,,ib ,union ,calendar ,no4 #db #aafth ,,congress #ast ,session ,h4 ,r4 #aiid ,report ,no4 #aaf-fe1 ,part ,i ,,in ,,the ,,house ,,of ,,representatives ,march #bi1 #bjai ,mr4 ,neal 7for himself1 ,mr4 ,brady1 ,mr4 ,kind1 and ,mr4 ,kelly of ,pennsylvania7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,education and ,labor1 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 ,may #af1 #bjai ,additional sponsors3 ,mr4 ,luetkemeyer1 ,mr4 ,courtney1 ,mrs4 ,wagner1 ,mr4 ,evans1 ,mr4 ,budd1 ,mr4 ,schneider1 ,mr4 ,pascrell1 ,mr4 ,panetta1 ,mr4 ,stauber1 ,mrs4 ,axne1 ,mrs4 ,trahan1 ,mrs4 ,murphy1 ,mr4 ,beyer1 ,mr4 ,larson of ,connecticut1 ,ms4 ,snchez1 ,mr4 ,blumenauer1 ,mr4 ,thompson of ,california1 ,mr4 ,fitzpatrick1 ,mrs4 ,walorski1 ,mr4 ,harder of ,california1 ,mr4 ,horsford1 ,mr4 ,hudson1 ,mr4 ,vela1 ,mr4 ,suozzi1 ,mr4 ,grothman1 ,mrs4 ,fletcher1 ,mr4 ,cole1 ,mr4 ,king of ,new ,york1 ,mr4 ,reschenthaler1 ,mr4 ,kennedy1 ,mr4 ,bishop of ,georgia1 ,mr4 ,amodei1 ,ms4 ,torres ,small of ,new ,mexico1 ,mr4 ,kildee1 ,mr4 ,bilirakis1 ,mr4 ,van ,drew1 ,mr4 ,gooden1 ,mr4 ,loebsack1 ,ms4 ,gabbard1 ,mr4 ,kilmer1 ,mr4 ,perlmutter1 ,mr4 ,estes1 ,mr4 ,kim1 ,mr4 ,john ,w4 ,rose of ,tennessee1 ,mr4 ,soto1 ,mr4 ,gottheimer1 ,ms4 ,kendra ,s4 ,horn of ,oklahoma1 ,mr4 ,watkins1 ,ms4 ,spanberger1 ,mr4 ,perry1 ,ms4 ,finkenauer1 ,ms4 ,schrier1 ,mr4 ,cleaver1 ,mr4 ,mc,caul1 and ,mr4 ,marshall ,may #af1 #bjai ,reported from the ,committee on ,ways and ,means with an amendment ,strike out all after the enacting clause and insert the part printed in italic ,may #af1 #bjai ,committee on ,education and ,labor discharged2 committed to the ,committee of the ,whole ,house on the ,state of the ,union and ordered to be printed ,for text of introduced bill1 see copy of bill as introduced on ,march #bi1 #bjai ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to encourage retirement savings1 and for other purposes4 #a4 ,short title1 etc 7a7 ,short title ,this ,act may be cited as the ,setting ,every ,community ,up for ,retirement ,enhancement ,act of #bjai4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title1 etc4 ,title ,i--,expanding and preserving retirement savings ,sec4 #aja4 ,multiple employer plans2 pooled employer plans4 ,sec4 #ajb4 ,increase in #aj percent cap for automatic enrollment safe harbor after #ast plan year4 ,sec4 #ajc4 ,rules relating to election of safe harbor #dja7k7 status4 ,sec4 #ajd4 ,increase in credit limitation for small employer pension plan startup costs4 ,sec4 #aje4 ,small employer automatic enrollment credit4 ,sec4 #ajf4 ,certain taxable non-tuition fellowship and stipend payments treated as compensation for ,,ira purposes4 ,sec4 #ajg4 ,repeal of maximum age for traditional ,,ira contributions4 ,sec4 #ajh4 ,qualified employer plans prohibited from making loans through credit cards and other similar arrangements4 ,sec4 #aji4 ,portability of lifetime income options4 ,sec4 #aaj4 ,treatment of custodial accounts on termination of section #djc7;b7 plans4 ,sec4 #aaa4 ,clarification of retirement income account rules relating to church-controlled organizations4 ,sec4 #aab4 ,qualified cash or deferred arrangements must allow long-term employees working more than #ejj but less than #a1jjj hours per year to participate4 ,sec4 #aac4 ,penalty-free withdrawals from retirement plans for individuals in case of birth of child or adoption4 ,sec4 #aad4 ,increase in age for required beginning date for mandatory distributions4 ,sec4 #aae4 ,special rules for minimum funding standards for community newspaper plans4 ,sec4 #aaf4 ,treating excluded difficulty of care payments as compensation for determining retirement contribution limitations4 ,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 ,combined annual report for group of plans4 ,sec4 #bjc4 ,disclosure regarding lifetime income4 ,sec4 #bjd4 ,fiduciary safe harbor for selection of lifetime income provider4 ,sec4 #bje4 ,modification of nondiscrimination rules to protect older1 longer service participants4 ,sec4 #bjf4 ,modification of ,,pbgc premiums for ,,csec plans4 ,title ,,iii--,other benefits ,sec4 #cja4 ,benefits provided to volunteer firefighters and emergency medical responders4 ,sec4 #cjb4 ,expansion of section #ebi plans4 ,title ,,iv--,revenue provisions ,sec4 #dja4 ,modification of required distribution rules for designated beneficiaries4 ,sec4 #djb4 ,increase in penalty for failure to file4 ,sec4 #djc4 ,increased penalties for failure to file retirement plan returns4 ,sec4 #djd4 ,increase information sharing to administer excise taxes4 ,i ,expanding and preserving retirement savings #aja4 ,multiple employer plans2 pooled employer plans 7a7 ,qualification requirements 7#a7 ,in general ,section #dac of the ,internal ,revenue ,code of #aihf 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 7,a7 ,in general ,the ,secretary shall issue such guidance as the ,secretary determines appropriate to carry out this subsection1 including guidance-- 7i7 to identify the administrative duties and other actions required to be performed by a pooled plan provider under this subsection1 7ii7 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 7iii7 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 clause 7iii7 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,b7 ,good faith compliance with law before guidance ,an employer or pooled plan provider shall not be treated as failing to meet a requirement of guidance issued by the ,secretary under this paragraph if1 before the issuance of such guidance1 the employer or pooled plan provider complies in good faith with a reasonable interpretation of the provisions of this subsection to which such guidance relates4 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 of such ,code is amended by striking section #dja7;a7 and inserting sections #dja7;a7 and #djh7;c74 7#c7 ,technical amendment ,section #djh7;c7 of such ,code 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 ,setting ,every ,community ,up for ,retirement ,enhancement ,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 ,good faith compliance with law before guidance ,an employer or pooled plan provider shall not be treated as failing to meet a requirement of guidance issued by the ,secretary under subparagraph 7,c7 if1 before the issuance of such guidance1 the employer or pooled plan provider complies in good faith with a reasonable interpretation of the provisions of this paragraph1 or paragraph 7#dc71 to which such guidance relates4 7,e7 ,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 plan and a good faith estimate of the percentage of total contributions made by such employers during the plan year 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 #bjbj4 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 amendment7 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 ,increase in #aj percent cap for automatic enrollment safe harbor after #ast plan year 7a7 ,in general ,section #dja7k77#ac77;,c77iii7 of the ,internal ,revenue ,code of #aihf 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 #ajc4 ,rules relating to election of safe harbor #dja7k7 status 7a7 ,limitation of annual safe harbor notice to matching contribution plans 7#a7 ,in general ,subparagraph 7,a7 of section #dja7k77#ab7 of the ,internal ,revenue ,code of #aihf is amended by striking if such arrangement and all that follows and inserting 8if 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 ,subparagraph 7,b7 of section #dja7k77#ac7 of such ,code is amended by striking means and all that follows and inserting 8means 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 of the ,internal ,revenue ,code of #aihf 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 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following 3 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 #ajd4 ,increase in credit limitation for small employer pension plan startup costs 7a7 ,in general ,paragraph 7#a7 of section #de;,e7b7 of the ,internal ,revenue ,code of #aihf 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 #e1jjj1 and 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #aje4 ,small employer automatic enrollment credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,t4 ,auto-enrollment option for retirement savings options provided by small employers 7a7 ,in general ,for purposes of section #ch1 in the case of an eligible employer1 the retirement auto-enrollment credit determined under this section for any taxable year is an amount equal to-- 7#a7 #ejj for any taxable year occurring during the credit period1 and 7#b7 zero for any other taxable year4 7b7 ,credit period ,for purposes of subsection 7a7-- 7#a7 ,in general ,the 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 credit period unless the arrangement described in paragraph 7#a7 is included in the plan for such year4 7c7 ,eligible employer ,for purposes of this section1 the term eligible employer has the meaning given such term in section #djh7p77#b77;,c77i74 4 7b7 ,credit ,to be part of general business credit ,subsection 7b7 of section #ch of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 in the case of an eligible employer 7as defined in section #de,t7c771 the retirement auto-enrollment credit determined under section #de,t7a74 4 7c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #de,s the following new item3 ,sec4 #de,t4 ,auto-enrollment option for retirement savings options provided by small employers4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #ajf4 ,certain taxable non-tuition fellowship and stipend payments treated as compensation for ,,ira purposes 7a7 ,in general ,paragraph 7#a7 of section #bai7;f7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,the term compensation shall include any amount which is included in the individual's gross income and paid to the 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 #ajg4 ,repeal of maximum age for traditional ,,ira contributions 7a7 ,in general ,paragraph 7#a7 of section #bai7;d7 of the ,internal ,revenue ,code of #aihf is repealed4 7b7 ,conforming amendment ,subsection 7c7 of section #djh;,a of the ,internal ,revenue ,code of #aihf 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 #ajh4 ,qualified employer plans prohibited from making loans through credit cards and other similar arrangements 7a7 ,in general ,paragraph 7#b7 of section #gb7p7 of the ,internal ,revenue ,code of #aihf 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 ,subparagraph 7,a7 shall not 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 #aji4 ,portability of lifetime income options 7a7 ,in general ,subsection 7a7 of section #dja of the ,internal ,revenue ,code of #aihf is amended by inserting after paragraph 7#cg7 the following new paragraph3 7#ch7 ,portability of lifetime income 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 ,clause 7i7 of section #dja7k77#b77;,b7 of the ,internal ,revenue ,code of #aihf 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 ,subparagraph 7,b7 of section #dja7k77#b7 of such ,code1 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 ,paragraph 7#aa7 of section #djc7;b7 of the ,internal ,revenue ,code of #aihf 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 ,subparagraph 7,a7 of section #djc7;b77#g7 of such ,code is amended by striking if-- and all that follows and inserting 8if 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 ,subparagraph 7,a7 of section #deg7;d77#a7 of the ,internal ,revenue ,code of #aihf 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 ,paragraph 7#a7 of section #deg7;d7 of such ,code 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 #aaj4 ,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 ,such guidance shall be retroactively effective for taxable years beginning after ,december #ca1 #bjjh4 #aaa4 ,clarification of retirement income account rules relating to church-controlled organizations 7a7 ,in general ,subparagraph 7,b7 of section #djc7;b77#i7 of the ,internal ,revenue ,code of #aihf 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 #aab4 ,qualified cash or deferred arrangements must allow long-term employees working more than #ejj but less than #a1jjj hours per year to participate 7a7 ,participation requirement 7#a7 ,in general ,section #dja7k77#b77;,d7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,d7 which does not require1 as a condition of participation in the arrangement1 that an employee complete a period of service with the employer 7or employers7 maintaining the plan extending beyond the close of the earlier of-- 7i7 the period permitted under section #daj7;a77#a7 7determined without regard to subparagraph 7,b77i7 thereof71 or 7ii7 subject to the provisions of paragraph 7#ae71 the first period of #c consecutive #ab-month periods during each of which the employee has at least #ejj hours of service4 4 7#b7 ,special rules ,section #dja7k7 of such ,code is amended by adding at the end the following new paragraph3 7#ae7 ,special rules for participation requirement for long-term1 part-time workers ,for purposes of paragraph 7#b77;,d77ii7-- 7,a7 ,age requirement must be met ,paragraph 7#b77;,d77ii7 shall not apply to an employee unless the employee has met the requirement of section #daj7;a77#a77;,a77i7 by the close of the last of the #ab-month periods described in such paragraph4 7,b7 ,nondiscrimination and top-heavy rules not to apply 7i7 ,nondiscrimination rules ,in the case of employees who are eligible to participate in the arrangement solely by reason of paragraph 7#b77;,d77ii7-- 7,i7 notwithstanding subsection 7a77#d71 an employer shall not be required to make nonelective or matching contributions on behalf of such employees even if such contributions are made on behalf of other employees eligible to participate in the arrangement1 and 7,,ii7 an employer may elect to exclude such employees from the application of subsection 7a77#d71 paragraphs 7#c71 7#ab71 and 7#ac71 subsection 7m77#b71 and section #daj7;b74 7ii7 ,top-heavy rules ,an employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of paragraph 7#b77;,d77ii7 from the application of the vesting and benefit requirements under subsections 7b7 and 7c7 of section #daf4 7iii7 ,vesting ,for purposes of determining whether an employee described in clause 7i7 has a nonforfeitable right to employer contributions 7other than contributions described in paragraph 7#c77;,d77i77 under the arrangement1 each #ab-month period for which the employee has at least #ejj hours of service shall be treated as a year of service4 7iv7 ,employees who become full-time employees ,this subparagraph shall cease to apply to any employee as of the first plan year beginning after the plan year in which the employee meets the requirements of section #daj7;a77#a77;,a77ii7 without regard to paragraph 7#b77;,d77ii74 7,c7 ,exception for employees under collectively bargained plans1 etc ,paragraph 7#b77;,d77ii7 shall not apply to employees described in section #daj7;b77#c74 7,d7 ,special rules 7i7 ,time of participation ,the rules of section #daj7;a77#d7 shall apply to an employee eligible to participate in an arrangement solely by reason of paragraph 7#b77;,d77ii74 7ii7 #ab-month periods #ab-month periods shall be determined in the same manner as under the last sentence of section #daj7;a77#c77;,a74 4 7b7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjbj1 except that1 for purposes of section #dja7k77#b77;,d77ii7 of the ,internal ,revenue ,code of #aihf 7as added by such amendments71 #ab-month periods beginning before ,january #a1 #bjba1 shall not be taken into account4 #aac4 ,penalty-free withdrawals from retirement plans for individuals in case of birth of child or adoption 7a7 ,in general ,section #gb7t77#b7 of the ,internal ,revenue ,code of #aihf 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 #e1jjj4 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 adoptee is finalized4 7,,ii7 ,eligible adoptee ,the term eligible adoptee 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 #e1jjj4 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 iras ,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 iras ,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 adoptee unless the taxpayer includes the name1 age1 and ,,tin of such child or eligible adoptee 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 #aad4 ,increase in age for required beginning date for mandatory distributions 7a7 ,in general ,section #dja7;a77#i77;,c77i77,i7 of the ,internal ,revenue ,code of #aihf is amended by striking age #gja_/b and inserting age #gb4 7b7 ,spouse beneficiaries2 special rule for owners ,subparagraphs 7,b77iv77,i7 and 7,c77ii77,i7 of section #dja7;a77#i7 of such ,code are each amended by striking age #gja_/b and inserting age #gb4 7c7 ,conforming amendments 7#a7 ,the last sentence of section #djh7;b7 of such ,code is amended by striking age #gja_/b and inserting age #gb4 7#b7 ,section #deg7;d77#a77;,a77i7 of such ,code is amended by striking age #gja_/b and inserting age #gb4 7d7 ,effective date ,the amendments made by this section shall apply to distributions required to be made after ,december #ca1 #bjai1 with respect to individuals who attain age #gja_/b after such date4 #aae4 ,special rules for minimum funding standards for community newspaper plans 7a7 ,amendment to ,internal ,revenue ,code of #aihf ,section #dcj of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7m7 ,special rules for community newspaper plans 7#a7 ,in general ,the plan sponsor of a community newspaper plan under which no participant has had the participant's accrued benefit increased 7whether because of service or compensation7 after ,december #ca1 #bjag1 may elect to have the alternative standards described in paragraph 7#c7 apply to such plan1 and any plan sponsored by any member of the same controlled group4 7#b7 ,election ,an election under paragraph 7#a7 shall be made at such time and in such manner as prescribed by the ,secretary4 ,such election1 once made with respect to a plan year1 shall apply to all subsequent plan years unless revoked with the consent of the ,secretary4 7#c7 ,alternative minimum funding standards ,the alternative standards described in this paragraph are the following3 7,a7 ,interest rates 7i7 ,in general ,notwithstanding subsection 7h77#b77;,c7 and except as provided in clause 7ii71 the first1 second1 and third segment rates in effect for any month for purposes of this section shall be #h percent4 7ii7 ,new benefit accruals ,notwithstanding subsection 7h77#b71 for purposes of determining the funding target and normal cost of a plan for any plan year1 the present value of any benefits accrued or earned under the plan for a plan year with respect to which an election under paragraph 7#a7 is in effect shall be determined on the basis of the ,u4,s4 ,treasury obligation yield curve for the day that is the valuation date of such plan for such plan year4 7iii7 ,u4,s4 ,treasury obligation yield curve ,for purposes of this subsection1 the term ,u4,s4 ,treasury obligation yield curve means1 with respect to any day1 a yield curve which shall be prescribed by the ,secretary for such day on interest-bearing obligations of the ,united ,states4 7,b7 ,shortfall amortization base 7i7 ,previous shortfall amortization bases ,the shortfall amortization bases determined under subsection 7c77#c7 for all plan years preceding the first plan year to which the election under paragraph 7#a7 applies 7and all shortfall amortization installments determined with respect to such bases7 shall be reduced to zero under rules similar to the rules of subsection 7c77#f74 7ii7 ,new shortfall amortization base ,notwithstanding subsection 7c77#c71 the shortfall amortization base for the first plan year to which the election under paragraph 7#a7 applies shall be the funding shortfall of such plan for such plan year 7determined using the interest rates as modified under subparagraph 7,a774 7,c7 ,determination of shortfall amortization installments 7i7 #cj-year period ,subparagraphs 7,a7 and 7,b7 of subsection 7c77#b7 shall be applied by substituting #cj-plan-year for #g-plan-year each place it appears4 7ii7 ,no special election ,the election under subparagraph 7,d7 of subsection 7c77#b7 shall not apply to any plan year to which the election under paragraph 7#a7 applies4 7,d7 ,exemption from at-risk treatment ,subsection 7i7 shall not apply4 7#d7 ,community newspaper plan ,for purposes of this subsection-- 7,a7 ,in general ,the term community newspaper plan means a plan to which this section applies maintained by an employer which1 as of ,december #ca1 #bjag-- 7i7 publishes and distributes daily1 either electronically or in printed form1 #a or more community newspapers in a single ,state1 7ii7 is not a company the stock of which is publicly traded 7on a stock exchange or in an over-the-counter market71 and is not controlled1 directly or indirectly1 by such a company1 7iii7 is controlled1 directly or indirectly-- 7,i7 by #a or more persons residing primarily in the ,state in which the community newspaper is published1 7,,ii7 for not less than #cj years by individuals who are members of the same family1 7,,iii7 by a trust created or organized in the ,state in which the community newspaper is published1 the sole trustees of which are persons described in subclause 7,i7 or 7,,ii71 7,,iv7 by an entity which is described in section #eja7;c77#c7 and exempt from taxation under section #eja7;a71 which is organized and operated in the ,state in which the community newspaper is published1 and the primary purpose of which is to benefit communities in such ,state1 or 7,v7 by a combination of persons described in subclause 7,i71 7,,iii71 or 7,,iv71 and 7iv7 does not control1 directly or indirectly1 any newspaper in any other ,state4 7,b7 ,community newspaper ,the term community newspaper means a newspaper which primarily serves a metropolitan statistical area1 as determined by the ,office of ,management and ,budget1 with a population of not less than #ajj1jjj4 7,c7 ,control ,a person shall be treated as controlled by another person if such other person possesses1 directly or indirectly1 the power to direct or cause the direction and management of such person 7including the power to elect a majority of the members of the board of directors of such person7 through the ownership of voting securities4 7#e7 ,controlled group ,for purposes of this subsection1 the term controlled group means all persons treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad as of the date of the enactment of this subsection4 4 7b7 ,amendment to ,employee ,retirement ,income ,security ,act of #aigd ,section #cjc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhc7 is amended by adding at the end the following new subsection3 7m7 ,special rules for community newspaper plans 7#a7 ,in general ,the plan sponsor of a community newspaper plan under which no participant has had the participant's accrued benefit increased 7whether because of service or compensation7 after ,december #ca1 #bjag1 may elect to have the alternative standards described in paragraph 7#c7 apply to such plan1 and any plan sponsored by any member of the same controlled group4 7#b7 ,election ,an election under paragraph 7#a7 shall be made at such time and in such manner as prescribed by the ,secretary of the ,treasury4 ,such election1 once made with respect to a plan year1 shall apply to all subsequent plan years unless revoked with the consent of the ,secretary of the ,treasury4 7#c7 ,alternative minimum funding standards ,the alternative standards described in this paragraph are the following3 7,a7 ,interest rates 7i7 ,in general ,notwithstanding subsection 7h77#b77;,c7 and except as provided in clause 7ii71 the first1 second1 and third segment rates in effect for any month for purposes of this section shall be #h percent4 7ii7 ,new benefit accruals ,notwithstanding subsection 7h77#b71 for purposes of determining the funding target and normal cost of a plan for any plan year1 the present value of any benefits accrued or earned under the plan for a plan year with respect to which an election under paragraph 7#a7 is in effect shall be determined on the basis of the ,u4,s4 ,treasury obligation yield curve for the day that is the valuation date of such plan for such plan year4 7iii7 ,u4,s4 ,treasury obligation yield curve ,for purposes of this subsection1 the term ,u4,s4 ,treasury obligation yield curve means1 with respect to any day1 a yield curve which shall be prescribed by the ,secretary of the ,treasury for such day on interest-bearing obligations of the ,united ,states4 7,b7 ,shortfall amortization base 7i7 ,previous shortfall amortization bases ,the shortfall amortization bases determined under subsection 7c77#c7 for all plan years preceding the first plan year to which the election under paragraph 7#a7 applies 7and all shortfall amortization installments determined with respect to such bases7 shall be reduced to zero under rules similar to the rules of subsection 7c77#f74 7ii7 ,new shortfall amortization base ,notwithstanding subsection 7c77#c71 the shortfall amortization base for the first plan year to which the election under paragraph 7#a7 applies shall be the funding shortfall of such plan for such plan year 7determined using the interest rates as modified under subparagraph 7,a774 7,c7 ,determination of shortfall amortization installments 7i7 #cj-year period ,subparagraphs 7,a7 and 7,b7 of subsection 7c77#b7 shall be applied by substituting #cj-plan-year for #g-plan-year each place it appears4 7ii7 ,no special election ,the election under subparagraph 7,d7 of subsection 7c77#b7 shall not apply to any plan year to which the election under paragraph 7#a7 applies4 7,d7 ,exemption from at-risk treatment ,subsection 7i7 shall not apply4 7#d7 ,community newspaper plan ,for purposes of this subsection-- 7,a7 ,in general ,the term community newspaper plan means a plan to which this section applies maintained by an employer which1 as of ,december #ca1 #bjag-- 7i7 publishes and distributes daily1 either electronically or in printed form-- 7,i7 a community newspaper1 or 7,,ii7 #a or more community newspapers in the same ,state1 7ii7 is not a company the stock of which is publicly traded 7on a stock exchange or in an over-the-counter market71 and is not controlled1 directly or indirectly1 by such a company1 7iii7 is controlled1 directly or indirectly-- 7,i7 by #a or more persons residing primarily in the ,state in which the community newspaper is published1 7,,ii7 for not less than #cj years by individuals who are members of the same family1 7,,iii7 by a trust created or organized in the ,state in which the community newspaper is published1 the sole trustees of which are persons described in subclause 7,i7 or 7,,ii71 7,,iv7 by an entity which is described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf and exempt from taxation under section #eja7;a7 of such ,code1 which is organized and operated in the ,state in which the community newspaper is published1 and the primary purpose of which is to benefit communities in such ,state1 or 7,v7 by a combination of persons described in subclause 7,i71 7,,iii71 or 7,,iv71 and 7iv7 does not control1 directly or indirectly1 any newspaper in any other ,state4 7,b7 ,community newspaper ,the term community newspaper means a newspaper which primarily serves a metropolitan statistical area1 as determined by the ,office of ,management and ,budget1 with a population of not less than #ajj1jjj4 7,c7 ,control ,a person shall be treated as controlled by another person if such other person possesses1 directly or indirectly1 the power to direct or cause the direction and management of such person 7including the power to elect a majority of the members of the board of directors of such person7 through the ownership of voting securities4 7#e7 ,controlled group ,for purposes of this subsection1 the term controlled group means all persons treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad of the ,internal ,revenue ,code of #aihf as of the date of the enactment of this subsection4 7#f7 ,effect on premium rate calculation ,notwithstanding any other provision of law or any regulation issued by the ,pension ,benefit ,guaranty ,corporation1 in the case of a community newspaper plan which elects the application of the alternative standards described in paragraph 7#c71 the additional premium under section #djjf7;a77#c77;,e7 shall be determined as if such election had not been made4 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years ending after ,december #ca1 #bjag4 #aaf4 ,treating excluded difficulty of care payments as compensation for determining retirement contribution limitations 7a7 ,individual retirement accounts 7#a7 ,in general ,section #djh7o7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#e7 ,special rule for difficulty of care payments excluded from gross income ,in the case of an individual who for a taxable year excludes from gross income under section #aca a qualified foster care payment which is a difficulty of care payment1 if-- 7,a7 the deductible amount in effect for the taxable year under subsection 7b71 exceeds 7,b7 the amount of compensation includible in the individual's gross income for the taxable year1 the individual may elect to increase the nondeductible limit under paragraph 7#b7 for the taxable year by an amount equal to the lesser of such excess or the amount so excluded4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to contributions after the date of the enactment of this ,act4 7b7 ,defined contribution plans 7#a7 ,in general ,section #dae7;c7 of such ,code is amended by adding at the end the following new paragraph3 7#h7 ,special rule for difficulty of care payments excluded from gross income 7,a7 ,in general ,for purposes of paragraph 7#a77;,b71 in the case of an individual who for a taxable year excludes from gross income under section #aca a qualified foster care payment which is a difficulty of care payment1 the participant's compensation1 or earned income1 as the case may be1 shall be increased by the amount so excluded4 7,b7 ,contributions allocable to difficulty of care payments treated as after-tax ,any contribution by the participant which is allowable due to such increase-- 7i7 shall be treated for purposes of this title as investment in the contract1 and 7ii7 shall not cause a plan 7and any arrangement which is part of such plan7 to be treated as failing to meet any requirements of this chapter solely by reason of allowing any such contributions4 4 7#b7 ,effective date ,the amendment made by this subsection shall apply to plan years beginning after ,december #ca1 #bjae4 ,,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 ,subsection 7b7 of section #dja of the ,internal ,revenue ,code of #aihf 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 2 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 return of the employer 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 ,combined annual report for group of plans 7a7 ,in general ,the ,secretary of the ,treasury and the ,secretary of ,labor shall1 in cooperation1 modify the returns required under section #fjeh of the ,internal ,revenue ,code of #aihf and the reports required by section #ajd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbd7 so that all members of a group of plans described in subsection 7c7 may file a single aggregated annual return or report satisfying the requirements of both such sections4 7b7 ,administrative requirements ,in developing the consolidated return or report under subsection 7a71 the ,secretary of the ,treasury and the ,secretary of ,labor may require such return or report to include any information regarding each plan in the group as such ,secretaries determine is necessary or appropriate for the enforcement and administration of the ,internal ,revenue ,code of #aihf and the ,employee ,retirement ,income ,security ,act of #aigd4 7c7 ,plans described ,a group of plans is described in this subsection if all plans in the group-- 7#a7 are individual account plans or defined contribution plans 7as defined in section #c7cd7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7cd77 or in section #dad7;i7 of the ,internal ,revenue ,code of #aihf72 7#b7 have-- 7,a7 the same trustee 7as described in section #djc7;a7 of such ,act 7#bi ,u4,s4,c4 #aajc7;a7772 7,b7 the same one or more named fiduciaries 7as described in section #djb7;a7 of such ,act 7#bi ,u4,s4,c4 #aajb7;a7772 7,c7 the same administrator 7as defined in section #c7af77;,a7 of such ,act 7#bi ,u4,s4,c4 #ajjb7af77;,a777 and plan administrator 7as defined in section #dad7;g7 of the ,internal ,revenue ,code of #aihf72 and 7,d7 plan years beginning on the same date2 and 7#c7 provide the same investments or investment options to participants and beneficiaries4 ,a plan not subject to title ,i of the ,employee ,retirement ,income ,security ,act of #aigd shall be treated as meeting the requirements of paragraph 7#b7 as part of a group of plans if the same person that performs each of the functions described in such paragraph1 as applicable1 for all other plans in such group performs each of such functions for such plan4 7d7 ,clarification relating to electronic filing of returns for deferred compensation plans 7#a7 ,in general ,section #fjaa7;e7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#f7 ,application of numerical limitation to returns relating to deferred compensation plans ,for purposes of applying the numerical limitation under paragraph 7#b77;,a7 to any return required under section #fjeh1 information regarding each plan for which information is provided on such return shall be treated as a separate return4 4 7#b7 ,effective date ,the amendment made by paragraph 7#a7 shall apply to returns required to be filed with respect to plan years beginning after ,december #ca1 #bjai4 7e7 ,effective date ,the modification required by subsection 7a7 shall be implemented not later than ,january #a1 #bjbb1 and shall apply to returns and reports for plan years beginning after ,december #ca1 #bjba4 #bjc4 ,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 ,setting ,every ,community ,up for ,retirement ,enhancement ,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 ,setting ,every ,community ,up for ,retirement ,enhancement ,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 #bjd4 ,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 #bje4 ,modification of nondiscrimination rules to protect older1 longer service participants 7a7 ,in general ,section #dja of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating subsection 7o7 as subsection 7p72 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 #b 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 and special rule ,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 ,paragraph 7#bf7 of section #dja7;a7 of the ,internal ,revenue ,code of #aihf 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 #bjf4 ,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 benefits #cja4 ,benefits provided to volunteer firefighters and emergency medical responders 7a7 ,increase in dollar limitation on qualified payments ,subparagraph 7,b7 of section #aci;,b7c77#b7 of the ,internal ,revenue ,code of #aihf is amended by striking #cj and inserting #ej4 7b7 ,extension ,section #aci;,b7d7 of the ,internal ,revenue ,code of #aihf is amended by striking beginning after ,december #ca1 #bjaj4 and inserting 8beginning-- 7#a7 after ,december #ca1 #bjaj1 and before ,january #a1 #bjbj1 or 7#b7 after ,december #ca1 #bjbj4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #cjb4 ,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 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 inserting3 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;,a7 of such ,code1 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 ,effective dates ,the amendments made by this section shall apply to distributions made after ,december #ca1 #bjah4 ,,iv ,revenue provisions #dja4 ,modification of required distribution rules for designated beneficiaries 7a7 ,modification of rules where employee dies before entire distribution 7#a7 ,in general ,section #dja7;a77#i7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph 7,h7 ,special rules for certain defined contribution plans ,in the case of a defined contribution plan1 if an employee dies before the distribution of the employee's entire interest-- 7i7 ,in general ,except in the case of a beneficiary who is not a designated beneficiary1 subparagraph 7,b77ii7-- 7,i7 shall be applied by substituting #aj years for #e years1 and 7,,ii7 shall apply whether or not distributions of the employee's interests have begun in accordance with subparagraph 7,a74 7ii7 ,exception only for eligible designated beneficiaries ,subparagraph 7,b77iii7 shall apply only in the case of an eligible designated beneficiary4 7iii7 ,rules upon death of eligible designated beneficiary ,if an eligible designated beneficiary dies before the portion of the employee's interest to which this subparagraph applies is entirely distributed1 the exception under clause 7iii7 shall not apply to any beneficiary of such eligible designated beneficiary and the remainder of such portion shall be distributed within #aj years after the death of such eligible designated beneficiary4 7iv7 ,application to eligible retirement plans ,for purposes of applying the provisions of this subparagraph in determining the amounts required to be distributed pursuant to this paragraph1 all eligible retirement plans 7as defined in section #djb7;c77#h77;,b77 other than a defined benefit plan shall be treated as a defined contribution plan4 4 7#b7 ,definition of eligible designated beneficiary ,section #dja7;a77#i77;,e7 of such ,code is amended to read as follows3 7,e7 ,definitions and rules relating to designated beneficiary ,for purposes of this paragraph-- 7i7 ,designated beneficiary ,the term designated beneficiary means any individual designated as a beneficiary by the employee4 7ii7 ,eligible designated beneficiary ,the term eligible designated beneficiary means1 with respect to any employee1 any designated beneficiary who is-- 7,i7 the surviving spouse of the employee1 7,,ii7 subject to clause 7iii71 a child of the employee who has not reached majority 7within the meaning of subparagraph 7,f771 7,,iii7 disabled 7within the meaning of section #gb7m77#g771 7,,iv7 a chronically ill individual 7within the meaning of section #ggjb;,b7c77#b71 except that the requirements of subparagraph 7,a77i7 thereof shall only be treated as met if there is a certification that1 as of such date1 the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be lengthy in nature71 or 7,v7 an individual not described in any of the preceding subclauses who is not more than #aj years younger than the employee4 7iii7 ,special rule for children ,subject to subparagraph 7,f71 an individual described in clause 7ii77,,ii7 shall cease to be an eligible designated beneficiary as of the date the individual reaches majority and any remainder of the portion of the individual's interest to which subparagraph 7,h77ii7 applies shall be distributed within #aj years after such date4 7iv7 ,time for determination of eligible designated beneficiary ,the determination of whether a designated beneficiary is an eligible designated beneficiary shall be made as of the date of death of the employee4 4 7#c7 ,effective dates 7,a7 ,in general ,except as provided in this paragraph and paragraphs 7#d7 and 7#e71 the amendments made by this subsection shall apply to distributions with respect to employees who die after ,december #ca1 #bjai4 7,b7 ,collective bargaining exception ,in the case of a plan maintained pursuant to #a or more collective bargaining agreements between employee representatives and #a or more employers ratified before the date of enactment of this ,act1 the amendments made by this subsection shall apply to distributions with respect to employees who die in calendar years beginning after the earlier of-- 7i7 the later of-- 7,i7 the date on which the last of such collective bargaining agreements terminates 7determined without regard to any extension thereof agreed to on or after the date of the enactment of this ,act71 or 7,,ii7 ,december #ca1 #bjai1 or 7ii7 ,december #ca1 #bjba4 ,for purposes of clause 7i77,i71 any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement added by this section shall not be treated as a termination of such collective bargaining agreement4 7,c7 ,governmental plans ,in the case of a governmental plan 7as defined in section #dad7;d7 of the ,internal ,revenue ,code of #aihf71 subparagraph 7,a7 shall be applied by substituting ,december #ca1 #bjba for ,december #ca1 #bjai4 7#d7 ,exception for certain existing annuity contracts 7,a7 ,in general ,the amendments made by this subsection shall not apply to a qualified annuity which is a binding annuity contract in effect on the date of enactment of this ,act and at all times thereafter4 7,b7 ,qualified annuity ,for purposes of this paragraph1 the term qualified annuity means1 with respect to an employee1 an annuity-- 7i7 which is a commercial annuity 7as defined in section #cdje7;e77#f7 of the ,internal ,revenue ,code of #aihf72 7ii7 under which the annuity payments are made over the life of the employee or over the joint lives of such employee and a designated beneficiary 7or over a period not extending beyond the life expectancy of such employee or the joint life expectancy of such employee and a designated beneficiary7 in accordance with the regulations described in section #dja7;a77#i77;,a77ii7 of such ,code 7as in effect before such amendments7 and which meets the other requirements of section #dja7;a77#i7 of such ,code 7as so in effect7 with respect to such payments2 and 7iii7 with respect to which-- 7,i7 annuity payments to the employee have begun before the date of enactment of this ,act1 and the employee has made an irrevocable election before such date as to the method and amount of the annuity payments to the employee or any designated beneficiaries2 or 7,,ii7 if subclause 7,i7 does not apply1 the employee has made an irrevocable election before the date of enactment of this ,act as to the method and amount of the annuity payments to the employee or any designated beneficiaries4 7#e7 ,exception for certain beneficiaries 7,a7 ,in general ,if an employee dies before the effective date1 then1 in applying the amendments made by this subsection to such employee's designated beneficiary who dies after such date-- 7i7 such amendments shall apply to any beneficiary of such designated beneficiary2 and 7ii7 the designated beneficiary shall be treated as an eligible designated beneficiary for purposes of applying section #dja7;a77#i77;,h77ii7 of the ,internal ,revenue ,code of #aihf 7as in effect after such amendments74 7,b7 ,effective date ,for purposes of this paragraph1 the term effective date means the first day of the first calendar year to which the amendments made by this subsection apply to a plan with respect to employees dying on or after such date4 7b7 ,provisions relating to plan amendments 7#a7 ,in general ,if this subsection applies to any plan amendment-- 7,a7 such plan shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph 7#b77;,b77i72 and 7,b7 except as provided by the ,secretary of the ,treasury1 such plan shall not fail to meet the requirements of section #daa7;d77#f7 of the ,internal ,revenue ,code of #aihf and section #bjd7;g7 of the ,employee ,retirement ,income ,security ,act of #aigd by reason of such amendment4 7#b7 ,amendments to which subsection applies 7,a7 ,in general ,this subsection shall apply to any amendment to any plan or which is made-- 7i7 pursuant to any amendment made by this section or pursuant to any regulation issued by the ,secretary of the ,treasury under this section or such amendments2 and 7ii7 on or before the last day of the first plan year beginning after ,december #ca1 #bjba1 or such later date as the ,secretary of the ,treasury may prescribe4 ,in the case of a governmental or collectively bargained plan to which subparagraph 7,b7 or 7,c7 of subsection 7a77#d7 applies1 clause 7ii7 shall be applied by substituting the date which is #b years after the date otherwise applied under such clause4 7,b7 ,conditions ,this subsection shall not apply to any amendment unless-- 7i7 during the period-- 7,i7 beginning on the date the legislative or regulatory amendment described in paragraph 7#a77;,a7 takes effect 7or in the case of a plan amendment not required by such legislative or regulatory amendment1 the effective date specified by the plan72 and 7,,ii7 ending on the date described in subparagraph 7,a77ii7 7or1 if earlier1 the date the plan amendment is adopted71 the plan is operated as if such plan amendment were in effect2 and 7ii7 such plan amendment applies retroactively for such period4 #djb4 ,increase in penalty for failure to file 7a7 ,in general ,the second sentence of subsection 7a7 of section #ffea of the ,internal ,revenue ,code of #aihf is amended by striking #bje and inserting #djj4 7b7 ,inflation adjustment ,section #ffea7;j77#a7 of such ,code is amended by striking #bje and inserting #djj4 7b7 ,effective date ,the amendments made by this section shall apply to returns the due date for which 7including extensions7 is after ,december #ca1 #bjai4 #djc4 ,increased penalties for failure to file retirement plan returns 7a7 ,in general ,subsection 7e7 of section #ffeb of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #be and inserting #aje2 and 7#b7 by striking #ae1jjj and inserting #ej1jjj4 7b7 ,annual registration statement and notification of changes ,subsection 7d7 of section #ffeb of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #a both places it appears in paragraphs 7#a7 and 7#b7 and inserting #b2 7#b7 by striking #e1jjj in paragraph 7#a7 and inserting #aj1jjj2 and 7#c7 by striking #a1jjj in paragraph 7#b7 and inserting #e1jjj4 7c7 ,failure ,to provide notice ,subsection 7h7 of section #ffeb of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #aj and inserting #ajj2 and 7#b7 by striking #e1jjj and inserting #ej1jjj4 7d7 ,effective date ,the amendments made by this section shall apply to returns1 statements1 and notifications required to be filed1 and notices required to be provided1 after ,december #ca1 #bjai4 #djd4 ,increase information sharing to administer excise taxes 7a7 ,in general ,section #fajc7o7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#c7 ,taxes imposed by section #ddha ,returns and return information with respect to taxes imposed by section #ddha shall be open to inspection by or disclosure to officers and employees of ,united ,states ,customs and ,border ,protection of the ,department of ,homeland ,security whose official duties require such inspection or disclosure for purposes of administering such section4 4 7b7 ,conforming amendments ,paragraph 7#d7 of section #fajc7p7 of the ,internal ,revenue ,code of #aihf is amended by striking or 7o77#a77;,a7 each place it appears and inserting 1 7o77#a77;,a71 or 7o77#c74 ,may #af1 #bjai ,reported from the ,committee on ,ways and ,means with an amendment ,may #af1 #bjai ,committee on ,education and ,labor discharged2 committed to the ,committee of the ,whole ,house on the ,state of the ,union and ordered to be printed