,,ii  #aae? ,,congress  #a/ ,session    
,s4 #ajgf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #i1 #bjag,mr4     
,s&]s 7= himself1 ,ms4 ,baldw91 ,mr4    
,br[n1 ,mr4 ,frank51 ,ms4 ,klobu*>1     
,mrs4 ,mc,caskill1 ,mr4 ,pet]s1 ,mr4    
,re$1 ,ms4 ,/ab5[1 & ,mr4 ,:iteh\se7    
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,employee
 ,retirem5t ,income ,security ,act (    
#aigd & ! ,int]nal ,rev5ue ,code ( #aihf
 to modify c]ta9 provisions relat+ to   
multiemploy] p5sions1 & = o!r purposes4 
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,keep ,our ,p5sion ,promises ,act4    
#b4 ,re/or+ anti-cutback provisions     
,section #bja ( ! ,multiemploy] ,p5sion 
,re=m ,act ( #bjad 7division ,o (       
,public ,law #aac-bce7 & ! am5dm5ts made
 by su* section are repeal$1 & !        
,employee ,retirem5t ,income ,security  
,act ( #aigd & ! ,int]nal ,rev5ue ,code 
( #aihf %all be appli$ z if su* section 
& am5dm5ts _h nev] be5 enact$4  #c4     

,p>titions ( eligible multiemploy] plans
  7a7 ,9 g5]al ,section #dbcc ( !       
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #adac71 z   
am5d$ by section #abb ( ! ,multiemploy] 
,p5sion ,re=m ,act ( #bjad 7division ,o 
( ,public ,law #aac-bce71 is am5d$ to   
read z foll[s3  #dbcc4 ,p>titions (     
eligible multiemploy] plans  7a7 7#a7   
,^u ! application by ! plan sponsor ( an
 eligible multiemploy] plan = a p>tition
 ( ! plan1 ! corporation may ord] a     
p>tition ( ! plan 9 accordance ) ?is    
section4 ,! corporation %all make a     
det]m9ation reg>d+ ! application1 9     
accordance ) regulations promulgat$ by !
 corporation1 n lat] ?an #bgj days      
aft]--  7,a7 ! date su* application 0   
fil$2 or  7,b7 if lat]1 ! date su*      
application 0 complet$4  7#b7 ,at lea/  
#ad days be=e submitt+ an application = 
p>tition ( a plan "u p>agraph 7#a71 !   
plan sponsor ( ! plan %all notify all   
p>ticipants & b5efici>ies ( su*         
application1 9 ! =m & mann] prescrib$ by

 regulations issu$ by ! corporation4    
7b7 ,= purposes ( ?is section1 a        
multiemploy] plan is an eligible        
multiemploy] plan if-- 7#a7 ! plan is 9 
critical /atus & is project$ to become  
insolv5t )9 ! mean+ ( section #dbde--   
7,a7 dur+ ! curr5t plan ye> or any ( !  
#ad succe$+ plan ye>s2 or  7,b7 dur+ !  
curr5t plan ye> or any ( ! #ai succe$+  
plan ye>s1 if ! plan has a ratio (      
inactive p>ticipants to active          
p>ticipants t exce$s #b to #a & ! fund$ 
p]c5tage ( ! plan is less ?an #hj p]c5t2
  7#b7 ! corporation det]m9es1 aft]     
consultation ) ! ,p>ticipant & ,plan    
,sponsor ,advocate select$ "u section   
#djjd1 t ! plan sponsor has tak5 7or is 
tak+ concurr5tly ) an application =     
p>tition7 all reasonable measures       
describ$ 9 section #dcb7;e77#c77;,a7 ( !
 ,int]nal ,rev5ue ,code ( #aihf1 & has  
made 7or is mak+7 b5efit adju/m5ts "u   
section #dcb7;e77#h7 ( su* ,code to     
r$uce ! risk ( insolv5cy2  7#c7 #bj     
p]c5t or m ( ! am\nt by :i* !           

liabilities ( ! plan exce$ ! value (    
plan assets is attributable to ! s]vice 
( p>ticipants ^: employ]s--  7,a7 )drew 
f ! plan prior to ! date ( enactm5t ( ! 
,keep ,our ,p5sion ,promises ,act2 &    
7,b7 fail$ to pay 7or are del9qu5t )    
respect to pay+7 ! full am\nt ( !       
employ]'s )drawal liability "u section  
#dbja7;b77#a7 or z o!rwise det]m9$ "u an
 agreem5t ) ! plan2  7#d7 ! corporation 
reasonably expects t-- 7,a7 a p>tition (
 ! plan w r$uce ! corporation's expect$ 
long-t]m loss ) respect to ! plan2 &    
7,b7 a p>tition ( ! plan is necess>y = !
 plan to rema9 or become solv5t2 &  7#e7
 ! corporation c]tifies to ,congress t  
aft] p>tition ! corporation w cont9ue to
 h ! ability to meet exi/+ f9ancial     
assi/ance obligations to o!r plans      
7includ+ any liabilities associat$ )    
multiemploy] plans t are insolv5t or t  
are project$ to become insolv5t )9 #aj  
ye>s74  7c7 7#a7 ,a p>tition "u ?is     
section %all consi/ ( a transf] to !    
plan creat$ by ! p>tition ord] ( b5efits

 to :i* eligible p>ticipants &          
b5efici>ies 7 entitl$ "u ! plan t 0     
p>tition$1 9 an am\nt n to exce$ ! am\nt
 t w\ld be gu>ante$ "u section #djbb;,a 
if ! plan 7 insolv5t z ( ! date ( !     
p>tition ord]4  7#b7 ,! corporation's   
p>tition ord] %all provide = an annual  
transf] by ! corporation to ! plan      
creat$ by ! p>tition ord] ( an am\nt    
equal to ! ye>ly b5efits t w\ld be      
gu>ante$ "u section #djbb;,a to !       
eligible p>ticipants & b5efici>ies if ! 
plan 7 insolv5t z ( ! date ( ! p>tition 
ord]4  7#c7 7,a7 ,:]e practicable1 !    
initial transf] 9 accordance ) p>agraph 
7#b7 %all be complet$ at lea/ #fj days  
prior to ! plan ye> t imm$iately foll[s 
! p>tition />t date4 ,! p>tition ord]   
%all require t ! initial transf] be     
suffici5t to satisfy ! gu>ante$ b5efits 
9 ! fir/ plan ye> ( ! p>tition$ plan4   
7,b7 ,subsequ5t transf]s 9 accordance ) 
p>agraph 7#b7 %all be complet$ at lea/  
#fj days prior to ! fir/ day ( ea*      
succe$+ plan ye>4  7d7 7#a7 7,a7 ,! plan

 creat$ by ! p>tition ord] is a         
successor plan to :i* section #djbb;,a  
applies4  7,b7 ,at ! discretion ( ! plan
 sponsor1 ! plan creat$ by ! p>tition   
ord] may rema9 a "p ( ! plan t 0        
p>tition$ or be ma9ta9$ z a sep>ate     
plan4  7#b7 7,a7 ,! plan sponsor & !    
adm9i/rator ( an eligible multiemploy]  
plan prior to ! p>tition %all be ! plan 
sponsor & ! adm9i/rator1 respectively1 (
 ! plan creat$ by ! p>tition ord]1 &    
%all adopt reasonable proc$ures to r$uce
 adm9i/rative exp5ses & to coord9ate    
b5efit paym5ts & communications ) !     
p>ticipants & b5efici>ies 9 ! plan      
creat$ by ! p>tition ord]4  7,b7 ,b5efit
 paym5ts equal to ! am\nt ( an eligible 
p>ticipant or b5efici>y's gu>ante$      
b5efits %all be paid to su* p>ticipant  
or b5efici>y & may be--  7i7 paid       
sep>ately by ! plan creat$ by ! p>tition
 ord]2 or  7ii7 paid 9 a s+le1 mon?ly   
paym5t by ! plan t 0 p>tition$4  7#c7 ,9
 ! ev5t an employ] )draws f ! plan t 0  
p>tition$1 )drawal liability %all be    

comput$ "u section #dbja ) respect to   
bo? ! plan t 0 p>tition$ & ! plan creat$
 by ! p>tition ord]4  7e7 ,9 addition to
 ! paym5t ( gu>ante$ b5efits "u         
subsection 7d77#b77;,b71 ea* eligible   
p>ticipant or b5efici>y ( ! plan creat$ 
by ! p>tition ord] %all receive a mon?ly
 b5efit = ea* mon? ! b5efit is 9 pay    
/atus 9 an am\nt t--  7#a7 !            
corporation1 9 consultation ) !         
,p>ticipant & ,plan ,sponsor ,advocate1 
det]m9es to be fair to ! plan1 !        
p>ticipant or b5efici>y1 ! employ]s1 & !
 corporation2 &  7#b7 :5 aggregat$ ) !  
paym5t "u subsection 7d77#b77;,b71      
results 9 a mon?ly b5efit t is at lea/  
equal to ! less] (--  7,a7 ! mon?ly     
non=feitable b5efit = su* p>ticipant or 
b5efici>y payable "u ! plan t 0         
p>tition$2 or  7,b7 #hj p]c5t ( !       
maximum b5efit comm5c+ at age #fe       
gu>ante$ "u section #djbb7;a7 =         
p>ticipants & b5efici>ies 9 t]m9at$ s+le
 employ] plans1 unr$uc$ = e>ly          
retirem5t4  ,su* mon?ly b5efit may be   

comb9$ ) ! mon?ly paym5t "u subsection  
7d77#b77;,b77ii74  7f7 7#a7 ,!          
corporation %all e/abli% a legacy fund =
 ! purposes ( fund+ ! adm9i/rative &    
b5efit co/s to ! corporation aris+ f    
p>titions "u ?is section1 z describ$ 9  
p>agraph 7#b74  7#b7 ,any adm9i/rative &
 b5efit co/s to ! corporation aris+ f a 
p>tition ord]$ "u ?is section 9 excess (
 am\nts available 9 su* legacy fund %all
 be paid f ! fund = basic b5efits       
gu>ante$ = multiemploy] plans4  7g7     
,only "o p>tition ord] %all be issu$ )  
respect to ea* eligible multiemploy]    
plan4  7h7 ,= purposes ( ?is subsection1
 ! t]m eligible p>ticipant or b5efici>y 
means a p>ticipant or b5efici>y ( an    
eligible multiemploy] plan t is         
p>tition$ 9 accordance ) a petition ord]
 "u ?is section1 & :o is an employee or 
b5efici>y ( an employee ( an employ] t  
is describ$ 9 subsection 7b77#c74  7i7  
,n lat] ?an #ad days aft] ! issuance ( a
 p>tition ord] "u ?is section1 !        
corporation %all provide notice ( su*   

ord] to ! ,committee on ,f9ance ( !     
,s5ate1 ! ,committee on ,heal?1         
,education1 ,labor1 & ,p5sions ( !      
,s5ate1 ! ,committee on ,education & !  
,work=ce ( ! ,h\se ( ,repres5tatives1 ! 
,committee on ,ways & ,means ( ! ,h\se (
 ,repres5tatives1 & to all eligible     
p>ticipants or b5efici>ies ^: gu>ante$  
b5efits w be paid directly or indirectly
 by ! plan creat$ by ! p>tition ord]4  4
  7b7 ,effective date ,! am5dm5ts made  
by subsection 7a7 %all apply ) respect  
to plan ye>s beg9n+ aft] ! date (       
enactm5t ( ?is ,act4  7c7 ,transf]s to  
legacy fund ,! ,secret>y ( ! ,treasury  
%all f "t to "t transf] f ! g5]al fund (
 ! ,treasury to ! legacy fund e/abli%$  
"u section #dbcc7;f77#a7 ( ! ,employee  
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #adac7;f77#a77 7z  
am5d$ by subsection 7a77 am\nts equal to
 ! increase 9 rev5ues to ! ,treasury by 
reason ( ! am5dm5ts made by sections #f 
& #g ( ?is ,act4  7d7 ,transf]s betwe5  
funds ( ! ,,pbgc ,section #djje ( !     

,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #acje7 is   
am5d$ by add+ at ! end ! foll[+3  7i7   
7#a7 ,an eigh? fund is e/abli%$ "u      
section #dbcc7;f7 & cr$it$ ) ! am\nts   
describ$ 9 section #c7;c7 ( ! ,keep ,our
 ,p5sion ,promises ,act4  7#b7 ,not)/&+ 
subsection 7g71 ! corporation may       
transf] am\nts into ! legacy fund       
e/abli%$ "u section #dbcc7;f77#a7 f o!r 
funds e/abli%$ "u ?is section1 z !      
corporation det]m9es appropriate4  4    
#d4 ,employ] )drawals relat+ to         
multiemploy] plans ,! matt] prec$+      
p>agraph 7#a7 ( section #dbbe7;b7 ( !   
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #adje7;b77  
is am5d$ by ins]t+ 1 includ+ an employ] 
und]go+ liquidation "u *apt] #g ( title 
#aa1 ,unit$ ,/ates ,code1 or simil>     
provisions ( ,/ate law1 aft]            
dissolution14  #e4 ,priorities ( claims 
9 bankruptcy  7a7 ,9 g5]al ,section     
#ejg7;a7 ( title #aa1 ,unit$ ,/ates     
,code1 is am5d$-- 7#a7 by r$esignat+    

p>agraphs 7#a7 ?r\gh #aj z p>agraphs    
7#b7 ?r\gh 7#aa71 respectively2  7#b7 by
 ins]t+ be=e p>agraph 7#b7 7z           
r$esignat$7 ! foll[+3  7#a7 ,fir/1      
)drawal liability det]m9$ "u "p #a (    
subtitle ,e ( title ,,iv ( ! ,employee  
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #acha et seq474  2 
7#c7 9 ! matt] prec$+ subp>agraph 7,a7 (
 p>agraph 7#b7 7z r$esignat$71 by /rik+ 
,fir/3 & ins]t+ ,second32  7#d7 9       
p>agraph 7#c7 7z r$esignat$71 by /rik+  
,second1 & ins]t+ ,?ird12  7#e7 9       
p>agraph 7#d7 7z r$esignat$71 by /rik+  
,?ird1 & ins]t+ ,f\r?12  7#f7 9 ! matt] 
prec$+ subp>agraph 7,a7 ( p>agraph 7#e7 
7z r$esignat$71 by /rik+ ,f\r?1 & ins]t+
 ,fif?12  7#g7 9 ! matt] prec$+         
subp>agraph 7,a7 ( p>agraph 7#f7 7z     
r$esignat$71 by /rik+ ,fif?1 & ins]t+   
,six?12  7#h7 9 ! matt] prec$+          
subp>agraph 7,a7 ( p>agraph 7#g7 7z     
r$esignat$71 by /rik+ ,six?1 & ins]t+   
,sev5?12  7#i7 9 p>agraph 7#h7 7z       
r$esignat$71 by /rik+ ,sev5?1 & ins]t+  

,eigh?12  7#aj7 9 ! matt] prec$+        
subp>agraph 7,a7 ( p>agraph 7#i7 7z     
r$esignat$71 by /rik+ ,eigh?1 & ins]t+  
,n9?12  7#aa7 9 p>agraph 7#aj7 7z       
r$esignat$71 by /rik+ ,n9?1 & ins]t+    
,t5?12 &  7#ab7 9 p>agraph 7#aa7 7z     
r$esignat$71 by /rik+ ,t5?1 & ins]t+    
,elev5?14  7b7 ,te*nical & con=m+       
am5dm5ts  7#a7 ,section #ejb7;i7 ( title
 #aa1 ,unit$ ,/ates ,code1 is am5d$ by  
/rik+ section #ejg7;a77#h7 & ins]t+     
section #ejg7;a77#i74  7#b7 ,section    
#ejc7;b77#a77;,b77i7 ( title #aa1 ,unit$
 ,/ates ,code1 is am5d$ by /rik+ section
 #ejg7;a77#h7 & ins]t+ section          
#ejg7;a77#i74  7#c7 ,section #ejg7;d7 ( 
title #aa1 ,unit$ ,/ates ,code1 is am5d$
 by /rik+ 7a77#a71 7a77#d71 7a77#e71    
7a77#f71 7a77#g71 7a77#h71 or 7a77#i7 & 
ins]t+ 7a77#b71 7a77#e71 7a77#f71       
7a77#g71 7a77#h71 7a77#i71 or 7a77#aj74 
7#d7 ,section #ebc7;,a7 ( title #aa1    
,unit$ ,/ates ,code1 is am5d$ by /rik+  
section #ejg7;a77#c7 or #ejg7;a77#h7 &  
ins]t+ section #ejg7;a77#d7 or          

#ejg7;a77#i74  7#e7 ,section #gbd (     
title #aa1 ,unit$ ,/ates ,code1 is      
am5d$-- 7,a7 9 subsection 7b77#b71 by   
/rik+ section #ejg7;a77#a77;,c7 or      
#ejg7;a77#b7 & ins]t+ section           
#ejg7;a77#b77;,c7 or #ejg7;a77#c72 &    
7,b7 9 subsection 7f7-- 7i7 9 p>agraph  
7#a71 by /rik+ section #ejg7;a77#d7 &   
ins]t+ section #ejg7;a77#e72 &  7ii7 9  
p>agraph 7#b71 by /rik+ section         
#ejg7;a77#e7 & ins]t+ section           
#ejg7;a77#f74  7#f7 ,section #gbf7;b7 ( 
title #aa1 ,unit$ ,/ates ,code1 is am5d$
 by /rik+ p>agraph 7#a71 7#b71 7#c71    
7#d71 7#e71 7#f71 7#g71 7#h71 7#i71 or  
7#aj7 ( section #ejg7;a7 & ins]t+       
p>agraphs 7#b7 ?r\gh 7#aa7 ( section    
#ejg7;a74  7#g7 ,section #geb7;a7 (     
title #aa1 ,unit$ ,/ates ,code1 is am5d$
 by /rik+ section #ejg7;a77#b7 & ins]t+ 
section #ejg7;a77#c74  7#h7 ,section    
#gff ( title #aa1 ,unit$ ,/ates ,code1  
is am5d$--  7,a7 9 subsection 7h71 by   
/rik+ section #ejg7;a77#b7 & ins]t+     
section #ejg7;a77#c72 &  7,b7 9         

subsection 7i7--  7i7 9 p>agraph 7#a71  
by /rik+ section #ejg7;a77#b7 & ins]t+  
section #ejg7;a77#c72 &  7ii7 9 p>agraph
 7#b71 by /rik+ section #ejg7;a77#b7 &  
ins]t+ section #ejg7;a77#c74  7#i7      
,section #ija ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ #ejg7;a77#b7 &
 ins]t+ #ejg7;a77#c74  7#aj7 ,section   
#idc7;b77#e7 ( title #aa1 ,unit$ ,/ates 
,code1 is am5d$ by /rik+ section        
#ejg7;a77#b7 & ins]t+ section           
#ejg7;a77#c74  7#aa7 ,section           
#aabc7;a77#a7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ section       
#ejg7;a77#b71 #ejg7;a77#c71 or          
#ejg7;a77#h7 & ins]t+ section           
#ejg7;a77#c71 #ejg7;a77#d71 or          
#ejg7;a77#i74  7#ab7 ,section           
#aabi7;a77#i7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$--  7,a7 9 subp>agraph  
7,a71 by /rik+ section #ejg7;a77#c7 or  
#ejg7;a77#d7 & ins]t+ section           
#ejg7;a77#d7 or #ejg7;a77#e72  7,b7 9 ! 
matt] prec$+ clause 7i7 ( subp>agraph   
7,b71 by /rik+ section #ejg7;a77#a71    

#ejg7;a77#d71 #ejg7;a77#e71             
#ejg7;a77#f71 or #ejg7;a77#g7 & ins]t+  
section #ejg7;a77#b71 #ejg7;a77#e71     
#ejg7;a77#f71 #ejg7;a77#g71 or          
#ejg7;a77#h72  7,c7 9 ! matt] prec$+    
clause 7i7 ( subp>agraph 7,c71 by /rik+ 
section #ejg7;a77#h7 & ins]t+ section   
#ejg7;a77#i72 &  7,d7 9 subp>agraph     
7,d71 by /rik+ section #ejg7;a77#h7 &   
ins]t+ section #ejg7;a77#i74  7#ac7     
,section #abbb7;a77#d7 ( title #aa1     
,unit$ ,/ates ,code1 is am5d$ by /rik+  
section #ejg7;a77#a77;,b7 & ins]t+      
#ejg7;a77#b77;,b74  7#ad7 ,section      
#abbf7;b77#a7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ section       
#ejg7;a77#b7 & ins]t+ section           
#ejg7;a77#c74  7#ae7 ,section           
#acbb7;a77#d7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ section       
#ejg7;a77#a77;,b7 & ins]t+ section      
#ejg7;a77#b77;,b74  7#af7 ,section      
#acbf7;b77#a7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ section       
#ejg7;a77#b7 & ins]t+ section           

#ejg7;a77#c74  7#ag7 ,section           
#acbh7;a77#b7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ section       
#ejg7;a77#h77;,c7 & ins]t+ section      
#ejg7;a77#i77;,c74  #f4 ,limitation (   
nonrecognition ( l-k9d ex*anges  7a7 ,9 
g5]al ,p>agraph 7#b7 ( section #ajca7;a7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$--  7#a7 by r$esignat+ subp>agraphs
 7,a71 7,b71 7,c71 7,d71 7,e71 & 7,f7 z 
clauses 7i71 7ii71 7iii71 7iv71 7v71 &  
7vi71 & by mov+ su* clauses #b ems to ! 
"r1  7#b7 by mov+ ! flu% language aft] !
 fir/ s5t5ce #b ems to ! "r1  7#c7 by   
/rik+ 7#b7 ,exception4--,?is subsection 
& ins]t+ 87#b7 ,exceptions4--  7,a7     
,exclud$ prop]ty ,?is subsection  1 &   
7#d7 by add+ at ! end ! foll[+ new      
subp>agraph3  7,b7 ,doll> limitation =  
ex*anges ( real prop]ty  7i7 ,9 g5]al   
,p>agraph 7#a7 %all n apply s mu* ( !   
ga9 :i*1 b = su* p>agraph1 w\ld be      
recogniz$ by ! taxpay] ) respect to real
 prop]ty ex*ang$ dur+ ! taxable ye> z   
exce$s #a1jjj1jjj4  7ii7 ,special rules 

= p>tn]%ips & ,s-corporations ,9 ! case 
( a pass-?r\gh entity1 clause 7i7 %all  
be appli$ at bo? ! entity & at ! p>tn]  
or own] level4  7iii7 ,aggregation rules
 ,= purposes ( ?is subp>agraph-- 7,i7   
,family memb]s ,individuals :o are      
sp\ses or :o be> any ( ! relation%ips   
describ$ 9 section #aeb7;d77#b7 to ea*  
o!r %all be treat$ z #a taxpay] 7)\t    
reg>d to :e!r sp\ses file a jo9t        
return74  7,,ii7 ,corporations & o!r    
entities ,all p]sons treat$ z a s+le    
employ] "u subsection 7a7 or 7b7 (      
section #eb or subsection 7m7 or 7o7 (  
section #dad %all be treat$ z #a p]son4 
7iv7 ,adju/m5t = inflation ,9 ! case (  
ex*anges complet$ 9 a taxable ye> beg9n+
 aft] ,decemb] #ca1 #bjag1 ! #a1jjj1jjj 
am\nt 9 clause 7i7 %all be increas$ by  
an am\nt equal to--  7,i7 su* doll>     
am\nt1 multipli$ by  7,,ii7 ! co/-(-liv+
 adju/m5t det]m9$ "u section #a7;f77#c7 
= ! cal5d> ye> 9 :i* ! taxable ye>      
beg9s1 det]m9$ by sub/itut+ cal5d> ye>  
#bjaf = cal5d> ye> #aiib 9 subp>agraph  

7,b7 !re(4  ,if any am\nt z adju/$ "u ! 
prec$+ s5t5ce is n a multiple ( #a1jjj1 
su* am\nt %all be r\nd$ to ! ne>e/      
multiple ( #a1jjj4  4  7b7 ,exclusion ( 
art & collectibles ,subp>agraph 7,a7 (  
section #ajca7;a77#b7 ( ! ,int]nal      
,rev5ue ,code ( #aihf1 z am5d$ by       
subsection 7a71 is am5d$--  7#a7 by     
/rik+ or at ! end ( clause 7v71  7#b7 by
 /rik+ ! p]iod at ! end ( clause 7vi7 & 
ins]t+ 1 or1 &  7#c7 by ins]t+ aft]     
clause 7vi7 ! foll[+ new clause3  7vii7 
any collectible 7)9 ! mean+ ( section   
#djh7m71 )\t reg>d to p>agraph 7#c7     
!re(74  4  7c7 ,regulatory au?ority     
,subsection 7f7 ( section #ajca ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#e7 ,rules relat+ to doll> limitation  
,! ,secret>y %all prescribe su* guidance
 z is necess>y = apply+ subsection      
7a77#b77;,b77i7 9 ! case ( ! ex*ange (  
multiple pieces ( real prop]ty by relat$
 p]sons4  4  7d7 ,con=m+ am5dm5ts  7#a7 
,subsection 7b7 ( section #ajca ( !     

,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7,a7 by /rik+ 9 k9d4--,if an    
ex*ange & ins]t+ 89 k9d4--  7#a7 ,9     
g5]al ,if an ex*ange  1 &  7,b7 by add+ 
at ! end ! foll[+ new p>agraph3  7#b7   
,coord9ation ) subsection 7a77#b77;,b7  
,9 ! case ( an ex*ange to :i* p>agraph  
7#a7 applies-- 7,a7 p>agraph 7#a7 %all  
be appli$ be=e ! application (          
subsection 7a77#b77;,b71 &  7,b7        
subsection 7a77#b77;,b7 %all be appli$--
 7i7 z if su* ex*ange 7 )9 ! provisions 
( subsection 7a71 &  7ii7 by increas+ ! 
basis ( ! prop]ty dispos$ ( by ! taxpay]
 9 su* ex*ange by ! am\nt ( any ga9     
det]m9$ "u p>agraph 7#a74  4  7#b7      
,subsection 7d7 ( section #ajca ( su*   
,code is am5d$ by /rik+ 9 ! am\nt ( ga9 
& ins]t+ 9 ! am\nt ( ga9 7includ+ any   
ga9 recogniz$ by reason ( subsection    
7a77#b77;,b77i774  7#c7 ,subsection 7i7 
( section #ajca ( su* ,code is am5d$ by 
/rik+ 7a77#b77;,b7 & ins]t+             
7a77#b77;,a77ii74  7e7 ,effective date  
,! am5dm5ts made by ?is section %all    

apply to ex*anges complet$ 9 taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjaf4   
#g4 ,contribution limit & increas$      
m9imum di/ributions = c]ta9 retirem5t   
plans ) l>ge acc\nt balances  7a7       
,contribution limit  7#a7 ,9 g5]al      
,subp>t ,a ( "p ,i ( sub*apt] ,d ( *apt]
 #a ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by add+ at ! end ! foll[+3     
#dji;,b4 ,contribution limit on c]ta9   
retirem5t plans ) l>ge acc\nt balances  
7a7 ,g5]al rule ,not)/&+ any o!r        
provision ( ?is title1 no applicable    
annual additions %all be made by1 or on 
behalf (1 an individual = ! taxable ye> 
to any applicable retirem5t plan to !   
ext5t su* applicable annual additions   
exce$ ! excess 7if any7 (--  7#a7 !     
applicable doll> am\nt = ! taxable ye>1 
ov]  7#b7 ! aggregate balances to !     
cr$it ( ! individual 7:e!r z a          
p>ticipant1 own]1 or b5efici>y7 9 all   
applicable retirem5t plans 7det]m9$ z ( 
! close ( ! cal5d> ye> prec$+ ! cal5d>  
ye> 9 :i* ! taxable ye> beg9s74  7b7    

,rules relat+ to contribution           
limitations  7#a7 ,plans o!r ?an c]ta9  
,i,r,as  7,a7 ,9 g5]al ,except z provid$
 9 p>agraph 7#b71 applicable annual     
additions 9 excess ( ! limitation "u    
subsection 7a7 %all be treat$ = purposes
 ( ?is title 9 ! same mann] z excess    
def]rals are treat$ "u section #djb7;g74
  7,b7 ,special rule = aft] tax         
contributions ,if1 )\t reg>d to ?is     
p>agraph1 any portion ( an applicable   
annual addition to :i* subp>agraph 7,a7 
applies ) respect to an individual is n 
excludable f gross income ( ! individual
 7or no d$uction is all[able to !       
individual ) respect to su* portion71   
su* portion %all n be--  7i7 includible 
9 gross income by reason ( ! application
 ( subp>agraph 7,a71 or  7ii7 tak5 into 
acc\nt 9 comput+ ! inve/m5t 9 ! contract
 = purposes ( section #gb4  7#b7        
,special rule = ,i,r,as  7,a7 ,9 g5]al  
,9 ! case ( an applicable retirem5t plan
 :i* is an individual retirem5t plan    
7o!r ?an a simplifi$ employee p5sion "u 

section #djh7k7 or a simple retirem5t   
acc\nt "u section #djh7p771 any         
applicable annual addition to su* plan 9
 excess ( ! limitation "u subsection 7a7
 %all be treat$ = purposes ( sections   
#djh & #djh;,a z a contribution = !     
taxable ye> 9 excess ( ! maximum am\nt  
all[able z a d$uction "u section #bai = 
! taxable ye>4  7,b7 ,aft] tax          
contributions ,9 ! case ( applicable    
annual additions 9 excess ( ! limitation
 "u subsection 7a7--  7i7 :i* are treat$
 z designat$ nond$uctible contributions 
"u section #djh7o71 rules simil> to !   
rules ( p>agraph 7#a77;,b7 %all apply1 &
  7ii7 to a ,ro? ,,ira1 section         
#djh;,a7d77#b77;,c7 %all apply to su*   
additions & to any net income allocable 
to su* additions4  ,= purposes ( clause 
7ii71 di/ributions f a ,ro? ,,ira %all  
be treat$ z fir/ made f am\nts describ$ 
9 clause 7ii7 & section                 
#djh;,a7d77#b77;,c7 %all be appli$ 9 !  
same mann] z if !re 7 a di/ribution ( a 
contribution describ$ 9 section         

#djh7;d77#d7 7)\t reg>d to :e!r su*     
di/ribution is timely made74  7#c7      
,allocation ( excess applicable annual  
additions ,if ! applicable doll> am\nt =
 a taxable ye> exce$s ! am\nt describ$ 9
 subsection 7a77#b71 ! taxpay] may1 9   
su* =m & mann] z ! ,secret>y may        
prescribe1 allocate su* excess to       
applicable annual additions to ea*      
applicable retirem5t plan 9 su* mann] z 
! taxpay] *ooses4  7c7 ,def9itions &    
special rules ,= purposes ( ?is         
section-- 7#a7 ,applicable annual       
addition  7,a7 ,9 g5]al ,! t]m          
applicable annual addition means any ( !
 foll[+ made to or on behalf ( an       
individual3  7i7 ,an annual addition 7)9
 ! mean+ ( section #dae7;c77#b774  7ii7 
,any contribution to an individual      
retirem5t plan1 includ+ any employ] or  
employee contribution to a simplifi$    
employee p5sion "u section #djh7k7 or a 
simple retirem5t acc\nt "u section      
#djh7p74  7iii7 ,any def]ral "u an      
eligible def]r$ comp5sation plan        

describ$ 9 section #deg7;b7 :i* is      
ma9ta9$ by an eligible employ] describ$ 
9 section #deg7;e77#a77;,a74  7,b7      
,rollov] contributions disreg>d$ ,a     
rollov] contribution "u section         
#djb7;c71 #djc7;b77#h71                 
#djh7;d77#c77;,a77ii71 or #deg7;e77#af7 
%all n be treat$ z an annual addition4  
7#b7 ,applicable doll> am\nt  7,a7 ,9   
g5]al ,! t]m applicable doll> am\nt     
means #e1jjj1jjj4  7,b7 ,adju/m5t =     
inflation ,9 ! case ( any taxable ye>   
beg9n+ aft] #bjag1 ! #e1jjj1jjj am\nt "u
 subp>agraph 7,a7 %all be increas$ by an
 am\nt equal to ! product (--  7i7 su*  
am\nt1 &  7ii7 ! co/-(-liv+ adju/m5t "u 
section #a7;f77#c7 = ! cal5d> ye> 9 :i* 
su* taxable ye> beg9s1 det]m9$ by       
sub/itut+ cal5d> ye> #bjaf = cal5d> ye> 
#aiib 9 subp>agraph 7,b7 !re(4  7,c7    
,r\nd+ ,if any am\nt z adju/$ "u        
subp>agraph 7,b7 is n a multiple (      
#a1jjj1 su* am\nt %all be r\nd$ to !    
next l[e/ multiple ( #a1jjj4  7#c7      
,applicable retirem5t plan ,! t]m       

applicable retirem5t plan means--  7,a7 
a def9$ contribution plan to :i* section
 #dja7;a7 or #djc7;a7 applies1  7,b7 an 
annuity contract "u section #djc7;b71   
7,c7 an eligible def]r$ comp5sation plan
 describ$ 9 section #deg7;b7 :i* is     
ma9ta9$ by an eligible employ] describ$ 
9 section #deg7;e77#a77;,a71 or  7,d7 an
 individual retirem5t plan4  7d7        
,regulations ,! ,secret>y %all prescribe
 su* regulations & guidance z are       
necess>y or appropriate to c>ry out !   
purposes ( ?is section1 includ+         
regulations or guidance t provide = !   
application ( ?is section & section     
#digd7;e7 9 ! case ( plans ) a valuation
 date o!r ?an ! la/ day ( a cal5d> ye>4 
4  7#b7 ,con=m+ am5dm5ts  7,a7 ,! table 
( cont5ts = subp>t ,a ( "p ,i ( sub*apt]
 ,d ( *apt] #a ( su* ,code is am5d$ by  
add+ aft] ! item relat+ to section      
#dji;,a ! foll[+ new item3  ,sec4       
#dji;,b4 ,contribution limit on c]ta9   
retirem5t plans ) l>ge acc\nt balances4 
4  7,b7 ,section #djb7;g7 ( su* ,code is

 am5d$ by add+ at ! end ! foll[+ new    
p>agraph3  7#i7 ,aggregate limitation ,=
 additional limitation on contributions 
to c]ta9 plans ) l>ge acc\nt balances1  
see section #dji;,b4  4  7,c7 ,section  
#djc7;b77#a7 ( su* ,code is am5d$ by    
add+ at ! end ! foll[+ new s5t5ce3 ,=   
additional limitation on contributions  
to c]ta9 plans ) l>ge acc\nt balances1  
see section #dji;,b44  7,d7 ,section    
#djh7r7 ( su* ,code is am5d$ by add+ at 
! end ! foll[+ new p>agraph3  7#c7 ,=   
additional limitation on contributions  
to c]ta9 plans ) l>ge acc\nt balances1  
see section #dji;,b4  4  7,e7 ,section  
#deg7;c7 ( su* ,code is am5d$ by add+ at
 ! end ! foll[+ new s5t5ce3 ,=          
additional limitation on contributions  
to c]ta9 plans ) l>ge acc\nt balances1  
see section #dji;,b44  7b7 ,excise tax  
on excess annual additions  7#a7 ,9     
g5]al ,subsection 7a7 ( section #digc ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$-- 7,a7 by /rik+ or at ! end (     
p>agraph 7#e71  7,b7 by ins]t+ or aft] !

 comma at ! end ( p>agraph 7#f71 &  7,c7
 by ins]t+ aft] p>agraph 7#f7 ! foll[+  
new p>agraph3  7#g7 an applicable       
retirem5t plan 7)9 ! mean+ ( section    
#dji;,b7c77#c771  4  7#b7 ,excess       
contributions to applicable retirem5t   
plans ,section #digc ( su* ,code is     
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7i7 ,excess contributions  
to applicable retirem5t plans ,=        
purposes ( ?is section1 9 ! case (      
applicable retirem5t plans 7)9 ! mean+ (
 section #dji;,b7c77#c771 ! t]m excess  
contributions ) respect to any taxable  
ye> means ! sum (--  7#a7 ! excess ( !  
applicable annual additions 7)9 ! mean+ 
( section #dji;,b7c77#a77 to su* plans  
ov] ! limitation "u section #dji;,b7a7 =
 su* taxable ye>1 &  7#b7 ! less] (--   
7,a7 ! am\nt det]m9$ "u ?is subsection =
 ! prec$+ taxable ye>1 r$uc$ by !       
aggregate di/ributions f su* plans = !  
taxable ye> 7includ+ di/ributions       
requir$ "u section #digd7;e77 to ! ext5t
 n contribut$ 9 a rollov] contribution  

to ano!r eligible retirem5t plan 9      
accordance ) section #djb7;c71          
#djc7;b77#h71 #deg7;e77#af71            
#djh7;d77#c71 or #djh;,a7d77#c71 or     
7,b7 ! am\nt 7if any7 by :i* ! am\nt    
det]m9$ "u section #dji;,b7a77#b7 = !   
taxable ye> exce$s ! applicable doll>   
am\nt "u section #dji;,b7c77#b7 = !     
taxable ye>4  4  7#c7 ,con=m+ am5dm5ts  
,subsection 7a7 ( section #digc ( su*   
,code is am5d$-- 7,a7 by /rik+ acc\nts  
or annuities & ins]t+ acc\nts1          
annuities1 or plans1 &  7,b7 by /rik+   
acc\nt or annuity & ins]t+ acc\nt1      
annuity1 or plan4  7c7 ,increase 9      
m9imum requir$ di/ributions  7#a7 ,9    
g5]al ,section #digd ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+3  7e7 ,increase 9     
m9imum requir$ di/ributions = payees )  
l>ge aggregate acc\nt balances  7#a7 ,9 
g5]al ,if ?is subsection applies to a   
payee = any taxable ye>--  7,a7 all     
qualifi$ retirem5t plans & eligible     
def]r$ comp5sation plans ( ! payee :i*  

are applicable retirem5t plans tak5 into
 acc\nt 9 comput+ ! excess describ$ 9   
p>agraph 7#b77;,a7 %all be treat$ z #a  
plan solely = purposes ( apply+ ?is     
section to ! increase 9 m9imum requir$  
di/ributions = ! taxable ye> describ$ 9 
subp>agraph 7,b71 &  7,b7 ! m9imum      
requir$ di/ributions "u ?is section =   
all plans treat$ z #a plan "u           
subp>agraph 7,a7 ) respect to su* payee 
= ! taxable ye> %all be increas$ by !   
excess 7if any7 (--  7i7 ! excess       
describ$ 9 p>agraph 7#b77;,a71 ov]  7ii7
 ! sum ( ! m9imum requir$ di/ributions  
7det]m9$ )\t reg>d to ?is subsection7 = 
all su* plans4  7#b7 ,application ,?is  
subsection %all apply to a payee = a    
taxable ye>--  7,a7 if ! aggregate      
balances to ! cr$it ( ! payee 7:e!r z a 
p>ticipant1 own]1 or b5efici>y7 9 all   
applicable retirem5t plans 7det]m9$ z ( 
! close ( ! cal5d> ye> prec$+ ! cal5d>  
ye> 9 :i* ! taxable ye> beg9s7 exce$ !  
applicable doll> am\nt = ! cal5d> ye> 9 
:i* ! taxable ye> beg9s1 &  7,b7 )\t    

reg>d to :e!r am\nts ) respect to !     
payee are o!rwise requir$ to be         
di/ribut$ "u section #dja7;a77#i71      
#djc7;b77#aj71 #djh7;a77#f71            
#djh7;b77#c71 or #deg7;d77#b74  7#c7    
,coord9ation & allocation  7,a7 ,m9imum 
di/ribution requirem5ts ,if ?is         
subsection applies to a payee = any     
taxable ye>--  7i7 ?is section %all     
apply fir/ to m9imum requir$            
di/ributions det]m9$ )\t reg>d to ?is   
subsection & !n to any increase 9 m9imum
 requir$ di/ributions by reason ( ?is   
subsection1 &  7ii7 no?+ 9 ?is          
subsection %all be con/ru$ to affect !  
am\nt ( any m9imum requir$ di/ribution  
det]m9$ )\t reg>d to ?is subsection or !
 plan or plans f :i* x is requir$ to be 
di/ribut$ f4  7,b7 ,allocation (        
increase 9 m9imum requir$ di/ributions  
,! taxpay] may1 9 su* =m & mann] z !    
,secret>y may prescribe1 allocate any   
increase 9 m9imum requir$ di/ributions  
by reason ( ?is subsection to applicable
 retirem5t plans treat$ z #a plan "u    

subp>agraph 7,a7 9 su* mann] z ! taxpay]
 *ooses4  7#d7 ,treatm5t ( ,ro? ,i,r,as 
7,a7 ,9 g5]al ,not)/&+ section          
#djh;,a7c77#e7-- 7i7 ! aggregate balance
 to ! cr$it ( a payee ( any ,ro? ,,ira  
%all be tak5 into acc\nt = purposes (   
?is subsection1 &  7ii7 di/ributions f a
 ,ro? ,,ira may be tak5 into acc\nt 9   
det]m9+ :e!r ! requir$ increase 9 m9imum
 requir$ di/ributions by reason ( ?is   
subsection has be5 satisfi$4  7,b7      
,inclusion 9 income ( di/ribut$ e>n+s   
,if any di/ribution f a ,ro? ,,ira is   
tak5 into acc\nt "u subp>agraph         
7,a77ii71 !n1 not)/&+ section           
#djh;,a7d77#e71 ! portion ( su*         
di/ribution :i* is prop]ly allocable to 
net income on contributions to ! ,ro?   
,,ira %all n be treat$ z a qualifi$     
di/ribution & %all be includ$ 9 gross   
income ( ! payee4  7#e7 ,ratable        
inclusion = fir/ ye> ( increase ,if !   
fir/ taxable ye> ( a taxpay] = :i* !re  
is a requir$ increase 9 m9imum requir$  
di/ributions by reason ( ?is subsection 

beg9s be=e ,janu>y #a1 #bjai1 any am\nt 
requir$ to be includ$ 9 gross income by 
reason ( su* increase %all be includ$ 9 
income ratably ov] ! #f-taxable-ye>     
p]iod 7or su* %ort] p]iod z ! taxpay]   
may elect7 beg9n+ ) su* fir/ taxable    
ye>4  7#f7 ,def9itions ,= purposes ( ?is
 subsection1 any t]m us$ 9 ?is          
subsection :i* is also us$ 9 section    
#dji;,b %all h ! same mean+ z :5 su* t]m
 is us$ 9 su* section4  4  7#b7         
,exception f #aj p]c5t additional tax on
 e>ly di/ributions ,section #gb7t77#b7 (
 su* ,code is am5d$ by add+ at ! end !  
foll[+ new subp>agraph3  7,h7           
,di/ributions ( excess balances         
,di/ributions f applicable retirem5t    
plans 7)9 ! mean+ ( section #dji;,b7 to 
! ext5t su* di/ributions dur+ ! taxable 
ye> d n exce$ ! am\nt 7if any7 by :i*-- 
7i7 ! am\nt det]m9$ "u section          
#dji;,b7a77#b7 = ! taxable ye>1 exce$s  
7ii7 ! applicable doll> am\nt "u section
 #dji;,b7c77#b7 = ! prec$+ taxable ye>4 
4  7d7 ,report+ requirem5ts ,section    

#fjdg ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by r$esignat+ subsection 7g7 z
 subsection 7h7 & by ins]t+ aft]        
subsection 7f7 ! foll[+3  7g7 ,report+  
relat+ to aggregate contribution &      
balance limits on c]ta9 retirem5t plans 
,! ,secret>y %all require ! plan        
adm9i/rator or tru/ee ( an applicable   
retirem5t plan 7z def9$ 9 section       
#dji;,b7 to make su* returns & reports  
to ! ,secret>y & p>ticipants &          
b5efici>ies z are necess>y to apply !   
aggregate limits on contributions impos$
 by section #dji;,b & ! increases 9     
m9imum requir$ di/ributions requir$ by  
section #digd7;e74 ,if ! acc\nt balance 
( a plan z ( ! close ( a cal5d> ye> is n
 o!rwise requir$ "u ?is title to be     
report$ to a p>ticipant1 a b5efici>y1 or
 ! ,secret>y1 su* requirem5ts %all      
include a requirem5t t ! plan           
adm9i/rator or tru/ee %all notify !     
p>ticipant1 ! b5efici>y1 or ! ,secret>y 
( su* acc\nt balance at su* "t & 9 su*  
mann] z ! ,secret>y may prescribe4  4   

7e7 ,effective dates  7#a7 ,9 g5]al ,!  
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4  7#b7 ,plan        
requirem5ts ,! am5dm5ts made by         
subsection 7d7 %all apply to ye>s beg9n+
 aft] ! date ( ! enactm5t ( ?is ,act4