,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #daag  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #cj1 #bjai,mr4  
,k9d 7= himself & ,mr4 ,kelly (         
,p5nsylvania7 introduc$ ! foll[+ bill2  
:i* 0 ref]r$ to ! ,committee on ,ways & 
,means  ,a ,,bill  ,to r$uce !          
disadvantages ( individual retirem5t    
plans ) respect to employ]-sponsor$     
retirem5t plans by help+ taxpay]s comply
 ) laws affect+ individual retirem5t    
plans1 by provid+ = r$uc$ p5alties "u ! 
,int]nal ,rev5ue ,code ( #aihf = c]ta9  
self-corrections ) respect to su* laws1 
& by exp&+ ! ,employee ,plans           
,compliance ,resolution ,sy/em to cov]  
c]ta9 errors "u individual retirem5t    
plans1 & = o!r purposes4  #a4 ,%ort     
title ,?is ,act may be cit$ z ! ,,ira   
,pres]vation ,act ( #bjai4  #b4         
,education ) respect to ,i,r,as ,!      
,secret>y ( ! ,treasury %all make       
available to ! public ! foll[+          
in=mation3  7#a7 ,an ov]view ( ! laws & 
regulations relat$ to individual        

retirem5t plans 7z def9$ 9 section      
#ggja7;a77#cg7 ( ! ,int]nal ,rev5ue     
,code ( #aihf71 includ+--  7,a7 limits  
on contributions2  7,b7 limits on       
d$uctions = contributions2  7,c7        
rollov]s2  7,d7 m9imum requir$          
di/ributions2  7,e7 nonexempt prohibit$ 
transactions2 &  7,f7 tax consequ5ces = 
e>ly di/ributions4  7#b7 ,examples (    
common errors by taxpay]s ) respect to !
 laws & regulations describ$ 9 p>agraph 
7#a7 & in/ructions on h[ to avoid su*   
errors4  #c4 ,r$uction ( excise taxes = 
volunt>y correction ( common ,,ira      
errors  7a7 ,r$uction 9 excise tax on   
excess contributions ,section #digc ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7i7 ,r$uction ( tax 9 c]ta9
 cases  7#a7 ,r$uction ,9 ! case ( a    
taxpay] :o-- 7,a7 corrects1 dur+ !      
correction w9d[1 an excess contribution 
:i* 0 made to an individual retirem5t   
plan & :i* result$ 9 imposition ( a tax 
"u p>agraph 7#a7 or 7#c7 ( subsection   

7a71 &  7,b7 submits a return1 dur+ !   
correction w9d[1 reflect+ su* tax 7z    
modifi$ by ?is subsection71  ! fir/ &   
second s5t5ces ( subsection 7a7 %all be 
appli$ by sub/itut+ #c p]c5t = #f p]c5t 
ea* place x appe>s4  7#b7 ,correction   
w9d[ ,= purposes ( ?is subsection1 ! t]m
 correction w9d[ means ! p]iod beg9n+ on
 ! date on :i* ! tax "u subsection 7a7  
is impos$ ) respect to an excess        
contribution1 & end+ on ! e>li] (--     
7,a7 ! date on :i* ! ,secret>y initiates
 an audit1 or o!rwise dem&s paym5t1 )   
respect to ! excess contribution1 or    
7,b7 ! la/ day ( ! second taxable ye> t 
beg9s aft] ! end ( ! taxable ye> 9 :i* !
 tax "u subsection 7a7 is impos$4  4    
7b7 ,r$uction 9 excise tax on failures  
,to take requir$ m9imum di/ributions    
7#a7 ,9 g5]al ,section #digd ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7e7 ,r$uction ( tax 9 c]ta9
 cases  7#a7 ,r$uction ,9 ! case ( a    
taxpay] :o-- 7,a7 corrects1 dur+ !      

correction w9d[1 a %ortfall (           
di/ributions f an individual retirem5t  
plan :i* result$ 9 imposition ( a tax "u
 subsection 7a71 &  7,b7 submits a      
return1 dur+ ! correction w9d[1 reflect+
 su* tax 7modifi$ by ?is subsection71  !
 fir/ s5t5ce ( subsection 7a7 %all be   
appli$ by sub/itut+ #aj p]c5t = #ej     
p]c5t4  7#b7 ,correction w9d[ ,=        
purposes ( ?is subsection1 ! t]m        
correction w9d[ means ! p]iod ( "t      
beg9n+ on ! data on :i* ! tax "u        
subsection 7a7 is impos$ ) respect to a 
%ortfall ( di/ributions f an individual 
retirem5t plan1 & end+ on ! e>li] (--   
7,a7 ! date on :i* ! ,secret>y initiates
 an audit1 or o!rwise dem&s paym5t1 )   
respect to ! %ortfall ( di/ributions1 or
  7,b7 ! la/ day ( ! second taxable ye> 
t beg9s aft] ! end ( ! taxable ye> 9 :i*
 ! tax "u subsection 7a7 is impos$4  4  
#d4 ,h>monization ( treatm5t ( ,i,r,as )
 employ] plans  7a7 ,elim9ation (       
additional tax on c]ta9 di/ributions    
,section #gb7t77#b77;,a7 ( ! ,int]nal   

,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 /rik+ or at ! end ( clause 7vii72  7#b7
 by /rik+ ! p]iod at ! end ( clause     
7viii7 & ins]t+ 1 or2 &  7#c7 by ins]t+ 
aft] clause 7viii7 ! foll[+ new clause3 
7ix7 attributable to )drawal ( int]e/ or
 o!r income e>n$ on excess contributions
 7z def9$ 9 section #digc7;b7 7)\t reg>d
 to ! second to la/ s5t5ce !re(77 to an 
individual retirem5t plan4  4  7b7      
,repeal ( tax disqualification p5alty   
7#a7 ,9 g5]al ,p>agraph 7#b7 ( section  
#djh7;e7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is repeal$4  7#b7 ,con=m+ am5dm5ts
  7,a7 ,section #djh7;e77#a7 ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ 7#b7 or4  7,b7 ,sections       
#bbj7;e77#b71 #bbc7;e77#b71 & #ecj7;e7 (
 ! ,int]nal ,rev5ue ,code ( #aihf are   
ea* am5d$ by /rik+ p>agraphs 7#b7 & 7#d7
 ( section #djh7;e7 & ins]t+ section    
#djh7;e77#d74  7,c7 ,section            
#dige7;c77#c7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by /rik+ ! acc\nt     
ceases to be an individual retirem5t    

acc\nt by reason ( ! application (      
section #djh7;e77#b77;,a7 or if4  7c7   
,/atute ( limitations ,section #feja7l7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$-- 7#a7 9 p>agraph 7#a71 by ins]t+ 
7o!r ?an ) respect to an individual     
retirem5t plan7 aft] section #dige2 &   
7#b7 by add+ at ! end ! foll[+ new      
p>agraph3  7#d7 ,individual retirem5t   
plans ,= purposes ( any tax impos$ by   
section #digc1 #digd1 or #dige 9        
connection ) an individual retirem5t    
plan1 ! return ref]r$ to 9 ?is section  
%all be ! income tax return fil$ by !   
p]son on :om ! tax "u su* section is    
impos$ = ! ye> 9 :i* ! act 7or failure  
to act7 giv+ rise to ! liability = su*  
tax occurr$4 ,9 ! case ( a p]son :o is n
 requir$ to file an income tax return = 
su* ye>--  7,a7 ! return ref]r$ to 9 ?is
 section %all be ! income tax return t  
su* p]son w\ld h be5 requir$ to file b =
 ! fact t su* p]son 0 n requir$ to file 
su* return1 &  7,b7 ! #c-ye> p]iod      
ref]r$ to 9 subsection 7a7 ) respect to 

! return %all be deem$ to beg9 on ! date
 by :i* ! return w\ld h be5 requir$ to  
be fil$ 7exclud+ any ext5sion !re(74  4 
#e4 ,expansion ( employee plans         
compliance resolution sy/em  7a7 ,,epcrs
 = ,i,r,as ,! ,secret>y %all exp& !     
,employee ,plans ,compliance ,resolution
 ,sy/em to all[ tru/ees1 cu/odians1 &   
issu]s ( individual retirem5t plans 7z  
def9$ 9 section #ggja7;a77#cg7 ( !      
,int]nal ,rev5ue ,code ( #aihf7 to      
address inadv]t5t failures = :i* ! own] 
( an individual retirem5t plan 0 n at   
fault1 includ+ 7b n limit$ to7--  7#a7  
waiv]s ( ! excise tax :i* w\ld o!rwise  
apply "u section #digd ( ! ,int]nal     
,rev5ue ,code ( #aihf2  7#b7 "u !       
self-correction compon5t ( ! ,employee  
,plans ,compliance ,resolution ,sy/em1  
waiv]s ( ! #fj-;day deadl9e = a rollov] 
:]e ! deadl9e is miss$ = reasons beyond 
! reasonable control ( ! acc\nt own]2 & 
7#c7 rules p]mitt+ a nonsp\se b5efici>y 
to return di/ributions to an inh]it$    
individual retirem5t plan describ$ 9    

section #djh7;d77#c77;,c7 ( ! ,int]nal  
,rev5ue ,code ( #aihf 9 a case :]e1 due 
to an inadv]t5t error by a s]vice       
provid]1 ! b5efici>y _h reason to       
believe t ! di/ribution c\ld be roll$   
ov] )\t inclusion 9 income ( any "p ( ! 
di/ribut$ am\nt4  7b7 ,requir$ m9imum   
di/ribution corrections ,! ,secret>y    
%all exp& ! ,employee ,plans ,compliance
 ,resolution ,sy/em to all[ plans to :i*
 su* sy/em applies & tru/ees1 cu/odians1
 issu]s1 & own]s ( individual retirem5t 
plans to self-correct1 )\t an excise    
tax1 any inadv]t5t failures pursuant to 
:i* a di/ribution is made no m ?an #ahj 
days aft] x 0 requir$ to be made4  7c7  
,inadv]t5t failure ,= purposes ( ?is    
section-- 7#a7 ,9 g5]al ,except z       
provid$ 9 p>agraph 7#b71 ! t]m inadv]t5t
 failure means a failure t occurs       
despite ! exi/5ce ( practices &         
proc$ures :i*--  7,a7 satisfy ! /&>ds   
set =? 9 section #d4jd ( ,rev5ue        
,proc$ure #bjah-eb 7or any successor    
provision72 or  7,b7 satisfy simil>     

/&>ds 9 ! case ( an individual retirem5t
 plan4  7#b7 ,correction by own] (      
individual retirem5t plan ,9 ! case ( a 
correction by an own] ( an individual   
retirem5t plan "u subsection 7b71 ! t]m 
inadv]t5t failure means a failure due to
 reasonable cause4  #f4 ,effective date 
7a7 ,9 g5]al ,subject to subsections 7b7
 & 7c71 ?is ,act & ! am5dm5ts made by   
?is ,act %all take effect on ! date ( ! 
enactm5t ( ?is ,act4  7b7 ,transition   
provisions  7#a7 ,9 g5]al ,! am5dm5ts   
made by ?is ,act %all apply to any      
det]m9ation ( or affect+ liability =    
taxes1 int]e/1 or p5alties :i* is made  
on or aft] ! date ( ! enactm5t ( ?is    
,act1 )\t reg>d to :e!r ! conduct ^u :i*
 ! det]m9ation is bas$ occurr$ be=e su* 
date ( enactm5t4 ,not)/&+ ! prec$+      
s5t5ce1 no?+ 9 ! am5dm5ts made by       
section #d7;a7 %all be con/ru$ to create
 an inf]5ce ) respect to ! law 9 effect 
prior to ! effective date ( su*         
am5dm5ts4  7#b7 ,calculation (          
correction w9d[ 9 c]ta9 cases ,9 ! case 

( an error t w\ld h be5 eligible =      
correction "u section #digc7;i7 or      
#digd7;e7 7z add$ by ?is section7 ( !   
,int]nal ,rev5ue ,code ( #aihf if tax _h
 n be5 impos$ "u #digc7;a7 or #digd7;a71
 z ! case may be1 ( su* ,code be=e !    
date ( ! enactm5t ( ?is ,act1 !         
correction w9d[ ref]r$ to 9 sections    
#digc7;i7 & #digd7;e7 ( su* ,code %all  
be ! p]iod beg9n+ on ! date on :i* su*  
tax 0 impos$ & end+ on ! e>li] (--  7,a7
 ! date on :i* ! ,secret>y ( ! ,treasury
 initiates an audit or o!rwise dem&s    
paym5t ) respect to ! conduct describ$ 9
 section #digc7;a7 or #digd7;a71 z !    
case may be1 ( su* ,code2 or  7,b7 ! la/
 day ( ! second taxable ye> t beg9s aft]
 ! taxable ye> 9 :i* ! date ( ! enactm5t
 ( ?is ,act occurs4  7c7 ,implem5tation 
,section #b %all be implem5t$ z soon z  
reasonably practicable aft] ! enactm5t (
 ?is ,act b 9 no case lat] ?an ! date t 
is #a ye> aft] ! date ( ! enactm5t ( ?is
 ,act4