,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #hfjf  ,,in ,,the ,,house ,,of  
,,representatives  ,october #af1        
#bjbj,mr4 ,kind 7for himself1 ,mr4      
,kelly of ,pennsylvania1 and ,mr4 ,smith
 of ,missouri7 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 
,a ,,bill  ,to defer the tax of certain 
sales of employer stock and reduce      
certain retirement-related excise taxes1
 and for other purposes4  #a4 ,deferral 
of tax for certain sales of employer    
stock to employee stock ownership plan  
sponsored by ,s ,corporation  7a7 ,in   
general ,section #ajdb7;c77#a77;,a7 of  
the ,internal ,revenue ,code of #aihf is
 amended by striking domestic ,c        
corporation and inserting domestic      

corporation4  7b7 ,effective date ,the  
amendment made by this section shall    
apply to sales after the date of the    
enactment of this ,act4  #b4 ,reduction 
in excise tax on certain accumulations  
in qualified retirement plans  7a7 ,in  
general ,subsection 7a7 of section #digd
 of the ,internal ,revenue ,code of     
#aihf is amended by striking #ej percent
 and inserting #be percent4  7b7        
,effective date ,the amendment made by  
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjai4  #c4 ,reduction in excise tax on 
failures to take required minimum       
distributions  7a7 ,in general ,section 
#digd of the ,internal ,revenue ,code of
 #aihf1 as amended by section #b of this
 ,act1 is further amended by adding at  
the end the following new subsection3   
7e7 ,reduction of tax in certain cases  
7#a7 ,reduction ,in the case of a       
taxpayer who-- 7,a7 corrects1 during the
 correction window1 a shortfall of      
distributions from an individual        

retirement plan which resulted in       
imposition of a tax under subsection    
7a71 and  7,b7 submits a return1 during 
the correction window1 reflecting such  
tax 7as modified by this subsection71   
the first sentence of subsection 7a7    
shall be applied by substituting #8#aj  
percent' for #8#be percent'4  7#b7      
,correction window ,for purposes of this
 subsection1 the term #8correction      
window' means the period of time        
beginning on the date on which the tax  
under subsection 7a7 is imposed with    
respect to a shortfall of distributions 
from an individual retirement plan1 and 
ending on the earlier of-- 7,a7 the date
 on which the ,secretary initiates an   
audit1 or otherwise demands payment1    
with respect to the shortfall of        
distributions1 or  7,b7 the last day of 
the second taxable year that begins     
after the end of the taxable year in    
which the tax under subsection 7a7 is   
imposed4  4  7b7 ,effective date ,the   
amendment made by this section shall    

apply to taxable years beginning after  
the date of the enactment of this ,act4 
#d4 ,multiple employer #djc7;b7 plans   
7a7 ,in general ,section #djc7;b7 of the
 ,internal ,revenue ,code of #aihf is   
amended by adding at the end the        
following new paragraph3  7#ae7         
,multiple employer plans  7,a7 ,in      
general ,except in the case of a church 
plan1 this subsection shall not be      
treated as failing to apply to an       
annuity contract solely by reason of    
such contract being purchased under a   
plan maintained by more than #a         
employer4  7,b7 ,treatment of employers 
failing to meet requirements of plan    
7i7 ,in general ,in the case of a plan  
maintained by more than #a employer1    
this subsection shall not be treated as 
failing to apply to an annuity contract 
held under such plan merely because of  
one or more employers failing to meet   
the requirements of this subsection if  
such plan satisfies rules similar to the
 rules of section #dac7;e77#b7 with     

respect to any such employer failure4   
7ii7 ,additional requirements in case of
 non-governmental plans ,a plan shall   
not be treated as meeting the           
requirements of this subparagraph unless
 the plan meets the requirements of     
subparagraph 7,a7 or 7,b7 of section    
#dac7;e77#a71 except in the case of a   
multiple employer plan maintained solely
 by any of the following3 ,a ,state1 a  
political subdivision of a ,state1 or an
 agency or instrumentality of any one or
 more of the foregoing4  4  7b7 ,annual 
registration for #djc7;b7 multiple      
employer plan ,section #fjeg of such    
,code is amended by redesignating       
subsection 7g7 as subsection 7h7 and by 
inserting after subsection 7f7 the      
following new subsection3  7g7 #djc7;b7 
multiple employer plans treated as one  
plan ,in the case of annuity contracts  
to which this section applies and to    
which section #djc7;b7 applies by reason
 of the plan under which such contracts 
are purchased meeting the requirements  

of paragraph 7#ae7 thereof1 such plan   
shall be treated as a single plan for   
purposes of this section4  4  7c7       
,annual information returns for #djc7;b7
 multiple employer plan ,section #fjeh  
of the ,internal ,revenue ,code of #aihf
 is amended by redesignating subsection 
7f7 as subsection 7g7 and by inserting  
after subsection 7e7 the following new  
subsection3  7f7 #djc7;b7 multiple      
employer plans treated as one plan ,in  
the case of annuity contracts to which  
this section applies and to which       
section #djc7;b7 applies by reason of   
the plan under which such contracts are 
purchased meeting the requirements of   
paragraph 7#ae7 thereof1 such plan shall
 be treated as a single plan for        
purposes of this section4  4  7d7       
,amendments to ,employee ,retirement and
 ,income ,security ,act of #aigd  7#a7  
,treated as pooled employer plan  7,a7  
,in general ,section #c7dc77;,a7 of the 
,employee ,retirement and ,income       
,security ,act of #aigd is amended-- 7i7

 in clause 7ii71 by striking section    
#eja7;a7 of such ,code or and inserting 
#eja7;a7 of such ,code1 a plan that     
consists of contracts described in      
section #djc7;b7 of such ,code1 or2 and 
7ii7 in the flush text at the end1 by   
striking the plan4 and inserting the    
plan1 but such term shall include any   
program 7other than a governmental plan7
 maintained for the benefit of the      
employees of more than #a employer that 
consists of contracts described in      
section #djc7;b7 of such ,code and that 
meets the requirements of subparagraph  
7,a7 or 7,b7 of section #dac7;e77#a7 of 
such ,code44  7,b7 ,conforming          
amendments ,sections                    
#c7dc77;,b77v77,,ii7 and                
#c7dd77;,a77i77,i7 of such ,act are each
 amended by striking section #dja7;a7 of
 such ,code or and inserting #dja7;a7 of
 such ,code1 a plan that consists of    
contracts described in section #djc7;b7 
of such ,code1 or4  7#b7 ,fiduciaries   
,section #c7dc77;,b77ii7 of such ,act is

 amended-- 7,a7 by striking trustees    
meeting the requirements of section     
#djh7;a77#b7 of the ,internal ,revenue  
,code of #aihf and inserting trustees   
7or other fiduciaries in the case of a  
plan that consists of contracts         
described in section #djc7;b7 of the    
,internal ,revenue ,code of #aihf7      
meeting the requirements of section     
#djh7;a77#b7 of such ,code1 and  7,b7 by
 striking holding and inserting holding 
7or causing to be held under the terms  
of a plan consisting of such contracts74
  7e7 ,regulations relating to plan     
termination ,the ,secretary of the      
,treasury 7or the ,secretary's designee7
 shall prescribe such regulations as may
 be necessary to clarify the treatment  
of a plan termination by an employer in 
the case of plans to which section      
#djc7;b77#ae7 of such ,code applies4    
7f7 ,modification of model plan language
  7#a7 ,plan notifications ,the         
,secretary of the ,treasury 7or the     
,secretary's designee7 shall modify the 

model plan language published under     
section #dac7;e77#e7 of the ,internal   
,revenue ,code of #aihf to include      
language which notifies participating   
employers which are exempt from tax     
under section #eja7;a7 of such ,code    
that the plan is subject to the         
,employee ,retirement and ,income       
,security ,act of #aigd and that such   
employer is a plan sponsor with respect 
to its employees participating in the   
multiple employer plan and1 as such1 has
 certain fiduciary duties with respect  
to the plan and to its employees4  7#b7 
,model plans for multiple employer      
#djc7;b7 non-governmental plans ,for    
plans to which section                  
#djc7;b77#ae77;,a7 of the ,internal     
,revenue ,code of #aihf applies 7other  
than a plan maintained for its employees
 by a ,state1 a political subdivision of
 a ,state1 or an agency or              
instrumentality of any one or more of   
the foregoing7 the ,secretary shall     
publish model plan language similar to  

model plan language published under     
section #dac7;e77#e7 of such ,code4  7g7
 ,no inference with respect to church   
plans ,regarding any application of     
section #djc7;b7 of the ,internal       
,revenue ,code of #aihf to an annuity   
contract purchased under a church plan  
7as defined in section #dad7;e7 of such 
,code7 maintained by more than #a       
employer1 or to any application of rules
 similar to section #dac7;e7 of such    
,code to such a plan1 no inference shall
 be made from section #djc7;b77#ae77;,a7
 of such ,code 7as added by this ,act7  
not applying to such plans4  7h7        
,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 such ,code with respect
 to one employer 7and its employees7 in 
the case of a plan to which section     
#djc7;b77#ae7 applies4  #e4 ,application
 of credit for small employer pension   
plan startup costs to employers which   
join an existing plan  7a7 ,in general  
,section #de;,e7d77#c77;,a7 of the      
,internal ,revenue ,code of #aihf is    
amended by striking effective and       
inserting effective with respect to the 
eligible employer4  7b7 ,effective date 
,the amendment made by this section     
shall apply to eligible employer plans  
which become effective with respect to  
the eligible employer after the date of 
the enactment of this ,act4  #f4        
,harmonization of treatment of ,i,r,as  
with ,employer plans  7a7 ,statute of   
limitations ,section #feja7l7 of the    
,internal ,revenue ,code of #aihf is    
amended-- 7#a7 in paragraph 7#a71 by    
inserting 7other than with respect to an

 individual retirement plan7 after      
section #dige1 and  7#b7 by adding at   
the end the following new paragraph3    
7#d7 ,individual retirement plans ,for  
purposes of any tax imposed by section  
#digc1 #digd1 or #dige in connection    
with an individual retirement plan1 the 
return referred to in this section shall
 be the income tax return filed by the  
person on whom the tax under such       
section is imposed for the year in which
 the act 7or failure to act7 giving rise
 to the liability for such tax occurred4
 ,in the case of a person who is not    
required to file an income tax return   
for such year-- 7,a7 the return referred
 to in this section shall be the income 
tax return that such person would have  
been required to file but for the fact  
that such person was not required to    
file such return1 and  7,b7 the #c-year 
period referred to in subsection 7a7    
with respect to the return shall be     
deemed to begin on the date by which the
 return would have been required to be  

filed 7excluding any extension thereof74
  4  7b7 ,effective date ,the amendments
 made by this section shall apply to    
plan years beginning after ,december    
#ca1 #bjbj4