ,plans ,compliance ,resolution ,sy/em 7z describ$ 9 ,rev5ue ,proc$ure #bjaf-ea or any successor guidance7 to a*ieve ! results specifi$ 9 ! succe$+ subsections ( ?is section & to fur!r facilitate corrections & compliance 9 su* o!r means z ! ,secret>y deems appropriate4 7b7 ,loan error 7#a7 ,9 ! case ( plan loan errors = :i* corrections are specifi$ "u ! volunt>y compliance program1 self-correction %all be made available by me?ods applicable to su* loans ?r\gh ! volunt>y compliance program4 7#b7 ,! ,secret>y ( ,labor %all treat any loan error correct$ pursuant to p>agraph 7#a7 z meet+ ! requirem5ts ( ! ,volunt>y ,fiduci>y ,correction ,program ( ! ,dep>tm5t ( ,labor4 7c7 ,,epcrs = ,i,r,as ,! ,secret>y ( ! ,treasury %all exp& ! ,employee ,plans ,compliance ,resolution ,sy/em to all[ cu/odians ( individual retirem5t plans to address inadv]t5t errors = :i* ! own] ( an individual retirem5t plan 0 n at fault1 includ+ 7b n limit$ to7-- 7#a7 waiv]s ( ! excise tax t w\ld o!rwise apply "u section #digd ( ! ,int]nal ,rev5ue ,code ( #aihf2 7#b7 "u ! self-correction compon5t ( ! ,employee ,plans ,compliance ,resolution ,sy/em1 waiv]s ( ! #fj-;day deadl9e = a rollov] :]e ! deadl9e is miss$ = reasons beyond ! reasonable control ( ! acc\nt own]2 & 7#c7 rules p]mitt+ a nonsp\se b5efici>y to return di/ributions to an inh]it$ individual retirem5t plan describ$ 9 section #djh7;d77#c77;,c7 ( ! ,int]nal ,rev5ue ,code ( #aihf 9 a case :]e1 due to an inadv]t5t error by a s]vice provid]1 ! b5efici>y _h reason to believe t ! di/ribution c\ld be roll$ ov] )\t inclusion 9 income ( any "p ( ! di/ribut$ am\nt4 7d7 ,requir$ m9imum di/ribution corrections ,! ,secret>y ( ! ,treasury %all exp& ! ,employee ,plans ,compliance ,resolution ,sy/em to all[ plans to :i* su* sy/em applies & cu/odians ( individual retirem5t plans to self-correct1 )\t an excise tax1 any inadv]t5t errors pursuant to :i* a di/ribution is made no m ?an #ahj days aft] x 0 requir$ to be made4 #cjc4 ,review & report to ! congress relat+ to report+ & disclosure requirem5ts 7a7 ,/udy ,z soon z practicable aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,p5sion ,b5efit ,gu>anty ,corporation %all review ! report+ & disclosure requirem5ts (-- 7#a7 title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd applicable to p5sion plans 7z def9$ 9 section #c7b7 ( su* ,act72 & 7#b7 ! ,int]nal ,rev5ue ,code ( #aihf applicable to qualifi$ retirem5t plans 7z def9$ 9 section #digd7;c7 ( su* ,code )\t reg>d to p>agraphs 7#d7 & 7#e7 !re(74 7b7 ,report ,n lat] ?an #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,p5sion ,b5efit ,gu>anty ,corporation1 jo9tly1 %all make su* recomm5dations z may be appropriate to ! appropriate committees ( ! ,congress to consolidate1 simplify1 /&>dize1 & improve ! applicable report+ & disclosure requirem5ts s z to simplify report+ = plans ref]5c$ to 9 subsection 7a7 & ensure t ne$$ und]/&able in=mation is provid$ to p>ticipants & b5efici>ies ( su* plans4 #cjd4 ,consolidation ( def9$ contribution plan notices 7a7 ,9 g5]al 7#a7 ,n lat] ?an #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor & ! ,secret>y ( ! ,treasury %all adopt f9al regulations provid+ t a plan may1 b is n requir$ to1 consolidate two or m ( ! notices requir$ "u sections #djd7;c77#e77;,b7 & #ead7;e77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aadd7;e77#c771 sections #dja7k77#ab77;,d71 #dja7k77#ac77;,e71 & #dad7w77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 & section #beej4djd;a-#e ( title #bi1 ,code ( ,f$]al ,regulations 7#bi ,c4,f4,r4 #beej4djd;a-#e7 into a s+le notice or1 to ! ext5t provid$ by su* regulations1 consolidate su* notices ) ! summ>y plan description or summ>y ( mat]ial modifications describ$ 9 section #ajd7;b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbd7;b771 s long z ! comb9$ notice1 summ>y plan description or summ>y ( mat]ial modifications includes ! requir$ cont5t1 cle>ly id5tifies ! issues address$ !re91 & is provid$ at ! "t & ) ! frequ5cy requir$ = ea* su* notice4 7#b7 ,! ,secret>y ( ,labor & ! ,secret>y ( ! ,treasury may include 9 su* regulations rules to ensure t1 to ! ext5t su* notices are consolidat$ ) ! summ>y plan description or summ>y ( mat]ial modifications1 ! pres5tation1 placem5t1 or prom95ce ( ! in=mation 9 su* notices %all n h ! effect ( fail+ to in=m p>ticipants & b5efici>ies reg>d+ ! in=mation 9 su* notices4 7b7 ,provision ( annual notices )\t reg>d to plan ye> 7#a7 ,clause 7i7 ( section #djd7;c77#e77;,b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7;c77#e77;,b77 is am5d$-- 7,a7 9 subclause 7,i7 by /rik+ )9 a reasonable p]iod ( "t be=e ea* plan ye>1 & ins]t+ )9 a reasonable p]iod be=e ! arrangem5t describ$ 9 subp>agraph 7,a7 applies to su* p>ticipant or b5efici>y1 & !reaft] at lea/ once )9 any #ab-mon? p]iod 7)\t reg>d to ! plan ye>7 dur+ :i* su* arrangem5t applies12 & 7,b7 9 subclause 7,,ii7 by /rik+ & be=e ! beg9n+ ( ! plan ye>4 7#b7 ,subp>agraph 7,a7 ( section #ead7;e77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aadd7;e77#c77;,a77 is am5d$ by /rik+ 1 )9 a reasonable p]iod be=e su* plan ye>1 provide to ea* p>ticipant to :om ! arrangem5t applies = su* plan ye> & ins]t+ 1 )9 a reasonable p]iod be=e ! arrangem5t applies to a p>ticipant or b5efici>y1 & !reaft] at lea/ once )9 any #ab-mon? p]iod 7)\t reg>d to ! plan ye>7 dur+ :i* su* arrangem5t applies1 provide4 7#c7 ,clause 7i7 ( section #dja7k77#ac77;,e7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 1 )9 a reasonable p]iod be=e ea* plan ye>1 ea* employee eligible to p>ticipate 9 ! arrangem5t = su* ye> receives & ins]t+ ea* employee eligible to p>ticipate 9 ! arrangem5t receives1 )9 a reasonable p]iod be=e ! employee becomes eligible1 & !reaft] )9 a reasonable p]iod be=e ea* plan ye> dur+ :i* su* arrangem5t applies14 7#d7 ,subp>agraph 7,d7 ( section #dja7k77#ab7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 1 )9 a reasonable p]iod be=e any ye>1 giv5 writt5 notice & ins]t+ giv5 writt5 notice1 )9 a reasonable p]iod be=e ! employee becomes eligible1 & !reaft] )9 a reasonable p]iod be=e ea* plan ye> dur+ :i* su* arrangem5t applies14 7#e7 ,subp>agraph 7,a7 ( section #dad7w77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 1 )9 a reasonable p]iod be=e ea* plan ye>1 give to ea* employee to :om an arrangem5t describ$ 9 p>agraph 7#c7 applies = su* plan ye> & ins]t+ 1 )9 a reasonable p]iod be=e an arrangem5t describ$ 9 p>agraph 7#c7 applies to an employee1 & !reaft] at lea/ once )9 any #ab-mon? p]iod 7)\t reg>d to ! plan ye>7 dur+ :i* su* arrangem5t applies1 give to ea* su* employee4 #cje4 ,p]=mance b5*m>ks = asset allocation funds 7a7 ,9 g5]al ,n lat] ?an six mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,labor %all modify ! regulations "u section #djd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd to provide t1 9 ! case ( a designat$ inve/m5t alt]native t conta9s a mix ( asset classes1 a plan adm9i/rator may1 b is n requir$ to1 use a b5*m>k t is a bl5d ( diff]5t broad-bas$ securities m>ket indices if-- 7#a7 ! bl5d is reasonably repres5tative ( ! asset class hold+s ( ! designat$ inve/m5t alt]native2 7#b7 = purposes ( det]m9+ ! bl5d's returns = #a-1 #e-1 & #aj-;cal5d> ye> p]iods 7or = ! life ( ! alt]native1 if %ort]71 ! bl5d is modifi$ at lea/ once p] ye> to reflect *anges 9 ! asset class hold+s ( ! designat$ inve/m5t alt]native2 & 7#c7 ea* securities m>ket index t is us$ = an associat$ asset class w\ld sep>ately satisfy ! requirem5ts ( su* regulations = su* asset class4 7b7 ,/udy ,n lat] ?an ,decemb] #ca1 #bjah1 ! ,secret>y ( ,labor %all deliv] a report to ! ,h\se ,committee on ,ways & ,means1 ! ,h\se ,committee on ,education & ! ,work=ce1 ! ,s5ate ,committee on ,f9ance1 & ! ,s5ate ,committee on ,heal?1 ,education1 ,labor & ,p5sions reg>d+ ! effectiv5ess ( ! b5*m>k+ requirem5ts "u #bi ,c4,f4,r4 section #beej4djd;a-#e4 #cjf4 ,p]mit nonsp\sal b5efici>ies to roll assets to plans 7a7 ,9 g5]al ,section #djb7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ab7 ,di/ributions to qualifi$ plan ( nonsp\se b5efici>y ,if1 ) respect to any portion ( a di/ribution f an eligible retirem5t plan describ$ 9 p>agraph 7#h77;,b77iii7 ( a deceas$ employee1 a direct tru/ee-to-tru/ee transf] is made to a plan or annuity describ$ 9 clause 7iii71 7iv71 7v71 or 7vi7 ( p>agraph 7#h77;,b7 ( an individual :o is a designat$ b5efici>y 7z def9$ by section #dja7;a77#i77;,e77 ( ! employee & :o is n ! surviv+ sp\se ( ! employee-- 7,a7 ! transf] %all be treat$ z an eligible rollov] di/ribution1 & 7,b7 section #dja7;a77#i77;,b7 7o!r ?an clause 7iv7 !re(7 %all apply to su* plan4 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to di/ributions made aft] ! date ( ! enactm5t ( ?is ,act4 #cjg4 ,elim9ate ! fir/ day ( ! mon? requirem5t 7a7 ,9 g5]al ,p>agraph 7#d7 ( section #deg7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7#d7 :i* provides t comp5sation w be def]r$ only if an agreem5t provid+ = su* def]ral has be5 ent]$ into be=e ! comp5sation is curr5tly available to ! individual1 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #cjh4 ,(fice ( p>ticipant & plan sponsor advocate 7a7 ,9 g5]al ,section #ghjc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 7e7 ,p>ticipant & plan sponsor advocate 7#a7 ,9 g5]al ,!re is e/abli%$ 9 ! ,int]nal ,rev5ue ,s]vice an (fice to be kn[n z ! ,(fice ( ! ,p>ticipant & ,plan ,sponsor ,advocate4 7#b7 ,p>ticipant & plan sponsor advocate 7,a7 ,9 g5]al ,! ,(fice ( ! ,p>ticipant & ,plan ,sponsor ,advocate %all be "u ! sup]vision & direction ( an (ficial to be kn[n z ! ,p>ticipant & ,plan ,sponsor ,advocate4 ,! ,commission] %all select ! ,p>ticipant & ,plan ,sponsor ,advocate )\t reg>d to ! provisions ( title #e1 ,unit$ ,/ates ,code1 relat+ to appo9tm5ts 9 ! competitive s]vice or ,s5ior ,executive ,s]vice4 7,b7 ,duties ,! ,p>ticipant & ,plan ,sponsor ,advocate %all-- 7i7 act z a liaison betwe5 ! ,int]nal ,rev5ue ,s]vice1 sponsors ( qualifi$ retirem5t plans 7z def9$ 9 section #digd7;c771 & p>ticipants 9 su* plans1 7ii7 advocate = ! full atta9m5t ( ! rights ( su* plan sponsors & p>ticipants1 7iii7 assi/ p5sion plan sponsors & p>ticipants 9 resolv+ disputes ) ! ,int]nal ,rev5ue ,s]vice1 7iv7 id5tify areas 9 :i* p>ticipants & plan sponsors h p]si/5t problems 9 deal+s ) ! ,int]nal ,rev5ue ,s]vice1 7v7 to ! ext5t possible1 propose *anges 9 ! adm9i/rative practices ( ! ,int]nal ,rev5ue ,s]vice to mitigate problems1 7vi7 id5tify pot5tial legislative *anges :i* may be appropriate to mitigate problems1 & 7vii7 ref] in/ances ( fraud1 wa/e1 & abuse1 & violations ( law to ! ,(fice ( ! ,treasury ,inspector ,g5]al = ,tax ,adm9i/ration4 7,c7 ,removal ,! ,p>ticipant & ,plan ,sponsor ,advocate c only be remov$ f (fice or transf]r$ to ano!r position or location )9 ! ,int]nal ,rev5ue ,s]vice by ! ,secret>y ( ! ,treasury4 ,if ! ,p>ticipant & ,plan ,sponsor ,advocate is remov$ f (fice or is transf]r$ to ano!r position or location )9 ! ,int]nal ,rev5ue ,s]vice1 ! ,secret>y %all communicate 9 writ+ ! reasons = any su* removal or transf] to ,congress n less ?an #cj days be=e ! removal or transf]4 ,no?+ 9 ?is p>agraph %all prohibit a p]sonnel action o!rwise au?oriz$ by law1 o!r ?an transf] or removal4 7,d7 ,comp5sation ,! annual rate ( basic pay = ! ,p>ticipant & ,plan ,sponsor ,advocate %all be ! same rate z ! highe/ rate ( basic pay e/abli%$ = ! ,s5ior ,executive ,s]vice "u section #echb ( title #e1 ,unit$ ,/ates ,code1 or1 if ! ,commission] s det]m9es1 at a rate fix$ "u section #iejc ( su* title4 7#c7 ,annual report 7,a7 ,9 g5]al ,n lat] ?an ,decemb] #ca ( ea* cal5d> ye>1 ! ,p>ticipant & ,plan ,sponsor ,advocate %all report to ! ,heal?1 ,education1 ,labor1 & ,p5sions ,committee ( ! ,s5ate1 ! ,committee on ,f9ance ( ! ,s5ate1 ! ,committee on ,education & ! ,work=ce ( ! ,h\se ( ,repres5tatives1 & ! ,committee on ,ways & ,means ( ! ,h\se ( ,repres5tatives on ! activities ( ! ,(fice ( ! ,p>ticipant & ,plan ,sponsor ,advocate dur+ ! fiscal ye> end+ dur+ su* cal5d> ye>4 7,b7 ,cont5t ,ea* report submitt$ "u subp>agraph 7,a7 %all-- 7i7 summ>ize ! assi/ance reque/s receiv$ f p>ticipants & plan sponsors & describe ! activities1 & evaluate ! effectiv5ess1 ( ! ,p>ticipant & ,plan ,sponsor ,advocate dur+ ! prec$+ ye>1 7ii7 id5tify significant problems ! ,p>ticipant & ,plan ,sponsor ,advocate has id5tifi$1 7iii7 include specific legislative & regulatory *anges to address ! problems1 & 7iv7 id5tify any actions tak5 to correct problems id5tifi$ 9 any previ\s report4 7,c7 ,concurr5t submission ,! ,p>ticipant & ,plan ,sponsor ,advocate %all submit a copy ( ea* report to ! ,secret>y ( ! ,treasury1 ! ,commission] ( ,int]nal ,rev5ue1 & any o!r appropriate (ficial at ! same "t su* report is submitt$ to ! committees ( ,congress "u subp>agraph 7,a74 4 7b7 ,effective date ,! am5dm5t made by ?is section %all take effect on ,janu>y #a1 #bjah4 #cji4 ,simplify+ #djb7;f7 notices ,n lat] ?an ,decemb] #ca1 #bjah1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,labor & ! ,director ( ! ,p5sion ,b5efit ,gu>anty ,corporation1 %all simplify ! model notices issu$ "u section #djb7;f7 ( ! ,int]nal ,rev5ue ,code ( #aihf s z to facilitate bett] und]/&+ by recipi5ts ( diff]5t di/ribution options & correspond+ tax consequ5ces4 ,su* model notices %all include an explanation ( ! effect ( elections on sp\sal rights4 #caj4 ,guidance relat$ to c]ta9 ov]paym5t rec\pm5t practices 7a7 ,ov]paym5ts "u int]nal rev5ue code ,n lat] ?an ,decemb] #ca1 #bjah1 ! ,secret>y ( ! ,treasury %all modify ! ,employee ,plans ,compliance ,resolution ,sy/em 7z describ$ 9 ,rev5ue ,proc$ure #bjaf-ea or any successor guidance7-- 7#a7 to cl>ify t 9 no case %all any p]son be requir$ to seek rec\pm5t ( an inadv]t5t ov]paym5t 7z def9$ 9 su* ,sy/em7 f a p>ticipant or b5efici>y2 & 7#b7 9 ! case ( an inadv]t5t ov]paym5t1 except z o!rwise provid$ by su* ,secret>y bas$ on ! size ( ! ov]paym5t1 a contribution ( su* ov]paym5t t w\ld qualify z a rollov] "u section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 or #deg7;e77#af7 ( ! ,int]nal ,rev5ue ,code ( #aihf b = ! fact t x is an ov]paym5t1 %all be treat$ z a rollov] contribution = all purposes "u su* ,code4 7b7 ,ov]paym5ts "u ,,erisa ,n lat] ?an ,decemb] #ca1 #bjah1 ! ,secret>y ( ,labor %all prescribe rules "u :i* no fiduci>y ( a plan %all h a duty "u "p #d ( title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd to seek rec\pm5t f a p>ticipant or b5efici>y ( an inadv]t5t ov]paym5t 7z def9$ 9 ! ,employee ,plans ,compliance ,resolution ,sy/em issu$ by ! ,secret>y ( ! ,treasury1 z describ$ 9 ,rev5ue ,proc$ure #bjaf-ea or any successor guidance71 provid$ t su* ov]paym5t is paid back by ! plan sponsor or o!r p]son4 7c7 ,ov]paym5ts by ,,pbgc ,effective = ov]paym5ts made to a p>ticipant or b5efici>y aft] ,decemb] #ca1 #bjah1 ! ,p5sion ,b5efit ,gu>anty ,corporations %all n rec\p any su* ov]paym5t by r$uc+ any future paym5ts ) respect to ! same p>ticipant or b5efici>y by m ?an #aj p]c5t4 #caa4 ,rules relat+ to election ( safe h>bor #dja7k7 /atus 7a7 ,limitation ( annual safe h>bor notice to mat*+ contribution plans 7#a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dja7k77#ab7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ if su* arrangem5t & all t foll[s & ins]t+ if su* arrangem5t-- 7i7 meets ! contribution requirem5ts ( subp>agraph 7,b7 & ! notice requirem5ts ( subp>agraph 7,d71 or 7ii7 meets ! contribution requirem5ts ( subp>agraph 7,c74 4 7#b7 ,automatic contribution arrangem5ts ,subp>agraph 7,b7 ( section #dja7k77#ac7 ( su* ,code is am5d$ by /rik+ means & all t foll[s & ins]t+ means a ca% or def]r$ arrangem5t-- 7,a7 :i* is describ$ 9 subp>agraph 7,d77i77,i7 & meets ! applicable requirem5ts ( subp>agraphs 7,c7 ?r\gh 7,e71 or 7,b7 :i* is describ$ 9 subp>agraph 7,d77i77,,ii7 & meets ! applicable requirem5ts ( subp>agraphs 7,c7 & 7,d74 4 7b7 ,nonelective contributions ,section #dja7k77#ab7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subp>agraph 7,f7 z subp>agraph 7,g71 & by ins]t+ aft] subp>agraph 7,e7 ! foll[+ new subp>agraph3 7,f7 ,tim+ ( plan am5dm5t = employ] mak+ nonelective contributions 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 a plan may be am5d$ aft] ! beg9n+ ( a plan ye> to provide t ! requirem5ts ( subp>agraph 7,c7 %all apply to ! arrangem5t = ! plan ye>1 b only if ! am5dm5t is adopt$-- 7,i7 at any "t be=e ! #cj? day be=e ! close ( ! plan ye>1 or 7,,ii7 at any "t be=e ! la/ day "u p>agraph 7#h77;,a7 = di/ribut+ excess contributions = ! plan ye>4 7ii7 ,exception :]e plan provid$ = mat*+ contributions ,clause 7i7 %all n apply to any plan ye> if ! plan provid$ at any "t dur+ ! plan ye> t ! requirem5ts ( subp>agraph 7,b7 or p>agraph 7#ac77;,d77i77,i7 appli$ to ! plan ye>4 7iii7 #d-p]c5t contribution requirem5t ,clause 7i77,,ii7 %all n apply to an arrangem5t unless ! am\nt ( ! contributions describ$ 9 subp>agraph 7,c7 :i* ! employ] is requir$ to make "u ! arrangem5t = ! plan ye> ) respect to any employee is an am\nt equal to at lea/ #d p]c5t ( ! employee's comp5sation4 4 7c7 ,automatic contribution arrangem5ts ,section #dja7k77#ac7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ 3 7,f7 ,tim+ ( plan am5dm5t = employ] mak+ nonelective contributions 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 a plan may be am5d$ aft] ! beg9n+ ( a plan ye> to provide t ! requirem5ts ( subp>agraph 7,d77i77,,ii7 %all apply to ! arrangem5t = ! plan ye>1 b only if ! am5dm5t is adopt$-- 7,i7 at any "t be=e ! #cj? day be=e ! close ( ! plan ye>1 or 7,,ii7 at any "t be=e ! la/ day "u p>agraph 7#h77;,a7 = di/ribut+ excess contributions = ! plan ye>4 7ii7 ,exception :]e plan provid$ = mat*+ contributions ,clause 7i7 %all n apply to any plan ye> if ! plan provid$ at any "t dur+ ! plan ye> t ! requirem5ts ( subp>agraph 7,d77i77,i7 or p>agraph 7#ab77;,b7 appli$ to ! plan ye>4 7iii7 #d-p]c5t contribution requirem5t ,clause 7i77,,ii7 %all n apply to an arrangem5t unless ! am\nt ( ! contributions describ$ 9 subp>agraph 7,d77i77,,ii7 :i* ! employ] is requir$ to make "u ! arrangem5t = ! plan ye> ) respect to any employee is an am\nt equal to at lea/ #d p]c5t ( ! employee's comp5sation4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjag4 #cab4 ,use ( =feitures to fund safe h>bor contributions 7a7 ,9 g5]al ,section #dja7k7 7z am5d$ by ?is ,act7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#af7 ,a mat*+ contribution or nonelective contribution describ$ 9 p>agraph 7#c77;,d77ii71 subp>agraph 7,b7 or 7,c7 ( p>agraph 7#ab71 or p>agraph 7#ac77;,d7 %all n fail to satisfy ! def9ition "u su* p>agraph m]ely because ! contribution is fund$ 9 :ole or 9 "p by =feitures4 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to =feitures allocat$ 9 accordance ) section #dja7k77#af7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by subsection 7a77 be=e1 on or aft] ! date ( enactm5t ( ?is ,act4 #cac4 ,treatm5t ( cu/odial acc\nts on t]m9ation ( section #djc7;b7 plans ,n lat] ?an six mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all issue guidance to provide t1 if an employ] t]m9ates ! plan "u :i* am\nts are contribut$ to a cu/odial acc\nt "u subp>agraph 7,a7 ( section #djc7;b77#g71 ! plan adm9i/rator or cu/odian may di/ribute an individual cu/odial acc\nt 9 k9d to a p>ticipant or b5efici>y ( ! plan & ! di/ribut$ cu/odial acc\nt %all be ma9ta9$ by ! cu/odian on a tax-def]r$ basis z a section #djc7;b77#g7 cu/odial acc\nt1 simil> to ! treatm5t ( fully-paid individual annuity contracts "u ,rev5ue ,rul+ #bjaa-g1 until am\nts are actually paid to ! p>ticipant or b5efici>y4 ,! guidance %all provide fur!r 7i7 t ! section #djc7;b77#g7 /atus ( ! di/ribut$ cu/odial acc\nt is g5]ally ma9ta9$ if ! cu/odial acc\nt !reaft] adh]es to ! requirem5ts ( section #djc7;b7 t are 9 effect at ! "t ( ! di/ribution ( ! acc\nt & 7ii7 t a cu/odial acc\nt w\ld n be consid]$ di/ribut$ to ! p>ticipant or b5efici>y if ! employ] has any mat]ial reta9$ rights "u ! acc\nt 7b ! employ] w\ld n be treat$ z reta9+ mat]ial rights simply because ! cu/odial acc\nt 0 orig9ally op5$ "u a gr\p contract74 ,su* guidance %all be retroactively effective = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjjh4 ,,iv ,def9$ b5efit plan re=ms #dja4 ,ca% balance 7a7 ,9 g5]al ,section #dad ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by ?is ,act1 is am5d$ by add+ at ! end ! foll[+ new subsection3 7bb7 ,project$ int]e/ cr$it+ rate ,= purposes ( ?is "p1 9 ! case ( an applicable def9$ b5efit plan t provides v>iable int]e/ cr$it+ rates1 ! int]e/ cr$it+ rate t is treat$ z 9 effect & z ! project$ int]e/ cr$it+ rate %all be a reasonable projection ( su* v>iable int]e/ cr$it+ rate1 subject to a maximum ( #f p]c5t4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply ) respect to ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #djb4 ,align+ use ( lookback mon?s to det]m9e int]e/ rates ,! ,secret>y ( ! ,treasury %all modify ,treasury ,regulation section #a4dag7;e7-#a7;d77#aj77;ii7 7or any successor provision7 to provide t ! same rule applicable to modifications ( ! "t = det]m9+ ! applicable int]e/ rate %all apply to modifications ( ! "t = det]m9+ any int]e/ rate us$ by a plan to ! ext5t t ! use ( su* int]e/ rate is p]missible "u section #dag7;e77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 provid$ t ! regulations %all require t aft] any su* modification ( su* "t "u a plan pursuant to ?is section1 no fur!r modifications ( su* "t are to be p]mitt$ = five ye>s ) respect to su* plan )\t ! cons5t ( ! ,secret>y ( ! ,treasury4 ,z ( ! date ( enactm5t ( ?is ,act1 su* regulation 7or any successor provision7 %all be deem$ to be am5d$ 9 su* mann]1 s t ?is *ange 9 ! regulations is deem$ to h occurr$4 #djc4 ,align+ employ] p5sion contribution due date ) corporate return due date 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #dcj7;j7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #h #a_/b & ins]t+ #ia_/b4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to paym5ts made aft] ! date ( enactm5t ( ?is ,act4 #djd4 ,cl>ification ( ! role ( ! ,p>ticipant & ,plan ,sponsor ,advocate ,section #djjd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acjd7 is am5d$-- 7#a7 9 subsection 7b7-- 7,a7 9 p>agraph 7#a71 by /rik+ a liaison & ins]t+ an indep5d5t liaison2 & 7,b7 9 p>agraph 7#c71 by /rik+ assi/ & ins]t+ advocate =2 7#b7 by r$esignat+ subsections 7c7 ?r\gh 7e7 z subsections 7d7 ?r\gh 7f71 respectively2 & 7#c7 by ins]t+ aft] subsection 7b7 ! foll[+3 7c7 ,reque/s = in=mation ,! corporation %all1 ^u reque/1 provide in=mation to ! ,p>ticipant & ,plan ,sponsor ,advocate to ! ext5t necess>y to enable ! ,p>ticipant & ,plan ,sponsor ,advocate to p]=m ! responsibilities describ$ "u ?is section4 4