,,ii  #aae? ,,congress  #b;d ,session   
,s4 #cbdb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ai1 #bjah,mr4   
,m]kley introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to e/abli% an      
,am]ican ,sav+s ,acc\nt ,fund & create a
 retirem5t sav+s plan available to all  
employees1 & = o!r purposes4  #a4 ,%ort 
title ,?is ,act may be cit$ z ! ,am]ican
 ,sav+s ,act4  #b4 ,am]ican ,sav+s      
,acc\nts  7a7 ,9 g5]al ,! ,employee     
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajja et seq47 is  
am5d$ by add+ at ! end ! foll[+3  ,v    
,am]ican ,sav+s ,acc\nts  ,a            
,adm9i/ration  #ejja4 ,am]ican ,sav+s   
,acc\nt ,bo>d ( ,directors  7a7 ,9 g5]al
 ,!re is e/abli%$ an ,am]ican ,sav+s    
,acc\nt ,bo>d ( ,directors 7h]eaft]     
ref]r$ to 9 ?is title z ! ,bo>d7 z a    
f$]ally *>t]$ organization4 ,except z   
o!rwise provid$1 su* ,bo>d has p]petual 
exi/5ce4  7b7 ,purpose ,! purpose ( !   
,bo>d is-- 7#a7 to e/abli% policies = ! 

inve/m5t & managem5t ( ! ,am]ican ,sav+s
 ,acc\nt ,fund2 &  7#b7 to c>ry out !   
responsibilities ( ! ,bo>d "u section   
#ejjb4  7c7 ,memb]%ip ,! ,bo>d %all be  
compos$ ( #i memb]s appo9t$ by !        
,presid5t 9 consultation ) ! ,secret>y (
 ,labor & ) ! advice & cons5t ( !       
,s5ate1 to include--  7#a7 ! ,secret>y (
 ,labor or a delegate ( ! ,secret>y2    
7#b7 #a repres5tative ( employ]s2  7#c7 
#a repres5tative ( ! private retirem5t  
sav+s inve/m5t indu/ry2  7#d7 #a        
repres5tative ( employees2  7#e7 #a     
repres5tative ( retirees2 &  7#f7 !     
,executive ,director & #c additional    
memb]s ( ! ,f$]al ,retirem5t ,?rift     
,inve/m5t ,bo>d e/abli%$ "u section     
#hdgb7;a7 ( title #e1 ,unit$ ,/ates     
,code4  ,( su* #i memb]s1 #a %all be    
elect$ by ! memb]s ( ! ,bo>d z ! ,*air4 
7d7 ,t]ms & vacancies  7#a7 ,t]m ,a     
memb] ( ! ,bo>d %all be appo9t$ = a t]m 
( #d ye>s &1 aft] ! expiration ( su*    
t]m1 may be reappo9t$ imm$iately to a   
subsequ5t t]m4  7#b7 ,vacancy ,a vacancy

 on ! ,bo>d %all be fill$ 9 ! mann] 9   
:i* ! orig9al appo9tm5t 0 made & %all be
 subject to any conditions :i* appli$ ) 
respect to ! orig9al appo9tm5t4 ,an     
individual *os5 to fill a vacancy %all  
be appo9t$ = ! unexpir$ t]m ( ! memb]   
replac$4  7#c7 ,expiration ,! t]m ( any 
memb] %all n expire be=e ! date on :i* !
 memb]'s successor takes (fice4  7e7    
,responsibility ,! memb]s ( ! ,bo>d %all
 dis*>ge _! responsibilities solely 9 ! 
int]e/ ( p>ticipants & b5efici>ies "u   
?is title4  7f7 ,comp5sation  7#a7 ,9   
g5]al ,ea* memb] ( ! ,bo>d :o is n an   
(fic] or employee ( ! ,f$]al ,gov]nm5t  
%all be comp5sat$ at ! daily rate (     
basic pay = grade ,,gs-#ah ( ! ,g5]al   
,s*$ule "u sub*apt] ,,iii ( *apt] #ec ( 
title #e1 ,unit$ ,/ates ,code1 = ea* day
 dur+ :i* su* memb] is engag$ 9 p]=m+ a 
function ( ! ,bo>d4  7#b7 ,p] diem1 etc 
,a memb] ( ! ,bo>d %all be paid travel1 
p] diem1 & o!r necess>y exp5ses :ile    
travel+ away f su* memb]'s home or      
regul> place ( bus9ess 9 ! p]=mance ( ! 

duties ( ! ,bo>d4  7#c7 ,paym5ts        
,paym5ts au?oriz$ "u ?is subsection %all
 be paid f ! ,am]ican ,sav+s ,acc\nt    
,fund4  #ejjb4 ,responsibilities (      
,am]ican ,sav+s ,acc\nt ,bo>d (         
,directors  7a7 ,e/abli%m5t ( inve/m5t  
funds & options ,! ,bo>d %all select or 
e/abli% a li/ ( inve/m5t funds & options
 simil> to ^? describ$ 9 subsection 7b7 
( section #hdch ( title #e1 ,unit$      
,/ates ,code1 among :i* an individual   
p>ticipat+ 9 an ,am]ican ,sav+s ,acc\nt 
e/abli%$ "u section #ejjc7;a7 may elect 
"u subsection 7b77#b74  7b7 ,inve/m5t ( 
sums  7#a7 ,9 g5]al ,! ,*air ( ! ,bo>d  
%all inve/ ! sums available 9 ! ,am]ican
 ,sav+s ,acc\nt ,fund = inve/m5t z      
provid$ 9 elections made "u p>agraph    
7#b74 ,if an election has n be5 made )  
respect to any sums 9 ! ,am]ican ,sav+s 
,acc\nt ,fund available = inve/m5t1 !   
,*air %all inve/ su* sums 9 a portfolio 
simil> to ! age-appropriate t>get date  
asset allocation portfolio e/abli%$ by !
 ,f$]al ,retirem5t ,?rift ,inve/m5t     

,bo>d "u section #hdch7;b7 ( title #e1  
,unit$ ,/ates ,code1 9 ! same mann] z   
sums 9 ! ,?rift ,sav+s ,fund e/abli%$ "u
 section #hdcg ( title #e1 ,unit$ ,/ates
 ,code1 are inve/$ "u su* section4  7#b7
 ,election  7,a7 ,9 g5]al ,at lea/ twice
 ea* ye>1 an individual p>ticipat+ 9 an 
,am]ican ,sav+s ,acc\nt e/abli%$ "u     
subsection 7c77#a7 may elect any ( !    
inve/m5t funds & options ref]r$ to 9    
subsection 7a7 into :i* ! sums 9 !      
,am]ican ,sav+s ,acc\nt ,fund cr$it$ to 
su* individual's ,am]ican ,sav+s ,acc\nt
 are to be inve/$ or re9ve/$ 9 ! same   
mann] z sums 9 ! ,?rift ,sav+s ,fund are
 inve/$ "u section #hdch ( title #e1    
,unit$ ,/ates ,code4  7,b7 ,=m & mann] (
 election ,an election may be made "u   
subp>agraph 7,a7 only 9 su* mann] & )9  
su* p]iod z %all be provid$ by ! ,*air (
 ! ,bo>d4  7c7 ,acc\nt+ & in=mation     
7#a7 ,9 g5]al ,! ,*air ( ! ,bo>d %all   
e/abli% & ma9ta9-- 7,a7 an ,am]ican     
,sav+s ,acc\nt describ$ 9 p>agraph 7#a7 
( section #ejba7;a72 or  7,b7 at !      

election ( ! individual pursuant to     
section #ejba7;b77#b71 an ,am]ican      
,sav+s ,acc\nt describ$ 9 p>agraph 7#b7 
( section #ejba7;a72  = ea* individual  
:o makes contributions "u section       
#ejba7;b77#c71 or = :om contributions   
are made "u section #ejbb1 to ! ,am]ican
 ,sav+s ,acc\nt ,fund4  7#b7 ,balance2  
allocation ( e>n+s & losses1 etc ,rules 
simil> to ! rules ( p>agraphs 7#b7 &    
7#c7 ( section #hdci7;a7 ( title #e1    
,unit$ ,/ates ,code1 %all apply =       
purposes ( an individual's ,am]ican     
,sav+s ,acc\nt e/abli%$ "u p>agraph     
7#a74  7#c7 ,exam9ation by qualifi$     
public acc\ntant2 report+1 etc ,rules   
simil> to ! requirem5ts ( subsections   
7b71 7c71 & 7d7 ( section #hdci ( title 
#e1 ,unit$ ,/ates ,code1 %all apply )   
respect to individuals = :om an ,am]ican
 ,sav+s ,acc\nt is ma9ta9$ "u ?is       
subsection 79 ! case ( su* subsection   
7d71 appli$ z if ea* su* individual 7 an
 employee describ$ 9 su* subsection74   
7d7 ,report+ requirem5ts  7#a7 ,annual  

report ,! ,bo>d %all1 n lat] ?an ,june  
#cj ( ea* ye>1 submit to ,congress an   
annual report on ! op]ations ( !        
,am]ican ,sav+s ,acc\nt ,fund4 ,su*     
report %all include1 = ! prior cal5d>   
ye>1 in=mation on ! numb] ( p>ticipants 
z ( ! la/ day ( su* prior cal5d> ye>1 ! 
m$ian balance 9 p>ticipants' acc\nts z (
 su* la/ day1 demographic in=mation on  
p>ticipants1 ! p]c5tage allocation (    
am\nts among inve/m5t funds or options1 
! /atus ( ! developm5t & implem5tation (
 ! mutual fund w9d[1 ! div]sity         
demographics ( any company1 inve/m5t    
advis]1 or o!r entity reta9$ to inve/ & 
manage ! assets ( ! ,am]ican ,sav+s     
,acc\nt ,fund1 & su* o!r in=mation z !  
,bo>d consid]s appropriate4 ,a copy (   
ea* annual report "u ?is subsection %all
 be made available to ! public ?r\gh an 
,int]net website4  7#b7 ,report+ ( fees 
& o!r in=mation  7,a7 ,9 g5]al ,! ,bo>d 
%all provide to ea* individual = :om an 
acc\nt is ma9ta9$-- 7i7 a p]iodic       
/atem5t relat+ to ! individual's acc\nt2

  7ii7 a summ>y description ( ! inve/m5t
 funds & options "u subsection 7a7      
cov]+1 & an evaluation (1 ea* su* option
 dur+ ! #e-ye> p]iod prec$+ ! date z (  
:i* su* evaluation is made2  7iii7 a    
/atem5t ( ! am\nt ( ! inve/m5t managem5t
 fees1 adm9i/rative exp5ses1 & any o!r  
fees or exp5ses paid ) respect to ea*   
su* inve/m5t fund & option2 &  7iv7 a   
/atem5t notify+ p>ticipants z to h[ !y  
may access ! annual report describ$ 9   
p>agraph 7#a71 z well z any o!r         
in=mation conc]n+ ,am]ican ,sav+s       
,acc\nts t might be useful4  ,if ! fees 
& exp5ses describ$ 9 clause 7iii7 exce$ 
! fees *>g$ to a simil>ly situat$       
individual :o contributes to ! ,?rift   
,sav+s ,fund e/abli%$ "u section #hdcg (
 title #e1 ,unit$ ,/ates ,code1 !       
in=mation requir$ "u ! prec$+ s5t5ce    
%all include a /atem5t id5tify+ ! reason
 = su* excess4  7,b7 ,"t :5 s5t         
,in=mation "u subp>agraph 7,a7 ) respect
 to ea* p>ticipant %all be provid$      
imm$iately ^u paym5t ( ! p>ticipant's   

fir/ contribution to ! ,am]ican ,sav+s  
,acc\nt ,fund & on a regul> basis       
!reaft]1 9 a mann] design$ to facilitate
 in=m$ decisionmak+ ) respect to        
elections "u subsection 7b77#b74 ,no?+ 9
 ?is subp>agraph %all be consid]$ to    
limit ! dissem9ation ( in=mation only to
 ! times requir$ "u ! prec$+ s5t5ce4    
7,c7 ,use ( e/imates ,= purposes (      
provid+ ! in=mation requir$ "u ?is      
p>agraph1 ! ,bo>d may provide a         
reasonable & repres5tative e/imate ( any
 fees or exp5ses describ$ 9 subp>agraph 
7,a7 & %all indicate any su* e/imate z  
be+ su* an e/imate4 ,any su* e/imate    
%all be bas$ on ! previ\s ye>'s         
exp]i5ce4  #ejjc4 ,fiduci>y             
responsibilities2 liability & p5alties  
7a7 ,def9itions ,= purposes ( ?is       
section-- 7#a7 ! t]m adequate           
consid]ation means--  7,a7 9 ! case ( a 
security = :i* !re is a g5]ally         
recogniz$ m>ket-- 7i7 ! price ( !       
security prevail+ on a national         
securities ex*ange :i* is regi/]$ "u    

section #f ( ! ,securities ,ex*ange ,act
 ( #aicd2 or  7ii7 if ! security is n   
trad$ on su* a national securities      
ex*ange1 a price n less favorable to !  
,am]ican ,sav+s ,acc\nt ,fund ?an ! (f]+
 price = ! security z e/abli%$ by !     
curr5t bid & ask$ prices quot$ by p]sons
 indep5d5t ( ! issu] & ( any p>ty 9     
int]e/2 &  7,b7 9 ! case ( an asset o!r 
?an a security = :i* !re is a g5]ally   
recogniz$ m>ket1 ! fair m>ket value ( ! 
asset z det]m9$ 9 good fai? by a        
fiduci>y or fiduci>ies 9 accordance )   
regulations prescrib$ by ! ,secret>y (  
,labor2  7#b7 ! t]m fiduci>y means--    
7,a7 a memb] ( ! ,bo>d1 includ+ ! ,*air2
  7,b7 any p]son :o has or ex]cises     
discretion>y au?ority or discretion>y   
control ov] ! managem5t or disposition (
 ! assets ( ! ,am]ican ,sav+s ,acc\nt   
,fund2 &  7,c7 any p]son :o1 ) respect  
to ! ,am]ican ,sav+s ,acc\nt ,fund1 is  
describ$ 9 section #c7ba77;,a72 &  7#c7 
! t]m p>ty 9 int]e/ includes-- 7,a7 any 
fiduci>y2  7,b7 any c\nsel to a p]son :o

 is a fiduci>y1 ) respect to ! actions (
 su* p]son z a fiduci>y2  7,c7 any      
p>ticipant2  7,d7 any p]son provid+     
s]vices to ! ,bo>d &1 ) respect to !    
actions ( ! ,*air z a fiduci>y1 any     
p]son provid+ s]vices to ! ,*air2  7,e7 
a labor organization1 ! memb]s ( :i* are
 p>ticipants2  7,f7 a sp\se1 sibl+1     
ance/or1 l9eal desc5dant1 or sp\se ( a  
l9eal desc5dant ( a p]son describ$ 9    
subp>agraph 7,a71 7,b71 or 7,d72  7,g7 a
 corporation1 p>tn]%ip1 or tru/ or e/ate
 ( :i*1 or 9 :i*1 at lea/ #ej p]c5t (-- 
7i7 ! comb9$ vot+ p[] ( all classes (   
/ock entitl$ to vote or ! total value ( 
%>es ( all classes ( /ock ( su*         
corporation2  7ii7 ! capital int]e/ or  
pr(its int]e/ ( su* p>tn]%ip2 or  7iii7 
! b5eficial int]e/ ( su* tru/ or e/ate1 
is own$1 directly or indirectly1 or held
 by a p]son describ$ 9 subp>agraph 7,a71
 7,b71 7,d71 or 7,e72  7,h7 an (ficial  
7includ+ a director7 (1 or an individual
 employ$ by1 a p]son describ$ 9         
subp>agraph 7,a71 7,b71 7,d71 7,e71 or  

7,g71 or an individual hav+ p[]s or     
responsibilities simil> to ^? ( su* an  
(ficial2  7,i7 a hold] 7directly or     
indirectly7 ( at lea/ #aj p]c5t ( ! %>es
 9 a p]son describ$ 9 any subp>agraph   
ref]r$ to 9 subp>agraph 7,h72 &  7,j7 a 
p]son :o1 directly or indirectly1 is at 
lea/ a #aj p]c5t p>tn] or jo9t v5tur]   
7measur$ 9 capital or pr(its7 9 a p]son 
describ$ 9 any subp>agraph ref]r$ to 9  
subp>agraph 7,h74  7b7 ,9 g5]al  7#a7   
,dis*>ge ( responsibilities ,to ! ext5t 
n inconsi/5t ) ! provisions ( ?is title 
& ! policies prescrib$ by ! ,bo>d1 a    
fiduci>y %all dis*>ge ! fiduci>y's      
responsibilities ) respect to ! ,am]ican
 ,sav+s ,acc\nt ,fund or applicable     
portion !re( solely 9 ! int]e/ ( !      
p>ticipants & b5efici>ies &--  7,a7 = ! 
exclusive purpose (-- 7i7 provid+       
b5efits to p>ticipants & _! b5efici>ies2
 &  7ii7 defray+ reasonable exp5ses (   
adm9i/]+ ! ,am]ican ,sav+s ,acc\nt ,fund
 or applicable portions !re(2  7,b7 ) ! 
c>e1 skill1 prud5ce1 & dilig5ce "u !    

circum/ances !n prevail+ t a prud5t     
individual act+ 9 a l capacity & famili>
 ) su* matt]s w\ld use 9 ! conduct ( an 
ent]prise ( a l "* & ) l objectives2 &  
7,c7 to ! ext5t p]mitt$ by ?is title1 by
 div]sify+ ! inve/m5ts ( ! ,am]ican     
,sav+s ,acc\nt ,fund or applicable      
portions !re( s z to m9imize ! risk (   
l>ge losses1 unless "u ! circum/ances x 
is cle>ly prud5t n to d s4  7#b7        
,own]%ip ,no fiduci>y may ma9ta9 !      
indicia ( own]%ip ( any assets ( !      
,am]ican ,sav+s ,acc\nt ,fund outside ! 
jurisdiction ( ! di/rict c\rts ( !      
,unit$ ,/ates4  7c7 ,prohibit$          
transactions  7#a7 ,9 g5]al ,a fiduci>y 
%all n p]mit ! ,am]ican ,sav+s ,acc\nt  
,fund to engage 9 any ( ! foll[+        
transactions1 except 9 ex*ange =        
adequate consid]ation3  7,a7 ,a transf] 
( any assets ( ! ,am]ican ,sav+s ,acc\nt
 ,fund to any p]son ! fiduci>y kn[s or  
%\ld "k to be a p>ty 9 int]e/ or ! use (
 su* assets by any su* p]son4  7,b7 ,an 
acquisition ( any prop]ty f or sale (   

any prop]ty to ! ,am]ican ,sav+s ,acc\nt
 ,fund by any p]son ! fiduci>y kn[s or  
%\ld "k to be a p>ty 9 int]e/4  7,c7 ,a 
transf] or ex*ange ( s]vices betwe5 !   
,am]ican ,sav+s ,acc\nt ,fund & any     
p]son ! fiduci>y kn[s or %\ld "k to be a
 p>ty 9 int]e/4  7#b7 ,special rules    
,not)/&+ p>agraph 7#a71 a fiduci>y )    
respect to ! ,am]ican ,sav+s ,acc\nt    
,fund %all n--  7,a7 deal ) any assets (
 ! ,am]ican ,sav+s ,acc\nt ,fund 9 !    
fiduci>y's own int]e/ or = ! fiduci>y's 
own acc\nt2  7,b7 act1 9 an individual  
capacity or any o!r capacity1 9 any     
transaction involv+ ! ,am]ican ,sav+s   
,acc\nt ,fund on behalf ( a p>ty1 or    
repres5t+ a p>ty1 ^: int]e/s are adv]se 
to ! int]e/s ( ! ,am]ican ,sav+s ,acc\nt
 ,fund or ! int]e/s ( its p>ticipants or
 b5efici>ies2 or  7,c7 receive any      
consid]ation = ! fiduci>y's own p]sonal 
acc\nt f any p>ty deal+ ) sums cr$it$ to
 ! ,am]ican ,sav+s ,acc\nt ,fund 9      
connection ) a transaction involv+      
assets ( ! ,am]ican ,sav+s ,acc\nt      

,fund4  7#c7 ,grant+ ( exemptions  7,a7 
,! ,secret>y may1 9 accordance )        
proc$ures :i* ! ,secret>y %all by       
regulation prescribe1 grant a           
conditional or unconditional exemption (
 any fiduci>y or transaction1 or class (
 fiduci>ies or transactions1 f all or "p
 ( ! re/rictions impos$ by p>agraph     
7#b74  7,b7 ,an exemption grant$ "u ?is 
p>agraph %all n relieve a fiduci>y f any
 o!r applicable provision ( ?is title4  
7,c7 ,! ,secret>y may n grant an        
exemption "u ?is p>agraph unless !      
,secret>y f9ds t su* exemption is--  7i7
 adm9i/ratively feasible2  7ii7 9 !     
int]e/s ( ! ,am]ican ,sav+s ,acc\nt     
,fund & ( its p>ticipants & b5efici>ies2
 &  7iii7 protective ( ! rights (       
p>ticipants & b5efici>ies ( su* ,fund4  
7,d7 ,an exemption "u ?is p>agraph may n
 be grant$ unless--  7i7 notice ( !     
propos$ exemption is publi%$ 9 ! ,f$]al 
,regi/]2  7ii7 int]e/$ p]sons are giv5  
an opportunity to pres5t views2 &  7iii7
 ! ,secret>y af=ds an opportunity = a   

he>+ & makes a det]m9ation on ! record )
 respect to ! respective requirem5ts (  
clauses 7i71 7ii71 & 7iii7 ( subp>agraph
 7,c74  7,e7 ,not)/&+ subp>agraph 7,d71 
! ,secret>y may det]m9e t an exemption  
grant$ = any class ( fiduci>ies or      
transactions "u section #djh7;a7 %all1  
^u publication ( notice 9 ! ,f$]al      
,regi/] "u ?is subp>agraph1 con/itute an
 exemption = purposes ( ! provisions (  
p>agraph 7#b74  7d7 ,all[ances ,?is     
section does n prohibit any fiduci>y f--
 7#a7 receiv+ any b5efit :i* ! fiduci>y 
is entitl$ to receive "u ?is title z a  
p>ticipant or b5efici>y2  7#b7 receiv+  
any reasonable comp5sation au?oriz$ by  
?is title = s]vices r5d]$1 or =         
reimbursem5t ( exp5ses prop]ly &        
actually incurr$1 9 ! p]=mance ( !      
fiduci>y's duties "u ?is title2 or  7#c7
 s]v+ z a fiduci>y 9 addition to be+ an 
(fic]1 employee1 ag5t1 or o!r           
repres5tative ( a p>ty 9 int]e/4  7e7   
,liability  7#a7 ,9 g5]al  7,a7 ,any    
fiduci>y t brea*es ! responsibilities1  

duties1 & obligations set out 9         
subsection 7b7 or violates subsection   
7c7 %all be p]sonally liable to !       
,am]ican ,sav+s ,acc\nt ,fund = any     
losses to su* ,fund result+ f ea* su*   
brea* or violation & to re/ore to su*   
,fund any pr(its made by ! fiduci>y     
?r\gh use ( assets ( su* ,fund by !     
fiduci>y1 & %all be subject to su* o!r  
equitable or rem$ial relief z a c\rt    
consid]s appropriate1 except z provid$ 9
 p>agraphs 7#c7 & 7#d74 ,a fiduci>y may 
be remov$ = a brea* ref]r$ to 9 ! prec$+
 s5t5ce4  7,b7 ,! ,secret>y may assess a
 civil p5alty aga9/ a p>ty 9 int]e/ )   
respect to ea* transaction :i* is engag$
 9 by ! p>ty 9 int]e/ & is prohibit$ by 
subsection 7c74 ,! am\nt ( su* p5alty   
%all be equal to #e p]c5t ( ! am\nt     
involv$ 9 ea* su* transaction 7z def9$ 9
 section #dige7;f77#d7 ( ! ,int]nal     
,rev5ue ,code ( #aihf7 = ea* ye> or "p  
!re( dur+ :i* ! prohibit$ transaction   
cont9ues1 except t1 if ! transaction is 
n correct$ 79 su* mann] z ! ,secret>y   

%all prescribe by regulation consi/5t ) 
section #dige7;f77#e7 ( su* ,code7 )9   
#ij days aft] ! date ! ,secret>y        
transmits notice to ! p>ty 9 int]e/ 7or 
su* long] p]iod z ! ,secret>y may       
p]mit71 su* p5alty may be 9 an am\nt n m
 ?an #ajj p]c5t ( ! am\nt involv$4  7,c7
 7i7 ,a fiduci>y %all n be liable "u    
subp>agraph 7,a7 ) respect to a brea* ( 
fiduci>y duty "u subsection 7b7 committ$
 be=e becom+ a fiduci>y or aft] ceas+ to
 be a fiduci>y4  7ii7 ,a fiduci>y %all n
 be liable "u subp>agraph 7,a71 & no    
civil action may be br\ght aga9/ a      
fiduci>y--  7,i7 = provid+ = ! automatic
 enrollm5t ( a p>ticipant 9 accordance )
 ?is title2 or  7,,ii7 = enroll+ a      
p>ticipant or b5efici>y 9 a default     
inve/m5t fund or option 9 accordance )  
?is title4  7,d7 ,a fiduci>y %all be    
jo9tly & sev]ally liable "u subp>agraph 
7,a7 = a brea* ( fiduci>y duty "u       
subsection 7b7 by ano!r fiduci>y only   
if--  7i7 ! fiduci>y p>ticipates kn[+ly 
91 or kn[+ly und]takes to conceal1 an   

act or omission ( su* o!r fiduci>y1 kn[+
 su* act or omission is su* a brea*2    
7ii7 by ! fiduci>y's failure to comply )
 subsection 7b7 9 ! adm9i/ration ( !    
fiduci>y's specific responsibilities :i*
 give rise to ! fiduci>y /atus1 !       
fiduci>y has enabl$ su* o!r fiduci>y to 
commit su* a brea*2 or  7iii7 ! fiduci>y
 has k ( a brea* by su* o!r fiduci>y1   
unless ! fiduci>y makes reasonable ef=ts
 "u ! circum/ances to rem$y ! brea*4    
7,e7 ,! ,secret>y %all prescribe1 9     
regulations1 proc$ures = allocat+       
fiduci>y responsibilities among         
fiduci>ies1 includ+ inve/m5t manag]s4   
,any fiduci>y :o1 pursuant to su*       
proc$ures1 allocates to a p]son or      
p]sons any fiduci>y responsibility %all 
n be liable = an act or omission ( su*  
p]son or p]sons unless--  7i7 su*       
fiduci>y violat$ subsection 7b7 )       
respect to ! allocation1 ) respect to ! 
implem5tation ( ! proc$ures prescrib$ by
 ! ,secret>y1 or 9 cont9u+ su*          
allocation2 or  7ii7 su* fiduci>y w\ld  

o!rwise be liable 9 accordance )        
subp>agraph 7,d74  7#b7 ,civil action   
only z provid$ ,no civil action may be  
ma9ta9$ aga9/ any fiduci>y ) respect to 
! responsibilities1 liabilities1 &      
p5alties au?oriz$ or provid$ = 9 ?is    
section except 9 accordance ) p>agraphs 
7#c7 & 7#d74  7#c7 ,rules reg>d+ civil  
actions ,a civil action may be br\ght 9 
! di/rict c\rts ( ! ,unit$ ,/ates-- 7,a7
 by ! ,secret>y aga9/ any fiduci>y o!r  
?an a ,memb] ( ! ,bo>d or ! ,*air ( !   
,bo>d--  7i7 to det]m9e & en=ce a       
liability "u p>agraph 7#a77;,a72  7ii7  
to collect any civil p5alty "u p>agraph 
7#a77;,b72  7iii7 to enjo9 any act or   
practice :i* violates any provision (   
subsection 7b7 or 7c72  7iv7 to obta9   
any o!r appropriate equitable relief to 
r$ress a violation ( any su* provision2 
or  7v7 to enjo9 any act or practice :i*
 violates section #ejja7;e72  7,b7 by   
any p>ticipant1 b5efici>y1 or fiduci>y  
aga9/ any fiduci>y--  7i7 to enjo9 any  
act or practice :i* violates any        

provision ( subsection 7b7 or 7c72  7ii7
 to obta9 any o!r appropriate equitable 
relief to r$ress a violation ( any su*  
provision2 or  7iii7 to enjo9 any act or
 practice :i* violates section          
#ejja7;e72 or  7,c7 by any p>ticipant or
 b5efici>y--  7i7 to recov] b5efits (   
su* p>ticipant or b5efici>y "u !        
provisions ( ?is title1 to en=ce any "r 
( su* p>ticipant or b5efici>y "u su*    
provisions1 or to cl>ify any su* "r to  
future b5efits "u su* provisions2 or    
7ii7 to en=ce any claim o!rwise         
cognizable "u sections #acdf7;b7 & #bfga
 ?r\gh #bfhj ( title #bh1 ,unit$ ,/ates 
,code1 provid$ t ! rem$y aga9/ ! ,unit$ 
,/ates provid$ by sections #acdf7;b7 &  
#bfgb ( title #bh1 ,unit$ ,/ates ,code1 
= damages = injury or loss ( prop]ty    
caus$ by ! neglig5t or wrongful act or  
omission ( any fiduci>y :ile act+ )9 !  
scope ( ! fiduci>y's duties or employm5t
 %all be exclusive ( any o!r civil      
action or proce$+ by ! p>ticipant or    
b5efici>y = recov]y ( money by reason ( 

! same subject matt] aga9/ ! fiduci>y   
7or ! e/ate ( su* fiduci>y7 ^: act or   
omission gave rise to su* action or     
proce$+1 :e!r or n su* action or proce$+
 is bas$ on an alleg$ violation (       
subsection 7b7 or 7c74  7#d7 ,o!r rules 
7,a7 ,9 all civil actions "u p>agraph   
7#c77;,a71 attorneys appo9t$ by !       
,secret>y may repres5t ! ,secret>y      
7except z provid$ 9 section #eah7;a7 (  
title #bh1 ,unit$ ,/ates ,code71 h[ev]  
all su* litigation %all be subject to ! 
direction & control ( ! ,attorney       
,g5]al4  7,b7 ,! ,attorney ,g5]al %all  
def5d any civil action or proce$+ br\ght
 9 any c\rt aga9/ any fiduci>y ref]r$ to
 9 p>agraph 7#c77;,c77ii7 7or ! e/ate ( 
su* fiduci>y7 = any su* injury4 ,any    
fiduci>y aga9/ :om su* a civil action or
 proce$+ is br\ght %all deliv]1 )9 su*  
"t aft] date ( s]vice or k ( s]vice z   
det]m9$ by ! ,attorney ,g5]al1 all      
process s]v$ ^u su* fiduci>y 7or an     
atte/$ copy !re(7 to ! ,*air ( ! ,bo>d1 
:o %all promptly furni% copies ( !      

plead+ & process to ! ,attorney ,g5]al &
 ! ,unit$ ,/ates ,attorney = ! di/rict  
:]e9 ! action or proce$+ is br\ght4     
7,c7 ,^u c]tification by ! ,attorney    
,g5]al t a fiduci>y describ$ 9 p>agraph 
7#c77;,c77ii7 0 act+ 9 ! scope ( su*    
fiduci>y's duties or employm5t z a      
fiduci>y at ! "t ( ! occurr5ce or       
omission out ( :i* ! action arose1 any  
su* civil action or proce$+ comm5c$ 9 a 
,/ate c\rt %all be--  7i7 remov$ )\t    
bond at any "t be=e trial by ! ,attorney
 ,g5]al to ! di/rict c\rt ( ! ,unit$    
,/ates = ! di/rict & division 9 :i* x is
 p5d+2 &  7ii7 deem$ a tort action      
br\ght aga9/ ! ,unit$ ,/ates "u !       
provisions ( title #bh1 ,unit$ ,/ates   
,code1 & all ref]5ces !reto4  7,d7 ,!   
,attorney ,g5]al may compromise or      
settle any claim ass]t$ 9 su* civil     
action or proce$+ 9 ! mann] provid$ 9   
section #bfgg ( title #bh1 ,unit$ ,/ates
 ,code1 & ) ! same effect4 ,to ! ext5t  
section #bfgb ( title #bh1 ,unit$ ,/ates
 ,code1 provides t p]sons o!r ?an !     

,attorney ,g5]al or ! ,attorney ,g5]al's
 designee may compromise & settle       
claims1 & t paym5t ( su* claims may be  
made f ag5cy appropriations1 su*        
provisions %all n apply to claims bas$  
^u an alleg$ violation ( subsection 7b7 
or 7c74  7,e7 ,= ! purposes ( p>agraph  
7#c77;,c77ii7 ! provisions ( sections   
#bfhj7;h7 ( title #bh1 ,unit$ ,/ates    
,code1 %all n apply to any claim bas$ ^u
 an alleg$ violation ( subsection 7b7 or
 7c74  7,f7 ,not)/&+ sections #acdf7;b7 
& #bfga ?r\gh #bfhj ( title #bh1 ,unit$ 
,/ates ,code1 :5ev] an aw>d1 compromise1
 or settlem5t is made "u su* sections ^u
 any claim bas$ ^u an alleg$ violation (
 subsection 7b7 or 7c71 paym5t ( su*    
aw>d1 compromise1 or settlem5t %all be  
made to ! appropriate acc\nt )9 !       
,am]ican ,sav+s ,acc\nt ,fund1 or :]e   
!re is no su* appropriate acc\nt1 to !  
p>ticipant or b5efici>y br++ ! claim4   
7,g7 ,= purposes ( p>agraph             
7#c77;,c77ii71 ! t]m fiduci>y includes  
only ! ,memb]s ( ! ,bo>d & ! ,bo>d's    

,*air4  7#e7 ,prohibition ( monet>y     
relief ,any relief aw>d$ aga9/ a ,memb] 
( ! ,bo>d or ! ,*air ( ! ,bo>d 9 a civil
 action au?oriz$ by p>agraph 7#c7 may n 
include any monet>y damages or any o!r  
recov]y ( money4  7#f7 ,limitation ,an  
action may n be comm5c$ "u p>agraph     
7#c77;,a7 or 7,b7 ) respect to a        
fiduci>y's brea* ( any responsibility1  
duty1 or obligation "u subsection 7b7 or
 a violation ( subsection 7c7 aft] !    
e>li] (--  7,a7 #f ye>s aft]-- 7i7 !    
date ( ! la/ action :i* con/itut$ a "p (
 ! brea* or violation2 or  7ii7 9 ! case
 ( an omission1 ! late/ date on :i* !   
fiduci>y c\ld h cur$ ! brea* or         
violation2 or  7,b7 #c ye>s aft] !      
e>lie/ date on :i* ! pla9tiff _h actual 
k ( ! brea* or violation1 except t1 9 ! 
case ( fraud or concealm5t1 su* action  
may be comm5c$ n lat] ?an #f ye>s aft] !
 date ( discov]y ( su* brea* or         
violation4  7#g7 ,jurisdiction  7,a7 ,! 
di/rict c\rts ( ! ,unit$ ,/ates %all h  
exclusive jurisdiction ( civil actions  

"u ?is subsection4  7,b7 ,an action "u  
?is subsection may be br\ght 9 !        
,di/rict ,c\rt ( ! ,unit$ ,/ates = !    
,di/rict ( ,columbia or a di/rict c\rt (
 ! ,unit$ ,/ates 9 ! di/rict :]e ! brea*
 alleg$ 9 ! compla9t or petition fil$ 9 
! action took place or 9 ! di/rict :]e a
 def5dant resides or may be f\nd4       
,process may be s]v$ 9 any o!r di/rict  
:]e a def5dant resides or may be f\nd4  
7#h7 ,s]vice  7,a7 ,a copy ( ! compla9t 
or petition fil$ 9 any action br\ght "u 
?is subsection 7o!r ?an by ! ,secret>y7 
%all be s]v$ on ! ,*air1 ! ,secret>y1 & 
! ,secret>y ( ! ,treasury by c]tifi$    
mail4  7,b7 ,any (fic] ref]r$ to 9      
subp>agraph 7,a7 %all h ! "r 9 ! (fic]'s
 discretion to int]v5e 9 any action4 ,if
 ! ,secret>y br+s an action "u p>agraph 
7#b7 on behalf ( a p>ticipant or        
b5efici>y1 ! ,secret>y %all notify !    
,*air & ! ,secret>y ( ! ,treasury4  7f7 
,regulations ,! ,secret>y may prescribe 
regulations to c>ry out ?is section4    
7g7 ,audits by ,secret>y  7#a7 ,9 g5]al 

,! ,secret>y ( ,labor %all e/abli% a    
program to c>ry out audits to det]m9e ! 
level ( compliance ) ! requirem5ts ( ?is
 section relat+ to fiduci>y             
responsibilities & prohibit$ activities 
( fiduci>ies4  7#b7 ,contracts1 etc ,an 
audit "u ?is subsection may be conduct$ 
by ! ,secret>y1 by contract ) a qualifi$
 nongov]nm5tal organization1 or 9       
coop]ation ) ! ,comptroll] ,g5]al ( !   
,unit$ ,/ates1 z ! ,secret>y consid]s   
appropriate4  #ejjd4 ,am]ican ,sav+s    
,acc\nt ,fund ,advisory ,c\ncil  7a7 ,9 
g5]al ,! ,bo>d %all e/abli% an ,am]ican 
,sav+s ,acc\nt ,fund ,advisory ,c\ncil1 
to be compos$ ( #ad memb]s appo9t$ by ! 
,*air ( ! ,bo>d4 ,! ,*air ( ! ,bo>d %all
 designate #a memb] ( ! ,c\ncil to s]ve 
z head ( ! ,c\ncil4  7b7 ,t]ms &        
vacancies  7#a7 ,t]m ,a memb] ( !       
,c\ncil %all be appo9t$ = a t]m ( #d    
ye>s4  7#b7 ,vacancies  7,a7 ,a vacancy 
9 ! ,c\ncil %all be fill$ 9 ! mann] 9   
:i* ! orig9al appo9tm5t 0 made & %all be
 subject to any conditions :i* appli$ ) 

respect to ! orig9al appo9tm5t4  7,b7   
,an individual *os5 to fill a vacancy   
%all be appo9t$ = ! unexpir$ t]m ( !    
memb] replac$4  7,c7 ,! t]m ( any memb] 
%all n expire be=e ! date on :i* !      
memb]'s successor takes (fice4  7c7     
,action by majority resolution ,!       
,c\ncil %all act by resolution ( a      
majority ( ! memb]s4  7d7               
,responsibilities ,! ,c\ncil %all--     
7#a7 advise ! ,bo>d & ! ,*air ( ! ,bo>d 
on matt]s relat+ to-- 7,a7 inve/m5t     
policies = ! ,am]ican ,sav+s ,acc\nt    
,fund2 &  7,b7 ! adm9i/ration ( ?is     
title2 &  7#b7 p]=m su* o!r duties z !  
,bo>d may direct ) respect to inve/m5t  
funds e/abli%$ 9 accordance ) ?is title4
  ,b ,am]ican ,sav+s ,acc\nt ,fund      
#ejaa4 ,am]ican ,sav+s ,acc\nt ,fund    
7a7 ,9 g5]al ,!re is e/abli%$ 9 !       
,treasury ( ! ,unit$ ,/ates an ,am]ican 
,sav+s ,acc\nt ,fund4  7b7 ,am\nts 9    
,fund ,! ,am]ican ,sav+s ,acc\nt ,fund  
consi/s ( ! sum ( all am\nts contribut$ 
"u section #ejbb1 increas$ by ! total   

net e>n+s f inve/m5ts ( sums 9 !        
,am]ican ,sav+s ,acc\nt ,fund or r$uc$  
by ! total net losses f inve/m5ts ( !   
,am]ican ,sav+s ,acc\nt ,fund1 & r$uc$  
by ! total am\nt ( paym5ts made f !     
,am]ican ,sav+s ,acc\nt ,fund 7includ+  
paym5ts = adm9i/rative exp5ses74  7c7   
,appropriations f ,fund ,! sums 9 !     
,am]ican ,sav+s ,acc\nt ,fund are       
appropriat$ & %all rema9 available )\t  
fiscal ye> limitation--  7#a7 to inve/ z
 provid$ 9 section #ejjb7;b77#a72  7#b7 
to pay b5efits or pur*ase annuity       
contracts "u section #ejba7;b72  7#c7 to
 pay ! adm9i/rative exp5ses ( ! ,bo>d   
relat+ to ! responsibilities "u section 
#ejjb2 &  7#d7 at ! discretion ( ! ,*air
 ( ! ,bo>d1 to pur*ase insurance to cov]
 pot5tial liability ( p]sons :o s]ve 9 a
 fiduci>y capacity ) respect to !       
,am]ican ,sav+s ,acc\nt ,fund1 9 a mann]
 consi/5t ) rules simil> to ! provisions
 ( section #hdgi ( title #e1 ,unit$     
,/ates ,code4  7d7 ,b5efits inali5able &
 non=feitable  7#a7 ,9 g5]al ,subject to

 p>agraphs 7#c7 & 7#d7 ( subsection 7c7 
& p>agraphs 7#c7 & 7#d7 ( ?is           
subsection1 sums 9 ! ,am]ican ,sav+s    
,acc\nt ,fund cr$it$ to ! ,am]ican      
,sav+s ,acc\nt ( a p>ticipant may n be  
us$ =1 or div]t$ to1 purposes o!r ?an = 
! exclusive b5efit ( ! p>ticipant or !  
p>ticipant's b5efici>ies4  7#b7         
,protection f ali5ation ,except z       
provid$ 9 p>agraphs 7#c7 & 7#d71 sums 9 
! ,am]ican ,sav+s ,acc\nt ,fund may n be
 assign$ or ali5at$ & are n subject to  
execution1 levy1 atta*m5t1 g>ni%m5t1 or 
o!r legal process4  7#c7 ,c]ta9         
exceptions ,moneys due or payable f !   
,am]ican ,sav+s ,acc\nt ,fund to any    
individual %all be subject to legal     
process = ! en=cem5t ( ! individual's   
legal obligations to provide *ild       
support or make alimony paym5ts z       
provid$ 9 section #dei ( ! ,social      
,security ,act1 ! en=cem5t ( an ord] =  
re/itution "u section #cffc;,a ( title  
#ah1 ,unit$ ,/ates ,code1 or an         
obligation ( ! ,*air ( ! ,bo>d to make a

 paym5t to ano!r p]son "u p>agraph 7#d71
 & %all be subject to a ,f$]al tax levy 
"u section #fcca ( ! ,int]nal ,rev5ue   
,code ( #aihf4  7#d7 ,c\rt ord]s ,rules 
simil> to ! rules ( section #hdfg (     
title #e1 ,unit$ ,/ates ,code1 %all     
apply ) respect to paym5ts :i* w\ld     
o!rwise be made to a p>ticipant "u      
section #ejba7;b74  7e7 ,limitation on  
fur!r appropriation ,! sums 9 ! ,am]ican
 ,sav+s ,acc\nt ,fund %all n be         
appropriat$ = any purpose o!r ?an !     
purposes specifi$ 9 ?is section & may n 
be us$ = any o!r purpose4  7f7 ,am\nts  
held 9 tru/ ,all sums contribut$ to !   
,am]ican ,sav+s ,acc\nt ,fund by a      
p>ticipant or by an employ] = ! b5efit (
 su* p>ticipant & all net e>n+s 9 su*   
,fund attributable to inve/m5t ( su*    
sums are held 9 su* ,fund 9 tru/ = su*  
p>ticipant4  #ejab4 ,tax treatm5t ( !   
,am]ican ,sav+s ,acc\nt ,fund  7a7 ,9   
g5]al ,= purposes ( ! ,int]nal ,rev5ue  
,code ( #aihf-- 7#a7 ! ,am]ican ,sav+s  
,acc\nt ,fund %all be treat$ z a tru/   

describ$ 9 section #dja7;a7 ( su* ,code 
:i* is exempt f taxation "u section     
#eja7;a7 ( su* ,code2  7#b7 any         
contribution to1 or di/ribution f1 !    
,am]ican ,sav+s ,acc\nt ,fund %all be   
treat$ 9 ! same mann] z contributions to
 or di/ributions f su* a tru/2  7#c7    
contributions to ! ,am]ican ,sav+s      
,acc\nt ,fund %all n be treat$ z        
di/ribut$ or made available to a        
p>ticipant nor z a contribution made to 
! ,fund by an individual m]ely because !
 individual has1 "u section             
#ejbb7;b77#a77;,c71 made an election    
:e!r ! contribution w be made to !      
,am]ican ,sav+s ,acc\nt ,fund or receiv$
 by ! individual 9 ca%2 &  7#d7 ! rules 
( section #dad7w7 ( su* ,code %all apply
 ) respect to ,am]ican ,sav+s ,acc\nts1 
except t p>agraph 7#b77;,b7 !re( %all be
 appli$ by sub/itut+ ! due date = !     
return ( tax = ! taxable ye> 9 :i* !    
fir/ elective contribution is made )    
respect to ! employee "u ! arrangem5t = 
! date :i* is #ij days aft] ! date ( !  

fir/ elective contribution ) respect to 
! employee "u ! arrangem5t4  7b7        
,coord9ation ) ,social ,security ,act   
,subsection 7a7 %all n be con/ru$ to    
provide t any am\nt ( ! employee's      
comp5sation :i* is contribut$ to !      
,am]ican ,sav+s ,acc\nt ,fund %all n be 
includ$ 9 ! t]m wages = ! purposes (    
section #bji ( ! ,social ,security ,act 
or section #caba7;a7 ( ! ,int]nal       
,rev5ue ,code ( #aihf4  ,c ,am]ican     
,sav+s ,acc\nts  #ejba4 ,am]ican ,sav+s 
,acc\nts  7a7 ,9 g5]al ,= purposes ( ?is
 title1 ! t]m ,am]ican ,sav+s ,acc\nt   
means-- 7#a7 an individual retirem5t    
acc\nt 7z def9$ 9 section #djh7;a7 ( !  
,int]nal ,rev5ue ,code ( #aihf72 &  7#b7
 9 ! case ( an individual mak+ !        
election "u subsection 7b77#b71 a ,ro?  
,,ira 7z def9$ 9 section #djh;,a7b7 (   
su* ,code72  e/abli%$ & ma9ta9$ by !    
,bo>d1 z tru/ee ( su* acc\nt4  7b7      
,special rules  7#a7 ,eligibility  7,a7 
,9 g5]al ,all qualifi$ employees %all be
 eligible to p>ticipate 9 an ,am]ican   

,sav+s ,acc\nt4  7,b7 ,qualifi$ employee
 ,= purposes ( ?is subtitle-- 7i7 ,9    
g5]al ,! t]m qualifi$ employee means an 
employee 7o!r ?an an employee describ$ 9
 section #daj7;b77#c77;,c7 ( ! ,int]nal 
,rev5ue ,code ( #aihf7 ( an ,am]ican    
employ] if ! employ] does n provide !   
opportunity = ! employee to p>ticipate 9
 a def9$ contribution plan 7)9 ! mean+ (
 section #dad7;i7 ( ! ,int]nal ,rev5ue  
,code ( #aihf7 ma9ta9$ by ! employ] t   
satisfies ! requirem5ts ( section       
#dja7;a7 or #djc7;b7 ( ! ,int]nal       
,rev5ue ,code ( #aihf4  7ii7 ,exception 
= employees cov]$ by collective b>ga9+  
agreem5ts ,su* t]m %all n include any   
employee :o is includ$ 9 a gr\p (       
employees cov]$ by a collective b>ga9+  
agreem5t describ$ 9 section             
#daj7;b77#c77;,a7 ( su* ,code4  7iii7   
,am]ican employ] ,! t]m ,am]ican employ]
 has ! mean+ giv5 su* t]m by section    
#caba7;h7 ( su* ,code4  7#b7 ,election  
to conv]t to ,ro? ,,ira ,subject to !   
rules ( section #djh;,a7d77#c7 ( !      

,int]nal ,rev5ue ,code ( #aihf1 an      
individual may elect at any "t to conv]t
 all or a portion ( ! individual        
retirem5t acc\nt e/abli%$ = ! individual
 "u section #ejjb7;c77#a77;,a7 to a ,ro?
 ,,ira 7z def9$ 9 section #djh;,a7b7 (  
su* ,code74  7#c7 ,contributions  7,a7  
,9 g5]al ,subject to section            
#ejbb7;b77#a71 an individual may        
contribute to ! ,am]ican ,sav+s ,acc\nt 
,fund 9 any ye>1 pursuant to an election
 "u section #ejjb7;b77#b71 an am\nt n to
 exce$ ! limitation describ$ 9          
subp>agraph 7,c74 ,contributions        
pursuant to su* an election %all1 )     
respect to ea* pay p]iod = :i* su*      
election rema9s 9 effect1 be made 9     
accordance ) a program ( regul>         
contributions z prescrib$ by ! ,*air4   
7,b7 ,eligible rollov] di/ributions ,an 
individual may contribute to ! ,am]ican 
,sav+s ,acc\nt ,fund an eligible rollov]
 t an individual retirem5t acc\nt or    
,ro? ,,ira c\ld accept "u section #djh  
or #djh;,a ( ! ,int]nal ,rev5ue ,code ( 

#aihf1 :i*ev] is applicable 7aft] !     
application ( subp>agraph 7,c774 ,9 !   
case ( an eligible rollov] di/ribution  
7z def9$ 9 section #djb7;c77#d7 ( su*   
,code71 ! maximum am\nt transf]r$ to !  
,am]ican ,sav+s ,acc\nt ,fund %all n    
exce$ ! am\nt :i* w\ld o!rwise h be5    
includ$ 9 ! individual's gross income = 
,f$]al income tax purposes4  7,c7       
,modification ( contribution limitation 
,9 lieu ( ! contribution limitations =  
individual retirem5t acc\nts or ,ro?    
,i,r,as1 :i*ev] is applicable1 "u "p ,i 
( sub*apt] ,d ( *apt] #a ( ! ,int]nal   
,rev5ue ,code ( #aihf1 ! annual         
contribution limitation applicable to an
 ,am]ican ,sav+s ,acc\nt %all be equal  
to ! limitation applicable "u section   
#dae7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf to contributions to a def9$       
contribution plan4  7#d7 ,annuities1 etc
  7,a7 ,9 g5]al ,! ,bo>d %all prescribe 
me?ods ( paym5t ( annuities simil> to ! 
me?ods available "u section             
#hdcd7;a77#b7 ( title #e1 ,unit$ ,/ates 

,code4  7,b7 ,rules applicable ,rules   
simil> to ! rules ( subsections 7b71    
7c71 7d71 & 7e7 ( section #hdcd ( title 
#e1 ,unit$ ,/ates ,code1 %all apply =   
purposes ( ?is p>agraph4  7#e7          
,protections = sp\ses & =m] sp\ses  7,a7
 ,9 g5]al ,except z provid$ 9           
subp>agraph 7,a71 rules simil> to !     
rules ( sections #hdcc7;e7 & #hdce (    
title #e1 ,unit$ ,/ates ,code1 %all     
apply = purposes ( ?is subsection4  7,b7
 ,additional protection = surviv+ sp\ses
 ,a surviv+ sp\se %all be ! fir/ p>ty   
entitl$ to receive b5efits 7be=e any    
designat$ b5efici>y o!r ?an ! surviv+   
sp\se7 unless ! surviv+ sp\se cons5ts 9 
writ+ to ! application ( ! ord] (       
prec$5ce 9 effect b = ?is subp>agraph4  
#ejbb4 ,employ] requirem5ts  7a7 ,9     
g5]al ,except z provid$ 9 subsections   
7a7 & 7b7 ( section #ejbc1 ea* ,unit$   
,/ates employ] %all make contributions  
meet+ ! requirem5ts ( subsection 7b7 on 
behalf ( su* qualifi$ employee to !     
,am]ican ,sav+s ,acc\nt ,fund1 beg9n+ ) 

! lat] (--  7#a7 ! fir/ pay p]iod = :i* 
! employee receives comp5sation f !     
employ]2 or  7#b7 ! fir/ pay p]iod      
beg9n+ on or aft] ! contribution beg9n+ 
date4  7b7 ,contributions ,! requirem5ts
 ( ?is subsection are met = a taxable   
ye> ) respect to contributions to !     
,am]ican ,sav+s ,acc\nt ,fund on behalf 
( a qualifi$ employee if--  7#a7        
,contribution am\nt ,) respect to any   
pay p]iod beg9n+ 9 su* taxable ye>--    
7,a7 ,9 g5]al ,except z provid$ 9       
subp>agraphs 7,b7 & 7,c71 su*           
contributions are equal to #c p]c5t ( ! 
comp5sation ( ! employee = su* p]iod4   
7,b7 ,coord9ation ) limitations ,! total
 contributions to ! ,fund on behalf ( ! 
employee = pay p]iods 9 any taxable ye> 
d n exce$ ! contribution limitation     
describ$ 9 section #ejba7;b77#c77;,c74  
7,c7 ,election ,aft] ! fir/ pay p]iod ) 
respect to :i* a contribution is made ) 
respect to a qualifi$ employee "u       
subsection 7a71 ! qualifi$ employee may 
elect--  7i7 to *ange ! p]c5tage (      

comp5sation :i* is contribut$ to ! ,fund
 on behalf ( su* employee1 except t su* 
p]c5tage may n be less ?an #b p]c5t or  
great] ?an ! highe/ p]c5tage t w\ld n   
cause total contributions dur+ ! taxable
 ye> to exce$ ! limitation "u           
subp>agraph 7,b72 or  7ii7 to discont9ue
 contributions to ! ,fund & )draw all   
contributions previ\sly made ?r\gh a    
sal>y r$uction arrangem5t 9 ! same      
cal5d> ye> o!r ?an nonelective          
contributions made by ! employ] on      
behalf ( ! employee4  ,9 ! ev5t a       
qualifi$ employee elects to )draw all   
contributions previ\sly made to ! ,fund 
"u ! prec$+ s5t5ce1 ! am\nt ( any       
nonelective contributions made by !     
employ] on behalf ( ! employee %all be  
)drawn & paid to ! employ]4  7,d7       
,contributions may be made ?r\gh sal>y  
r$uction arrangem5t ,contributions by an
 employ] %all n fail to meet !          
requirem5ts ( ?is subsection solely     
because ! employee may elect to h !     
employ] make paym5ts--  7i7 to !        

,am]ican ,sav+s ,acc\nt ( ! employee2 or
  7ii7 to ! employee directly 9 ca%4  ,!
 prec$+ s5t5ce %all apply only if !     
contributions on behalf ( all qualifi$  
employees ( ! employ] = a pay p]iod are 
9 a uni=m doll> am\nt or a uni=m        
p]c5tage ( comp5sation4  7,e7 ,m&atory  
p]c5tage increase (f]  7i7 ,9 g5]al ,if 
a qualifi$ employee elects "u           
subp>agraph 7,c7 a contribution p]c5tage
 t is less ?an #e p]c5t1 !n #ab mon?s   
aft] su* election is made & e #ab mon?s 
!reaft] ! ,bo>d %all notify ! employee 9
 writ+ t su* contribution p]c5tage w be 
increas$ by #j4e p]c5t unless ! employee
 objects )9 #cj days ( receipt ( su*    
notice4 ,if ! employee does n s object1 
^u notification by ! ,bo>d1 ! employ]   
%all increase ! p]c5tage ( ! employee's 
comp5sation :i* is contribut$ to ! ,fund
 on behalf ( ! employee by #j4e p]c5t4  
7ii7 ,applicability  7,i7 ,9 g5]al      
,clause 7i7 %all cease to apply once !  
p]c5tage ( comp5sation contribut$ to !  
,fund on behalf ( ! employee is great]  

?an or equal to #e p]c5t4  7,,ii7       
,coord9ation ) limitations ,clause 7i7  
%all n apply dur+ a taxable ye> if1 z s 
increas$1 ! p]c5tage ( comp5sation      
contribut$ to ! ,fund on behalf ( !     
employee w\ld exce$ ! p]c5tage describ$ 
9 subp>agraph 7,c77i74  7#b7 ,frequ5cy &
 tim+ ( contributions ,contributions "u 
subsection 7a7 are made n less frequ5tly
 ?an mon?ly dur+ su* ye>1 & ea* su*     
contribution is made n lat] ?an #cj days
 aft] ! close ( ! pay p]iod to :i* x    
relates4  7c7 ,exceptions ,subsection   
7a7 %all n apply to an employ] t is a   
*ur* or conv5tion or association (      
*ur*es :i* is exempt f tax "u section   
#eja7;a7 ( ! ,int]nal ,rev5ue ,code (   
#aihf4 ,if su* an employ] elects to make
 contributions to ! ,am]ican ,sav+s     
,acc\nt ,fund on behalf ( qualifi$      
employees ( ! employ]1 su* contributions
 mu/ meet ! requirem5ts ( p>agraph 7#a74
  7d7 ,self-,employ$ individuals ,an    
individual-- 7#a7 :o has net e>n+s f    
self-employm5t 7z def9$ 9 section       

#adjb7;a7 ( ! ,int]nal ,rev5ue ,code (  
#aihf72  7#b7 :o is n a qualifi$        
employee ) respect to any employ]2 &    
7#c7 :o is n eligible to p>ticipate 9 a 
def9$ contribution plan 7)9 ! mean+ (   
section #dad7;i7 ( ! ,int]nal ,rev5ue   
,code ( #aihf7 ma9ta9$ by any employ]2  
may elect to make contributions on !    
individual's own behalf to ! ,am]ican   
,sav+s ,acc\nt ,fund4 ,su* contributions
 %all be made "u rules simil> to ! rules
 ( section #ejba7;b77#c74  7e7          
,contribution beg9n+ date ,= purposes ( 
?is section1 ! t]m contribution beg9n+  
date means ,janu>y #a ( ! #crd cal5d>   
ye> beg9n+ aft] ! date ( ! enactm5t ( ! 
,am]ican ,sav+s ,act4  #ejbc4 ,/ate     
retirem5t sav+s plans  7a7 ,9 g5]al ,if 
a ,/ate--  7#a7 ma9ta9s a public        
retirem5t sav+s plan t all[s all cov]$  
employ]s 9 ! ,/ate to enroll all        
employees ( ! employ] automatically 9   
su* plan2 or  7#b7 all[s all cov]$      
employ]s 9 ! ,/ate to make contributions
 to an individual retirem5t plan 7z     

def9$ 9 section #ggja7;a77#cg7 ( !      
,int]nal ,rev5ue ,code ( #aihf7 on      
behalf ( ! employees ( ! employ]2  su*  
,/ate may prohibit employ]s 9 ! ,/ate f 
mak+ contributions to ! ,am]ican ,sav+s 
,acc\nt ,fund on behalf ( _! employees1 
& section #ejbb %all n apply to cov]$   
employ]s to :i* su* prohibition applies4
  7b7 ,exemption ,= purposes ( ?is ,act1
 ! t]m employee p5sion b5efit plan %all 
n include a payroll d$uction program    
e/abli%$ by a ,/ate = ! purpose ( mak+  
contributions to #a or m individual     
retirem5t plans 7z def9$ 9 section      
#ggja7;a77#cg7 ( ! ,int]nal ,rev5ue     
,code ( #aihf71 includ+ su* a program   
:i* provides = automatic enrollm5t4  7c7
 ,waiv] ( p5alty ,! p5alty "u section   
#ffgb7;f7 ( ! ,int]nal ,rev5ue ,code (  
#aihf %all n apply to a failure to make 
a contribution on behalf ( a qualifi$   
employee if ! employ] makes             
contributions to a ,/ate plan describ$ 9
 subsection 7a7 or 7b7 on behalf ( su*  
employee t satisfy ! applicable         

requirem5ts ( su* ,/ate plan4 ,! employ]
 %all c]tify to ! ,secret>y ( !         
,treasury1 9 su* mann] z %all be det]m9$
 by su* ,secret>y1 t su* contributions h
 be5 made4  7d7 ,cov]$ employ] ,=       
purposes ( ?is section1 ! t]m cov]$     
employ] means an employ]-- 7#a7 t does n
 provide ! opportunity = employees to   
p>ticipate 9 a def9$ contribution plan  
7)9 ! mean+ ( section #dad7;i7 ( !      
,int]nal ,rev5ue ,code ( #aihf7 ma9ta9$ 
by ! employ]2 &  7#b7 ^: employees are n
 cov]$ by a collective b>ga9+ agreem5t  
describ$ 9 section #daj7;b77#c77;,a7 ( !
 ,int]nal ,rev5ue ,code ( #aihf4  #ejbd4
 ,def9itions ,any t]m us$ 9 ?is subtitle
 :i* is also us$ 9 section #djh7k7 ( !  
,int]nal ,rev5ue ,code ( #aihf has !    
same mean+ z :5 us$ 9 su* section4  4   
7b7 ,cl]ical am5dm5t ,! table ( cont5ts 
( ! ,employee ,retirem5t ,income        
,security ,act ( #aigd is am5d$ by add+ 
at ! end ! foll[+3  ,,title ,v--,am]ican
 ,sav+s ,accounts,subtitle              
,a--,administration,sec4 #ejja4 ,am]ican

 ,sav+s ,acc\nt ,bo>d ( ,directors4,sec4
 #ejjb4 ,responsibilities ( ,am]ican    
,sav+s ,acc\nt ,bo>d ( ,directors4,sec4 
#ejjc4 ,fiduci>y responsibilities2      
liability & p5alties4,sec4 #ejjd4       
,am]ican ,sav+s ,acc\nt ,fund ,advisory 
,c\ncil4,subtitle ,b--,am]ican ,sav+s   
,acc\nt ,fund,sec4 #ejaa4 ,am]ican      
,sav+s ,acc\nt ,fund4,sec4 #ejab4 ,tax  
treatm5t ( ! ,am]ican ,sav+s ,acc\nt    
,fund4,subtitle ,c--,am]ican ,sav+s     
,accounts,sec4 #ejba4 ,am]ican ,sav+s   
,acc\nts4,sec4 #ejbb4 ,employ]          
requirem5ts4,sec4 #ejbc4 ,/ate retirem5t
 sav+s plans4,sec4 #ejbd4 ,def9itions4  
4  7c7 ,con=m+ am5dm5t ,section #ggja ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by r$esignat+ subsection 7p7 z    
subsection 7q7 & by ins]t+ aft]         
subsection 7o7 ! foll[+ new subsection3 
7p7 ,tax treatm5t ( ,am]ican ,sav+s     
,acc\nt ,fund  7#a7 ,9 g5]al ,= purposes
 ( ?is title-- 7,a7 ! ,am]ican ,sav+s   
,acc\nt ,fund %all be treat$ z a tru/   
describ$ 9 section #dja7;a7 :i* is      

exempt f taxation "u section #eja7;a72  
7,b7 any contribution to1 or di/ribution
 f1 ! ,am]ican ,sav+s ,acc\nt ,fund %all
 be treat$ 9 ! same mann] z             
contributions to or di/ributions f su* a
 tru/2  7,c7 contributions to ! ,am]ican
 ,sav+s ,acc\nt ,fund %all n be treat$ z
 di/ribut$ or made available to a       
p>ticipant nor z a contribution made to 
! ,fund by an individual m]ely because !
 individual has1 "u section             
#ejbb7;b77#a77;,c7 ( ! ,employee        
,retirem5t ,income ,security ,act (     
#aigd1 made an election :e!r !          
contribution w be made to ! ,am]ican    
,sav+s ,acc\nt ,fund or receiv$ by !    
individual 9 ca%2 &  7,d7 ! rules (     
section #dad7w7 %all apply ) respect to 
,am]ican ,sav+s ,acc\nts1 except t      
p>agraph 7#b77;,b7 !re( %all be appli$  
by sub/itut+ ! due date = ! return ( tax
 = ! taxable ye> 9 :i* ! fir/ elective  
contribution is made ) respect to !     
employee "u ! arrangem5t = ! date :i* is
 #ij days aft] ! date ( ! fir/ elective 

contribution ) respect to ! employee "u 
! arrangem5t4  7#b7 ,coord9ation )      
,social ,security ,act ,p>agraph 7#a7   
%all n be con/ru$ to provide t any am\nt
 ( ! employee's comp5sation :i* is      
contribut$ to ! ,am]ican ,sav+s ,acc\nt 
,fund %all n be includ$ 9 ! t]m wages = 
! purposes ( section #bji ( ! ,social   
,security ,act or section #caba7;a7 (   
?is title4  7#c7 ,def9itions ,= purposes
 ( ?is subsection1 ! t]ms employee &    
,am]ican ,sav+s ,acc\nt ,fund %all h !  
same respective mean+s z :5 us$ 9 title 
,v ( ! ,employee ,retirem5t ,income     
,security ,act ( #aigd4  7#d7           
,coord9ation ) o!r provisions ( law ,no 
provision ( law n conta9$ 9 ?is title   
%all apply = purposes ( det]m9+ !       
treatm5t "u ?is title ( ! ,am]ican      
,sav+s ,acc\nt ,fund or any contribution
 to1 or di/ribution f1 su* ,fund4  4    
7d7 ,treatm5t ( contributions to        
,am]ican ,sav+s ,acc\nt ,fund  7#a7 ,9  
g5]al ,"p ,,iii ( sub*apt] ,b ( *apt] #a
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  

am5d$ by ins]t+ aft] section #aci;,g !  
foll[+ new section3  #aci;,h4 ,am\nts   
contribut$ to ,am]ican ,sav+s ,acc\nts  
7a7 ,9 g5]al ,gross income does n       
include s mu* ( ! contributions made to 
! ,am]ican ,sav+s ,acc\nt ,fund on      
behalf ( an individual = pay p]iods 9 ! 
taxable ye> z does n exce$ ! limitation 
applicable "u section #dae7;c7 ( !      
,int]nal ,rev5ue ,code ( #aihf to       
contributions to a def9$ contribution   
plan4  7b7 ,am]ican ,sav+s ,acc\nt ,fund
 ,= purposes ( ?is section1 ! t]m       
,am]ican ,sav+s ,acc\nt ,fund means !   
,fund e/abli%$ "u section #ejaa ( !     
,employee ,retirem5t ,income ,security  
,act ( #aigd4  4  7#b7 ,d5ial ( d$uction
 ,subsection 7b7 ( section #bai ( su*   
,code is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#f7 ,special rule =    
,am]ican ,sav+s ,acc\nts ,?is section   
%all n apply ) respect to any am\nt     
contribut$ to an individual retirem5t   
acc\nt 7z def9$ 9 section #djh7;a77 or a
 ,ro? ,,ira 7z def9$ 9 section          

#djh;,a7b77 :i* is an ,am]ican ,sav+s   
,acc\nt 7z def9$ 9 section #ejba ( !    
,employee ,retirem5t ,income ,security  
,act ( #aigd74  4  7#c7 ,cl]ical am5dm5t
 ,! table ( sections = "p ,,iii (       
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #aci;,g ! foll[+ new item3      
,sec4 #aci;,h4 ,am\nts contribut$ to    
,am]ican ,sav+s ,acc\nts4  4  7e7       
,treatm5t ( di/ributions z sep>ate f o!r
 ,i,r,as & ,ro? ,i,r,as ,subp>agraph    
7,a7 ( section #djh7;d77#b7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by /rik+
 plans & ins]t+ plans 7o!r ?an ,am]ican 
,sav+s ,acc\nts1 )9 ! mean+ ( section   
#ejba ( ! ,employee ,retirem5t ,income  
,security ,act ( #aigd74  7f7 ,effective
 date  7#a7 ,program ,! ,*air ( !       
,am]ican ,sav+s ,acc\nt ,bo>d (         
,directors %all e/abli% ! ,am]ican      
,sav+s ,acc\nt program su* t ! ,am]ican 
,sav+s ,acc\nt ,fund is prep>$ to beg9  
receiv+ contributions on ,janu>y #a ( ! 
#crd cal5d> ye> beg9n+ aft] ! date ( !  

enactm5t ( ?is ,act4  7#b7 ,treatm5t (  
contributions ,except z provid$ 9       
p>agraph 7#a71 ! am5dm5ts made by ?is   
section %all apply to contributions made
 to ! ,am]ican ,sav+s ,acc\nt ,fund1 z  
e/abli%$ by ! am5dm5ts made by          
subsection 7a71 aft] ,decemb] #ca ( !   
#bnd cal5d> ye> beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4  #c4 ,p5alty =     
employ] noncompliance ,section #ffgb ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by add+ at ! end ! foll[+ new          
subsection3  7f7 ,employ] noncompliance 
) requirem5ts ( ,am]ican ,sav+s ,acc\nt 
,act ,except z provid$ 9 section        
#ejbc7;c7 ( ! ,employee ,retirem5t      
,income ,security ,act ( #aigd1 any     
employ] t fails to make any contribution
 requir$ by section #ejbb ( su* ,act    
%all be treat$ = purposes ( subsection  
7a7 z if ! employ] _h willfully fail$ to
 collect a tax 9 ! am\nt ( su* requir$  
contribution4  4  #d4 ,outrea* ,!       
,commission] ( ,int]nal ,rev5ue %all    
provide to any p]son fil+ ,=m #ajii     

in=mation on contribut+ to ! ,am]ican   
,sav+s ,acc\nt ,fund4  #e4 ,indep5d5t   
contractors ,! ,secret>y ( ,labor %all  
promulgate rules all[+ employ]s to--    
7#a7 reque/ explicit au?orization f     
indep5d5t contractors ) su* employ]s to 
contribute on behalf ( su* indep5d5t    
contractors to ! ,am]ican ,sav+s ,acc\nt
 ,fund2 &  7#b7 automatically )hold &   
transmit a set am\nt or p]c5tage (      
comp5sation paid to su* indep5d5t       
contractors to su* ,fund4