,,ii #aae? ,,congress #b;d ,session ,s4 #cggb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #ah1 #bjah ,mr4 ,m]kley introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to provide a contribution limit & increas$ m9imum di/ributions = c]ta9 retirem5t plans ) l>ge acc\nt balances4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,retirem5t ,fairness ,act4 #b4 ,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$uction "u section #bai = ! taxable ye>4 7,b7 ,aft] tax contributions ,9 ! case ( applicable annual additions 9 excess ( ! limitation "u subsection 7a7-- 7i7 rules simil> to ! rules ( p>agraph 7#a77;,b7 %all apply to any su* additions :i* are treat$ z designat$ nond$uctible contributions "u section #djh7o71 & 7ii7 section #djh;,a7d77#b77;,c7 %all apply to any su* additions :i* are to a ,ro? ,,ira 7& to any net income allocable to su* additions74 ,= purposes ( clause 7ii71 di/ributions f a ,ro? ,,ira %all be treat$ 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 #d1jjj1jjj4 7,b7 ,adju/m5t = inflation ,9 ! case ( any taxable ye> beg9n+ aft] #bjai1 ! #d1jjj1jjj 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> #bjai = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !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;,b4 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 means1 ) respect to any taxable ye>1 ! 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 ,phase-9 = taxpay]s ) excess balances = taxable ye> beg9n+ 9 #bjai 7,a7 ,9 g5]al ,if !re is an excess describ$ 9 p>agraph 7#b77;,a7 = ! fir/ taxable ye> ( a taxpay] beg9n+ dur+ #bjai 79 ?is p>agraph ref]r$ to z ! hi/oric excess71 !n ! am\nt tak5 into acc\nt "u p>agraph 7#a77;,b77i7 = su* fir/ taxable ye> & ea* subsequ5t taxable ye> to :i* ?is p>agraph applies %all1 9 lieu ( ! excess describ$ 9 p>agraph 7#b77;,a7 = ea* su* taxable ye>1 be equal to-- 7i7 9 ! case ( su* fir/ taxable ye>1 #aj p]c5t ( ! hi/oric excess1 & 7ii7 9 ! case ( ea* subsequ5t taxable ye> to :i* ?is p>agraph applies1 ! sum (-- 7,i7 #ajj p]c5t ( am\nt 7if any7 by :i* ! excess describ$ 9 p>agraph 7#b77;,a7 = su* taxable ye> exce$s ! adju/$ hi/oric excess = su* taxable ye>1 plus 7,,ii7 #aj p]c5t ( ! adju/$ hi/oric excess = su* taxable ye> 7#ajj p]c5t ( su* adju/$ hi/oric excess = any taxable ye> if x is less ?an #a1jjj74 7,b7 ,adju/$ hi/oric excess ,= purposes ( ?is p>agraph1 ! t]m adju/$ hi/oric excess means1 ) respect to any taxable ye>1 ! less] (-- 7i7 ! excess 7if any7 ( !-- 7,i7 ! hi/oric excess1 ov] 7,,ii7 ! aggregate am\nt ( ! hi/oric excess tak5 into acc\nt "u clauses 7i7 & 7ii77,,ii7 ( subp>agraph 7,a7 = all prec$+ taxable ye>s1 or 7ii7 ! aggregate balances to ! cr$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$+ ! cal5d> ye> 9 :i* su* taxable ye> beg9s7 9 excess ( #d1jjj1jjj4 7,c7 ,taxable ye>s to :i* p>agraph applies ,?is p>agraph %all n apply to-- 7i7 any taxable ye> if ! aggregate am\nt ( ! hi/oric excess tak5 into acc\nt "u clauses 7i7 & 7ii77,,ii7 ( subp>agraph 7,a7 = all prec$+ taxable ye>s equals su* hi/oric excess1 or 7ii7 ! fir/ taxable ye> 9 :i* ! 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$+ ! cal5d> ye> 9 :i* su* taxable ye> beg9s7 are #d1jjj1jjj or less & any subsequ5t taxable ye>4 7#f7 ,def9itions ,= purposes ( ?is subsection1 any t]m us$ 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$esignat+ subsection 7h7 z subsection 7i7 & by ins]t+ aft] subsection 7g7 ! foll[+3 7h7 ,report+ relat+ to aggregate contribution & balance limits on c]ta9 retirem5t plans ,! ,secret>y %all require ! plan adm9i/rator or tru/ee ( an applicable retirem5t plan 7z def9$ 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] ,decemb] #ca1 #bjah4 7#b7 ,plan requirem5ts ,! am5dm5ts made by subsection 7d7 %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjah4