,,ii #aaeth ,,congress #ast ,session ,s4 #ajgf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #i1 #bjag,mr4 ,sanders 7for himself1 ,ms4 ,baldwin1 ,mr4 ,brown1 ,mr4 ,franken1 ,ms4 ,klobuchar1 ,mrs4 ,mc,caskill1 ,mr4 ,peters1 ,mr4 ,reed1 ,ms4 ,stabenow1 and ,mr4 ,whitehouse7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,employee ,retirement ,income ,security ,act of #aigd and the ,internal ,revenue ,code of #aihf to modify certain provisions relating to multiemployer pensions1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,keep ,our ,pension ,promises ,act4 #b4 ,restoring anti-cutback provisions ,section #bja of the ,multiemployer ,pension ,reform ,act of #bjad 7division ,o of ,public ,law #aac-bce7 and the amendments made by such section are repealed1 and the ,employee ,retirement ,income ,security ,act of #aigd and the ,internal ,revenue ,code of #aihf shall be applied as if such section and amendments had never been enacted4 #c4 ,partitions of eligible multiemployer plans 7a7 ,in general ,section #dbcc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adac71 as amended by section #abb of the ,multiemployer ,pension ,reform ,act of #bjad 7division ,o of ,public ,law #aac-bce71 is amended to read as follows3 #dbcc4 ,partitions of eligible multiemployer plans 7a7 7#a7 ,upon the application by the plan sponsor of an eligible multiemployer plan for a partition of the plan1 the corporation may order a partition of the plan in accordance with this section4 ,the corporation shall make a determination regarding the application1 in accordance with regulations promulgated by the corporation1 not later than #bgj days after-- 7,a7 the date such application was filed2 or 7,b7 if later1 the date such application was completed4 7#b7 ,at least #ad days before submitting an application for partition of a plan under paragraph 7#a71 the plan sponsor of the plan shall notify all participants and beneficiaries of such application1 in the form and manner prescribed by regulations issued by the corporation4 7b7 ,for purposes of this section1 a multiemployer plan is an eligible multiemployer plan if-- 7#a7 the plan is in critical status and is projected to become insolvent within the meaning of section #dbde-- 7,a7 during the current plan year or any of the #ad succeeding plan years2 or 7,b7 during the current plan year or any of the #ai succeeding plan years1 if the plan has a ratio of inactive participants to active participants that exceeds #b to #a and the funded percentage of the plan is less than #hj percent2 7#b7 the corporation determines1 after consultation with the ,participant and ,plan ,sponsor ,advocate selected under section #djjd1 that the plan sponsor has taken 7or is taking concurrently with an application for partition7 all reasonable measures described in section #dcb7;e77#c77;,a7 of the ,internal ,revenue ,code of #aihf1 and has made 7or is making7 benefit adjustments under section #dcb7;e77#h7 of such ,code to reduce the risk of insolvency2 7#c7 #bj percent or more of the amount by which the liabilities of the plan exceed the value of plan assets is attributable to the service of participants whose employers-- 7,a7 withdrew from the plan prior to the date of enactment of the ,keep ,our ,pension ,promises ,act2 and 7,b7 failed to pay 7or are delinquent with respect to paying7 the full amount of the employer's withdrawal liability under section #dbja7;b77#a7 or as otherwise determined under an agreement with the plan2 7#d7 the corporation reasonably expects that-- 7,a7 a partition of the plan will reduce the corporation's expected long-term loss with respect to the plan2 and 7,b7 a partition of the plan is necessary for the plan to remain or become solvent2 and 7#e7 the corporation certifies to ,congress that after partition the corporation will continue to have the ability to meet existing financial assistance obligations to other plans 7including any liabilities associated with multiemployer plans that are insolvent or that are projected to become insolvent within #aj years74 7c7 7#a7 ,a partition under this section shall consist of a transfer to the plan created by the partition order of benefits to which eligible participants and beneficiaries were entitled under the plan that was partitioned1 in an amount not to exceed the amount that would be guaranteed under section #djbb;,a if the plan were insolvent as of the date of the partition order4 7#b7 ,the corporation's partition order shall provide for an annual transfer by the corporation to the plan created by the partition order of an amount equal to the yearly benefits that would be guaranteed under section #djbb;,a to the eligible participants and beneficiaries if the plan were insolvent as of the date of the partition order4 7#c7 7,a7 ,where practicable1 the initial transfer in accordance with paragraph 7#b7 shall be completed at least #fj days prior to the plan year that immediately follows the partition start date4 ,the partition order shall require that the initial transfer be sufficient to satisfy the guaranteed benefits in the first plan year of the partitioned plan4 7,b7 ,subsequent transfers in accordance with paragraph 7#b7 shall be completed at least #fj days prior to the first day of each succeeding plan year4 7d7 7#a7 7,a7 ,the plan created by the partition order is a successor plan to which section #djbb;,a applies4 7,b7 ,at the discretion of the plan sponsor1 the plan created by the partition order may remain a part of the plan that was partitioned or be maintained as a separate plan4 7#b7 7,a7 ,the plan sponsor and the administrator of an eligible multiemployer plan prior to the partition shall be the plan sponsor and the administrator1 respectively1 of the plan created by the partition order1 and shall adopt reasonable procedures to reduce administrative expenses and to coordinate benefit payments and communications with the participants and beneficiaries in the plan created by the partition order4 7,b7 ,benefit payments equal to the amount of an eligible participant or beneficiary's guaranteed benefits shall be paid to such participant or beneficiary and may be-- 7i7 paid separately by the plan created by the partition order2 or 7ii7 paid in a single1 monthly payment by the plan that was partitioned4 7#c7 ,in the event an employer withdraws from the plan that was partitioned1 withdrawal liability shall be computed under section #dbja with respect to both the plan that was partitioned and the plan created by the partition order4 7e7 ,in addition to the payment of guaranteed benefits under subsection 7d77#b77;,b71 each eligible participant or beneficiary of the plan created by the partition order shall receive a monthly benefit for each month the benefit is in pay status in an amount that-- 7#a7 the corporation1 in consultation with the ,participant and ,plan ,sponsor ,advocate1 determines to be fair to the plan1 the participant or beneficiary1 the employers1 and the corporation2 and 7#b7 when aggregated with the payment under subsection 7d77#b77;,b71 results in a monthly benefit that is at least equal to the lesser of-- 7,a7 the monthly nonforfeitable benefit for such participant or beneficiary payable under the plan that was partitioned2 or 7,b7 #hj percent of the maximum benefit commencing at age #fe guaranteed under section #djbb7;a7 for participants and beneficiaries in terminated single employer plans1 unreduced for early retirement4 ,such monthly benefit may be combined with the monthly payment under subsection 7d77#b77;,b77ii74 7f7 7#a7 ,the corporation shall establish a legacy fund for the purposes of funding the administrative and benefit costs to the corporation arising from partitions under this section1 as described in paragraph 7#b74 7#b7 ,any administrative and benefit costs to the corporation arising from a partition ordered under this section in excess of amounts available in such legacy fund shall be paid from the fund for basic benefits guaranteed for multiemployer plans4 7g7 ,only one partition order shall be issued with respect to each eligible multiemployer plan4 7h7 ,for purposes of this subsection1 the term eligible participant or beneficiary means a participant or beneficiary of an eligible multiemployer plan that is partitioned in accordance with a petition order under this section1 and who is an employee or beneficiary of an employee of an employer that is described in subsection 7b77#c74 7i7 ,not later than #ad days after the issuance of a partition order under this section1 the corporation shall provide notice of such order to the ,committee on ,finance of the ,senate1 the ,committee on ,health1 ,education1 ,labor1 and ,pensions of the ,senate1 the ,committee on ,education and the ,workforce of the ,house of ,representatives1 the ,committee on ,ways and ,means of the ,house of ,representatives1 and to all eligible participants or beneficiaries whose guaranteed benefits will be paid directly or indirectly by the plan created by the partition order4 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply with respect to plan years beginning after the date of enactment of this ,act4 7c7 ,transfers to legacy fund ,the ,secretary of the ,treasury shall from time to time transfer from the general fund of the ,treasury to the legacy fund established under section #dbcc7;f77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adac7;f77#a77 7as amended by subsection 7a77 amounts equal to the increase in revenues to the ,treasury by reason of the amendments made by sections #f and #g of this ,act4 7d7 ,transfers between funds of the ,,pbgc ,section #djje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acje7 is amended by adding at the end the following3 7i7 7#a7 ,an eighth fund is established under section #dbcc7;f7 and credited with the amounts described in section #c7;c7 of the ,keep ,our ,pension ,promises ,act4 7#b7 ,notwithstanding subsection 7g71 the corporation may transfer amounts into the legacy fund established under section #dbcc7;f77#a7 from other funds established under this section1 as the corporation determines appropriate4 4 #d4 ,employer withdrawals relating to multiemployer plans ,the matter preceding paragraph 7#a7 of section #dbbe7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adje7;b77 is amended by inserting 1 including an employer undergoing liquidation under chapter #g of title #aa1 ,united ,states ,code1 or similar provisions of ,state law1 after dissolution14 #e4 ,priorities of claims in bankruptcy 7a7 ,in general ,section #ejg7;a7 of title #aa1 ,united ,states ,code1 is amended-- 7#a7 by redesignating paragraphs 7#a7 through #aj as paragraphs 7#b7 through 7#aa71 respectively2 7#b7 by inserting before paragraph 7#b7 7as redesignated7 the following3 7#a7 ,first1 withdrawal liability determined under part #a of subtitle ,e of title ,,iv of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acha et seq474 2 7#c7 in the matter preceding subparagraph 7,a7 of paragraph 7#b7 7as redesignated71 by striking ,first3 and inserting ,second32 7#d7 in paragraph 7#c7 7as redesignated71 by striking ,second1 and inserting ,third12 7#e7 in paragraph 7#d7 7as redesignated71 by striking ,third1 and inserting ,fourth12 7#f7 in the matter preceding subparagraph 7,a7 of paragraph 7#e7 7as redesignated71 by striking ,fourth1 and inserting ,fifth12 7#g7 in the matter preceding subparagraph 7,a7 of paragraph 7#f7 7as redesignated71 by striking ,fifth1 and inserting ,sixth12 7#h7 in the matter preceding subparagraph 7,a7 of paragraph 7#g7 7as redesignated71 by striking ,sixth1 and inserting ,seventh12 7#i7 in paragraph 7#h7 7as redesignated71 by striking ,seventh1 and inserting ,eighth12 7#aj7 in the matter preceding subparagraph 7,a7 of paragraph 7#i7 7as redesignated71 by striking ,eighth1 and inserting ,ninth12 7#aa7 in paragraph 7#aj7 7as redesignated71 by striking ,ninth1 and inserting ,tenth12 and 7#ab7 in paragraph 7#aa7 7as redesignated71 by striking ,tenth1 and inserting ,eleventh14 7b7 ,technical and conforming amendments 7#a7 ,section #ejb7;i7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i74 7#b7 ,section #ejc7;b77#a77;,b77i7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i74 7#c7 ,section #ejg7;d7 of title #aa1 ,united ,states ,code1 is amended by striking 7a77#a71 7a77#d71 7a77#e71 7a77#f71 7a77#g71 7a77#h71 or 7a77#i7 and inserting 7a77#b71 7a77#e71 7a77#f71 7a77#g71 7a77#h71 7a77#i71 or 7a77#aj74 7#d7 ,section #ebc7;,a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#c7 or #ejg7;a77#h7 and inserting section #ejg7;a77#d7 or #ejg7;a77#i74 7#e7 ,section #gbd of title #aa1 ,united ,states ,code1 is amended-- 7,a7 in subsection 7b77#b71 by striking section #ejg7;a77#a77;,c7 or #ejg7;a77#b7 and inserting section #ejg7;a77#b77;,c7 or #ejg7;a77#c72 and 7,b7 in subsection 7f7-- 7i7 in paragraph 7#a71 by striking section #ejg7;a77#d7 and inserting section #ejg7;a77#e72 and 7ii7 in paragraph 7#b71 by striking section #ejg7;a77#e7 and inserting section #ejg7;a77#f74 7#f7 ,section #gbf7;b7 of title #aa1 ,united ,states ,code1 is amended by striking paragraph 7#a71 7#b71 7#c71 7#d71 7#e71 7#f71 7#g71 7#h71 7#i71 or 7#aj7 of section #ejg7;a7 and inserting paragraphs 7#b7 through 7#aa7 of section #ejg7;a74 7#g7 ,section #geb7;a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#h7 ,section #gff of title #aa1 ,united ,states ,code1 is amended-- 7,a7 in subsection 7h71 by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c72 and 7,b7 in subsection 7i7-- 7i7 in paragraph 7#a71 by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c72 and 7ii7 in paragraph 7#b71 by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#i7 ,section #ija of title #aa1 ,united ,states ,code1 is amended by striking #ejg7;a77#b7 and inserting #ejg7;a77#c74 7#aj7 ,section #idc7;b77#e7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#aa7 ,section #aabc7;a77#a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b71 #ejg7;a77#c71 or #ejg7;a77#h7 and inserting section #ejg7;a77#c71 #ejg7;a77#d71 or #ejg7;a77#i74 7#ab7 ,section #aabi7;a77#i7 of title #aa1 ,united ,states ,code1 is amended-- 7,a7 in subparagraph 7,a71 by striking section #ejg7;a77#c7 or #ejg7;a77#d7 and inserting section #ejg7;a77#d7 or #ejg7;a77#e72 7,b7 in the matter preceding clause 7i7 of subparagraph 7,b71 by striking section #ejg7;a77#a71 #ejg7;a77#d71 #ejg7;a77#e71 #ejg7;a77#f71 or #ejg7;a77#g7 and inserting section #ejg7;a77#b71 #ejg7;a77#e71 #ejg7;a77#f71 #ejg7;a77#g71 or #ejg7;a77#h72 7,c7 in the matter preceding clause 7i7 of subparagraph 7,c71 by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i72 and 7,d7 in subparagraph 7,d71 by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i74 7#ac7 ,section #abbb7;a77#d7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#a77;,b7 and inserting #ejg7;a77#b77;,b74 7#ad7 ,section #abbf7;b77#a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#ae7 ,section #acbb7;a77#d7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#a77;,b7 and inserting section #ejg7;a77#b77;,b74 7#af7 ,section #acbf7;b77#a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#ag7 ,section #acbh7;a77#b7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#h77;,c7 and inserting section #ejg7;a77#i77;,c74 #f4 ,limitation of nonrecognition of like-kind exchanges 7a7 ,in general ,paragraph 7#b7 of section #ajca7;a7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating subparagraphs 7,a71 7,b71 7,c71 7,d71 7,e71 and 7,f7 as clauses 7i71 7ii71 7iii71 7iv71 7v71 and 7vi71 and by moving such clauses #b ems to the right1 7#b7 by moving the flush language after the first sentence #b ems to the right1 7#c7 by striking 7#b7 ,exception4--,this subsection and inserting 87#b7 ,exceptions4-- 7,a7 ,excluded property ,this subsection 1 and 7#d7 by adding at the end the following new subparagraph3 7,b7 ,dollar limitation for exchanges of real property 7i7 ,in general ,paragraph 7#a7 shall not apply so much of the gain which1 but for such paragraph1 would be recognized by the taxpayer with respect to real property exchanged during the taxable year as exceeds #a1jjj1jjj4 7ii7 ,special rules for partnerships and ,s-corporations ,in the case of a pass-through entity1 clause 7i7 shall be applied at both the entity and at the partner or owner level4 7iii7 ,aggregation rules ,for purposes of this subparagraph-- 7,i7 ,family members ,individuals who are spouses or who bear any of the relationships described in section #aeb7;d77#b7 to each other shall be treated as #a taxpayer 7without regard to whether spouses file a joint return74 7,,ii7 ,corporations and other entities ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb or subsection 7m7 or 7o7 of section #dad shall be treated as #a person4 7iv7 ,adjustment for inflation ,in the case of exchanges completed in a taxable year beginning after ,december #ca1 #bjag1 the #a1jjj1jjj amount in clause 7i7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjaf for calendar year #aiib in subparagraph 7,b7 thereof4 ,if any amount as adjusted under the preceding sentence is not a multiple of #a1jjj1 such amount shall be rounded to the nearest multiple of #a1jjj4 4 7b7 ,exclusion of art and collectibles ,subparagraph 7,a7 of section #ajca7;a77#b7 of the ,internal ,revenue ,code of #aihf1 as amended by subsection 7a71 is amended-- 7#a7 by striking or at the end of clause 7v71 7#b7 by striking the period at the end of clause 7vi7 and inserting 1 or1 and 7#c7 by inserting after clause 7vi7 the following new clause3 7vii7 any collectible 7within the meaning of section #djh7m71 without regard to paragraph 7#c7 thereof74 4 7c7 ,regulatory authority ,subsection 7f7 of section #ajca of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#e7 ,rules relating to dollar limitation ,the ,secretary shall prescribe such guidance as is necessary for applying subsection 7a77#b77;,b77i7 in the case of the exchange of multiple pieces of real property by related persons4 4 7d7 ,conforming amendments 7#a7 ,subsection 7b7 of section #ajca of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking in kind4--,if an exchange and inserting 8in kind4-- 7#a7 ,in general ,if an exchange 1 and 7,b7 by adding at the end the following new paragraph3 7#b7 ,coordination with subsection 7a77#b77;,b7 ,in the case of an exchange to which paragraph 7#a7 applies-- 7,a7 paragraph 7#a7 shall be applied before the application of subsection 7a77#b77;,b71 and 7,b7 subsection 7a77#b77;,b7 shall be applied-- 7i7 as if such exchange were within the provisions of subsection 7a71 and 7ii7 by increasing the basis of the property disposed of by the taxpayer in such exchange by the amount of any gain determined under paragraph 7#a74 4 7#b7 ,subsection 7d7 of section #ajca of such ,code is amended by striking in the amount of gain and inserting in the amount of gain 7including any gain recognized by reason of subsection 7a77#b77;,b77i774 7#c7 ,subsection 7i7 of section #ajca of such ,code is amended by striking 7a77#b77;,b7 and inserting 7a77#b77;,a77ii74 7e7 ,effective date ,the amendments made by this section shall apply to exchanges completed in taxable years beginning after ,december #ca1 #bjaf4 #g4 ,contribution limit and increased minimum distributions for certain retirement plans with large account balances 7a7 ,contribution limit 7#a7 ,in general ,subpart ,a of part ,i of subchapter ,d of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 #dji;,b4 ,contribution limit on certain retirement plans with large account balances 7a7 ,general rule ,notwithstanding any other provision of this title1 no applicable annual additions shall be made by1 or on behalf of1 an individual for the taxable year to any applicable retirement plan to the extent such applicable annual additions exceed the excess 7if any7 of-- 7#a7 the applicable dollar amount for the taxable year1 over 7#b7 the aggregate balances to the credit of the individual 7whether as a participant1 owner1 or beneficiary7 in all applicable retirement plans 7determined as of the close of the calendar year preceding the calendar year in which the taxable year begins74 7b7 ,rules relating to contribution limitations 7#a7 ,plans other than certain ,i,r,as 7,a7 ,in general ,except as provided in paragraph 7#b71 applicable annual additions in excess of the limitation under subsection 7a7 shall be treated for purposes of this title in the same manner as excess deferrals are treated under section #djb7;g74 7,b7 ,special rule for after tax contributions ,if1 without regard to this paragraph1 any portion of an applicable annual addition to which subparagraph 7,a7 applies with respect to an individual is not excludable from gross income of the individual 7or no deduction is allowable to the individual with respect to such portion71 such portion shall not be-- 7i7 includible in gross income by reason of the application of subparagraph 7,a71 or 7ii7 taken into account in computing the investment in the contract for purposes of section #gb4 7#b7 ,special rule for ,i,r,as 7,a7 ,in general ,in the case of an applicable retirement plan which is an individual retirement plan 7other than a simplified employee pension under section #djh7k7 or a simple retirement account under section #djh7p771 any applicable annual addition to such plan in excess of the limitation under subsection 7a7 shall be treated for purposes of sections #djh and #djh;,a as a contribution for the taxable year in excess of the maximum amount allowable as a deduction under section #bai for the taxable year4 7,b7 ,after tax contributions ,in the case of applicable annual additions in excess of the limitation under subsection 7a7-- 7i7 which are treated as designated nondeductible contributions under section #djh7o71 rules similar to the rules of paragraph 7#a77;,b7 shall apply1 and 7ii7 to a ,roth ,,ira1 section #djh;,a7d77#b77;,c7 shall apply to such additions and to any net income allocable to such additions4 ,for purposes of clause 7ii71 distributions from a ,roth ,,ira shall be treated as first made from amounts described in clause 7ii7 and section #djh;,a7d77#b77;,c7 shall be applied in the same manner as if there were a distribution of a contribution described in section #djh7;d77#d7 7without regard to whether such distribution is timely made74 7#c7 ,allocation of excess applicable annual additions ,if the applicable dollar amount for a taxable year exceeds the amount described in subsection 7a77#b71 the taxpayer may1 in such form and manner as the ,secretary may prescribe1 allocate such excess to applicable annual additions to each applicable retirement plan in such manner as the taxpayer chooses4 7c7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,applicable annual addition 7,a7 ,in general ,the term applicable annual addition means any of the following made to or on behalf of an individual3 7i7 ,an annual addition 7within the meaning of section #dae7;c77#b774 7ii7 ,any contribution to an individual retirement plan1 including any employer or employee contribution to a simplified employee pension under section #djh7k7 or a simple retirement account under section #djh7p74 7iii7 ,any deferral under an eligible deferred compensation plan described in section #deg7;b7 which is maintained by an eligible employer described in section #deg7;e77#a77;,a74 7,b7 ,rollover contributions disregarded ,a rollover contribution under section #djb7;c71 #djc7;b77#h71 #djh7;d77#c77;,a77ii71 or #deg7;e77#af7 shall not be treated as an annual addition4 7#b7 ,applicable dollar amount 7,a7 ,in general ,the term applicable dollar amount means #e1jjj1jjj4 7,b7 ,adjustment for inflation ,in the case of any taxable year beginning after #bjag1 the #e1jjj1jjj amount under subparagraph 7,a7 shall be increased by an amount equal to the product of-- 7i7 such amount1 and 7ii7 the cost-of-living adjustment under section #a7;f77#c7 for the calendar year in which such taxable year begins1 determined by substituting calendar year #bjaf for calendar year #aiib in subparagraph 7,b7 thereof4 7,c7 ,rounding ,if any amount as adjusted under subparagraph 7,b7 is not a multiple of #a1jjj1 such amount shall be rounded to the next lowest multiple of #a1jjj4 7#c7 ,applicable retirement plan ,the term applicable retirement plan means-- 7,a7 a defined contribution plan to which section #dja7;a7 or #djc7;a7 applies1 7,b7 an annuity contract under section #djc7;b71 7,c7 an eligible deferred compensation plan described in section #deg7;b7 which is maintained by an eligible employer described in section #deg7;e77#a77;,a71 or 7,d7 an individual retirement plan4 7d7 ,regulations ,the ,secretary shall prescribe such regulations and guidance as are necessary or appropriate to carry out the purposes of this section1 including regulations or guidance that provide for the application of this section and section #digd7;e7 in the case of plans with a valuation date other than the last day of a calendar year4 4 7#b7 ,conforming amendments 7,a7 ,the table of contents for subpart ,a of part ,i of subchapter ,d of chapter #a of such ,code is amended by adding after the item relating to section #dji;,a the following new item3 ,sec4 #dji;,b4 ,contribution limit on certain retirement plans with large account balances4 4 7,b7 ,section #djb7;g7 of such ,code is amended by adding at the end the following new paragraph3 7#i7 ,aggregate limitation ,for additional limitation on contributions to certain plans with large account balances1 see section #dji;,b4 4 7,c7 ,section #djc7;b77#a7 of such ,code is amended by adding at the end the following new sentence3 ,for additional limitation on contributions to certain plans with large account balances1 see section #dji;,b44 7,d7 ,section #djh7r7 of such ,code is amended by adding at the end the following new paragraph3 7#c7 ,for additional limitation on contributions to certain plans with large account balances1 see section #dji;,b4 4 7,e7 ,section #deg7;c7 of such ,code is amended by adding at the end the following new sentence3 ,for additional limitation on contributions to certain plans with large account balances1 see section #dji;,b44 7b7 ,excise tax on excess annual additions 7#a7 ,in general ,subsection 7a7 of section #digc of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking or at the end of paragraph 7#e71 7,b7 by inserting or after the comma at the end of paragraph 7#f71 and 7,c7 by inserting after paragraph 7#f7 the following new paragraph3 7#g7 an applicable retirement plan 7within the meaning of section #dji;,b7c77#c771 4 7#b7 ,excess contributions to applicable retirement plans ,section #digc of such ,code is amended by adding at the end the following new subsection3 7i7 ,excess contributions to applicable retirement plans ,for purposes of this section1 in the case of applicable retirement plans 7within the meaning of section #dji;,b7c77#c771 the term excess contributions with respect to any taxable year means the sum of-- 7#a7 the excess of the applicable annual additions 7within the meaning of section #dji;,b7c77#a77 to such plans over the limitation under section #dji;,b7a7 for such taxable year1 and 7#b7 the lesser of-- 7,a7 the amount determined under this subsection for the preceding taxable year1 reduced by the aggregate distributions from such plans for the taxable year 7including distributions required under section #digd7;e77 to the extent not contributed in a rollover contribution to another eligible retirement plan in accordance with section #djb7;c71 #djc7;b77#h71 #deg7;e77#af71 #djh7;d77#c71 or #djh;,a7d77#c71 or 7,b7 the amount 7if any7 by which the amount determined under section #dji;,b7a77#b7 for the taxable year exceeds the applicable dollar amount under section #dji;,b7c77#b7 for the taxable year4 4 7#c7 ,conforming amendments ,subsection 7a7 of section #digc of such ,code is amended-- 7,a7 by striking accounts or annuities and inserting accounts1 annuities1 or plans1 and 7,b7 by striking account or annuity and inserting account1 annuity1 or plan4 7c7 ,increase in minimum required distributions 7#a7 ,in general ,section #digd of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7e7 ,increase in minimum required distributions for payees with large aggregate account balances 7#a7 ,in general ,if this subsection applies to a payee for any taxable year-- 7,a7 all qualified retirement plans and eligible deferred compensation plans of the payee which are applicable retirement plans taken into account in computing the excess described in paragraph 7#b77;,a7 shall be treated as #a plan solely for purposes of applying this section to the increase in minimum required distributions for the taxable year described in subparagraph 7,b71 and 7,b7 the minimum required distributions under this section for all plans treated as #a plan under subparagraph 7,a7 with respect to such payee for the taxable year shall be increased by the excess 7if any7 of-- 7i7 the excess described in paragraph 7#b77;,a71 over 7ii7 the sum of the minimum required distributions 7determined without regard to this subsection7 for all such plans4 7#b7 ,application ,this subsection shall apply to a payee for a taxable year-- 7,a7 if the aggregate balances to the credit of the payee 7whether as a participant1 owner1 or beneficiary7 in all applicable retirement plans 7determined as of the close of the calendar year preceding the calendar year in which the taxable year begins7 exceed the applicable dollar amount for the calendar year in which the taxable year begins1 and 7,b7 without regard to whether amounts with respect to the payee are otherwise required to be distributed under section #dja7;a77#i71 #djc7;b77#aj71 #djh7;a77#f71 #djh7;b77#c71 or #deg7;d77#b74 7#c7 ,coordination and allocation 7,a7 ,minimum distribution requirements ,if this subsection applies to a payee for any taxable year-- 7i7 this section shall apply first to minimum required distributions determined without regard to this subsection and then to any increase in minimum required distributions by reason of this subsection1 and 7ii7 nothing in this subsection shall be construed to affect the amount of any minimum required distribution determined without regard to this subsection or the plan or plans from which it is required to be distributed from4 7,b7 ,allocation of increase in minimum required distributions ,the taxpayer may1 in such form and manner as the ,secretary may prescribe1 allocate any increase in minimum required distributions by reason of this subsection to applicable retirement plans treated as #a plan under subparagraph 7,a7 in such manner as the taxpayer chooses4 7#d7 ,treatment of ,roth ,i,r,as 7,a7 ,in general ,notwithstanding section #djh;,a7c77#e7-- 7i7 the aggregate balance to the credit of a payee of any ,roth ,,ira shall be taken into account for purposes of this subsection1 and 7ii7 distributions from a ,roth ,,ira may be taken into account in determining whether the required increase in minimum required distributions by reason of this subsection has been satisfied4 7,b7 ,inclusion in income of distributed earnings ,if any distribution from a ,roth ,,ira is taken into account under subparagraph 7,a77ii71 then1 notwithstanding section #djh;,a7d77#e71 the portion of such distribution which is properly allocable to net income on contributions to the ,roth ,,ira shall not be treated as a qualified distribution and shall be included in gross income of the payee4 7#e7 ,ratable inclusion for first year of increase ,if the first taxable year of a taxpayer for which there is a required increase in minimum required distributions by reason of this subsection begins before ,january #a1 #bjai1 any amount required to be included in gross income by reason of such increase shall be included in income ratably over the #f-taxable-year period 7or such shorter period as the taxpayer may elect7 beginning with such first taxable year4 7#f7 ,definitions ,for purposes of this subsection1 any term used in this subsection which is also used in section #dji;,b shall have the same meaning as when such term is used in such section4 4 7#b7 ,exception from #aj percent additional tax on early distributions ,section #gb7t77#b7 of such ,code is amended by adding at the end the following new subparagraph3 7,h7 ,distributions of excess balances ,distributions from applicable retirement plans 7within the meaning of section #dji;,b7 to the extent such distributions during the taxable year do not exceed the amount 7if any7 by which-- 7i7 the amount determined under section #dji;,b7a77#b7 for the taxable year1 exceeds 7ii7 the applicable dollar amount under section #dji;,b7c77#b7 for the preceding taxable year4 4 7d7 ,reporting requirements ,section #fjdg of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7g7 as subsection 7h7 and by inserting after subsection 7f7 the following3 7g7 ,reporting relating to aggregate contribution and balance limits on certain retirement plans ,the ,secretary shall require the plan administrator or trustee of an applicable retirement plan 7as defined in section #dji;,b7 to make such returns and reports to the ,secretary and participants and beneficiaries as are necessary to apply the aggregate limits on contributions imposed by section #dji;,b and the increases in minimum required distributions required by section #digd7;e74 ,if the account balance of a plan as of the close of a calendar year is not otherwise required under this title to be reported to a participant1 a beneficiary1 or the ,secretary1 such requirements shall include a requirement that the plan administrator or trustee shall notify the participant1 the beneficiary1 or the ,secretary of such account balance at such time and in such manner as the ,secretary may prescribe4 4 7e7 ,effective dates 7#a7 ,in general ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 7#b7 ,plan requirements ,the amendments made by subsection 7d7 shall apply to years beginning after the date of the enactment of this ,act4