,i #aafth ,,congress #ast ,session ,h4 ,r4 #ajhd ,,in ,,the ,,house ,,of ,,representatives ,february #g1 #bjai,mr4 ,kelly of ,pennsylvania 7for himself1 ,mr4 ,wenstrup1 ,mr4 ,arrington1 ,mr4 ,la,hood1 ,mr4 ,smith of ,missouri1 ,mr4 ,ferguson1 ,mr4 ,schweikert1 ,mr4 ,estes1 ,mr4 ,reed1 and ,mr4 ,marchant7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,education and ,labor1 and the ,budget1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to encourage retirement and family savings1 and for other purposes4 #a4 ,short title2 etc 7a7 ,short title ,this ,act may be cited as the ,family ,savings ,act of #bjai4 7b7 ,amendment of #aihf code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 etc4 ,title ,i--,expanding and ,preserving ,retirement ,savings ,sec4 #aja4 ,multiple employer plans2 pooled employer plans4 ,sec4 #ajb4 ,rules relating to election of safe harbor #dja7k7 status4 ,sec4 #ajc4 ,certain taxable non-tuition fellowship and stipend payments treated as compensation for ,,ira purposes4 ,sec4 #ajd4 ,repeal of maximum age for traditional ,,ira contributions4 ,sec4 #aje4 ,qualified employer plans prohibited from making loans through credit cards and other similar arrangements4 ,sec4 #ajf4 ,portability of lifetime income investments4 ,sec4 #ajg4 ,treatment of custodial accounts on termination of section #djc7;b7 plans4 ,sec4 #ajh4 ,clarification of retirement income account rules relating to church-controlled organizations4 ,sec4 #aji4 ,increase in #aj percent cap for automatic enrollment safe harbor after #ast plan year4 ,sec4 #aaj4 ,increase in credit limitation for small employer pension plan startup costs4 ,sec4 #aaa4 ,small employer automatic enrollment credit4 ,sec4 #aab4 ,exemption from required minimum distribution rules for individuals with certain account balances4 ,sec4 #aac4 ,elective deferrals by members of the ,ready ,reserve of a reserve component of the ,armed ,forces4 ,title ,,ii--,administrative ,improvements ,sec4 #bja4 ,plan adopted by filing due date for year may be treated as in effect as of close of year4 ,sec4 #bjb4 ,modification of nondiscrimination rules to protect older1 longer service participants4 ,sec4 #bjc4 ,fiduciary safe harbor for selection of lifetime income provider4 ,sec4 #bjd4 ,disclosure regarding lifetime income4 ,sec4 #bje4 ,modification of ,,pbgc premiums for ,,csec plans4 ,title ,,iii--,other ,savings ,provisions ,sec4 #cja4 ,expansion of section #ebi plans4 ,sec4 #cjb4 ,penalty-free withdrawals from retirement plans for individuals in case of birth of child or adoption4 ,title ,,iv--,budgetary ,effects ,sec4 #dja4 ,budgetary effects4 ,i ,expanding and ,preserving ,retirement ,savings #aja4 ,multiple employer plans2 pooled employer plans 7a7 ,qualification requirements 7#a7 ,in general ,section #dac is amended by adding at the end the following new subsection3 7e7 ,application of qualification requirements for certain multiple employer plans with pooled plan providers 7#a7 ,in general ,except as provided in paragraph 7#b71 if a defined contribution plan to which subsection 7c7 applies-- 7,a7 is maintained by employers which have a common interest other than having adopted the plan1 or 7,b7 in the case of a plan not described in subparagraph 7,a71 has a pooled plan provider1 then the plan shall not be treated as failing to meet the requirements under this title applicable to a plan described in section #dja7;a7 or to a plan that consists of individual retirement accounts described in section #djh 7including by reason of subsection 7c7 thereof71 whichever is applicable1 merely because one or more employers of employees covered by the plan fail to take such actions as are required of such employers for the plan to meet such requirements4 7#b7 ,limitations 7,a7 ,in general ,paragraph 7#a7 shall not apply to any plan unless the terms of the plan provide that in the case of any employer in the plan failing to take the actions described in paragraph 7#a7-- 7i7 the assets of the plan attributable to employees of such employer 7or beneficiaries of such employees7 will be transferred to a plan maintained only by such employer 7or its successor71 to an eligible retirement plan as defined in section #djb7;c77#h77;,b7 for each individual whose account is transferred1 or to any other arrangement that the ,secretary determines is appropriate1 unless the ,secretary determines it is in the best interests of the employees of such employer 7and the beneficiaries of such employees7 to retain the assets in the plan1 and 7ii7 such employer 7and not the plan with respect to which the failure occurred or any other employer in such plan7 shall1 except to the extent provided by the ,secretary1 be liable for any liabilities with respect to such plan attributable to employees of such employer 7or beneficiaries of such employees74 7,b7 ,failures by pooled plan providers ,if the pooled plan provider of a plan described in paragraph 7#a77;,b7 does not perform substantially all of the administrative duties which are required of the provider under paragraph 7#c77;,a77i7 for any plan year1 the ,secretary may provide that the determination as to whether the plan meets the requirements under this title applicable to a plan described in section #dja7;a7 or to a plan that consists of individual retirement accounts described in section #djh 7including by reason of subsection 7c7 thereof71 whichever is applicable1 shall be made in the same manner as would be made without regard to paragraph 7#a74 7#c7 ,pooled plan provider 7,a7 ,in general ,for purposes of this subsection1 the term pooled plan provider means1 with respect to any plan1 a person who-- 7i7 is designated by the terms of the plan as a named fiduciary 7within the meaning of section #djb7;a77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd71 as the plan administrator1 and as the person responsible to perform all administrative duties 7including conducting proper testing with respect to the plan and the employees of each employer in the plan7 which are reasonably necessary to ensure that-- 7,i7 the plan meets any requirement applicable under the ,employee ,retirement ,income ,security ,act of #aigd or this title to a plan described in section #dja7;a7 or to a plan that consists of individual retirement accounts described in section #djh 7including by reason of subsection 7c7 thereof71 whichever is applicable1 and 7,,ii7 each employer in the plan takes such actions as the ,secretary or such person determines are necessary for the plan to meet the requirements described in subclause 7,i71 including providing to such person any disclosures or other information which the ,secretary may require or which such person otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements1 7ii7 registers as a pooled plan provider with the ,secretary1 and provides such other information to the ,secretary as the ,secretary may require1 before beginning operations as a pooled plan provider1 7iii7 acknowledges in writing that such person is a named fiduciary 7within the meaning of section #djb7;a77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd71 and the plan administrator1 with respect to the plan1 and 7iv7 is responsible for ensuring that all persons who handle assets of1 or who are fiduciaries of1 the plan are bonded in accordance with section #dab of the ,employee ,retirement ,income ,security ,act of #aigd4 7,b7 ,audits1 examinations and investigations ,the ,secretary may perform audits1 examinations1 and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of this subsection4 7,c7 ,aggregation rules ,for purposes of this paragraph1 in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan1 all persons who perform services for the plan and who are treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad shall be treated as one person4 7,d7 ,treatment of employers as plan sponsors ,except with respect to the administrative duties of the pooled plan provider described in subparagraph 7,a77i71 each employer in a plan which has a pooled plan provider shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer 7or beneficiaries of such employees74 7#d7 ,guidance ,the ,secretary shall issue such guidance as the ,secretary determines appropriate to carry out this subsection1 including guidance-- 7,a7 to identify the administrative duties and other actions required to be performed by a pooled plan provider under this subsection1 7,b7 which describes the procedures to be taken to terminate a plan which fails to meet the requirements to be a plan described in paragraph 7#a71 including the proper treatment of1 and actions needed to be taken by1 any employer in the plan and the assets and liabilities of the plan attributable to employees of such employer 7or beneficiaries of such employees71 and 7,c7 identifying appropriate cases to which the rules of paragraph 7#b77;,a7 will apply to employers in the plan failing to take the actions described in paragraph 7#a74 ,the ,secretary shall take into account under subparagraph 7,c7 whether the failure of an employer or pooled plan provider to provide any disclosures or other information1 or to take any other action1 necessary to administer a plan or to allow a plan to meet requirements applicable to the plan under section #dja7;a7 or #djh1 whichever is applicable1 has continued over a period of time that demonstrates a lack of commitment to compliance4 7#e7 ,model plan ,the ,secretary shall publish model plan language which meets the requirements of this subsection and of paragraphs 7#dc7 and 7#dd7 of section #c of the ,employee ,retirement ,income ,security ,act of #aigd and which may be adopted in order for a plan to be treated as a plan described in paragraph 7#a77;,b74 4 7#b7 ,conforming amendment ,section #dac7;c77#b7 is amended by striking section #dja7;a7 and inserting sections #dja7;a7 and #djh7;c74 7#c7 ,technical amendment ,section #djh7;c7 is amended by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,there is a separate accounting for any interest of an employee or member 7or spouse of an employee or member7 in a ,roth ,,ira4 4 7b7 ,no common interest required for pooled employer plans ,section #c7b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7b77 is amended by adding at the end the following3 7,c7 ,a pooled employer plan shall be treated as-- 7i7 a single employee pension benefit plan or single pension plan2 and 7ii7 a plan to which section #baj7;a7 applies4 4 7c7 ,pooled employer plan and provider defined 7#a7 ,in general ,section #c of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7 is amended by adding at the end the following3 7#dc7 ,pooled employer plan 7,a7 ,in general ,the term pooled employer plan means a plan-- 7i7 which is an individual account plan established or maintained for the purpose of providing benefits to the employees of #b or more employers2 7ii7 which is a plan described in section #dja7;a7 of the ,internal ,revenue ,code of #aihf which includes a trust exempt from tax under section #eja7;a7 of such ,code or a plan that consists of individual retirement accounts described in section #djh of such ,code 7including by reason of subsection 7c7 thereof72 and 7iii7 the terms of which meet the requirements of subparagraph 7,b74 ,such term shall not include a plan maintained by employers which have a common interest other than having adopted the plan4 7,b7 ,requirements for plan terms ,the requirements of this subparagraph are met with respect to any plan if the terms of the plan-- 7i7 designate a pooled plan provider and provide that the pooled plan provider is a named fiduciary of the plan2 7ii7 designate one or more trustees meeting the requirements of section #djh7;a77#b7 of the ,internal ,revenue ,code of #aihf 7other than an employer in the plan7 to be responsible for collecting contributions to1 and holding the assets of1 the plan and require such trustees to implement written contribution collection procedures that are reasonable1 diligent1 and systematic2 7iii7 provide that each employer in the plan retains fiduciary responsibility for-- 7,i7 the selection and monitoring in accordance with section #djd7;a7 of the person designated as the pooled plan provider and any other person who1 in addition to the pooled plan provider1 is designated as a named fiduciary of the plan2 and 7,,ii7 to the extent not otherwise delegated to another fiduciary by the pooled plan provider and subject to the provisions of section #djd7;c71 the investment and management of the portion of the plan's assets attributable to the employees of the employer 7or beneficiaries of such employees72 7iv7 provide that employers in the plan1 and participants and beneficiaries1 are not subject to unreasonable restrictions1 fees1 or penalties with regard to ceasing participation1 receipt of distributions1 or otherwise transferring assets of the plan in accordance with section #bjh or paragraph 7#dd77;,c77i77,,ii72 7v7 require-- 7,i7 the pooled plan provider to provide to employers in the plan any disclosures or other information which the ,secretary may require1 including any disclosures or other information to facilitate the selection or any monitoring of the pooled plan provider by employers in the plan2 and 7,,ii7 each employer in the plan to take such actions as the ,secretary or the pooled plan provider determines are necessary to administer the plan or for the plan to meet any requirement applicable under this ,act or the ,internal ,revenue ,code of #aihf to a plan described in section #dja7;a7 of such ,code or to a plan that consists of individual retirement accounts described in section #djh of such ,code 7including by reason of subsection 7c7 thereof71 whichever is applicable1 including providing any disclosures or other information which the ,secretary may require or which the pooled plan provider otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements2 and 7vi7 provide that any disclosure or other information required to be provided under clause 7v7 may be provided in electronic form and will be designed to ensure only reasonable costs are imposed on pooled plan providers and employers in the plan4 7,c7 ,exceptions ,the term pooled employer plan does not include-- 7i7 a multiemployer plan2 or 7ii7 a plan established before the date of the enactment of the ,family ,savings ,act of #bjai unless the plan administrator elects that the plan will be treated as a pooled employer plan and the plan meets the requirements of this title applicable to a pooled employer plan established on or after such date4 7,d7 ,treatment of employers as plan sponsors ,except with respect to the administrative duties of the pooled plan provider described in paragraph 7#dd77;,a77i71 each employer in a pooled employer plan shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer 7or beneficiaries of such employees74 7#dd7 ,pooled plan provider 7,a7 ,in general ,the term pooled plan provider means a person who-- 7i7 is designated by the terms of a pooled employer plan as a named fiduciary1 as the plan administrator1 and as the person responsible for the performance of all administrative duties 7including conducting proper testing with respect to the plan and the employees of each employer in the plan7 which are reasonably necessary to ensure that-- 7,i7 the plan meets any requirement applicable under this ,act or the ,internal ,revenue ,code of #aihf to a plan described in section #dja7;a7 of such ,code or to a plan that consists of individual retirement accounts described in section #djh of such ,code 7including by reason of subsection 7c7 thereof71 whichever is applicable2 and 7,,ii7 each employer in the plan takes such actions as the ,secretary or pooled plan provider determines are necessary for the plan to meet the requirements described in subclause 7,i71 including providing the disclosures and information described in paragraph 7#dc77;,b77v77,,ii72 7ii7 registers as a pooled plan provider with the ,secretary1 and provides to the ,secretary such other information as the ,secretary may require1 before beginning operations as a pooled plan provider2 7iii7 acknowledges in writing that such person is a named fiduciary1 and the plan administrator1 with respect to the pooled employer plan2 and 7iv7 is responsible for ensuring that all persons who handle assets of1 or who are fiduciaries of1 the pooled employer plan are bonded in accordance with section #dab4 7,b7 ,audits1 examinations and investigations ,the ,secretary may perform audits1 examinations1 and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of this paragraph and paragraph 7#dc74 7,c7 ,guidance ,the ,secretary shall issue such guidance as the ,secretary determines appropriate to carry out this paragraph and paragraph 7#dc71 including guidance-- 7i7 to identify the administrative duties and other actions required to be performed by a pooled plan provider under either such paragraph2 and 7ii7 which requires in appropriate cases that if an employer in the plan fails to take the actions required under subparagraph 7,a77i77,,ii7-- 7,i7 the assets of the plan attributable to employees of such employer 7or beneficiaries of such employees7 are transferred to a plan maintained only by such employer 7or its successor71 to an eligible retirement plan as defined in section #djb7;c77#h77;,b7 of the ,internal ,revenue ,code of #aihf for each individual whose account is transferred1 or to any other arrangement that the ,secretary determines is appropriate in such guidance2 and 7,,ii7 such employer 7and not the plan with respect to which the failure occurred or any other employer in such plan7 shall1 except to the extent provided in such guidance1 be liable for any liabilities with respect to such plan attributable to employees of such employer 7or beneficiaries of such employees74 ,the ,secretary shall take into account under clause 7ii7 whether the failure of an employer or pooled plan provider to provide any disclosures or other information1 or to take any other action1 necessary to administer a plan or to allow a plan to meet requirements described in subparagraph 7,a77i77,,ii7 has continued over a period of time that demonstrates a lack of commitment to compliance4 ,the ,secretary may waive the requirements of subclause 7ii77,i7 in appropriate circumstances if the ,secretary determines it is in the best interests of the employees of the employer referred to in such clause 7and the beneficiaries of such employees7 to retain the assets in the plan with respect to which the employer's failure occurred4 7,d7 ,aggregation rules ,for purposes of this paragraph1 in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan1 all persons who perform services for the plan and who are treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad of the ,internal ,revenue ,code of #aihf shall be treated as one person4 4 7#b7 ,bonding requirements for pooled employer plans ,the last sentence of section #dab7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aaab7;a77 is amended by inserting or in the case of a pooled employer plan 7as defined in section #c7dc77 after section #djg7;d77#a774 7#c7 ,conforming and technical amendments ,section #c of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7 is amended-- 7,a7 in paragraph 7#af77;,b7-- 7i7 by striking or at the end of clause 7ii72 and 7ii7 by striking the period at the end and inserting 1 or 7iv7 in the case of a pooled employer plan1 the pooled plan provider42 and 7,b7 by striking the second paragraph 7#da74 7d7 ,pooled employer and multiple employer plan reporting 7#a7 ,additional information ,section #ajc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbc7 is amended-- 7,a7 in subsection 7a77#a77;,b71 by striking applicable subsections 7d71 7e71 and 7f7 and inserting applicable subsections 7d71 7e71 7f71 and 7g72 and 7,b7 by amending subsection 7g7 to read as follows3 7g7 ,additional information with respect to pooled employer and multiple employer plans ,an annual report under this section for a plan year shall include-- 7#a7 with respect to any plan to which section #baj7;a7 applies 7including a pooled employer plan71 a list of employers in the plan1 a good faith estimate of the percentage of total contributions made by such employers during the plan year1 and the aggregate account balances attributable to each employer in the plan 7determined as the sum of the account balances of the employees of such employer 7and the beneficiaries of such employees772 and 7#b7 with respect to a pooled employer plan1 the identifying information for the person designated under the terms of the plan as the pooled plan provider4 4 7#b7 ,simplified annual reports ,section #ajd7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbd7;a77 is amended by striking paragraph 7#b77;,a7 and inserting the following3 7#b7 7,a7 ,with respect to annual reports required to be filed with the ,secretary under this part1 the ,secretary may by regulation prescribe simplified annual reports for any pension plan that-- 7i7 covers fewer than #ajj participants2 or 7ii7 is a plan described in section #baj7;a7 that covers fewer than #a1jjj participants1 but only if no single employer in the plan has #ajj or more participants covered by the plan4 4 7e7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjai4 7#b7 ,rule of construction ,nothing in the amendments made by subsection 7a7 shall be construed as limiting the authority of the ,secretary of the ,treasury or the ,secretary's delegate 7determined without regard to such amendments7 to provide for the proper treatment of a failure to meet any requirement applicable under the ,internal ,revenue ,code of #aihf with respect to one employer 7and its employees7 in a multiple employer plan4 #ajb4 ,rules relating to election of safe harbor #dja7k7 status 7a7 ,limitation of annual safe harbor notice to matching contribution plans 7#a7 ,in general ,section #dja7k77#ab77;,a7 is amended by striking if such arrangement and all that follows and inserting if such arrangement-- 7i7 meets the contribution requirements of subparagraph 7,b7 and the notice requirements of subparagraph 7,d71 or 7ii7 meets the contribution requirements of subparagraph 7,c74 4 7#b7 ,automatic contribution arrangements ,section #dja7k77#ac77;,b7 is amended by striking means and all that follows and inserting means a cash or deferred arrangement-- 7i7 which is described in subparagraph 7,d77i77,i7 and meets the applicable requirements of subparagraphs 7,c7 through 7,e71 or 7ii7 which is described in subparagraph 7,d77i77,,ii7 and meets the applicable requirements of subparagraphs 7,c7 and 7,d74 4 7b7 ,nonelective contributions ,section #dja7k77#ab7 is amended by redesignating subparagraph 7,f7 as subparagraph 7,g71 and by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 ,timing of plan amendment for employer making nonelective contributions 7i7 ,in general ,except as provided in clause 7ii71 a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph 7,c7 shall apply to the arrangement for the plan year1 but only if the amendment is adopted-- 7,i7 at any time before the #cjth day before the close of the plan year1 or 7,,ii7 at any time before the last day under paragraph 7#h77;,a7 for distributing excess contributions for the plan year4 7ii7 ,exception where plan provided for matching contributions ,clause 7i7 shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph 7,b7 or paragraph 7#ac77;,d77i77,i7 applied to the plan year4 7iii7 #d-percent contribution requirement ,clause 7i77,,ii7 shall not apply to an arrangement unless the amount of the contributions described in subparagraph 7,c7 which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least #d percent of the employee's compensation4 4 7c7 ,automatic contribution arrangements ,section #dja7k77#ac7 is amended by adding at the end the following3 7,f7 ,timing of plan amendment for employer making nonelective contributions 7i7 ,in general ,except as provided in clause 7ii71 a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph 7,d77i77,,ii7 shall apply to the arrangement for the plan year1 but only if the amendment is adopted-- 7,i7 at any time before the #cjth day before the close of the plan year1 or 7,,ii7 at any time before the last day under paragraph 7#h77;,a7 for distributing excess contributions for the plan year4 7ii7 ,exception where plan provided for matching contributions ,clause 7i7 shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph 7,d77i77,i7 or paragraph 7#ab77;,b7 applied to the plan year4 7iii7 #d-percent contribution requirement ,clause 7i77,,ii7 shall not apply to an arrangement unless the amount of the contributions described in subparagraph 7,d77i77,,ii7 which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least #d percent of the employee's compensation4 4 7d7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjai4 #ajc4 ,certain taxable non-tuition fellowship and stipend payments treated as compensation for ,,ira purposes 7a7 ,in general ,section #bai7;f77#a7 is amended by adding at the end the following3 ,the term compensation shall include any amount included in gross income and paid to an individual to aid the individual in the pursuit of graduate or postdoctoral study44 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #ajd4 ,repeal of maximum age for traditional ,,ira contributions 7a7 ,in general ,section #bai7;d7 is amended by striking paragraph 7#a74 7b7 ,conforming amendment ,section #djh;,a7c7 is amended by striking paragraph 7#d7 and by redesignating paragraphs 7#e71 7#f71 and 7#g7 as paragraphs 7#d71 7#e71 and 7#f71 respectively4 7c7 ,effective date ,the amendments made by this section shall apply to contributions made for taxable years beginning after ,december #ca1 #bjai4 #aje4 ,qualified employer plans prohibited from making loans through credit cards and other similar arrangements 7a7 ,in general ,section #gb7p77#b7 is amended by redesignating subparagraph 7,d7 as subparagraph 7,e7 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 ,prohibition of loans through credit cards and other similar arrangements ,notwithstanding subparagraph 7,a71 paragraph 7#a7 shall apply to any loan which is made through the use of any credit card or any other similar arrangement4 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply to loans made after the date of the enactment of this ,act4 #ajf4 ,portability of lifetime income investments 7a7 ,in general ,section #dja7;a7 is amended by inserting after paragraph 7#cg7 the following new paragraph3 7#ch7 ,portability of lifetime income investments 7,a7 ,in general ,except as may be otherwise provided by regulations1 a trust forming part of a defined contribution plan shall not be treated as failing to constitute a qualified trust under this section solely by reason of allowing-- 7i7 qualified distributions of a lifetime income investment1 or 7ii7 distributions of a lifetime income investment in the form of a qualified plan distribution annuity contract1 on or after the date that is #ij days prior to the date on which such lifetime income investment is no longer authorized to be held as an investment option under the plan4 7,b7 ,definitions ,for purposes of this subsection-- 7i7 the term qualified distribution means a direct trustee-to-trustee transfer described in paragraph 7#ca77;,a7 to an eligible retirement plan 7as defined in section #djb7;c77#h77;,b771 7ii7 the term lifetime income investment means an investment option which is designed to provide an employee with election rights-- 7,i7 which are not uniformly available with respect to other investment options under the plan1 and 7,,ii7 which are to a lifetime income feature available through a contract or other arrangement offered under the plan 7or under another eligible retirement plan 7as so defined71 if paid by means of a direct trustee-to-trustee transfer described in paragraph 7#ca77;,a7 to such other eligible retirement plan71 7iii7 the term lifetime income feature means-- 7,i7 a feature which guarantees a minimum level of income annually 7or more frequently7 for at least the remainder of the life of the employee or the joint lives of the employee and the employee's designated beneficiary1 or 7,,ii7 an annuity payable on behalf of the employee under which payments are made in substantially equal periodic payments 7not less frequently than annually7 over the life of the employee or the joint lives of the employee and the employee's designated beneficiary1 and 7iv7 the term qualified plan distribution annuity contract means an annuity contract purchased for a participant and distributed to the participant by a plan or contract described in subparagraph 7,b7 of section #djb7;c77#h7 7without regard to clauses 7i7 and 7ii7 thereof74 4 7b7 ,cash or deferred arrangement 7#a7 ,in general ,section #dja7k77#b77;,b77i7 is amended by striking or at the end of subclause 7,,iv71 by striking and at the end of subclause 7,v7 and inserting or1 and by adding at the end the following new subclause3 7,,vi7 except as may be otherwise provided by regulations1 with respect to amounts invested in a lifetime income investment 7as defined in subsection 7a77#ch77;,b77ii771 the date that is #ij days prior to the date that such lifetime income investment may no longer be held as an investment option under the arrangement1 and 4 7#b7 ,distribution requirement ,section #dja7k77#b77;,b71 as amended by paragraph 7#a71 is amended by striking and at the end of clause 7i71 by striking the semicolon at the end of clause 7ii7 and inserting 1 and1 and by adding at the end the following new clause3 7iii7 except as may be otherwise provided by regulations1 in the case of amounts described in clause 7i77,,vi71 will be distributed only in the form of a qualified distribution 7as defined in subsection 7a77#ch77;,b77i77 or a qualified plan distribution annuity contract 7as defined in subsection 7a77#ch77;,b77iv771 4 7c7 ,section #djc7;b7 plans 7#a7 ,annuity contracts ,section #djc7;b77#aa7 is amended by striking or at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 or1 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 except as may be otherwise provided by regulations1 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii77-- 7i7 on or after the date that is #ij days prior to the date that such lifetime income investment may no longer be held as an investment option under the contract1 and 7ii7 in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv774 4 7#b7 ,custodial accounts ,section #djc7;b77#g77;,a7 is amended by striking if-- and all that follows and inserting if the amounts are to be invested in regulated investment company stock to be held in that custodial account1 and under the custodial account-- 7i7 no such amounts may be paid or made available to any distributee 7unless such amount is a distribution to which section #gb7t77#b77;,g7 applies7 before-- 7,i7 the employee dies1 7,,ii7 the employee attains age #ei1 7,,iii7 the employee has a severance from employment1 7,,iv7 the employee becomes disabled 7within the meaning of section #gb7m77#g771 7,v7 in the case of contributions made pursuant to a salary reduction agreement 7within the meaning of section #caba7;a77#e77;,d771 the employee encounters financial hardship1 or 7,,vi7 except as may be otherwise provided by regulations1 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii771 the date that is #ij days prior to the date that such lifetime income investment may no longer be held as an investment option under the contract1 and 7ii7 in the case of amounts described in clause 7i77,,vi71 such amounts will be distributed only in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv774 4 7d7 ,eligible deferred compensation plans 7#a7 ,in general ,section #deg7;d77#a77;,a7 is amended by striking or at the end of clause 7ii71 by inserting or at the end of clause 7iii71 and by adding after clause 7iii7 the following3 7iv7 except as may be otherwise provided by regulations1 in the case of a plan maintained by an employer described in subsection 7e77#a77;,a71 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii771 the date that is #ij days prior to the date that such lifetime income investment may no longer be held as an investment option under the plan1 4 7#b7 ,distribution requirement ,section #deg7;d77#a7 is amended by striking and at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 and1 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 except as may be otherwise provided by regulations1 in the case of amounts described in subparagraph 7,a77iv71 such amounts will be distributed only in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv774 4 7e7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjai4 #ajg4 ,treatment of custodial accounts on termination of section #djc7;b7 plans ,not later than six months after the date of enactment of this ,act1 the ,secretary of the ,treasury shall issue guidance to provide that1 if an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph 7,a7 of section #djc7;b77#g71 the plan administrator or custodian may distribute an individual custodial account in kind to a participant or beneficiary of the plan and the distributed custodial account shall be maintained by the custodian on a tax-deferred basis as a section #djc7;b77#g7 custodial account1 similar to the treatment of fully-paid individual annuity contracts under ,revenue ,ruling #bjaa-g1 until amounts are actually paid to the participant or beneficiary4 ,the guidance shall provide further 7i7 that the section #djc7;b77#g7 status of the distributed custodial account is generally maintained if the custodial account thereafter adheres to the requirements of section #djc7;b7 that are in effect at the time of the distribution of the account and 7ii7 that a custodial account would not be considered distributed to the participant or beneficiary if the employer has any material retained rights under the account 7but the employer would not be treated as retaining material rights simply because the custodial account was originally opened under a group contract74 #ajh4 ,clarification of retirement income account rules relating to church-controlled organizations 7a7 ,in general ,section #djc7;b77#i77;,b7 is amended by inserting 7including an employee described in section #dad7;e77#c77;,b77 after employee described in paragraph 7#a74 7b7 ,effective date ,the amendment made by this section shall apply to years beginning before1 on1 or after the date of the enactment of this ,act4 #aji4 ,increase in #aj percent cap for automatic enrollment safe harbor after #ast plan year 7a7 ,in general ,section #dja7k77#ac77;,c77iii7 is amended by striking does not exceed #aj percent and inserting does not exceed #ae percent 7#aj percent during the period described in subclause 7,i774 7b7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjai4 #aaj4 ,increase in credit limitation for small employer pension plan startup costs 7a7 ,in general ,paragraph 7#a7 of section #de;,e7b7 is amended to read as follows3 7#a7 for the first credit year and each of the #b taxable years immediately following the first credit year1 the greater of-- 7,a7 #ejj1 or 7,b7 the lesser of-- 7i7 #bej for each employee of the eligible employer who is not a highly compensated employee 7as defined in section #dad7q77 and who is eligible to participate in the eligible employer plan maintained by the eligible employer1 or 7ii7 #a1ejj1 and 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #aaa4 ,small employer automatic enrollment credit 7a7 ,in general ,section #de;,e is amended by adding at the end the following new subsection3 7f7 ,credit for auto-,enrollment option for retirement savings options 7#a7 ,in general ,the credit allowed under subsection 7a7 for any taxable year during an eligible employer's retirement auto-enrollment credit period shall be increased 7without regard to subsection 7b77 by #ejj4 7#b7 ,retirement auto-enrollment credit period 7,a7 ,in general ,the retirement auto-enrollment credit period with respect to any eligible employer is the #c-taxable-year period beginning with the first taxable year for which the employer includes an eligible automatic contribution arrangement 7as defined in section #dad7w77#c77 in a qualified employer plan 7as defined in section #digb7;d77 sponsored by the employer4 7,b7 ,maintenance of arrangement ,no taxable year with respect to an employer shall be treated as occurring within the retirement auto-enrollment credit period unless the arrangement described in subparagraph 7,a7 is included in the plan for such year4 7#c7 ,not limited to new plans ,this subsection shall be applied without regard to subsection 7c77#b74 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #aab4 ,exemption from required minimum distribution rules for individuals with certain account balances 7a7 ,in general ,section #dja7;a77#i7 is amended by adding at the end the following new subparagraph3 7,h7 ,exception from required minimum distributions during life of employee where assets do not exceed #ej1jjj 7i7 ,in general ,if on the last day of any calendar year the aggregate value of an employee's entire interest under all applicable eligible retirement plans does not exceed #ej1jjj1 then the requirements of subparagraph 7,a7 with respect to any distribution relating to such year shall not apply with respect to such employee4 7ii7 ,applicable eligible retirement plan ,for purposes of this subparagraph1 the term applicable eligible retirement plan means an eligible retirement plan 7as defined in section #djb7;c77#h77;,b77 other than a defined benefit plan4 7iii7 ,limit on required minimum distribution ,the required minimum distribution determined under subparagraph 7,a7 for an employee under all applicable eligible retirement plans shall not exceed an amount equal to the excess of-- 7,i7 the aggregate value of an employee's entire interest under such plans on the last day of the calendar year to which such distribution relates1 over 7,,ii7 the dollar amount in effect under clause 7i7 for such calendar year4 ,the ,secretary in regulations or other guidance may provide how such amount shall be distributed in the case of an individual with more than one applicable eligible retirement plan4 7iv7 ,inflation adjustment ,in the case of any calendar year beginning after #bjbj1 the #ej1jjj amount in clause 7i7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost of living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,any increase determined under this clause shall be rounded to the next lowest multiple of #e1jjj4 7v7 ,plan administrator reliance on employee certification ,an applicable eligible retirement plan described in clause 7iii71 7iv71 7v71 or 7vi7 of section #djb7;c77#h77;,b7 shall not be treated as failing to meet the requirements of this paragraph in the case of any failure to make a required minimum distribution for a calendar year if-- 7,i7 the aggregate value of an employee's entire interest under all applicable eligible retirement plans of the employer on the last day of the calendar year to which such distribution relates does not exceed the dollar amount in effect for such year under clause 7i71 and 7,,ii7 the employee certifies that the aggregate value of the employee's entire interest under all applicable eligible retirement plans on the last day of the calendar year to which such distribution relates did not exceed the dollar amount in effect for such year under clause 7i74 7vi7 ,aggregation rule ,all employers treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad shall be treated as a single employer for purposes of clause 7v74 4 7b7 ,plan administrator reporting ,section #fjdg is amended by redesignating subsection 7h7 as subsection 7i7 and by inserting after subsection 7g7 the following new subsection3 7h7 ,account balance for participants who have attained age #fi 7#a7 ,in general ,not later than ,january #ca of each year1 the plan administrator 7as defined in section #dad7;g77 of each applicable eligible retirement plan 7as defined in section #dja7;a77#i77;,h77 shall make a return to the ,secretary with respect to each participant of such plan who has attained age #fi as of the end of the preceding calendar year which states-- 7,a7 the name and plan number of the plan1 7,b7 the name and address of the plan administrator1 7,c7 the name1 address1 and taxpayer identification number of the participant1 and 7,d7 the account balance of such participant as of the end of the preceding calendar year4 7#b7 ,statement furnished to participant ,every person required to make a return under paragraph 7#a7 with respect to a participant shall furnish a copy of such return to such participant4 7#c7 ,application to individual retirement plans and annuities ,in the case of an applicable eligible retirement plan described in clause 7i7 or 7ii7 of section #djb7;c77#h77;,b7-- 7,a7 any reference in this subsection to the plan administrator shall be treated as a reference to the trustee or issuer1 as the case may be1 and 7,b7 any reference in this subsection to the participant shall be treated as a reference to the individual for whom such account or annuity is maintained4 4 7c7 ,effective date ,the amendments made by this section shall apply to distributions required to be made in calendar years beginning more than #abj days after the date of the enactment of this ,act4 #aac4 ,elective deferrals by members of the ,ready ,reserve of a reserve component of the ,armed ,forces 7a7 ,in general ,section #djb7;g7 is amended by adding at the end the following new paragraph3 7#i7 ,elective deferrals by members of ,ready ,reserve 7,a7 ,in general ,in the case of a qualified ready reservist for any taxable year1 the limitations of subparagraphs 7,a7 and 7,c7 of paragraph 7#a7 shall be applied separately with respect to-- 7i7 elective deferrals of such qualified ready reservist with respect to compensation described in subparagraph 7,b71 and 7ii7 all other elective deferrals of such qualified ready reservist4 7,b7 ,qualified ready reservist ,for purposes of this paragraph1 the term qualified ready reservist means any individual for any taxable year if such individual received compensation for service as a member of the ,ready ,reserve of a reserve component 7as defined in section #aja of title #cg1 ,united ,states ,code7 during such taxable year4 4 7b7 ,effective date ,the amendment made by this section shall apply to plan years beginning after ,december #ca1 #bjai4 ,,ii ,administrative ,improvements #bja4 ,plan adopted by filing due date for year may be treated as in effect as of close of year 7a7 ,in general ,section #dja7;b7 is amended-- 7#a7 by striking retroactive changes in plan4--,a stock bonus and inserting 8plan amendments4-- 7#a7 ,certain retroactive changes in plan ,a stock bonus 1 and 7#b7 by adding at the end the following new paragraph3 7#b7 ,adoption of plan ,if an employer adopts a stock bonus1 pension1 profit-sharing1 or annuity plan after the close of a taxable year but before the time prescribed by law for filing the employer's return of tax for the taxable year 7including extensions thereof71 the employer may elect to treat the plan as having been adopted as of the last day of the taxable year4 4 7b7 ,effective date ,the amendments made by this section shall apply to plans adopted for taxable years beginning after ,december #ca1 #bjai4 #bjb4 ,modification of nondiscrimination rules to protect older1 longer service participants 7a7 ,in general ,section #dja is amended-- 7#a7 by redesignating subsection 7o7 as subsection 7p71 and 7#b7 by inserting after subsection 7n7 the following new subsection3 7o7 ,special rules for applying nondiscrimination rules ,to protect older1 longer service and grandfathered participants 7#a7 ,testing of defined benefit plans with closed classes of participants 7,a7 ,benefits1 rights1 or features provided to closed classes ,a defined benefit plan which provides benefits1 rights1 or features to a closed class of participants shall not fail to satisfy the requirements of subsection 7a77#d7 by reason of the composition of such closed class or the benefits1 rights1 or features provided to such closed class1 if-- 7i7 for the plan year as of which the class closes and the #b succeeding plan years1 such benefits1 rights1 and features satisfy the requirements of subsection 7a77#d7 7without regard to this subparagraph but taking into account the rules of subparagraph 7,i771 7ii7 after the date as of which the class was closed1 any plan amendment which modifies the closed class or the benefits1 rights1 and features provided to such closed class does not discriminate significantly in favor of highly compensated employees1 and 7iii7 the class was closed before ,april #e1 #bjag1 or the plan is described in subparagraph 7,c74 7,b7 ,aggregate testing with defined contribution plans permitted on a benefits basis 7i7 ,in general ,for purposes of determining compliance with subsection 7a77#d7 and section #daj7;b71 a defined benefit plan described in clause 7iii7 may be aggregated and tested on a benefits basis with #a or more defined contribution plans1 including with the portion of #a or more defined contribution plans which-- 7,i7 provides matching contributions 7as defined in subsection 7m77#d77;,a771 7,,ii7 provides annuity contracts described in section #djc7;b7 which are purchased with matching contributions or nonelective contributions1 or 7,,iii7 consists of an employee stock ownership plan 7within the meaning of section #dige7;e77#g77 or a tax credit employee stock ownership plan 7within the meaning of section #dji7;a774 7ii7 ,special rules for matching contributions ,for purposes of clause 7i71 if a defined benefit plan is aggregated with a portion of a defined contribution plan providing matching contributions-- 7,i7 such defined benefit plan must also be aggregated with any portion of such defined contribution plan which provides elective deferrals described in subparagraph 7,a7 or 7,c7 of section #djb7;g77#c71 and 7,,ii7 such matching contributions shall be treated in the same manner as nonelective contributions1 including for purposes of applying the rules of subsection 7l74 7iii7 ,plans described ,a defined benefit plan is described in this clause if-- 7,i7 the plan provides benefits to a closed class of participants1 7,,ii7 for the plan year as of which the class closes and the #b succeeding plan years1 the plan satisfies the requirements of section #daj7;b7 and subsection 7a77#d7 7without regard to this subparagraph but taking into account the rules of subparagraph 7,i771 7,,iii7 after the date as of which the class was closed1 any plan amendment which modifies the closed class or the benefits provided to such closed class does not discriminate significantly in favor of highly compensated employees1 and 7,,iv7 the class was closed before ,april #e1 #bjag1 or the plan is described in subparagraph 7,c74 7,c7 ,plans described ,a plan is described in this subparagraph if1 taking into account any predecessor plan-- 7i7 such plan has been in effect for at least #e years as of the date the class is closed1 and 7ii7 during the #e-year period preceding the date the class is closed1 there has not been a substantial increase in the coverage or value of the benefits1 rights1 or features described in subparagraph 7,a7 or in the coverage or benefits under the plan described in subparagraph 7,b77iii7 7whichever is applicable74 7,d7 ,determination of substantial increase for benefits1 rights1 and features ,in applying subparagraph 7,c77ii7 for purposes of subparagraph 7,a77iii71 a plan shall be treated as having had a substantial increase in coverage or value of the benefits1 rights1 or features described in subparagraph 7,a7 during the applicable #e-year period only if1 during such period-- 7i7 the number of participants covered by such benefits1 rights1 or features on the date such period ends is more than #ej percent greater than the number of such participants on the first day of the plan year in which such period began1 or 7ii7 such benefits1 rights1 and features have been modified by #a or more plan amendments in such a way that1 as of the date the class is closed1 the value of such benefits1 rights1 and features to the closed class as a whole is substantially greater than the value as of the first day of such #e-year period1 solely as a result of such amendments4 7,e7 ,determination of substantial increase for aggregate testing on benefits basis ,in applying subparagraph 7,c77ii7 for purposes of subparagraph 7,b77iii77,,iv71 a plan shall be treated as having had a substantial increase in coverage or benefits during the applicable #e-year period only if1 during such period-- 7i7 the number of participants benefitting under the plan on the date such period ends is more than #ej percent greater than the number of such participants on the first day of the plan year in which such period began1 or 7ii7 the average benefit provided to such participants on the date such period ends is more than #ej percent greater than the average benefit provided on the first day of the plan year in which such period began4 7,f7 ,certain employees disregarded ,for purposes of subparagraphs 7,d7 and 7,e71 any increase in coverage or value or in coverage or benefits1 whichever is applicable1 which is attributable to such coverage and value or coverage and benefits provided to employees-- 7i7 who became participants as a result of a merger1 acquisition1 or similar event which occurred during the #g-year period preceding the date the class is closed1 or 7ii7 who became participants by reason of a merger of the plan with another plan which had been in effect for at least #e years as of the date of the merger1 shall be disregarded1 except that clause 7ii7 shall apply for purposes of subparagraph 7,d7 only if1 under the merger1 the benefits1 rights1 or features under #a plan are conformed to the benefits1 rights1 or features of the other plan prospectively4 7,g7 ,rules relating to average benefit ,for purposes of subparagraph 7,e7-- 7i7 the average benefit provided to participants under the plan will be treated as having remained the same between the #b dates described in subparagraph 7,e77ii7 if the benefit formula applicable to such participants has not changed between such dates1 and 7ii7 if the benefit formula applicable to #a or more participants under the plan has changed between such #b dates1 then the average benefit under the plan shall be considered to have increased by more than #ej percent only if-- 7,i7 the total amount determined under section #dcj7;b77#a77;,a77i7 for all participants benefitting under the plan for the plan year in which the #e-year period described in subparagraph 7,e7 ends1 exceeds 7,,ii7 the total amount determined under section #dcj7;b77#a77;,a77i7 for all such participants for such plan year1 by using the benefit formula in effect for each such participant for the first plan year in such #e-year period1 by more than #ej percent4 ,in the case of a ,,csec plan 7as defined in section #dad7y771 the normal cost of the plan 7as determined under section #dcc7;j77#a77;,b77 shall be used in lieu of the amount determined under section #dcj7;b77#a77;,a77i74 7,h7 ,treatment as single plan ,for purposes of subparagraphs 7,e7 and 7,g71 a plan described in section #dac7;c7 shall be treated as a single plan rather than as separate plans maintained by each employer in the plan4 7,i7 ,special rules ,for purposes of subparagraphs 7,a77i7 and 7,b77iii77,,ii71 the following rules shall apply3 7i7 ,in applying section #daj7;b77#f77;,c71 the closing of the class of participants shall not be treated as a significant change in coverage under section #daj7;b77#f77;,c77i77,,ii74 7ii7 ,two or more plans shall not fail to be eligible to be aggregated and treated as a single plan solely by reason of having different plan years4 7iii7 ,changes in the employee population shall be disregarded to the extent attributable to individuals who become employees or cease to be employees1 after the date the class is closed1 by reason of a merger1 acquisition1 divestiture1 or similar event4 7iv7 ,aggregation and all other testing methodologies otherwise applicable under subsection 7a77#d7 and section #daj7;b7 may be taken into account4 ,the rule of clause 7ii7 shall also apply for purposes of determining whether plans to which subparagraph 7,b77i7 applies may be aggregated and treated as #a plan for purposes of determining whether such plans meet the requirements of subsection 7a77#d7 and section #daj7;b74 7,j7 ,spun-off plans ,for purposes of this paragraph1 if a portion of a defined benefit plan described in subparagraph 7,a7 or 7,b77iii7 is spun off to another employer and the spun-off plan continues to satisfy the requirements of-- 7i7 subparagraph 7,a77i7 or 7,b77iii77,,ii71 whichever is applicable1 if the original plan was still within the #c-year period described in such subparagraph at the time of the spin off1 and 7ii7 subparagraph 7,a77ii7 or 7,b77iii77,,iii71 whichever is applicable1 the treatment under subparagraph 7,a7 or 7,b7 of the spun-off plan shall continue with respect to such other employer4 7#b7 ,testing of defined contribution plans 7,a7 ,testing on a benefits basis ,a defined contribution plan shall be permitted to be tested on a benefits basis if-- 7i7 such defined contribution plan provides make-whole contributions to a closed class of participants whose accruals under a defined benefit plan have been reduced or eliminated1 7ii7 for the plan year of the defined contribution plan as of which the class eligible to receive such make-whole contributions closes and the #b succeeding plan years1 such closed class of participants satisfies the requirements of section #daj7;b77#b77;,a77i7 7determined by applying the rules of paragraph 7#a77;,i771 7iii7 after the date as of which the class was closed1 any plan amendment to the defined contribution plan which modifies the closed class or the allocations1 benefits1 rights1 and features provided to such closed class does not discriminate significantly in favor of highly compensated employees1 and 7iv7 the class was closed before ,april #e1 #bjag1 or the defined benefit plan under clause 7i7 is described in paragraph 7#a77;,c7 7as applied for purposes of paragraph 7#a77;,b77iii77,,iv774 7,b7 ,aggregation with plans including matching contributions 7i7 ,in general ,with respect to #a or more defined contribution plans described in subparagraph 7,a71 for purposes of determining compliance with subsection 7a77#d7 and section #daj7;b71 the portion of such plans which provides make-whole contributions or other nonelective contributions may be aggregated and tested on a benefits basis with the portion of #a or more other defined contribution plans which-- 7,i7 provides matching contributions 7as defined in subsection 7m77#d77;,a771 7,,ii7 provides annuity contracts described in section #djc7;b7 which are purchased with matching contributions or nonelective contributions1 or 7,,iii7 consists of an employee stock ownership plan 7within the meaning of section #dige7;e77#g77 or a tax credit employee stock ownership plan 7within the meaning of section #dji7;a774 7ii7 ,special rules for matching contributions ,rules similar to the rules of paragraph 7#a77;,b77ii7 shall apply for purposes of clause 7i74 7,c7 ,special rules for testing defined contribution plan features providing matching contributions to certain older1 longer service participants ,in the case of a defined contribution plan which provides benefits1 rights1 or features to a closed class of participants whose accruals under a defined benefit plan have been reduced or eliminated1 the plan shall not fail to satisfy the requirements of subsection 7a77#d7 solely by reason of the composition of the closed class or the benefits1 rights1 or features provided to such closed class if the defined contribution plan and defined benefit plan otherwise meet the requirements of subparagraph 7,a7 but for the fact that the make-whole contributions under the defined contribution plan are made in whole or in part through matching contributions4 7,d7 ,spun-off plans ,for purposes of this paragraph1 if a portion of a defined contribution plan described in subparagraph 7,a7 or 7,c7 is spun off to another employer1 the treatment under subparagraph 7,a7 or 7,c7 of the spun-off plan shall continue with respect to the other employer if such plan continues to comply with the requirements of clauses 7ii7 7if the original plan was still within the #c-year period described in such clause at the time of the spin off7 and 7iii7 of subparagraph 7,a71 as determined for purposes of subparagraph 7,a7 or 7,c71 whichever is applicable4 7#c7 ,definitions ,for purposes of this subsection-- 7,a7 ,make-whole contributions ,except as otherwise provided in paragraph 7#b77;,c71 the term make-whole contributions means nonelective allocations for each employee in the class which are reasonably calculated1 in a consistent manner1 to replace some or all of the retirement benefits which the employee would have received under the defined benefit plan and any other plan or qualified cash or deferred arrangement under subsection 7k77#b7 if no change had been made to such defined benefit plan and such other plan or arrangement4 ,for purposes of the preceding sentence1 consistency shall not be required with respect to employees who were subject to different benefit formulas under the defined benefit plan4 7,b7 ,references to closed class of participants ,references to a closed class of participants and similar references to a closed class shall include arrangements under which #a or more classes of participants are closed1 except that #a or more classes of participants closed on different dates shall not be aggregated for purposes of determining the date any such class was closed4 7,c7 ,highly compensated employee ,the term highly compensated employee has the meaning given such term in section #dad7q74 4 7b7 ,participation requirements ,section #dja7;a77#bf7 is amended by adding at the end the following new subparagraph3 7,i7 ,protected participants 7i7 ,in general ,a plan shall be deemed to satisfy the requirements of subparagraph 7,a7 if-- 7,i7 the plan is amended-- 7aa7 to cease all benefit accruals1 or 7bb7 to provide future benefit accruals only to a closed class of participants1 7,,ii7 the plan satisfies subparagraph 7,a7 7without regard to this subparagraph7 as of the effective date of the amendment1 and 7,,iii7 the amendment was adopted before ,april #e1 #bjag1 or the plan is described in clause 7ii74 7ii7 ,plans described ,a plan is described in this clause if the plan would be described in subsection 7o77#a77;,c71 as applied for purposes of subsection 7o77#a77;,b77iii77,,iv7 and by treating the effective date of the amendment as the date the class was closed for purposes of subsection 7o77#a77;,c74 7iii7 ,special rules ,for purposes of clause 7i77,,ii71 in applying section #daj7;b77#f77;,c71 the amendments described in clause 7i7 shall not be treated as a significant change in coverage under section #daj7;b77#f77;,c77i77,,ii74 7iv7 ,spun-off plans ,for purposes of this subparagraph1 if a portion of a plan described in clause 7i7 is spun off to another employer1 the treatment under clause 7i7 of the spun-off plan shall continue with respect to the other employer4 4 7c7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall take effect on the date of the enactment of this ,act1 without regard to whether any plan modifications referred to in such amendments are adopted or effective before1 on1 or after such date of enactment4 7#b7 ,special rules 7,a7 ,election of earlier application ,at the election of the plan sponsor1 the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 7,b7 ,closed classes of participants ,for purposes of paragraphs 7#a77;,a77iii71 7#a77;,b77iii77,,iv71 and 7#b77;,a77iv7 of section #dja7o7 of the ,internal ,revenue ,code of #aihf 7as added by this section71 a closed class of participants shall be treated as being closed before ,april #e1 #bjag1 if the plan sponsor's intention to create such closed class is reflected in formal written documents and communicated to participants before such date4 7,c7 ,certain post-enactment plan amendments ,a plan shall not be treated as failing to be eligible for the application of section #dja7o77#a77;,a71 #dja7o77#a77;,b77iii71 or #dja7;a77#bf7 of such ,code 7as added by this section7 to such plan solely because in the case of-- 7i7 such section #dja7o77#a77;,a71 the plan was amended before the date of the enactment of this ,act to eliminate #a or more benefits1 rights1 or features1 and is further amended after such date of enactment to provide such previously eliminated benefits1 rights1 or features to a closed class of participants1 or 7ii7 such section #dja7o77#a77;,b77iii7 or section #dja7;a77#bf71 the plan was amended before the date of the enactment of this ,act to cease all benefit accruals1 and is further amended after such date of enactment to provide benefit accruals to a closed class of participants4 ,any such section shall only apply if the plan otherwise meets the requirements of such section and in applying such section1 the date the class of participants is closed shall be the effective date of the later amendment4 #bjc4 ,fiduciary safe harbor for selection of lifetime income provider ,section #djd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7 is amended by adding at the end the following3 7e7 ,safe harbor for annuity selection 7#a7 ,in general ,with respect to the selection of an insurer for a guaranteed retirement income contract1 the requirements of subsection 7a77#a77;,b7 will be deemed to be satisfied if a fiduciary-- 7,a7 engages in an objective1 thorough1 and analytical search for the purpose of identifying insurers from which to purchase such contracts2 7,b7 with respect to each insurer identified under subparagraph 7,a7-- 7i7 considers the financial capability of such insurer to satisfy its obligations under the guaranteed retirement income contract2 and 7ii7 considers the cost 7including fees and commissions7 of the guaranteed retirement income contract offered by the insurer in relation to the benefits and product features of the contract and administrative services to be provided under such contract2 and 7,c7 on the basis of such consideration1 concludes that-- 7i7 at the time of the selection1 the insurer is financially capable of satisfying its obligations under the guaranteed retirement income contract2 and 7ii7 the relative cost of the selected guaranteed retirement income contract as described in subparagraph 7,b77ii7 is reasonable4 7#b7 ,financial capability of the insurer ,a fiduciary will be deemed to satisfy the requirements of paragraphs 7#a77;,b77i7 and 7#a77;,c77i7 if-- 7,a7 the fiduciary obtains written representations from the insurer that-- 7i7 the insurer is licensed to offer guaranteed retirement income contracts2 7ii7 the insurer1 at the time of selection and for each of the immediately preceding #g plan years-- 7,i7 operates under a certificate of authority from the insurance commissioner of its domiciliary ,state which has not been revoked or suspended2 7,,ii7 has filed audited financial statements in accordance with the laws of its domiciliary ,state under applicable statutory accounting principles2 7,,iii7 maintains 7and has maintained7 reserves which satisfies all the statutory requirements of all ,states where the insurer does business2 and 7,,iv7 is not operating under an order of supervision1 rehabilitation1 or liquidation2 7iii7 the insurer undergoes1 at least every #e years1 a financial examination 7within the meaning of the law of its domiciliary ,state7 by the insurance commissioner of the domiciliary ,state 7or representative1 designee1 or other party approved by such commissioner72 and 7iv7 the insurer will notify the fiduciary of any change in circumstances occurring after the provision of the representations in clauses 7i71 7ii71 and 7iii7 which would preclude the insurer from making such representations at the time of issuance of the guaranteed retirement income contract2 and 7,b7 after receiving such representations and as of the time of selection1 the fiduciary has not received any notice described in subparagraph 7,a77iv7 and is in possession of no other information which would cause the fiduciary to question the representations provided4 7#c7 ,no requirement to select lowest cost ,nothing in this subsection shall be construed to require a fiduciary to select the lowest cost contract4 ,a fiduciary may consider the value of a contract1 including features and benefits of the contract and attributes of the insurer 7including1 without limitation1 the insurer's financial strength7 in conjunction with the cost of the contract4 7#d7 ,time of selection 7,a7 ,in general ,for purposes of this subsection1 the time of selection is-- 7i7 the time that the insurer and the contract are selected for distribution of benefits to a specific participant or beneficiary2 or 7ii7 if the fiduciary periodically reviews the continuing appropriateness of the conclusion described in paragraph 7#a77;,c7 with respect to a selected insurer1 taking into account the considerations described in such paragraph1 the time that the insurer and the contract are selected to provide benefits at future dates to participants or beneficiaries under the plan4 ,nothing in the preceding sentence shall be construed to require the fiduciary to review the appropriateness of a selection after the purchase of a contract for a participant or beneficiary4 7,b7 ,periodic review ,a fiduciary will be deemed to have conducted the periodic review described in subparagraph 7,a77ii7 if the fiduciary obtains the written representations described in clauses 7i71 7ii71 and 7iii7 of paragraph 7#b77;,a7 from the insurer on an annual basis1 unless the fiduciary receives any notice described in paragraph 7#b77;,a77iv7 or otherwise becomes aware of facts that would cause the fiduciary to question such representations4 7#e7 ,limited liability ,a fiduciary which satisfies the requirements of this subsection shall not be liable following the distribution of any benefit1 or the investment by or on behalf of a participant or beneficiary pursuant to the selected guaranteed retirement income contract1 for any losses that may result to the participant or beneficiary due to an insurer's inability to satisfy its financial obligations under the terms of such contract4 7#f7 ,definitions ,for purposes of this subsection-- 7,a7 ,insurer ,the term insurer means an insurance company1 insurance service1 or insurance organization1 including affiliates of such companies4 7,b7 ,guaranteed retirement income contract ,the term guaranteed retirement income contract means an annuity contract for a fixed term or a contract 7or provision or feature thereof7 which provides guaranteed benefits annually 7or more frequently7 for at least the remainder of the life of the participant or the joint lives of the participant and the participant's designated beneficiary as part of an individual account plan4 4 #bjd4 ,disclosure regarding lifetime income 7a7 ,in general ,subparagraph 7,b7 of section #aje7;a77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbe7;a77#b77 is amended-- 7#a7 in clause 7i71 by striking and at the end2 7#b7 in clause 7ii71 by striking diversification4 and inserting diversification1 and2 and 7#c7 by inserting at the end the following3 7iii7 the lifetime income disclosure described in subparagraph 7,d77i74 ,in the case of pension benefit statements described in clause 7i7 of paragraph 7#a77;,a71 a lifetime income disclosure under clause 7iii7 of this subparagraph shall be required to be included in only one pension benefit statement during any one #ab-month period4 4 7b7 ,lifetime income ,paragraph 7#b7 of section #aje7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbe7;a77 is amended by adding at the end the following new subparagraph3 7,d7 ,lifetime income disclosure 7i7 ,in general 7,i7 ,disclosure ,a lifetime income disclosure shall set forth the lifetime income stream equivalent of the total benefits accrued with respect to the participant or beneficiary4 7,,ii7 ,lifetime income stream equivalent of the total benefits accrued ,for purposes of this subparagraph1 the term lifetime income stream equivalent of the total benefits accrued means the amount of monthly payments the participant or beneficiary would receive if the total accrued benefits of such participant or beneficiary were used to provide lifetime income streams described in subclause 7,,iii71 based on assumptions specified in rules prescribed by the ,secretary4 7,,iii7 ,lifetime income streams ,the lifetime income streams described in this subclause are a qualified joint and survivor annuity 7as defined in section #bje7;d771 based on assumptions specified in rules prescribed by the ,secretary1 including the assumption that the participant or beneficiary has a spouse of equal age1 and a single life annuity4 ,such lifetime income streams may have a term certain or other features to the extent permitted under rules prescribed by the ,secretary4 7ii7 ,model disclosure ,not later than #a year after the date of the enactment of the ,family ,savings ,act of #bjai1 the ,secretary shall issue a model lifetime income disclosure1 written in a manner so as to be understood by the average plan participant1 which-- 7,i7 explains that the lifetime income stream equivalent is only provided as an illustration2 7,,ii7 explains that the actual payments under the lifetime income stream described in clause 7i77,,iii7 which may be purchased with the total benefits accrued will depend on numerous factors and may vary substantially from the lifetime income stream equivalent in the disclosures2 7,,iii7 explains the assumptions upon which the lifetime income stream equivalent was determined2 and 7,,iv7 provides such other similar explanations as the ,secretary considers appropriate4 7iii7 ,assumptions and rules ,not later than #a year after the date of the enactment of the ,family ,savings ,act of #bjai1 the ,secretary shall-- 7,i7 prescribe assumptions which administrators of individual account plans may use in converting total accrued benefits into lifetime income stream equivalents for purposes of this subparagraph2 and 7,,ii7 issue interim final rules under clause 7i74 ,in prescribing assumptions under subclause 7,i71 the ,secretary may prescribe a single set of specific assumptions 7in which case the ,secretary may issue tables or factors which facilitate such conversions71 or ranges of permissible assumptions4 ,to the extent that an accrued benefit is or may be invested in a lifetime income stream described in clause 7i77,,iii71 the assumptions prescribed under subclause 7,i7 shall1 to the extent appropriate1 permit administrators of individual account plans to use the amounts payable under such lifetime income stream as a lifetime income stream equivalent4 7iv7 ,limitation on liability ,no plan fiduciary1 plan sponsor1 or other person shall have any liability under this title solely by reason of the provision of lifetime income stream equivalents which are derived in accordance with the assumptions and rules described in clause 7iii7 and which include the explanations contained in the model lifetime income disclosure described in clause 7ii74 ,this clause shall apply without regard to whether the provision of such lifetime income stream equivalent is required by subparagraph 7,b77iii74 7v7 ,effective date ,the requirement in subparagraph 7,b77iii7 shall apply to pension benefit statements furnished more than #ab months after the latest of the issuance by the ,secretary of-- 7,i7 interim final rules under clause 7i72 7,,ii7 the model disclosure under clause 7ii72 or 7,,iii7 the assumptions under clause 7iii74 4 #bje4 ,modification of ,,pbgc premiums for ,,csec plans 7a7 ,flat rate premium ,subparagraph 7,a7 of section #djjf7;a77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77 is amended-- 7#a7 in clause 7i71 by striking plan1 and inserting plan other than a ,,csec plan 7as defined in section #baj7;f77#a772 7#b7 in clause 7v71 by striking or at the end2 7#c7 in clause 7vi71 by striking the period at the end and inserting 1 or2 and 7#d7 by adding at the end the following new clause3 7vii7 in the case of a ,,csec plan 7as defined in section #baj7;f77#a771 for plan years beginning after ,december #ca1 #bjah1 for each individual who is a participant in such plan during the plan year an amount equal to the sum of-- 7,i7 the additional premium 7if any7 determined under subparagraph 7,e71 and 7,,ii7 #ai4 4 7b7 ,variable rate premium 7#a7 ,unfunded vested benefits 7,a7 ,in general ,subparagraph 7,e7 of section #djjf7;a77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77 is amended by adding at the end the following new clause3 7v7 ,for purposes of clause 7ii71 in the case of a ,,csec plan 7as defined in section #baj7;f77#a771 the term unfunded vested benefits means1 for plan years beginning after ,december #ca1 #bjah1 the excess 7if any7 of-- 7,i7 the funding liability of the plan as determined under section #cjf7;j77#e77;,c7 for the plan year by only taking into account vested benefits1 over 7,,ii7 the fair market value of plan assets for the plan year which are held by the plan on the valuation date4 4 7,b7 ,conforming amendment ,clause 7iii7 of section #djjf7;a77#c77;,e7 of such ,act 7#bi ,u4,s4,c4 #acjf7;a77#c77;,e77 is amended by striking ,for purposes and inserting ,except as provided in clause 7v71 for purposes4 7#b7 ,applicable dollar amount 7,a7 ,in general ,paragraph 7#h7 of section #djjf7;a7 of such ,act 7#bi ,u4,s4,c4 #acjf7;a77 is amended by adding at the end the following new subparagraph3 7,e7 ,,csec plans ,in the case of a ,,csec plan 7as defined in section #baj7;f77#a771 the applicable dollar amount shall be #i4 4 7,b7 ,conforming amendment ,subparagraph 7,a7 of section #djjf7;a77#h7 of such ,act 7#bi ,u4,s4,c4 #acjf7;a77#h77 is amended by striking 7,b7 and 7,c7 and inserting 7,b71 7,c71 and 7,e74 ,,iii ,other ,savings ,provisions #cja4 ,expansion of section #ebi plans 7a7 ,distributions for certain expenses associated with registered apprenticeship programs ,section #ebi7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#h7 ,treatment of certain expenses associated with registered apprenticeship programs ,any reference in this subsection to the term qualified higher education expense shall include a reference to expenses for fees1 books1 supplies1 and equipment required for the participation of a designated beneficiary in an apprenticeship program registered and certified with the ,secretary of ,labor under section #a of the ,national ,apprenticeship ,act 7#bi ,u4,s4,c4 #ej74 4 7b7 ,distributions for certain homeschooling expenses ,section #ebi7;c77#g7 of such ,code is amended by striking include a reference to and all that follows and inserting include a reference to-- 7,a7 expenses for tuition in connection with enrollment or attendance of a designated beneficiary at an elementary or secondary public1 private1 or religious school1 and 7,b7 expenses1 with respect to a designated beneficiary1 for-- 7i7 curriculum and curricular materials1 7ii7 books or other instructional materials1 7iii7 online educational materials1 7iv7 tuition for tutoring or educational classes outside of the home 7but only if the tutor or class instructor is not related 7within the meaning of section #aeb7;d77#b77 to the student71 7v7 dual enrollment in an institution of higher education1 and 7vi7 educational therapies for students with disabilities1 in connection with a homeschool 7whether treated as a homeschool or a private school for purposes of applicable ,state law74 4 7c7 ,distributions for qualified education loan repayments 7#a7 ,in general ,section #ebi7;c7 of such ,code1 as amended by subsection 7a71 is amended by adding at the end the following new paragraph3 7#i7 ,treatment of qualified education loan repayments 7,a7 ,in general ,any reference in this subsection to the term qualified higher education expense shall include a reference to amounts paid as principal or interest on any qualified education loan 7as defined in section #bba7;d77 of the designated beneficiary or a sibling of the designated beneficiary4 7,b7 ,limitation ,the amount of distributions treated as a qualified higher education expense under this paragraph with respect to the loans of any individual shall not exceed #aj1jjj 7reduced by the amount of distributions so treated for all prior taxable years74 7,c7 ,special rules for siblings of the designated beneficiary 7i7 ,separate accounting ,for purposes of subparagraph 7,b7 and subsection 7d71 amounts treated as a qualified higher education expense with respect to the loans of a sibling of the designated beneficiary shall be taken into account with respect to such sibling and not with respect to such designated beneficiary4 7ii7 ,sibling defined ,for purposes of this paragraph1 the term sibling means an individual who bears a relationship to the designated beneficiary which is described in section #aeb7;d77#b77;,b74 4 7#b7 ,coordination with deduction for student loan interest ,section #bba7;e77#a7 of such ,code is amended by adding at the end the following3 ,the deduction otherwise allowable under subsection 7a7 7prior to the application of subsection 7b77 to the taxpayer for any taxable year shall be reduced 7but not below zero7 by so much of the distributions treated as a qualified higher education expense under section #ebi7;c77#i7 with respect to loans of the taxpayer as would be includible in gross income under section #ebi7;c77#c77;,a7 for such taxable year but for such treatment44 7d7 ,distributions for certain elementary and secondary school expenses in addition to tuition ,section #ebi7;c77#g77;,a71 as amended by subsection 7b71 is amended to read as follows3 7,a7 expenses described in section #ecj7;b77#c77;,a77i7 in connection with enrollment or attendance of a designated beneficiary at an elementary or secondary public1 private1 or religious school1 and 4 7e7 ,unborn children allowed as account beneficiaries ,section #ebi7;e7 is amended by adding at the end the following new paragraph3 7#f7 ,treatment of unborn children 7,a7 ,in general ,nothing shall prevent an unborn child from being treated as a designated beneficiary or an individual under this section4 7,b7 ,unborn child ,for purposes of this paragraph-- 7i7 ,in general ,the term unborn child means a child in utero4 7ii7 ,child in utero ,the term child in utero means a member of the species homo sapiens1 at any stage of development1 who is carried in the womb4 4 7f7 ,effective dates 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to distributions made after ,december #ca1 #bjai4 7#b7 ,unborn children allowed as account beneficiaries ,the amendment made by subsection 7e7 shall apply to contributions made after ,december #ca1 #bjai4 #cjb4 ,penalty-free withdrawals from retirement plans for individuals in case of birth of child or adoption 7a7 ,in general ,section #gb7t77#b7 is amended by adding at the end the following new subparagraph3 7,h7 ,distributions from retirement plans in case of birth of child or adoption 7i7 ,in general ,any qualified birth or adoption distribution4 7ii7 ,limitation ,the aggregate amount which may be treated as qualified birth or adoption distributions by any individual with respect to any birth or adoption shall not exceed #g1ejj4 7iii7 ,qualified birth or adoption distribution ,for purposes of this subparagraph-- 7,i7 ,in general ,the term qualified birth or adoption distribution means any distribution from an applicable eligible retirement plan to an individual if made during the #a-year period beginning on the date on which a child of the individual is born or on which the legal adoption by the individual of an eligible child is finalized4 7,,ii7 ,eligible child ,the term eligible child means any individual 7other than a child of the taxpayer's spouse7 who has not attained age #ah or is physically or mentally incapable of self-support4 7iv7 ,treatment of plan distributions 7,i7 ,in general ,if a distribution to an individual would 7without regard to clause 7ii77 be a qualified birth or adoption distribution1 a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as a qualified birth or adoption distribution1 unless the aggregate amount of such distributions from all plans maintained by the employer 7and any member of any controlled group which includes the employer7 to such individual exceeds #g1ejj4 7,,ii7 ,controlled group ,for purposes of subclause 7,i71 the term controlled group means any group treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad4 7v7 ,amount distributed may be repaid 7,i7 ,in general ,any individual who receives a qualified birth or adoption distribution may make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 or #deg7;e77#af71 as the case may be4 7,,ii7 ,limitation on contributions to applicable eligible retirement plans other than ,i,r,as ,the aggregate amount of contributions made by an individual under subclause 7,i7 to any applicable eligible retirement plan which is not an individual retirement plan shall not exceed the aggregate amount of qualified birth or adoption distributions which are made from such plan to such individual4 ,subclause 7,i7 shall not apply to contributions to any applicable eligible retirement plan which is not an individual retirement plan unless the individual is eligible to make contributions 7other than those described in subclause 7,i77 to such applicable eligible retirement plan4 7,,iii7 ,treatment of repayments of distributions from applicable eligible retirement plans other than ,i,r,as ,if a contribution is made under subclause 7,i7 with respect to a qualified birth or adoption distribution from an applicable eligible retirement plan other than an individual retirement plan1 then the taxpayer shall1 to the extent of the amount of the contribution1 be treated as having received such distribution in an eligible rollover distribution 7as defined in section #djb7;c77#d77 and as having transferred the amount to the applicable eligible retirement plan in a direct trustee to trustee transfer within #fj days of the distribution4 7,,iv7 ,treatment of repayments for distributions from ,i,r,as ,if a contribution is made under subclause 7,i7 with respect to a qualified birth or adoption distribution from an individual retirement plan1 then1 to the extent of the amount of the contribution1 such distribution shall be treated as a distribution described in section #djh7;d77#c7 and as having been transferred to the applicable eligible retirement plan in a direct trustee to trustee transfer within #fj days of the distribution4 7vi7 ,definition and special rules ,for purposes of this subparagraph-- 7,i7 ,applicable eligible retirement plan ,the term applicable eligible retirement plan means an eligible retirement plan 7as defined in section #djb7;c77#h77;,b77 other than a defined benefit plan4 7,,ii7 ,exemption of distributions from trustee to trustee transfer and withholding rules ,for purposes of sections #dja7;a77#ca71 #djb7;f71 and #cdje1 a qualified birth or adoption distribution shall not be treated as an eligible rollover distribution4 7,,iii7 ,taxpayer must include ,,tin ,a distribution shall not be treated as a qualified birth or adoption distribution with respect to any child or eligible child unless the taxpayer includes the name1 age1 and ,,tin of such child or eligible child on the taxpayer's return of tax for the taxable year4 7,,iv7 ,distributions treated as meeting plan distribution requirements ,any qualified birth or adoption distribution shall be treated as meeting the requirements of sections #dja7k77#b77;,b77i71 #djc7;b77#g77;,a77ii71 #djc7;b77#aa71 and #deg7;d77#a77;,a74 4 7b7 ,effective date ,the amendments made by this section shall apply to distributions made after ,december #ca1 #bjai4 ,,iv ,budgetary ,effects #dja4 ,budgetary effects 7a7 ,statutory ,,paygo scorecards ,the budgetary effects of this ,act shall not be entered on either ,,paygo scorecard maintained pursuant to section #d7;d7 of the ,statutory ,pay-,as-,you-,go ,act of #bjaj4 7b7 ,senate ,,paygo scorecards ,the budgetary effects of this ,act shall not be entered on any ,,paygo scorecard maintained for purposes of section #dajf of ,h4 ,con4 ,res4 #ga 7#aaeth ,congress74