,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #hfjf  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,octob] #af1 #bjbj,mr4
 ,k9d 7= himself1 ,mr4 ,kelly (         
,p5nsylvania1 & ,mr4 ,smi? ( ,miss\ri7  
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means1 & 9    
addition to ! ,committee on ,education &
 ,labor1 = a p]iod to be subsequ5tly    
det]m9$ by ! ,speak]1 9 ea* case =      
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,a
 ,,bill  ,to def] ! tax ( c]ta9 sales ( 
employ] /ock & r$uce c]ta9              
retirem5t-relat$ excise taxes1 & = o!r  
purposes4  #a4 ,def]ral ( tax = c]ta9   
sales ( employ] /ock to employee /ock   
own]%ip plan sponsor$ by ,s ,corporation
  7a7 ,9 g5]al ,section                 
#ajdb7;c77#a77;,a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ dome/ic 
,c corporation & ins]t+ dome/ic         
corporation4  7b7 ,effective date ,!    
am5dm5t made by ?is section %all apply  
to sales aft] ! date ( ! enactm5t ( ?is 

,act4  #b4 ,r$uction 9 excise tax on    
c]ta9 accumulations 9 qualifi$ retirem5t
 plans  7a7 ,9 g5]al ,subsection 7a7 (  
section #digd ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by /rik+ #ej p]c5t &  
ins]t+ #be p]c5t4  7b7 ,effective date  
,! am5dm5t made by ?is section %all     
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjai4  #c4 ,r$uction 9   
excise tax on failures to take requir$  
m9imum di/ributions  7a7 ,9 g5]al       
,section #digd ( ! ,int]nal ,rev5ue     
,code ( #aihf1 z am5d$ by section #b (  
?is ,act1 is fur!r 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 7z modifi$ by ?is
 subsection71  ! fir/ s5t5ce (          
subsection 7a7 %all be appli$ by        

sub/itut+ #8#aj p]c5t' = #8#be p]c5t'4  
7#b7 ,correction w9d[ ,= purposes ( ?is 
subsection1 ! t]m #8correction w9d['    
means ! p]iod ( "t beg9n+ on ! date 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$4  4  7b7 ,effective date  
,! am5dm5t made by ?is section %all     
apply to taxable ye>s beg9n+ aft] ! date
 ( ! enactm5t ( ?is ,act4  #d4 ,multiple
 employ] #djc7;b7 plans  7a7 ,9 g5]al   
,section #djc7;b7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new p>agraph3  7#ae7 ,multiple 
employ] plans  7,a7 ,9 g5]al ,except 9 !
 case ( a *ur* plan1 ?is subsection %all
 n be treat$ z fail+ to apply to an     
annuity contract solely by reason ( su* 

contract be+ pur*as$ "u a plan ma9ta9$  
by m ?an #a employ]4  7,b7 ,treatm5t (  
employ]s fail+ to meet requirem5ts (    
plan  7i7 ,9 g5]al ,9 ! case ( a plan   
ma9ta9$ by m ?an #a employ]1 ?is        
subsection %all n be treat$ z fail+ to  
apply to an annuity contract held "u su*
 plan m]ely because ( "o or m employ]s  
fail+ to meet ! requirem5ts ( ?is       
subsection if su* plan satisfies rules  
simil> to ! rules ( section #dac7;e77#b7
 ) respect to any su* employ] failure4  
7ii7 ,additional requirem5ts 9 case (   
non-gov]nm5tal plans ,a plan %all n be  
treat$ z meet+ ! requirem5ts ( ?is      
subp>agraph unless ! plan meets !       
requirem5ts ( subp>agraph 7,a7 or 7,b7 (
 section #dac7;e77#a71 except 9 ! case (
 a multiple employ] plan ma9ta9$ solely 
by any ( ! foll[+3 ,a ,/ate1 a political
 subdivision ( a ,/ate1 or an ag5cy or  
in/rum5tality ( any "o or m ( ! =ego+4  
4  7b7 ,annual regi/ration = #djc7;b7   
multiple employ] plan ,section #fjeg (  
su* ,code is am5d$ by r$esignat+        

subsection 7g7 z subsection 7h7 & by    
ins]t+ aft] subsection 7f7 ! foll[+ new 
subsection3  7g7 #djc7;b7 multiple      
employ] plans treat$ z "o plan ,9 ! case
 ( annuity contracts to :i* ?is section 
applies & to :i* section #djc7;b7       
applies by reason ( ! plan "u :i* su*   
contracts are pur*as$ meet+ !           
requirem5ts ( p>agraph 7#ae7 !re(1 su*  
plan %all be treat$ z a s+le plan =     
purposes ( ?is section4  4  7c7 ,annual 
in=mation returns = #djc7;b7 multiple   
employ] plan ,section #fjeh ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by      
r$esignat+ subsection 7f7 z subsection  
7g7 & by ins]t+ aft] subsection 7e7 !   
foll[+ new subsection3  7f7 #djc7;b7    
multiple employ] plans treat$ z "o plan 
,9 ! case ( annuity contracts to :i* ?is
 section applies & to :i* section       
#djc7;b7 applies by reason ( ! plan "u  
:i* su* contracts are pur*as$ meet+ !   
requirem5ts ( p>agraph 7#ae7 !re(1 su*  
plan %all be treat$ z a s+le plan =     
purposes ( ?is section4  4  7d7         

,am5dm5ts to ,employee ,retirem5t &     
,income ,security ,act ( #aigd  7#a7    
,treat$ z pool$ employ] plan  7,a7 ,9   
g5]al ,section #c7dc77;,a7 ( ! ,employee
 ,retirem5t & ,income ,security ,act (  
#aigd is am5d$-- 7i7 9 clause 7ii71 by  
/rik+ section #eja7;a7 ( su* ,code or & 
ins]t+ #eja7;a7 ( su* ,code1 a plan t   
consi/s ( contracts describ$ 9 section  
#djc7;b7 ( su* ,code1 or2 &  7ii7 9 !   
flu% text at ! end1 by /rik+ ! plan4 &  
ins]t+ ! plan1 b su* t]m %all include   
any program 7o!r ?an a gov]nm5tal plan7 
ma9ta9$ = ! b5efit ( ! employees ( m ?an
 #a employ] t consi/s ( contracts       
describ$ 9 section #djc7;b7 ( su* ,code 
& t meets ! requirem5ts ( subp>agraph   
7,a7 or 7,b7 ( section #dac7;e77#a7 (   
su* ,code44  7,b7 ,con=m+ am5dm5ts      
,sections #c7dc77;,b77v77,,ii7 &        
#c7dd77;,a77i77,i7 ( su* ,act are ea*   
am5d$ by /rik+ section #dja7;a7 ( su*   
,code or & ins]t+ #dja7;a7 ( su* ,code1 
a plan t consi/s ( contracts describ$ 9 
section #djc7;b7 ( su* ,code1 or4  7#b7 

,fiduci>ies ,section #c7dc77;,b77ii7 (  
su* ,act is am5d$-- 7,a7 by /rik+       
tru/ees meet+ ! requirem5ts ( section   
#djh7;a77#b7 ( ! ,int]nal ,rev5ue ,code 
( #aihf & ins]t+ tru/ees 7or o!r        
fiduci>ies 9 ! case ( a plan t consi/s (
 contracts describ$ 9 section #djc7;b7 (
 ! ,int]nal ,rev5ue ,code ( #aihf7 meet+
 ! requirem5ts ( section #djh7;a77#b7 ( 
su* ,code1 &  7,b7 by /rik+ hold+ &     
ins]t+ hold+ 7or caus+ to be held "u !  
t]ms ( a plan consi/+ ( su* contracts74 
7e7 ,regulations relat+ to plan         
t]m9ation ,! ,secret>y ( ! ,treasury 7or
 ! ,secret>y's designee7 %all prescribe 
su* regulations z may be necess>y to    
cl>ify ! treatm5t ( a plan t]m9ation by 
an employ] 9 ! case ( plans to :i*      
section #djc7;b77#ae7 ( su* ,code       
applies4  7f7 ,modification ( model plan
 language  7#a7 ,plan notifications ,!  
,secret>y ( ! ,treasury 7or !           
,secret>y's designee7 %all modify !     
model plan language publi%$ "u section  
#dac7;e77#e7 ( ! ,int]nal ,rev5ue ,code 

( #aihf to include language :i* notifies
 p>ticipat+ employ]s :i* are exempt f   
tax "u section #eja7;a7 ( su* ,code t ! 
plan is subject to ! ,employee          
,retirem5t & ,income ,security ,act (   
#aigd & t su* employ] is a plan sponsor 
) respect to its employees p>ticipat+ 9 
! multiple employ] plan &1 z su*1 has   
c]ta9 fiduci>y duties ) respect to !    
plan & to its employees4  7#b7 ,model   
plans = multiple employ] #djc7;b7       
non-gov]nm5tal plans ,= plans to :i*    
section #djc7;b77#ae77;,a7 ( ! ,int]nal 
,rev5ue ,code ( #aihf applies 7o!r ?an a
 plan ma9ta9$ = its employees by a      
,/ate1 a political subdivision ( a      
,/ate1 or an ag5cy or in/rum5tality (   
any "o or m ( ! =ego+7 ! ,secret>y %all 
publi% model plan language simil> to    
model plan language publi%$ "u section  
#dac7;e77#e7 ( su* ,code4  7g7 ,no      
inf]5ce ) respect to *ur* plans ,reg>d+ 
any application ( section #djc7;b7 ( !  
,int]nal ,rev5ue ,code ( #aihf to an    
annuity contract pur*as$ "u a *ur* plan 

7z def9$ 9 section #dad7;e7 ( su* ,code7
 ma9ta9$ by m ?an #a employ]1 or to any 
application ( rules simil> to section   
#dac7;e7 ( su* ,code to su* a plan1 no  
inf]5ce %all be made f section          
#djc7;b77#ae77;,a7 ( su* ,code 7z add$  
by ?is ,act7 n apply+ to su* plans4  7h7
 ,effective date  7#a7 ,9 g5]al ,!      
am5dm5ts made by ?is section %all apply 
to plan ye>s beg9n+ aft] ,decemb] #ca1  
#bjbj4  7#b7 ,rule ( con/ruction ,no?+ 9
 ! am5dm5ts made by subsection 7a7 %all 
be con/ru$ z limit+ ! au?ority ( !      
,secret>y ( ! ,treasury or ! ,secret>y's
 delegate 7det]m9$ )\t reg>d to su*     
am5dm5t7 to provide = ! prop] treatm5t (
 a failure to meet any requirem5t       
applicable "u su* ,code ) respect to "o 
employ] 7& its employees7 9 ! case ( a  
plan to :i* section #djc7;b77#ae7       
applies4  #e4 ,application ( cr$it =    
small employ] p5sion plan />tup co/s to 
employ]s :i* jo9 an exi/+ plan  7a7 ,9  
g5]al ,section #de;,e7d77#c77;,a7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 

by /rik+ effective & ins]t+ effective ) 
respect to ! eligible employ]4  7b7     
,effective date ,! am5dm5t made by ?is  
section %all apply to eligible employ]  
plans :i* become effective ) respect to 
! eligible employ] aft] ! date ( !      
enactm5t ( ?is ,act4  #f4 ,h>monization 
( treatm5t ( ,i,r,as ) ,employ] plans   
7a7 ,/atute ( limitations ,section      
#feja7l7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$-- 7#a7 9 p>agraph 7#a71  
by ins]t+ 7o!r ?an ) respect to an      
individual retirem5t plan7 aft] section 
#dige1 &  7#b7 by add+ at ! end ! foll[+
 new p>agraph3  7#d7 ,individual        
retirem5t plans ,= purposes ( any tax   
impos$ 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 
7b7 ,effective date ,! am5dm5ts made by 
?is section %all apply to plan ye>s     
beg9n+ aft] ,decemb] #ca1 #bjbj4