,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hfif ,,in ,,the ,,house ,,of ,,representatives ,october #bg1 #bjbj,mr4 ,neal 7for himself and ,mr4 ,brady7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,financial ,services1 and ,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 increase retirement savings1 simplify and clarify retirement plan rules1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,securing a ,strong ,retirement ,act of #bjbj4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,title ,i--,expanding ,coverage and ,increasing ,retirement ,savings,sec4 #aja4 ,expanding automatic enrollment in retirement plans4,sec4 #ajb4 ,modification of credit for small employer pension plan startup costs4,sec4 #ajc4 ,simplification and increase in ,saver's ,credit4,sec4 #ajd4 ,enhancement of #djc7;b7 plans4,sec4 #aje4 ,increase in age for required beginning date for mandatory distributions4,sec4 #ajf4 ,deferral of tax for certain sales of employer stock to employee stock ownership plan sponsored by ,s corporation4,sec4 #ajg4 ,indexing ,,ira catch-up limit4,sec4 #ajh4 ,higher catch-up limit to apply at age #fj4,sec4 #aji4 ,multiple employer #djc7;b7 plans4,sec4 #aaj4 ,treatment of student loan payments as elective deferrals for purposes of matching contributions4,sec4 #aaa4 ,application of credit for small employer pension plan startup costs to employers which join an existing plan4,sec4 #aab4 ,military spouse retirement plan eligibility credit for small employers4,sec4 #aac4 ,small immediate financial incentives for contributing to a plan4,sec4 #aad4 ,safe harbor for corrections of employee elective deferral failures4,sec4 #aae4 ,one-year reduction in period of service requirement for long-term1 part-time workers4,sec4 #aaf4 ,governmental pension plans may include certain firefighters1 emergency medical technicians1 and paramedics4,title ,,ii--,preservation of ,income,sec4 #bja4 ,remove required minimum distribution barriers for life annuities4,sec4 #bjb4 ,qualifying longevity annuity contracts4,sec4 #bjc4 ,insurance-dedicated exchange-traded funds4,title ,,iii--,simplification and ,clarification of ,retirement ,plan ,rules,sec4 #cja4 ,recovery of retirement plan overpayments4,sec4 #cjb4 ,reduction in excise tax on certain accumulations in qualified retirement plans4,sec4 #cjc4 ,performance benchmarks for asset allocation funds4,sec4 #cjd4 ,review and report to the ,congress relating to reporting and disclosure requirements4,sec4 #cje4 ,eliminating unnecessary plan requirements related to unenrolled participants4,sec4 #cjf4 ,retirement savings lost and found4,sec4 #cjg4 ,exemption from required minimum distribution rules for individuals with certain account balances4,sec4 #cjh4 ,expansion of ,employee ,plans ,compliance ,resolution ,system4,sec4 #cji4 ,eliminate the first day of the month requirement for governmental section #deg7;b7 plans4,sec4 #caj4 ,one-time election for qualified charitable distribution to split-interest entity2 increase in qualified charitable distribution limitation4,sec4 #caa4 ,retirement plan distributions for charitable purpose4,sec4 #cab4 ,distributions to firefighters4,sec4 #cac4 ,exclusion of certain disability-related first responder retirement payments4,sec4 #cad4 ,individual retirement plan statute of limitations for excise tax on excess contributions1 certain accumulations1 and prohibited transactions4,sec4 #cae4 ,requirement to provide paper statements in certain cases4,title ,,iv--,technical ,amendments,sec4 #dja4 ,amendments relating to ,setting ,every ,community ,up for ,retirement ,enhancement ,act of #bjai4,title ,v--,administrative ,provisions,sec4 #eja4 ,provisions relating to plan amendments4 ,i ,expanding ,coverage and ,increasing ,retirement ,savings #aja4 ,expanding automatic enrollment in retirement plans 7a7 ,in general ,subpart ,b of part ,i of subchapter ,d of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dad the following new section3 #dad;,a4 ,requirements related to automatic enrollment 7a7 ,in general ,except as otherwise provided in this section-- 7#a7 an arrangement shall not be treated as a qualified cash or deferred arrangement described in section #dja7k7 or as a qualified salary reduction arrangement described in section #djh7p7 unless such arrangement meets the automatic enrollment requirements of subsection 7b71 and 7#b7 an annuity contract otherwise described in section #djc7;b77#a7 which is purchased under a salary reduction agreement shall not be treated as described in such section unless such agreement meets the automatic enrollment requirements of subsection 7b74 7b7 ,automatic enrollment requirements 7#a7 ,in general ,an arrangement or agreement meets the requirements of this subsection if such arrangement or agreement is an eligible automatic contribution arrangement 7as defined in section #dad7w77#c77 which meets the requirements of paragraphs 7#b7 through 7#d74 7#b7 ,allowance of permissible withdrawals ,an eligible automatic contribution arrangement meets the requirements of this paragraph if such arrangement allows employees to make permissible withdrawals 7as defined in section #dad7w77#b774 7#c7 ,minimum contribution percentage ,an eligible automatic contribution arrangement meets the requirements of this paragraph if-- 7,a7 the uniform percentage of compensation contributed by the participant under such arrangement during the first year of participation is not less than #c percent and not more than #aj percent 7unless the participant specifically elects not to have such contributions made or to have such contributions made at a different percentage71 and 7,b7 such uniform percentage is increased by #a percentage point for each year of participation under such arrangement 7but not above #aj percent7 unless the participant specifically elects not to have such contributions made or to have such contributions made at a different percentage4 7#d7 ,investment requirements ,an eligible automatic contribution arrangement meets the requirements of this paragraph if amounts contributed pursuant to such arrangement1 and for which no investment is elected by the participant1 are invested consistent with the requirements of section #beej4djd;c-#e of title #bi1 ,code of ,federal ,regulations 7or any successor regulations74 7c7 ,exceptions ,for purposes of this section-- 7#a7 ,exception for plans or arrangements established before enactment of section ,subsection 7a7 shall not apply to-- 7,a7 any qualified cash or deferred arrangement or qualified salary reduction arrangement established before the date of the enactment of this section1 or 7,b7 any annuity contract purchased under a plan established before the date of the enactment of this section4 7#b7 ,exception for governmental and church plans ,subsection 7a7 shall not apply to any governmental plan 7within the meaning of section #dad7;d77 or any church plan 7within the meaning of section #dad7;e774 7#c7 ,exception for new businesses ,subsection 7a7 shall not apply to-- 7,a7 any qualified cash or deferred arrangement or qualified salary reduction arrangement established while all employers maintaining the plan 7and any predecessor employers7 have been in existence for less than #c years1 or 7,b7 any annuity contract purchased under a plan established while all employers maintaining such plan have been in existence for less than #c years4 7#d7 ,exception for small businesses ,subsection 7a7 shall not apply to-- 7,a7 any qualified cash or deferred arrangement or qualified salary reduction arrangement if such arrangement is established not later than #a year after the close of the last taxable year with respect to which all employers maintaining the plan normally employed #aj or fewer employees on a typical business day1 or 7,b7 any annuity contract purchased under a plan established not later than #a year after the close of the last taxable year with respect to which all employers maintaining such plan normally employed #aj or fewer employees on a typical business day4 4 7b7 ,clerical amendment ,the table of sections for subpart ,b of part ,i of subchapter ,d of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #dad the following new item3 ,sec4 #dad;,a4 ,requirements related to automatic enrollment4 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjba4 #ajb4 ,modification of credit for small employer pension plan startup costs 7a7 ,increase in credit percentage for smaller employers ,section #de;,e7e7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#d7 ,increased credit for certain small employers ,in the case of an employer which would be an eligible employer under subsection 7c7 if section #djh7p77#b77;,c77i7 was applied by substituting #ej employees for #ajj employees1 subsection 7a7 shall be applied by substituting #ajj percent for #ej percent4 4 7b7 ,additional credit for employer contributions by certain small employers ,section #de;,e of such ,code is amended by adding at the end the following new subsection3 7f7 ,additional credit for employer contributions by certain eligible employers 7#a7 ,in general ,in the case of an eligible employer1 the credit allowed for the taxable year under subsection 7a7 7determined without regard to this subsection7 shall be increased by an amount equal to the applicable percentage of employer contributions 7other than any elective deferrals 7as defined in section #djb7;g77#c777 by the employer to an eligible employer plan 7other than a defined benefit plan 7as defined in section #dad7;j7774 7#b7 ,limitations 7,a7 ,dollar limitation ,the amount determined under paragraph 7#a7 7before the application of subparagraph 7,b77 with respect to any employee of the employer shall not exceed #a1jjj4 7,b7 ,credit phase-in ,in the case of any eligible employer which had for the preceding taxable year more than #ej employees1 the amount determined under paragraph 7#a7 7without regard to this subparagraph7 shall be reduced by an amount equal to the product of-- 7i7 the amount otherwise so determined under paragraph 7#a71 multiplied by 7ii7 a percentage equal to #b percentage points for each employee of the employer for the preceding taxable year in excess of #ej employees4 7#c7 ,applicable percentage ,for purposes of this section1 the applicable percentage for the taxable year during which the eligible employer plan is established shall be #ajj percent1 and for taxable years thereafter shall be determined under the following table3 ,in the case of the following taxable year beginning after the taxable year during which plan is established3 ,the applicable percentage shall be3 #ast#ajjbnd#gecrd#ejdth#be;,any taxable year thereafter#j 7#d7 ,determination of eligible employer2 number of employees ,for purposes of this subsection1 whether an employer is an eligible employer and the number of employees of an employer shall be determined under the rules of subsection 7c71 except that paragraph 7#b7 thereof shall only apply to the taxable year during which the eligible employer plan to which this section applies is established4 4 7c7 ,disallowance of deduction ,section #de;,e7e77#b7 of such ,code is amended to read as follows3 7#b7 ,disallowance of deduction ,no deduction shall be allowed-- 7,a7 for that portion of the qualified startup costs paid or incurred for the taxable year which is equal to so much of the portion of the credit determined under subsection 7a7 as is properly allocable to such costs1 and 7,b7 for that portion of the employer contributions by the employer for the taxable year which is equal to so much of the credit increase determined under subsection 7f7 as is properly allocable to such contributions4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbj4 #ajc4 ,simplification and increase in ,saver's ,credit 7a7 ,in general ,section #be;,b7a7 of the ,internal ,revenue ,code of #aihf is amended by striking the applicable percentage and all that follows through #b1jjj and inserting the following3 #ej percent of so much of the qualified retirement savings contributions of the eligible individual for the taxable year as does not exceed #c1jjj4 7b7 ,income limitation ,section #be;,b7b7 of such ,code is amended to read as follows3 7b7 ,income limitation 7#a7 ,in general ,the amount allowable as a credit under subsection 7a7 for any taxable year 7determined without regard to this subsection7 shall be reduced 7but not below zero7 by an amount which bears the same ratio to the amount so allowable 7as so determined7 as-- 7,a7 the amount by which the taxpayer's adjusted gross income exceeds the applicable threshold1 bears to 7,b7 #bj1jjj4 7#b7 ,applicable threshold ,for purposes of this subsection1 the applicable threshold is-- 7,a7 except as provided in subparagraph 7,b7 or 7,c71 #dj1jjj1 7,b7 in the case of a joint return1 #bjj percent of the amount in effect for the taxable year under subparagraph 7,a71 or 7,c7 in the case of a head of household1 #aej percent of the amount in effect for the taxable year under subparagraph 7,a74 7#c7 ,inflation adjustment ,in the case of any taxable year beginning in a calendar year after #bjba1 the #dj1jjj dollar amount in paragraph 7#b7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjbj for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,any increase determined under the preceding sentence shall be rounded to the nearest multiple of #ejj4 4 7c7 ,saver's credit ,the heading for section #be;,b of such ,code is amended to read as follows3 ,saver's credit44 7d7 ,saver's credit promotion 7#a7 ,in general ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall take such steps as the ,secretary 7or delegate7 determines are necessary and appropriate to increase public awareness of the credit provided under section #be;,b of such ,code 7as amended by this section74 7#b7 ,report ,not later than #a year after the date of the enactment of this ,act1 the ,secretary 7or delegate7 shall submit to ,congress a report detailing the steps taken under paragraph 7#a74 7e7 ,clerical amendment ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by striking the item relating to section #be;,b and inserting the following new item3 ,sec4 #be;,b4 ,saver's credit4 4 7f7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #ajd4 ,enhancement of #djc7;b7 plans 7a7 ,in general 7#a7 ,permitted investments ,section #djc7;b77#g77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking if the amounts are to be invested in regulated investment company stock to be held in that custodial account and inserting if the amounts are to be held in that custodial account and invested in regulated investment company stock or a group trust intended to satisfy the requirements of ,internal ,revenue ,service ,revenue ,ruling #ha-ajj 7or any successor guidance74 7#b7 ,conforming amendment ,the heading of paragraph 7#g7 of section #djc7;b7 of such ,code is amended by striking for regulated investment company stock4 7#c7 ,effective date ,the amendments made by this subsection shall apply to amounts invested after ,december #ca1 #bjbj4 7b7 ,amendments to the ,investment ,company ,act of #aidj ,section #c7;c77#aa7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77#aa77 is amended to read as follows3 7#aa7 ,any-- 7,a7 employee's stock bonus1 pension1 or profit-sharing trust which meets the requirements for qualification under section #dja of the ,internal ,revenue ,code of #aihf2 7,b7 custodial account meeting the requirements of section #djc7;b77#g7 of such ,code2 7,c7 governmental plan described in section #c7;a77#b77;,c7 of the ,securities ,act of #aicc2 7,d7 collective trust fund maintained by a bank consisting solely of assets of one or more-- 7i7 trusts described in subparagraph 7,a72 7ii7 government plans described in subparagraph 7,c72 7iii7 church plans1 companies1 or accounts that are excluded from the definition of an investment company under paragraph 7#ad7 of this subsection2 or 7iv7 plans which meet the requirements of section #djc7;b7 of the ,internal ,revenue ,code of #aihf if-- 7,i7 such plan is subject to title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq472 7,,ii7 any employer making such plan available agrees to serve as a fiduciary for the plan with respect to the selection of the plan's investments among which participants can choose2 or 7,,iii7 such plan is a governmental plan 7as defined in section #dad7;d7 of such ,code72 or 7,e7 separate account the assets of which are derived solely from-- 7i7 contributions under pension or profit-sharing plans which meet the requirements of section #dja of the ,internal ,revenue ,code of #aihf or the requirements for deduction of the employer's contribution under section #djd7;a77#b7 of such ,code2 7ii7 contributions under governmental plans in connection with which interests1 participations1 or securities are exempted from the registration provisions of section #e of the ,securities ,act of #aicc by section #c7;a77#b77;,c7 of such ,act2 7iii7 advances made by an insurance company in connection with the operation of such separate account2 and 7iv7 contributions to a plan described in subparagraph 7,d77iv74 4 7c7 ,amendments to the ,securities ,act of #aicc ,section #c7;a77#b7 of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;c7a77#b77 is amended-- 7#a7 by striking or 7,d7 and inserting 7,d7 a plan which meets the requirements of section #djc7;b7 of such ,code if 7i7 such plan is subject to title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq471 7ii7 any employer making such plan available agrees to serve as a fiduciary for the plan with respect to the selection of the plan's investments among which participants can choose1 or 7iii7 such plan is a governmental plan 7as defined in section #dad7;d7 of such ,code72 or 7,e72 7#b7 by striking 7,c71 or 7,d7 and inserting 7,c71 7,d71 or 7,e72 and 7#c7 by striking 7iii7 which is a plan funded and inserting 7iii7 in the case of a plan not described in subparagraph 7,d71 which is a plan funded4 7d7 ,amendments to the ,securities ,exchange ,act of #aicd ,section #c7;a77#ab77;,c7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#ab77;,c77 is amended-- 7#a7 by striking or 7iv7 and inserting 7iv7 a plan which meets the requirements of section #djc7;b7 of such ,code if 7,i7 such plan is subject to title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq471 7,,ii7 any employer making such plan available agrees to serve as a fiduciary for the plan with respect to the selection of the plan's investments among which participants can choose1 or 7,,iii7 such plan is a governmental plan 7as defined in section #dad7;d7 of such ,code71 or 7v72 7#b7 by striking 7ii71 or 7iii7 and inserting 7ii71 7iii71 or 7iv72 and 7#c7 by striking 7,,ii7 is a plan funded and inserting 7,,ii7 in the case of a plan not described in clause 7iv71 is a plan funded4 #aje4 ,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 #gb and inserting age #ge4 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 #gb and inserting age #ge4 7c7 ,conforming amendments ,the last sentence of section #djh7;b7 of such ,code is amended by striking age #gb and inserting age #ge4 7d7 ,effective date ,the amendments made by this section shall apply to distributions required to be made after ,december #ca1 #bjbj1 with respect to individuals who attain age #gb after such date4 #ajf4 ,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 #ajg4 ,indexing ,,ira catch-up limit 7a7 ,in general ,subparagraph 7,c7 of section #bai7;b77#e7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new clause3 7iii7 ,indexing of catch-up limitation ,in the case of any taxable year beginning in a calendar year after #bjba1 the #a1jjj amount under subparagraph 7,b77ii7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjbj for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any amount after adjustment under the preceding sentence is not a multiple of #ajj1 such amount shall be rounded to the next lower multiple of #ajj4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjba4 #ajh4 ,higher catch-up limit to apply at age #fj 7a7 ,in general 7#a7 ,plans other than simple plans ,section #dad7v77#b77;,b77i7 of the ,internal ,revenue ,code of #aihf is amended by inserting the following before the period3 7#aj1jjj1 in the case of an eligible participant who has attained age #fj before the close of the taxable year74 7#b7 ,simple plans ,section #dad7v77#b77;,b77ii7 of such ,code is amended by inserting the following before the period3 7#e1jjj1 in the case of an eligible participant who has attained age #fj before the close of the taxable year74 7b7 ,cost-of-,living adjustments ,subparagraph 7,c7 of section #dad7v77#b7 of such ,code is amended by adding at the end the following3 ,in the case of a year beginning after ,december #ca1 #bjba1 the ,secretary shall adjust annually the #aj1jjj amount in subparagraph 7,b77i7 and the #e1jjj amount in subparagraph 7,b77ii7 for increases in the cost-of-living at the same time and in the same manner as adjustments under the preceding sentence2 except that the base period taken into account shall be the calendar quarter beginning ,july #a1 #bjbj44 7c7 ,effective date ,the amendments made by this section shall apply to years beginning after ,december #ca1 #bjbj4 #aji4 ,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 ,income ,security ,act of #aigd 7#a7 ,treated as pooled employer plan 7,a7 ,in general ,section #c7dc77;,a7 of the ,employee ,retirement ,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 ,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 #aaj4 ,treatment of student loan payments as elective deferrals for purposes of matching contributions 7a7 ,in general ,subparagraph 7,a7 of section #dja7m77#d7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7i71 by striking the period at the end of clause 7ii7 and inserting 1 and1 and by adding at the end the following new clause3 7iii7 subject to the requirements of paragraph 7#ac71 any employer contribution made to a defined contribution plan on behalf of an employee on account of a qualified student loan payment4 4 7b7 ,qualified student loan payment ,paragraph 7#d7 of section #dja7m7 of such ,code is amended by adding at the end the following new subparagraph3 7,d7 ,qualified student loan payment ,the term qualified student loan payment means a payment made by an employee in repayment of a qualified education loan 7as defined section #bba7;d77#a77 incurred by the employee to pay qualified higher education expenses1 but only-- 7i7 to the extent such payments in the aggregate for the year do not exceed an amount equal to-- 7,i7 the limitation applicable under section #djb7;g7 for the year 7or1 if lesser1 the employee's compensation 7as defined in section #dae7;c77#c77 for the year71 reduced by 7,,ii7 the elective deferrals made by the employee for such year1 and 7ii7 if the employee certifies to the employer making the matching contribution under this paragraph that such payment has been made on such loan4 ,for purposes of this subparagraph1 the term qualified higher education expenses means the cost of attendance 7as defined in section #dgb of the ,higher ,education ,act of #aife1 as in effect on the day before the date of the enactment of the ,taxpayer ,relief ,act of #aiig7 at an eligible educational institution 7as defined in section #bba7;d77#b774 4 7c7 ,matching contributions for qualified student loan payments ,subsection 7m7 of section #dja of such ,code is amended by redesignating paragraph 7#ac7 as paragraph 7#ad71 and by inserting after paragraph 7#ab7 the following new paragraph3 7#ac7 ,matching contributions for qualified student loan payments 7,a7 ,in general ,for purposes of paragraph 7#d77;,a77iii71 an employer contribution made to a defined contribution plan on account of a qualified student loan payment shall be treated as a matching contribution for purposes of this title if-- 7i7 the plan provides matching contributions on account of elective deferrals at the same rate as contributions on account of qualified student loan payments1 7ii7 the plan provides matching contributions on account of qualified student loan payments only on behalf of employees otherwise eligible to receive matching contributions on account of elective deferrals1 7iii7 under the plan1 all employees eligible to receive matching contributions on account of elective deferrals are eligible to receive matching contributions on account of qualified student loan payments1 and 7iv7 the plan provides that matching contributions on account of qualified student loan payments vest in the same manner as matching contributions on account of elective deferrals4 7,b7 ,treatment for purposes of nondiscrimination rules1 etc 7i7 ,nondiscrimination rules ,for purposes of subparagraph 7,a77iii71 subsection 7a77#d71 and section #daj7;b71 matching contributions described in paragraph 7#d77;,a77iii7 shall not fail to be treated as available to an employee solely because such employee does not have debt incurred under a qualified education loan 7as defined in section #bba7;d77#a774 7ii7 ,student loan payments not treated as plan contribution ,except as provided in clause 7iii71 a qualified student loan payment shall not be treated as a contribution to a plan under this title4 7iii7 ,matching contribution rules ,solely for purposes of meeting the requirements of paragraph 7#aa77;,b7 or 7#ab7 of this subsection1 or paragraph 7#aa77;,b77i77,,ii71 7#ab77;,b71 or 7#ac77;,d7 of subsection 7k71 a plan may treat a qualified student loan payment as an elective deferral or an elective contribution1 whichever is applicable4 4 7d7 ,simple retirement accounts ,paragraph 7#b7 of section #djh7p7 of such ,code is amended by adding at the end the following new subparagraph3 7,f7 ,matching contributions for qualified student loan payments 7i7 ,in general ,subject to the rules of clause 7iii71 an arrangement shall not fail to be treated as meeting the requirements of subparagraph 7,a77iii7 solely because under the arrangement1 solely for purposes of such subparagraph1 qualified student loan payments are treated as amounts elected by the employee under subparagraph 7,a77i77,i7 to the extent such payments do not exceed-- 7,i7 the applicable dollar amount under subparagraph 7,e7 7after application of section #dad7v77 for the year 7or1 if lesser1 the employee's compensation 7as defined in section #dae7;c77#c77 for the year71 reduced by 7,,ii7 any other amounts elected by the employee under subparagraph 7,a77i77,i7 for the year4 7ii7 ,qualified student loan payment ,for purposes of this subparagraph-- 7,i7 ,in general ,the term qualified student loan payment means a payment made by an employee in repayment of a qualified education loan 7as defined in section #bba7;d77#a77 incurred by the employee to pay qualified higher education expenses1 but only if the employee certifies to the employer making the matching contribution that such payment has been made on such a loan4 7,,ii7 ,qualified higher education expenses ,the term qualified higher education expenses has the same meaning as when used in section #dja7m77#d77;,d74 7iii7 ,applicable rules ,clause 7i7 shall apply to an arrangement only if1 under the arrangement-- 7,i7 matching contributions on account of qualified student loan payments are provided only on behalf of employees otherwise eligible to elect contributions under subparagraph 7,a77i77,i71 and 7,,ii7 all employees otherwise eligible to participate in the arrangement are eligible to receive matching contributions on account of qualified student loan payments4 4 7e7 #djc7;b7 plans ,subparagraph 7,a7 of section #djc7;b77#ab7 of such ,code is amended by adding at the end the following3 ,the fact that the employer offers matching contributions on account of qualified student loan payments as described in section #dja7m77#ac7 shall not be taken into account in determining whether the arrangement satisfies the requirements of clause 7ii7 7and any regulation thereunder744 7f7 #deg7;b7 plans ,subsection 7b7 of section #deg of such ,code is amended by adding at the end the following3 ,a plan which is established and maintained by an employer which is described in subsection 7e77#a77;,a7 shall not be treated as failing to meet the requirements of this subsection solely because the plan1 or another plan maintained by the employer which meets the requirements of section #dja7;a71 provides for matching contributions on account of qualified student loan payments as described in section #dja7m77#ac744 7g7 ,regulatory authority ,the ,secretary shall prescribe regulations for purposes of implementing the amendments made by this section1 including regulations-- 7#a7 permitting a plan to make matching contributions for qualified student loan payments1 as defined in sections #dja7m77#d77;,d7 and #djh7p77#b77;,f7 of the ,internal ,revenue ,code of #aihf1 as added by this section1 at a different frequency than matching contributions are otherwise made under the plan1 provided that the frequency is not less than annually2 7#b7 permitting employers to establish reasonable procedures to claim matching contributions for such qualified student loan payments under the plan1 including an annual deadline 7not earlier than #c months after the close of each plan year7 by which a claim must be made2 and 7#c7 promulgating model amendments which plans may adopt to implement matching contributions on such qualified student loan payments for purposes of sections #dja7m71 #djh7p71 #djc7;b71 and #deg7;b7 of the ,internal ,revenue ,code of #aihf4 7h7 ,effective date ,the amendments made by this section shall apply to contributions made for years beginning after ,december #ca1 #bjbj4 #aaa4 ,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 #aab4 ,military spouse retirement plan eligibility credit for small employers 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,u4 ,military spouse retirement plan eligibility credit for small employers 7a7 ,in general ,for purposes of section #ch1 in the case of any eligible small employer1 the military spouse retirement plan eligibility credit determined under this section for any taxable year is an amount equal to the sum of-- 7#a7 #bej with respect to each military spouse who is an employee of such employer and who is eligible to participate in an eligible defined contribution plan of such employer at any time during such taxable year1 plus 7#b7 so much of the contributions made by such employer to all such plans with respect to such employee during such taxable year as do not exceed #bej4 7b7 ,limitation ,an individual shall only be taken into account as a military spouse under subsection 7a7 for the taxable year which includes the date on which such individual began participating in the eligible defined contribution plan of the employer and the #b succeeding taxable years4 7c7 ,eligible small employer ,for purposes of this section-- 7#a7 ,in general ,the term eligible small employer means an eligible employer 7as defined in section #djh7p77#b77;,c77i77,i774 7#b7 ,application of #b-year grace period ,a rule similar to the rule of section #djh7p77#b77;,c77i77,,ii7 shall apply for purposes of this section4 7d7 ,military spouse ,for purposes of this section-- 7#a7 ,in general ,the term military spouse means1 with respect to any employer1 any individual who is married 7within the meaning of section #ggjc as of the first date that the employee is employed by the employer7 to an individual who is a member of the uniformed services 7as defined section #aja7;a77#e7 of title #aj1 ,united ,states ,code74 ,for purposes of this section1 an employer may rely on an employee's certification that such employee's spouse is a member of the uniformed services if such certification provides the name1 rank1 and service branch of such spouse4 7#b7 ,exclusion of highly compensated employees ,with respect to any employer1 the term military spouse shall not include any individual if such individual is a highly compensated employee of such employer 7within the meaning of section #dad7q774 7e7 ,eligible defined contribution plan ,for purposes of this section1 the term eligible defined contribution plan means1 with respect to any eligible small employer1 any defined contribution plan 7as defined in section #dad7;i77 of such employer if1 under the terms of such plan-- 7#a7 military spouses employed by such employer are eligible to participate in such plan not later than the date which is #b months after the date on which such individual begins employment with such employer1 and 7#b7 military spouses who are eligible to participate in such plan-- 7,a7 are immediately eligible to receive an amount of employer contributions under such plan which is not less the amount of such contributions that a similarly situated participant who is not a military spouse would be eligible to receive under such plan after #b years of service1 and 7,b7 immediately have a nonforfeitable right to the employee's accrued benefit derived from employer contributions under such plan4 7f7 ,aggregation rule ,all persons treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad shall be treated as one employer for purposes of this section4 4 7b7 ,credit allowed as part of general business credit ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#cb71 by striking the period at the end of paragraph 7#cc7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cd7 in the case of an eligible small employer 7as defined in section #de,u7c771 the military spouse retirement plan eligibility credit determined under section #de,u7a74 4 7c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de,u4 ,military spouse retirement plan eligibility credit for small employers4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #aac4 ,small immediate financial incentives for contributing to a plan 7a7 ,in general ,subparagraph 7,a7 of section #dja7k77#d7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7other than a de minimis financial incentive7 after any other benefit4 7b7 ,section #djc7;b7 plans ,subparagraph 7,a7 of section #djc7;b77#ab7 of such ,code1 as amended by the preceding provisions of this ,act1 is further amended by adding at the end the following3 ,a plan shall not fail to satisfy clause 7ii7 solely by reason of offering a de minimis financial incentive to employees to elect to have the employer make contributions pursuant to a salary reduction agreement44 7c7 ,exemption from prohibited transaction rules ,subsection 7d7 of section #dige of such ,code is amended by striking or at the end of paragraph 7#bb71 by striking the period at the end of paragraph 7#bc7 and inserting 1 or1 and by adding at the end the following new paragraph3 7#bd7 the provision of a de minimis financial incentive described in section #dja7k77#d77;,a7 or #djc7;b77#ab77;,a74 4 7d7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd ,subsection 7b7 of section #djh of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajh7;b77 is amended by adding at the end the following new paragraph3 7#ba7 ,the provision of a de minimis financial incentive described in section #dja7k77#d77;,a7 or #djc7;b77#ab77;,a7 of the ,internal ,revenue ,code of #aihf4 4 7e7 ,effective date ,the amendments made by this section shall apply with respect to plan years beginning after the date of enactment of this ,act4 #aad4 ,safe harbor for corrections of employee elective deferral failures 7a7 ,in general ,section #dad of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7aa7 ,correcting automatic contribution errors 7#a7 ,in general ,any plan or arrangement shall not fail to be treated as a plan described in sections #dja7;a71 #djc7;b71 #djh1 or #deg7;b71 as applicable1 solely by reason of a corrected error4 7#b7 ,corrected error defined ,for purposes of this subsection1 the term corrected error means a reasonable administrative error in implementing an automatic enrollment or automatic escalation feature in accordance with the terms of an eligible automatic contribution arrangement 7as defined under subsection 7w77#c771 provided that such implementation error-- 7,a7 is corrected by the date that is #i months after the end of the plan year during which the failure occurred1 7,b7 is corrected in a manner that is favorable to the participant1 and 7,c7 is of a type which is so corrected for all similarly situated participants in a nondiscriminatory manner4 ,such correction may occur before or after the participant has terminated employment and may occur without regard to whether the error is identified by the ,secretary4 7#c7 ,regulations and guidance for favorable correction methods ,the ,secretary shall1 by regulations or other guidance of general applicability1 specify the correction methods that are in a manner favorable to the participant for purposes of paragraph 7#b77;,b74 4 7b7 ,effective date ,the amendment made by this section shall apply with respect to any errors with respect to which the date referred to in section #dad7;aa7 7as added by this section7 is after the date of enactment of this ,act4 #aae4 ,one-year reduction in period of service requirement for long-term1 part-time workers 7a7 ,in general ,section #dja7k77#b77;,d77ii7 of the ,internal ,revenue ,code of #aihf is amended by striking #c and inserting #b4 7b7 ,effective date ,the amendment made by this section shall take effect as if included in the addition of section #dja7k77#b77;,d77ii7 of such ,code by section #aab of the ,setting ,every ,community ,up for ,retirement ,enhancement ,act of #bjai4 #aaf4 ,governmental pension plans may include certain firefighters1 emergency medical technicians1 and paramedics 7a7 ,internal ,revenue ,code of #aihf ,section #dad7;d7 of the ,internal ,revenue ,code of #aihf 7relating to governmental plans7 is amended by adding at the end the following3 ,the term governmental plan also includes a plan which is established by a ,state or political subdivision thereof and maintained by a public safety agency 7described in section #eja7;c7 and exempt from taxation under section #eja7;a771 and all of the participants of which are employees of such agency who are emergency response providers 7defined in section #b of the ,homeland ,security ,act of #bjjb 7#f ,u4,s4,c4 #aja771 substantially all of whose services as emergency response providers are in the performance of firefighting services or out-of-hospital emergency medical services for a political subdivision of a ,state under a contract between such public safety agency and the political subdivision of a ,state44 7b7 ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,in general ,section #c7cb7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7cb77 is amended by adding at the end the following3 4 ,the term governmental plan also includes a plan which is established by a ,state or political subdivision thereof and maintained by a public safety agency 7described in section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from taxation under section #eja7;a7 of such ,code71 and all of the participants of which are employees of such agency who are emergency response providers 7defined in section #b of the ,homeland ,security ,act of #bjjb 7#f ,u4,s4,c4 #aja771 substantially all of whose services as emergency response providers are in the performance of firefighting services or out-of-hospital emergency medical services for a political subdivision of a ,state under a contract between such public safety agency and the political subdivision of a ,state44 7#b7 ,,pbgc exception ,section #djba7;b77#b7 of such ,act 7#bi ,u4,s4,c4 #acba7;b77#b77 is amended by striking described in the last sentence of section #c7cb7 and inserting described in either of the last two sentences of section #c7cb744 7c7 ,conforming amendments 7#a7 ,section #dad7;h77#b7 of the ,internal ,revenue ,code of #aihf is amended by striking described in the last sentence of section #dad7;d7 7relating to plans of ,indian tribal governments7 and inserting described in either of the last two sentences of subsection 7d74 7#b7 ,section #dae7;b77#b77;,h77i7 of such ,code is amended by adding at the end the following3 or a public safety agency described in the last sentence of section #dad7;d714 7#c7 ,section #dae7;b77#b77;,h77ii77,i7 of such ,code is amended by striking or any political subdivision and inserting any political subdivision1 or a public safety agency described in the last sentence of section #dad7;d74 7#d7 ,section #dae7;b77#aj77;,a7 of such ,code is amended by striking described in the last sentence of section #dad7;d7 7relating to plans of ,indian tribal governments7 and inserting described in either of the last two sentences of section #dad7;d74 7d7 ,effective date ,the amendment made by this section shall apply to plan years beginning after the date of the enactment of this ,act4 ,,ii ,preservation of ,income #bja4 ,remove required minimum distribution barriers for life annuities 7a7 ,in general ,paragraph 7#i7 of section #dja7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,j7 ,certain increases in payments under a commercial annuity ,nothing in this section shall prohibit a commercial annuity 7within the meaning of section #cdje7;e77#f77 that is issued in connection with any eligible retirement plan 7within the meaning of section #djb7;c77#h77;,b71 other than a defined benefit plan7 from providing one or more of the following types of payments on or after the annuity starting date3 7i7 annuity payments that increase by a constant percentage1 applied not less frequently than annually1 at a rate that is less than #e percent per year1 7ii7 a lump sum payment that-- 7,i7 results in a shortening of the payment period with respect to an annuity or a full or partial commutation of the future annuity payments1 provided that such lump sum is determined using reasonable actuarial methods and assumptions1 as determined in good faith by the issuer of the contract1 or 7,,ii7 accelerates the receipt of annuity payments that are scheduled to be received within the ensuing #ab months1 regardless of whether such acceleration shortens the payment period with respect to the annuity1 reduces the dollar amount of benefits to be paid under the contract1 or results in a suspension of annuity payments during the period being accelerated1 7iii7 an amount which is in the nature of a dividend or similar distribution1 provided that the issuer of the contract determines such amount based on a reasonable comparison of the actuarial factors assumed when calculating the initial annuity payments and the issuer's experience with respect to those factors1 or 7iv7 a final payment upon death that does not exceed the excess of the total amount of the consideration paid for the annuity payments1 less the aggregate amount of prior distributions or payments from or under the contract4 4 7b7 ,regulations and enforcement 7#a7 ,regulations ,by the date that is one year after the date of enactment of this ,act1 the ,secretary of the ,treasury shall amend the regulation issued by the ,department of the ,treasury relating to ,required ,distributions from ,retirement ,plans1 #fi ,fed4 ,reg4 #ccbhh 7,june #ae1 #bjjd71 and make any corresponding amendments to other regulations1 in order to-- 7,a7 conform such regulations to subsection 7a71 including by eliminating the types of payments described in subsection 7a7 from the scope of the requirement in ,q,a-#ad7;c7 of ,treasury ,regulation section #a4dja7;a77#i7-f that the total future expected payments must exceed the total value being annuitized2 7,b7 amend ,q,a-#ad7;c7 of ,treasury ,regulation section #a4dja7;a77#i7-f to provide that a commercial annuity that provides an initial payment that is at least equal to the initial payment that would be required from an individual account pursuant to ,treasury ,regulation section #a4dja7;a77#i7-e will be deemed to satisfy the requirement in ,q,a-#ad7;c7 of ,treasury ,regulation section #a4dja7;a77#i7-f that the total future expected payments must exceed the total value being annuitized2 and 7,c7 amend ,q,a-#ad7;e77#c7 of ,treasury ,regulation section #a4dja7;a77#i7-f to provide that the total future expected payments under a commercial annuity are determined using the tables or other actuarial assumptions that the issuer of the contract actually uses in pricing the premiums and benefits with respect to the contract1 provided that such tables or other actuarial assumptions are reasonable4 7#b7 ,enforcement ,as of the date of enactment of this ,act1 the ,secretary of the ,treasury shall administer and enforce the law in accordance with subsections 7a7 and 7b74 7c7 ,effective date ,this section shall take effect on the date of the enactment of this ,act4 #bjb4 ,qualifying longevity annuity contracts 7a7 ,in general ,not later than the date which is #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury or the ,secretary's delegate 7hereafter in this section referred to as the ,secretary7 shall amend the regulation issued by the ,department of the ,treasury relating to ,longevity ,annuity ,contracts 7#gi ,fed4 ,reg4 #cgfcc 7,july #b1 #bjad771 as follows3 7#a7 ,repeal #be-percent premium limit ,the ,secretary shall amend ,q,a-#ag7;b77#c7 of ,treasury ,regulation section #a4dja7;a77#i7-f and ,q,a-#ab7;b77#c7 of ,treasury ,regulation section #a4djh-h to eliminate the requirement that premiums for qualifying longevity annuity contracts be limited to a percentage of an individual's account balance1 and to make such corresponding changes to the regulations and related forms as are necessary to reflect the elimination of this requirement4 7#b7 ,increase dollar limitation 7,a7 ,in general ,the ,secretary shall amend ,q,a-#ag7;b77#b77;i7 of ,treasury ,regulation section #a4dja7;a77#i7-f and ,q,a-#ab7;b77#b77;i7 of ,treasury ,regulation section #a4djh-h to increase the dollar limitation on premiums for qualifying longevity annuity contracts from #abe1jjj to #bjj1jjj1 and to make such corresponding changes to the regulations and related forms as are necessary to reflect this increase in the dollar limitation4 7,b7 ,adjustments for inflation ,the ,secretary shall amend ,q,a-#ag7;d77#b77;i7 of ,treasury ,regulation section #a4dja7;a77#i7-f to provide that1 in the case of calendar years beginning on or after ,january #a of the second year following the year of enactment of this ,act1 the #bjj1jjj dollar limitation 7as increased by subparagraph 7,a77 will be adjusted at the same time and in the same manner as the limits are adjusted under section #dae7;d7 of the ,internal ,revenue ,code of #aihf1 except that the base period shall be the calendar quarter beginning ,july #a of the year of enactment of this ,act1 and any increase to such dollar limitation which is not a multiple of #aj1jjj will be rounded to the next lowest multiple of #aj1jjj4 7#c7 ,facilitate joint and survivor benefits ,the ,secretary shall amend ,q,a-#ag7;c7 of ,treasury ,regulation section #a4dja7;a77#i7-f1 and make such corresponding changes to the regulations and related forms as are necessary1 to provide that1 in the case of a qualifying longevity annuity contract which was purchased with joint and survivor annuity benefits for the individual and the individual's spouse which were permissible under the regulations at the time the contract was originally purchased1 a divorce occurring after the original purchase and before the annuity payments commence under the contract will not affect the permissibility of the joint and survivor annuity benefits or other benefits under the contract1 or require any adjustment to the amount or duration of benefits payable under the contract1 provided that any qualified domestic relations order 7within the meaning of section #dad7p7 of the ,internal ,revenue ,code of #aihf7 or any divorce or separation instrument 7as defined in subsection 7b77-- 7,a7 provides that the former spouse is entitled to the survivor benefits under the contract2 7,b7 does not modify the treatment of the former spouse as the beneficiary under the contract who is entitled to the survivor benefits2 or 7,c7 does not modify the treatment of the former spouse as the measuring life for the survivor benefits under the contract4 7#d7 ,permit short free look period ,the ,secretary shall amend ,q,a-#ag7;a77#d7 of ,treasury ,regulation section #a4dja7;a77#i7-f to ensure that such ,q,a does not preclude a contract from including a provision under which an employee may rescind the purchase of the contract within a period not exceeding #ij days from the date of purchase4 7b7 ,divorce or separation instrument ,for purposes of subsection 7a77#c71 the term divorce or separation instrument means-- 7#a7 a decree of divorce or separate maintenance or a written instrument incident to such a decree1 7#b7 a written separation agreement1 or 7#c7 a decree 7not described in paragraph 7#a77 requiring a spouse to make payments for the support or maintenance of the other spouse4 7c7 ,effective dates1 enforcement1 and interpretations 7#a7 ,effective dates 7,a7 ,paragraphs 7#a7 and 7#b7 of subsection 7a7 shall be effective with respect to contracts purchased or received in an exchange on or after the date of the enactment of this ,act4 7,b7 ,paragraphs 7#c7 and 7#d7 of subsection 7a7 shall be effective with respect to contracts purchased or received in an exchange on or after ,july #b1 #bjad4 7#b7 ,enforcement and interpretations ,prior to the date on which the ,secretary issues final regulations pursuant to subsection 7a7-- 7,a7 the ,secretary 7or delegate7 shall administer and enforce the law in accordance with subsection 7a7 and the effective dates in paragraph 7#a7 of this subsection2 and 7,b7 taxpayers may rely upon their reasonable good faith interpretations of subsection 7a74 #bjc4 ,insurance-dedicated exchange-traded funds 7a7 ,in general ,not later than the date which is #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend the regulation issued by the ,department of the ,treasury relating to ,income ,tax2 ,diversification ,requirements for ,variable ,annuity1 ,endowment1 and ,life ,insurance ,contracts1 #ed ,fed4 ,reg4 #hgbh 7,march #b1 #aihi71 and make any necessary corresponding amendments to other regulations1 in order to facilitate the use of exchange-traded funds as investment options under variable contracts within the meaning of section #hag7;d7 of the ,internal ,revenue ,code of #aihf1 in accordance with subsections 7b7 and 7c7 of this section4 7b7 ,designate certain authorized participants and market makers as eligible investors ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend ,treas4 ,reg4 section #a4hag-e7;f77#c7 to provide that satisfaction of the requirements in ,treas4 ,reg4 section #a4hag-e7;f77#b77;i7 with respect to an exchange-traded fund shall not be prevented by reason of beneficial interests in such a fund being held by #a or more authorized participants or market makers4 7c7 ,confirm that similarities to other funds are irrelevant ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend ,treas4 ,reg4 section #a4hag-e7;f7 to confirm that1 for ,federal income tax purposes1 a regulated investment company1 partnership1 or trust 7including an exchange-traded fund7 that satisfies the requirements of ,treas4 ,reg4 section #a4hag-e7;f7 7#b7 and 7#c7 shall not be treated as owned by the holder of a variable contract pursuant to the principles of ,rev4 ,rul4 #ha-bbe1 #aiha-b ,c4,b4 #ab1 merely because another regulated investment company1 partnership1 trust1 or similar investment vehicle follows the same investment strategy1 has the same investment manager1 or holds the same investments4 7d7 ,define relevant terms ,in amending ,treas4 ,reg4 section #a4hag-e7;f77#c7 in accordance with subsections 7b7 and 7c7 of this section1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall provide definitions consistent with the following3 7#a7 ,exchange-traded fund ,the term exchange-traded fund means a regulated investment company1 partnership1 or trust-- 7,a7 that is registered with the ,securities and ,exchange ,commission as an open-end investment company or a unit investment trust2 7,b7 the shares of which can be purchased or redeemed directly from the fund only by an authorized participant2 and 7,c7 the shares of which are traded throughout the day on a national stock exchange at market prices that may or may not be the same as the net asset value of the shares4 7#b7 ,authorized participant ,the term authorized participant means a financial institution that is a member or participant of a clearing agency registered under section #ag;,a7b7 of the ,securities ,exchange ,act of #aicd that enters into a contractual relationship with an exchange-traded fund pursuant to which the financial institution is permitted to purchase and redeem shares directly from the fund and to sell such shares to third parties1 but only if the contractual arrangement or applicable law precludes the financial institution from-- 7,a7 purchasing the shares for its own investment purposes rather than for the exclusive purpose of creating and redeeming such shares on behalf of third parties2 and 7,b7 selling the shares to third parties who are not market makers or otherwise described in ,treas4 ,reg4 section #a4hag-e7;f7 7#a7 and 7#c74 7#c7 ,market maker ,the term market maker means a financial institution that is a registered broker or dealer under section #ae7;b7 of the ,securities ,exchange ,act of #aicd that maintains liquidity for an exchange-traded fund on a national stock exchange by being always ready to buy and sell shares of such fund on the market1 but only if the financial institution is contractually or legally precluded from selling or buying such shares to or from persons who are not authorized participants or otherwise described in ,treas4 ,reg4 section #a4hag-e7;f7 7#b7 and 7#c74 7e7 ,effective dates1 enforcement1 and interpretations 7#a7 ,effective dates 7,a7 ,subsection 7b7 ,subsection 7b71 and the definitions under subsection 7d71 shall apply to segregated asset account investments made on or after the earlier of-- 7i7 the date that is #ah months after the date of the of enactment of this ,act1 or 7ii7 the date on which the amendments to regulations under subsection 7b7 are made4 7,b7 ,subsection 7c7 ,subsection 7c7 shall apply to taxable years beginning after the date of the enactment of this ,act4 7#b7 ,enforcement and interpretations ,prior to the date that the ,secretary of the ,treasury 7or the ,secretary's delegate7 issues final regulations pursuant to this section-- 7,a7 the ,secretary 7or delegate7 shall administer and enforce the law in accordance with this section and the effective dates under paragraph 7#a71 and 7,b7 taxpayers may rely upon their reasonable good faith interpretations of the preceding subsections of this section4 7#c7 ,no inference ,nothing contained in the amendments to regulations pursuant to subsection 7c71 or the administration and enforcement of such subsection under paragraph 7#b71 shall be construed to create any inference as to a change in law or guidance in effect prior to enactment of this section4 ,,iii ,simplification and ,clarification of ,retirement ,plan ,rules #cja4 ,recovery of retirement plan overpayments 7a7 ,overpayments under ,internal ,revenue ,code of #aihf 7#a7 ,qualification requirements ,section #dad of the ,internal ,revenue ,code of #aihf1 as amended by the preceding provisions of this ,act1 is further amended by adding at the end the following new subsection3 7bb7 ,special rules applicable to benefit overpayments 7#a7 ,in general ,a plan shall not fail to be treated as described in clause 7i71 7ii71 7iii71 or 7iv7 of section #bai7;g77#e77;,a7 7and shall not fail to be treated as satisfying the requirements of section #dja7;a7 or #djc7 merely because-- 7,a7 the plan fails to obtain payment from any participant1 beneficiary1 employer1 plan sponsor1 fiduciary1 or other party on account of any inadvertent benefit overpayment made by the plan1 or 7,b7 the plan sponsor amends the plan to increase past or future benefit payments to affected participants and beneficiaries in order to adjust for prior inadvertent benefit overpayments4 7#b7 ,reduction in future benefit payments and recovery from responsible party ,paragraph 7#a7 shall not fail to apply to a plan merely because1 after discovering a benefit overpayment1 such plan-- 7,a7 reduces future benefit payments to the correct amount provided for under the terms of the plan1 or 7,b7 seeks recovery from the person or persons responsible for such overpayment4 7#c7 ,employer funding obligations ,nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to meet the minimum funding standards under section #dab or to prevent or restore an impermissible forfeiture in accordance with section #daa4 7#d7 ,observance of benefit limitations ,notwithstanding paragraph 7#a71 a plan to which paragraph 7#a7 applies shall observe any limitations imposed on it by section #dja7;a77#ag7 or #dae4 ,the plan may enforce such limitations using any method approved by the ,secretary for recouping benefits previously paid or allocations previously made in excess of such limitations4 7#e7 ,coordination with other qualification requirements ,the ,secretary may issue regulations or other guidance of general applicability specifying how benefit overpayments and their recoupment or non-recoupment from a participant or beneficiary shall be taken into account for purposes of satisfying any requirement applicable to a plan to which paragraph 7#a7 applies4 4 7#b7 ,rollovers ,section #djb7;c7 of such ,code is amended by adding at the end the following new paragraph3 7#ac7 ,in the case of an inadvertent benefit overpayment from a plan to which section #dad7;bb77#a7 applies which is transferred to an eligible retirement plan by or on behalf of a participant or beneficiary-- 7,a7 the portion of such overpayment with respect to which recoupment is not sought on behalf of the plan shall be treated as having been paid in an eligible rollover distribution if the payment would have been an eligible rollover distribution but for being an overpayment1 and 7,b7 the portion of such overpayment with respect to which recoupment is sought on behalf of the plan shall be permitted to be returned to such plan and in such case shall be treated as an eligible rollover distribution transferred to such plan by the participant or beneficiary who received such overpayment 7and the plans making and receiving such transfer shall be treated as permitting such transfer74 ,in any case in which recoupment is sought on behalf of the plan but is disputed by the participant or beneficiary who received such overpayment1 such dispute shall be subject to the claims and appeals procedures of the plan that made such overpayment1 such plan shall notify the plan receiving the rollover of such dispute1 and the plan receiving the rollover shall retain such overpayment on behalf of the participant or beneficiary 7and shall be entitled to treat such overpayment as plan assets7 pending the outcome of such procedures4 4 7b7 ,overpayments under ,,erisa ,section #bjf of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajef7 is amended by adding at the end the following new subsection3 7h7 ,special rules applicable to benefit overpayments 7#a7 ,general rule ,in the case of an inadvertent benefit overpayment by any pension plan1 the responsible plan fiduciary shall not be considered to have failed to comply with the requirements of this title merely because such fiduciary determines1 in the exercise of its fiduciary discretion1 not to seek recovery of all or part of such overpayment from-- 7,a7 any participant or beneficiary1 7,b7 any plan sponsor of1 or contributing employer to-- 7i7 an individual account plan1 provided that the amount needed to prevent or restore any impermissible forfeiture from any participant's or beneficiary's account arising in connection with the overpayment is1 separately from and independently of the overpayment1 allocated to such account pursuant to the nonforfeitability requirements of section #bjc 7for example1 out of the plan's forfeiture account1 additional employer contributions1 or recoveries from those responsible for the overpayment71 or 7ii7 a defined benefit pension plan subject to the funding rules in part #c of this subtitle ,b1 unless the responsible plan fiduciary determines1 in the exercise of its fiduciary discretion1 that failure to recover all or part of the overpayment faster than required under such funding rules would materially affect the plan's ability to pay benefits due to other participants and beneficiaries1 or 7,c7 any fiduciary of the plan1 other than a fiduciary 7including a plan sponsor or contributing employer acting in a fiduciary capacity7 whose breach of its fiduciary duties resulted in such overpayment1 provided that if the plan has established prudent procedures to prevent and minimize overpayment of benefits and the relevant plan fiduciaries have followed such procedures1 an inadvertent benefit overpayment will not give rise to a breach of fiduciary duty4 7#b7 ,reduction in future benefit payments and recovery from responsible party ,paragraph 7#a7 shall not fail to apply with respect to any inadvertent benefit overpayment merely because1 after discovering such overpayment1 the responsible plan fiduciary-- 7,a7 reduces future benefit payments to the correct amount provided for under the terms of the plan1 or 7,b7 seeks recovery from the person or persons responsible for the overpayment4 7#c7 ,employer funding obligations ,nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to meet the minimum funding standards under part #c of this subtitle ,b or to prevent or restore an impermissible forfeiture in accordance with section #bjc4 7#d7 ,recoupment from participants and beneficiaries ,if the responsible plan fiduciary1 in the exercise of its fiduciary discretion1 decides to seek recoupment from a participant or beneficiary of all or part of an inadvertent benefit overpayment made by the plan to such participant or beneficiary1 it may do so1 subject to the following conditions3 7,a7 ,no interest or other additional amounts 7such as collection costs or fees7 are sought on overpaid amounts4 7,b7 ,if the plan seeks to recoup past overpayments of a non-decreasing periodic benefit by reducing future benefit payments-- 7i7 the reduction ceases after the plan has recovered the full dollar amount of the overpayment1 7ii7 the amount recouped each calendar year does not exceed #aj percent of the full dollar amount of the overpayment1 and 7iii7 future benefit payments are not reduced to below #ij percent of the periodic amount otherwise payable under the terms of the plan4 ,alternatively1 if the plan seeks to recoup past overpayments of a non-decreasing periodic benefit through one or more installment payments1 the sum of such installment payments in any calendar year does not exceed the sum of the reductions that would be permitted in such year under the preceding sentence4 7,c7 ,if the plan seeks to recoup past overpayments of a benefit other than a non-decreasing periodic benefit1 the plan satisfies requirements developed by the ,secretary of the ,treasury for purposes of this subparagraph4 7,d7 ,efforts to recoup overpayments are not made through a collection agency or similar third party and such efforts are not accompanied by threats of litigation1 unless the responsible plan fiduciary reasonably believes it could prevail in a civil action brought in ,federal or ,state court to recoup the overpayments4 7,e7 ,recoupment of past overpayments to a participant is not sought from any beneficiary of the participant1 including a spouse1 surviving spouse1 former spouse1 or other beneficiary4 7,f7 ,recoupment may not be sought if the first overpayment occurred more than #c years before the participant or beneficiary is first notified in writing of the error4 7,g7 ,a participant or beneficiary from whom recoupment is sought is entitled to contest all or part of the recoupment pursuant to the plan's claims and appeals procedures4 7,h7 ,in determining the amount of recoupment to seek1 the responsible plan fiduciary may take into account the hardship that recoupment likely would impose on the participant or beneficiary4 7#e7 ,effect of culpability ,subparagraphs 7,a7 through 7,f7 of paragraph 7#d7 shall not apply to protect a participant or beneficiary who is culpable4 ,for purposes of this paragraph1 a participant or beneficiary is culpable if the individual bears responsibility for the overpayment 7such as through misrepresentations or omissions that led to the overpayment71 or if the individual knew1 or had good reason to know under the circumstances1 that the benefit payment or payments were materially in excess of the correct amount4 ,notwithstanding the preceding sentence1 an individual is not culpable merely because the individual believed the benefit payment or payments were or might be in excess of the correct amount1 if the individual raised that question with an authorized plan representative and was told the payment or payments were not in excess of the correct amount4 ,with respect to a culpable participant or beneficiary1 efforts to recoup overpayments shall not be made through threats of litigation1 unless a lawyer for the plan could make the representations required under ,rule #aa of the ,federal ,rules of ,civil ,procedure if the litigation were brought in ,federal court4 4 7c7 ,effective date ,the amendments made by this section shall apply as of the date of the enactment of this ,act4 7d7 ,certain actions before date of enactment ,plans1 fiduciaries1 employers1 and plan sponsors are entitled to rely on-- 7#a7 a good faith interpretation of then existing administrative guidance for inadvertent benefit overpayment recoupments and recoveries that commenced before the date of enactment of this ,act1 and 7#b7 determinations made before such date of enactment by the responsible plan fiduciary1 in the exercise of its fiduciary discretion1 not to seek recoupment or recovery of all or part of an inadvertent benefit overpayment4 ,in the case of a benefit overpayment that occurred prior to the date of enactment of this ,act1 any installment payments by the participant or beneficiary to the plan or any reduction in periodic benefit payments to the participant or beneficiary1 which were made in recoupment of such overpayment and which commenced prior to such date1 may continue after such date4 ,nothing in this subsection shall relieve a fiduciary from responsibility for an overpayment that resulted from a breach of its fiduciary duties4 #cjb4 ,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 ,reduction in excise tax on failures ,to take required minimum distributions ,section #digd of such ,code is 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 #aj percent for #be percent4 7#b7 ,correction window ,for purposes of this subsection1 the term correction 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 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbj4 #cjc4 ,performance benchmarks for asset allocation funds 7a7 ,in general ,not later than #f months after the date of the enactment of this ,act1 the ,secretary of ,labor 7or the ,secretary's delegate7 shall modify the regulations under section #djd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7 to provide that1 in the case of a designated investment alternative which contains a mix of asset classes1 a plan administrator may1 but is not required to1 use a benchmark which is a blend of different broad-based securities market indices if-- 7#a7 the blend is reasonably representative of the asset class holdings of the designated investment alternative2 7#b7 for purposes of determining the blend's returns for #a-1 #e-1 and #aj-;calendar-year periods 7or for the life of the alternative1 if shorter71 the blend is modified at least once per year to reflect changes in the asset class holdings of the designated investment alternative2 7#c7 the blend is furnished to participants and beneficiaries in a manner that is reasonably designed to be understandable and helpful2 and 7#d7 each securities market index which is used for an associated asset class would separately satisfy the requirements of such regulations for such asset class4 7b7 ,study ,not later than ,december #ca1 #bjba1 the ,secretary of ,labor 7or the ,secretary's delegate7 shall deliver a report to the ,committees on ,ways and ,means and ,education and ,labor of the ,house of ,representatives and the ,committees on ,finance and ,health1 ,education1 ,labor1 and ,pensions of the ,senate regarding the effectiveness of the benchmarking requirements under section #beej4djd;a-#e of title #bi1 ,code of ,federal ,regulations4 #cjd4 ,review and report to the ,congress relating to reporting and disclosure requirements 7a7 ,study ,as soon as practicable after the date of the enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation shall review the reporting and disclosure requirements of-- 7#a7 title ,i of the ,employee ,retirement ,income ,security ,act of #aigd applicable to pension plans 7as defined in section #c7b7 of such ,act72 and 7#b7 the ,internal ,revenue ,code of #aihf applicable to qualified retirement plans 7as defined in section #digd7;c7 of such ,code without regard to paragraphs 7#d7 and 7#e7 thereof74 7b7 ,report ,not later than #ah months after the date of the enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation1 jointly1 and after consultation with a balanced group of participant and employer representatives1 shall with respect to plans referenced in subsection 7a7 report on the effectiveness of the applicable reporting and disclosure requirements and make such recommendations as may be appropriate to the appropriate committees of the ,congress to consolidate1 simplify1 standardize1 and improve such requirements so as to simplify reporting for such plans and ensure that plans can simply furnish and participants and beneficiaries timely receive and better understand the information they need to monitor their plans1 plan for retirement1 and obtain the benefits they have earned4 ,such report shall assess the extent to which retirement plans are retaining disclosures1 work records1 and plan documents that are needed to ensure accurate calculation of future benefits4 ,to assess the effectiveness of the applicable reporting and disclosure requirements1 the report shall include an analysis1 based on plan data1 of how participants and beneficiaries are providing preferred contact information1 the methods by which plan sponsors and plans are furnishing disclosures1 and the rate at which participants and beneficiaries 7grouped by key demographics7 are receiving1 accessing1 and retaining disclosures4 ,the agencies shall conduct appropriate surveys and data collection to obtain any needed information4 #cje4 ,eliminating unnecessary plan requirements related to unenrolled participants 7a7 ,amendment of ,internal ,revenue ,code of #aihf ,section #dad of the ,internal ,revenue ,code of #aihf1 as amended by the preceding provisions of this ,act1 is further amended by adding at the end the following new subsection3 7cc7 ,eliminating unnecessary plan requirements related to unenrolled participants 7#a7 ,in general ,notwithstanding any other provision of this title1 with respect to any defined contribution plan1 no disclosure1 notice1 or other plan document 7other than the notices and documents described in subparagraphs 7,a7 and 7,b77 shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives-- 7,a7 in connection with the annual open season election period with respect to the plan or1 if there is no such period1 within a reasonable period prior to the beginning of each plan year1 an annual reminder notice 7in paper format1 or in any electronic format consented to by the participant7 of such participant's eligibility to participate in such plan and any applicable election deadlines under the plan1 and 7,b7 any document requested by such participant which the participant would be entitled to receive without regard to this subsection4 7#b7 ,unenrolled participant ,for purposes of this subsection1 the term unenrolled participant means an employee who-- 7,a7 is eligible to participate in a defined contribution plan1 7,b7 has been furnished all required notices1 disclosures1 and other plan documents required to be furnished under this title and the summary plan description as provided in section #ajd7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd in connection with such participant's initial eligibility to participate in such plan1 7,c7 is not participating in such plan1 and 7,d7 does not have a balance in the plan4 ,for purposes of this subsection1 any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility4 7#c7 ,annual reminder notice ,for purposes of this subsection1 the term annual reminder notice means the notice described in section #aaa7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd4 4 7b7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,in general ,part #a of subtitle ,b of subchapter ,i of the ,employee ,retirement ,income ,security ,act of #aigd is amended by redesignating section #aaa as section #aab and by inserting after section #aaj the following new section3 #aaa4 ,eliminating unnecessary plan requirements related to unenrolled participants 7a7 ,in general ,notwithstanding any other provision of this title1 with respect to any individual account plan1 no disclosure1 notice1 or other plan document 7other than the notices and documents described in paragraphs 7#a7 and 7#b77 shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives-- 7#a7 in connection with the annual open season election period with respect to the plan or1 if there is no such period1 within a reasonable period prior to the beginning of each plan year1 an annual reminder notice of such participant's eligibility to participate in such plan and any applicable election deadlines under the plan2 and 7#b7 any document requested by such participant which the participant would be entitled to receive without regard to this section4 7b7 ,unenrolled participant ,for purposes of this section1 the term unenrolled participant means an employee who-- 7#a7 is eligible to participate in an individual account plan2 7#b7 has received all required notices1 disclosures1 and other plan documents1 including the summary plan description1 required to be furnished under this title in connection with such participant's initial eligibility to participate in such plan2 7#c7 is not participating in such plan2 and 7#d7 does not have a balance in the plan4 ,for purposes of this section1 any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility4 7c7 ,annual reminder notice ,for purposes of this section1 the term annual reminder notice means a notice provided in accordance with section #bebj4ajd;b-#a of title #bi1 ,code of ,federal ,regulations 7or any successor regulation71 which-- 7#a7 is furnished in connection with the annual open season election period with respect to the plan or1 if there is no such period1 is furnished within a reasonable period prior to the beginning of each plan year2 7#b7 notifies the unenrolled participant of-- 7,a7 the unenrolled participant's eligibility to participate in the plan2 and 7,b7 the key benefits under the plan and the key rights and features under the plan affecting such benefits2 and 7#c7 provides such information in a prominent manner calculated to be understood by the average participant4 4 7#b7 ,clerical amendment ,the table of contents in section #a of the ,employee ,retirement ,income ,security ,act of #aigd is amended by striking the item relating to section #aaa and by inserting after the item relating to section #aaj the following new items3 ,sec4 #aaa4 ,eliminating unnecessary plan requirements related to unenrolled participants4 ,sec4 #aab4 ,repeal and effective date4 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjbj4 #cjf4 ,retirement savings lost and found 7a7 ,retirement ,savings ,lost and ,found 7#a7 ,establishment 7,a7 ,in general ,not later than #b years after the date of the enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,secretary of ,commerce1 in cooperation1 shall establish an ,office of the ,retirement ,savings ,lost and ,found1 which shall develop and maintain an online searchable database 7to be managed by the ,pension ,benefit ,guaranty ,corporation7 of unclaimed vested benefits of participants and beneficiaries in plans-- 7i7 to allow an individual to search for information that enables the individual to locate the plan administrator of any plans with respect to which the individual is a participant or beneficiary1 and to provide contact information for the plan administrator of any plan described in subparagraph 7,b7 with respect to which the individual may be entitled to a benefit2 7ii7 to allow the corporation to assist such an individual in locating any plan of the individual2 and 7iii7 to allow the corporation to make any necessary changes to contact information on record for the plan administrator based on any changes to the plan due to merger or consolidation of the plan with any other plan1 division of the plan into two or more plans1 bankruptcy1 termination1 change in name of the plan1 change in name or address of the plan administrator1 or other causes4 ,the ,retirement ,savings ,lost and ,found established under this paragraph shall contain the information obtained by the corporation from the ,internal ,revenue ,service regarding deferred vested benefits of separated participants and beneficiaries in plans as reported under section #fjeg7;d7 of the ,internal ,revenue ,code of #aihf1 as amended by this subsection1 and the information on missing participants collected as part of the corporation's ,missing ,participant ,program established under section #djej of the ,employee ,retirement ,income ,security ,act of #aigd4 7,b7 ,plans described ,a plan described in this subparagraph is a plan to which the vesting standards of section #bjc of part #b of subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd apply4 7#b7 ,administration ,the ,retirement ,savings ,lost and ,found established under paragraph 7#a7 shall provide individuals described in paragraph 7#a77;,a7 only with the ability to view contact information for the plan administrator of any plan with respect to which the individual is a participant or beneficiary1 sufficient to allow the individual to locate the individual's plan in order to recover any benefit owing to the individual under the plan4 7#c7 ,current information 7,a7 ,in general ,paragraph 7#b7 of section #fjeg7;a7 of the ,internal ,revenue ,code of #aihf is amended-- 7i7 in subparagraph 7,c7-- 7,i7 by striking during such plan year in clause 7i7 and inserting during the plan year immediately preceding such plan year2 7,,ii7 by adding and at the end of clause 7i72 and 7,,iii7 by striking clause 7iii72 7ii7 by redesignating subparagraph 7,e7 as subparagraph 7,g72 7iii7 by striking and at the end of subparagraph 7,d72 and 7iv7 by inserting after subparagraph 7,d7 the following new subparagraphs3 7,e7 the name and taxpayer identifying number of each participant or former participant in the plan-- 7i7 who1 during any previous plan year1 was reported under subparagraph 7,c71 and with respect to whom the benefits described in subparagraph 7,c77ii7 were fully paid during the plan year1 7ii7 with respect to whom any amount was distributed under section #dja7;a77#ca77;,b7 during the plan year1 or 7iii7 with respect to whom a deferred annuity contract was distributed during the plan year1 7,f7 in the case of a participant or former participant to whom subparagraph 7,e7 applies-- 7i7 in the case of a participant described in clause 7ii7 thereof1 the name and address of the designated trustee or issuer described in section #dja7;a77#ca77;,b77i7 and the account number of the individual retirement plan to which the amount was distributed1 and 7ii7 in the case of a participant described in clause 7iii7 thereof1 the name and address of the issuer of such annuity contract and the contract or certificate number1 and 4 7,b7 ,rules relating to direct trustee-to-trustee transfers 7i7 ,in general ,paragraph 7#f7 of section #djb7;e7 of such ,code is amended-- 7,i7 by striking transfers4--,any and inserting 8transfers4-- 7,a7 ,in general ,any 2 and 7,,ii7 by adding at the end the following new subparagraph3 7,b7 ,notification of trustee ,in the case of a distribution under section #dja7;a77#ca77;,b71 the plan administrator shall notify the designated trustee or issuer described in clause 7i7 thereof that the transfer is a mandatory distribution required by such section4 4 7ii7 ,penalty ,subsection 7i7 of section #ffeb of such ,code is amended-- 7,i7 by striking to recipients in the heading and inserting or notification2 7,,ii7 by striking #djb7;f71 and inserting #djb7;f7 or a notification as required by section #djb7;e77#f77;,b712 and 7,,iii7 by striking such written explanation and inserting such written explanation or notification4 7iii7 ,reports ,subsection 7i7 of section #djh of such ,code is amended-- 7,i7 by redesignating subparagraphs 7,a7 and 7,b7 of paragraph 7#b7 as clauses 7i7 and 7ii71 respectively1 and by moving such clauses #b ems to the right2 7,,ii7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively1 and by moving such subparagraphs #b ems to the right2 and 7,,iii7 by striking as the ,secretary prescribes in subparagraph 7,b77ii71 as so redesignated1 and all that follows through a simple retirement account and inserting 8as the ,secretary prescribes4 7#c7 ,simple retirement accounts ,in the case of a simple retirement account 2 7,,iv7 by striking ,reports4--,the trustee of and inserting 8,reports4-- 7#a7 ,in general ,the trustee of 2 7,v7 by striking under paragraph 7#b7 in paragraph 7#c71 as redesignated by clause 7iii71 and inserting under paragraph 7#a77;,b72 and 7,,vi7 by inserting after paragraph 7#a77;,b77ii71 as redesignated by the preceding clauses1 the following new paragraph3 7#b7 ,mandatory distributions ,in the case of an account1 contract1 or annuity to which a transfer under section #dja7;a77#ca77;,b7 is made 7including a transfer from the individual retirement plan to which the original transfer under such section was made to another individual retirement plan71 the report required by this subsection for the year of the transfer shall-- 7,a7 identify such transfer as a mandatory distribution required by such section1 7,b7 include the name1 address1 and taxpayer identifying number of the trustee or issuer of the individual retirement plan to which the amount is transferred1 and 7,c7 be filed with the ,pension ,benefit ,guaranty ,corporation as well as with the ,secretary4 4 7,c7 ,notification of participants upon separation ,subsection 7e7 of section #fjeg of such ,code is amended by inserting 1 and a notice of the availability of1 and the contact information for1 the ,retirement ,savings ,lost and ,found established under section #cjf7;a77#a7 of the ,securing a ,strong ,retirement ,act of #bjbj before the period at the end of the second sentence4 7,d7 ,effective date ,the amendments made by this paragraph shall apply to distributions made in1 and returns and reports relating to1 years beginning after the second ,december #ca occurring after the date of the enactment of this ,act4 7#d7 ,coordination with distribution requirements1 fiduciary duties1 etc 7,a7 ,amendment of ,internal ,revenue ,code of #aihf ,paragraph 7#i7 of section #dja7;a7 of the ,internal ,revenue ,code of #aihf1 as amended by the preceding provisions of this ,act1 is further amended by adding at the end the following new subparagraph3 7,k7 ,coordination with ,retirement ,savings ,lost and ,found 7i7 ,in general ,with respect to any lost or missing participant of a plan1 the plan shall not be treated as failing to satisfy the requirements of this paragraph or any other requirement of this title which cannot be satisfied due to the plan's inability to locate the participant4 7ii7 ,lost or missing participant ,for purposes of subclause 7i71 the term lost or missing participant shall be defined in guidance to be issued jointly by the ,internal ,revenue ,service1 ,department of the ,treasury1 the ,employee ,benefits ,security ,administration1 ,department of ,labor1 and the ,pension ,benefit ,guaranty ,corporation4 ,such guidance shall be so issued not later than #a year after the date of the enactment of this subparagraph4 4 7,b7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd 7i7 ,in general ,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 following new subsection3 7e7 ,coordination with ,retirement ,savings ,lost and ,found 7#a7 ,in general ,with respect to any lost or missing participant of a plan1 a fiduciary of the plan shall not be treated as failing to satisfy any requirement to search for or attempt to locate1 or to provide any document or information to1 such individual1 or any other requirement of this title which cannot be satisfied due to the plan's inability to locate the participant4 7#b7 ,lost or missing participant ,for purposes of paragraph 7#a71 the term lost or missing participant shall be defined in guidance to be issued jointly by the ,internal ,revenue ,service1 ,department of the ,treasury1 the ,employee ,benefits ,security ,administration1 ,department of ,labor1 and the ,pension ,benefit ,guaranty ,corporation4 4 7ii7 ,conforming amendments ,section #djej7;a77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acej7;a77#a77 is amended in subparagraph 7,b7-- 7,i7 by striking provides and inserting either-- 7i7 provides 2 7,,ii7 by striking the period at the end and inserting 2 or2 and 7,,iii7 by adding at the end the following new clause3 7ii7 satisfies the requirements of section #fjeg7;a7 of the ,internal ,revenue ,code of #aihf4 4 7#e7 ,requirement of electronic filing 7,a7 ,in general ,paragraph 7#b7 of section #fjaa7;e7 of the ,internal ,revenue ,code of #aihf is amended-- 7i7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively1 and by moving such clauses #b ems to the right2 7ii7 by striking the requirements of such regulations and all that follows through the ,secretary shall require and inserting 8the requirements of such regulations4 7,b7 ,certain partnerships ,notwithstanding subparagraph 7,a71 the ,secretary shall require 2 7iii7 by striking regulations4--,in prescribing and inserting 8regulations4-- 7,a7 ,in general ,in prescribing 2 and 7iv7 by adding at the end the following new subparagraph3 7,c7 ,exceptions ,notwithstanding subparagraph 7,a71 the ,secretary shall require returns or reports required under-- 7i7 sections #fjeg1 #fjeh1 and #fjei1 and 7ii7 sections #djh7;i71 #fjda1 and #fjdg to the extent such return or report relates to the tax treatment of a distribution from a plan1 account1 contract1 or annuity1 to be filed on magnetic media1 but only with respect to persons who are required to file at least #ej returns during the calendar year which includes the first day of the plan year to which such returns or reports relate4 4 7,b7 ,effective date ,the amendments made by this paragraph shall apply to returns and reports relating to years beginning after the second ,december #ca occurring after the date of the enactment of this ,act4 7#f7 ,safeguarding participant privacy and security ,in establishing the ,retirement ,savings ,lost and ,found under paragraph 7#a71 the ,secretary of ,labor1 the ,secretary of ,treasury1 and the ,secretary of ,commerce shall take all necessary and proper precautions to ensure that individuals' plan information maintained by the ,retirement ,savings ,lost and ,found is protected and that persons other than the individual cannot fraudulently claim the benefits to which any individual is entitled1 and to allow any individual to opt out of inclusion in the ,retirement ,savings ,lost and ,found at the election of the individual4 7#g7 ,authorization of appropriations ,there are authorized to be appropriated such sums as may be necessary to carry out the purposes of this subsection4 7b7 ,mandatory transfers of rollover distributions 7#a7 ,investment options 7,a7 ,in general ,subparagraph 7,b7 of section #djd7;c77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;c77#c77 is amended by striking the period at the end and inserting 81 and1 to the extent the ,secretary provides in guidance or regulations issued after the enactment of the ,securing a ,strong ,retirement ,act of #bjbj1 is made to-- 7i7 a target date or life cycle fund held under such account2 7ii7 as described in section #beej4djd;a-#b of title #bi1 ,code of ,federal ,regulations1 an investment product held under such account designed to preserve principal and provide a reasonable rate of return2 7iii7 the ,pension ,benefit ,guaranty ,corporation in accordance with section #dja7;a77#ca77;,b77iv7 of the ,internal ,revenue ,code of #aihf and section #cjf7;c77#b77;,a77ii7 of the ,securing a ,strong ,retirement ,act of #bjbj2 or 7iv7 such other option as the ,secretary may so provide4 4 7,b7 ,regulations ,not later than #bgj days after the date of the enactment of this ,act1 the ,secretary of ,labor shall promulgate regulations identifying the target date or life cycle funds1 or specifying the characteristics of such a fund1 that will be deemed to meet the requirements of section #djd7;c77#c77;,b77i7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;c77#c77;,b771 as amended by subparagraph 7,a74 7#b7 ,expansion of cap2 authority to transfer lesser amounts 7,a7 ,cap ,sections #dja7;a77#ca77;,b77ii7 and #daa7;a77#aa77;,a7 of the ,internal ,revenue ,code of #aihf and section #bjc7;e77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd are each amended by striking #e1jjj and inserting #f1jjj4 7,b7 ,distribution of larger amounts to individual retirement plans only ,section #dja7;a77#ca77;,b77i7 of such ,code is amended by adding at the end the following3 ,the ,office of the ,retirement ,savings ,lost and ,found established by ,section #cjf of the ,securing a ,strong ,retirement ,act shall not be treated as a trustee or issuer that is eligible to receive such distributions44 7,c7 ,lesser amounts ,section #dja7;a77#ca77;,b7 of such ,code is amended by adding at the end the following new clauses3 7iii7 ,treatment of lesser amounts ,in the case of a trust which is part of an eligible plan1 such trust shall not be a qualified trust under this section unless such plan provides that1 if a participant in the plan separates from the service covered by the plan and the nonforfeitable accrued benefit described in clause 7ii7 is not in excess of #a1jjj1 the plan administrator shall 7either separately or as part of the notice under section #djb7;f77 notify the participant that the participant is entitled to such benefit or attempt to pay the benefit directly to the participant4 7iv7 ,transfers to ,retirement ,savings ,lost and ,found ,if1 after a plan administrator takes the action required under clause 7iii71 the participant does not-- 7,i7 within #f months of the notification under such clause1 make an election under subparagraph 7,a7 or elect to receive a distribution of the benefit directly1 or 7,,ii7 accept any direct payment made under such clause within #f months of the attempted payment1 the plan administrator shall transfer the amount of such benefit to the ,office of the ,retirement ,savings ,lost and ,found in accordance with section #cjf7;c77#b77;a77ii7 of the ,securing a ,strong ,retirement ,act of #bjbj4 7v7 ,income tax treatment of transfers to ,retirement ,savings ,lost and ,found ,for purposes of determining the income tax treatment of transfers to the ,office of the ,retirement ,savings ,lost and ,found under clause 7iv7-- 7,i7 such a transfer shall be treated as a transfer to an individual retirement plan under clause 7i71 and 7,,ii7 the distribution of such amounts by the ,office of the ,retirement ,savings ,lost and ,found shall be treated as a distribution from an individual retirement plan4 4 7,d7 ,effective date ,the amendments made by this paragraph shall apply to vested benefits with respect to participants who separate from service connected to the plan in plan years beginning after the second ,december #ca occurring after the date of the enactment of this ,act4 7c7 ,office of the ,retirement ,savings ,lost and ,found 7#a7 ,in general ,not later than one year after the date of the enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of ,treasury1 and the ,secretary of ,commerce shall establish within the ,pension ,benefit ,guaranty ,corporation an ,office of the ,retirement ,savings ,lost and ,found to operate in conjunction with section #djej of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acej74 7#b7 ,responsibilities of ,office 7,a7 ,in general ,in addition to administering the ,retirement ,savings ,lost and ,found under subsection 7a7 and carrying out the duties described in clauses 7ii7 and 7iii7 of subsection 7a77#a77;,a71 the ,office of the ,retirement ,savings ,lost and ,found established under this section shall-- 7i7 perform an annual audit of plan information contained in the ,retirement ,savings ,lost and ,found and ensure that such information is current and accurate2 7ii7 invest any amount transferred under section #dja7;a77#ca77;,b77iv7 of the ,internal ,revenue ,code of #aihf in ,united ,states ,treasury securities2 7iii7 upon application filed by the participant or beneficiary in such form and manner as may be prescribed in regulations1 pay to the participant or beneficiary the amount transferred 7or the appropriate survivor benefit7 either-- 7,i7 in a single sum 7plus interest72 or 7,,ii7 in such other form as is specified in regulations2 and 7iv7 identify such amount as eligible to be paid into an eligible retirement plan described in section #djb7;c77#h77;,b7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,option to contract ,the ,office of the ,retirement ,savings ,lost and ,found shall conduct an analysis of the cost effectiveness of contracting with a third party to carry out the responsibilities under subparagraph 7,a7 and1 if the ,pension ,benefit ,guaranty ,corporation determines that it would be more cost effective to do so than to carry out such responsibilities within the ,office of the ,retirement ,savings ,lost and ,found1 the ,director shall report to the ,committees on ,finance and ,health1 ,education1 ,labor1 and ,pensions of the ,senate and the ,committees on ,ways and ,means and ,education and ,labor of the ,house of ,representatives the intention to so contract4 7,c7 ,option to prescribe protocols ,the ,pension ,benefit ,guaranty ,corporation may establish protocols to assist participants originally treated as lost or missing in claiming their benefits under a plan4 7,d7 ,coordination ,the ,office of the ,retirement ,savings ,lost and ,found shall coordinate with the ,social ,security ,administration1 the ,employee ,benefits ,security ,administration1 and other applicable agencies to integrate information and databases on lost1 missing1 and inactive participants4 7d7 ,transmission of information to ,pension ,benefit ,guaranty ,corporation ,section #fjeg of the ,internal ,revenue ,code of #aihf1 as amended by the preceding provisions of this ,act1 is amended by redesignating subsection 7h7 as subsection 7i7 and by inserting after subsection 7g7 the following new subsection3 7h7 ,transmission of information to ,director of ,pension ,benefit ,guaranty ,corporation ,the ,secretary shall transmit copies of any statements1 notifications1 reports1 or other information obtained by him under this section to the ,director of the ,pension ,benefit ,guaranty ,corporation4 4 #cjg4 ,exemption from required minimum distribution rules for individuals with certain account balances 7a7 ,in general ,section #dja7;a77#i7 of the ,internal ,revenue ,code of #aihf1 as amended by the preceding provisions of this ,act1 is further amended by adding at the end the following new subparagraph3 7,l7 ,exception from required minimum distributions during life of employee where assets do not exceed #ajj1jjj 7i7 ,in general ,if1 as of a measurement date1 the aggregate value of an employee's entire interest under all defined contribution plans does not exceed #ajj1jjj1 then1 during any succeeding calendar year beginning before the next measurement date1 the requirements of subparagraph 7,a7 shall not apply with respect to such employee4 7ii7 ,defined contribution plan ,for purposes of this subparagraph1 the term defined contribution plan has the same meaning as when used in subparagraph 7,h74 7iii7 ,limit on required minimum distribution ,the required minimum distribution determined under subparagraph 7,a7 for an employee under all defined contribution plans shall not exceed an amount equal to the excess of-- 7,i7 the aggregate value of an employee's entire interest under such plans on the last day of the calendar year to which such distribution relates1 over 7,,ii7 the dollar amount in effect under clause 7i7 for such calendar year4 ,the ,secretary in regulations or other guidance may provide how such amount shall be distributed in the case of an individual with more than one defined contribution plan4 7iv7 ,measurement date ,for purposes of this subparagraph1 the term measurement date means1 with respect to any employee-- 7,i7 the last day of the calendar year preceding the calendar year in which the employee attains age #ge1 and 7,,ii7 in the case of any employee who 7after a measurement date determined under subclause 7,i7 with respect to such employee7 receives contributions1 rollovers1 or transfers of amounts that were not previously taken into account in applying this subparagraph1 the last day of the calendar year in which such contribution1 rollover1 or transfer was so received4 7v7 ,inflation adjustment ,in the case of any calendar year beginning after #bjbj1 the #ajj1jjj amount in clause 7i7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost of living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,any increase determined under this clause shall be rounded to the next lowest multiple of #e1jjj4 7vi7 ,plan administrator reliance on employee certification ,a defined contribution plan described in clause 7iii71 7iv71 7v71 or 7vi7 of section #djb7;c77#h77;,b7 shall not be treated as failing to meet the requirements of this paragraph in the case of any failure to make a required minimum distribution for a calendar year if-- 7,i7 the aggregate value of an employee's entire interest under all defined contribution plans of the employer on the last day of the calendar year to which such distribution relates does not exceed the dollar amount in effect for such year under clause 7i71 and 7,,ii7 the employee certifies that the aggregate value of the employee's entire interest under all defined contribution plans on the most recent measurement date with respect to the employee 7as determined by the employee based on guidance provided by the ,secretary7 did not exceed the dollar amount in effect for such year under clause 7i74 7vii7 ,aggregation rule ,all employers treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad shall be treated as a single employer for purposes of clause 7v74 4 7b7 ,plan administrator reporting ,section #fjdg of such ,code is amended by redesignating subsection 7h7 as subsection 7i7 and by inserting after subsection 7g7 the following new subsection3 7h7 ,account balance for participants who have attained age #gd 7#a7 ,in general ,not later than ,january #ca of each year1 the plan administrator 7as defined in section #dad7;g77 of each defined contribution plan 7as defined in section #dja7;a77#i77,l77 shall make a return to the ,secretary with respect to each participant of such plan who has attained age #gd as of the end of the preceding calendar year which states-- 7,a7 the name and plan number of the plan1 7,b7 the name and address of the plan administrator1 7,c7 the name1 address1 and taxpayer identification number of the participant1 and 7,d7 the account balance of such participant as of the end of the preceding calendar year4 7#b7 ,statement furnished to participant ,every person required to make a return under paragraph 7#a7 with respect to a participant shall furnish a copy of such return to such participant4 7#c7 ,application to individual retirement plans and annuities ,in the case of an defined contribution plan described in clause 7i7 or 7ii7 of section #djb7;c77#h77;,b7-- 7,a7 any reference in this subsection to the plan administrator shall be treated as a reference to the trustee or issuer1 as the case may be1 and 7,b7 any reference in this subsection to the participant shall be treated as a reference to the individual for whom such account or annuity is maintained4 4 7c7 ,effective date ,the amendments made by this section shall apply to distributions required to be made in calendar years beginning more than #abj days after the date of the enactment of this ,act4 #cjh4 ,expansion of ,employee ,plans ,compliance ,resolution ,system 7a7 ,in general ,except as otherwise provided in the ,internal ,revenue ,code of #aihf or regulations prescribed by the ,secretary of the ,treasury or the ,secretary's delegate 7referred to in this section as the ,secretary71 any eligible inadvertent failure to comply with the rules applicable under section #dja7;a71 #djc7;a71 #djc7;b71 #djh7p71 or #djh7k7 of such ,code may be self-corrected under the ,employee ,plans ,compliance ,resolution ,system 7as described in ,revenue ,procedure #bjai-ai or any successor guidance and hereafter in this section referred to as the ,,epcrs71 except to the extent that such failure was identified by the ,secretary prior to any actions which demonstrate a commitment to implement a self-correction4 ,revenue ,procedure #bjai-ai is deemed amended as of the date of the enactment of this ,act to provide that the correction period under section #i4jb of such ,revenue ,procedure 7or any successor guidance7 for an eligible inadvertent failure1 except as otherwise provided under such ,code or in regulations prescribed by the ,secretary1 is indefinite and has no last day1 other than with respect to failures identified by the ,secretary prior to any self-correction as described in the preceding sentence4 7b7 ,loan errors ,in the case of an eligible inadvertent failure relating to a loan from a plan to a participant-- 7#a7 such failure may be self-corrected under subsection 7a7 according to the rules of section #f4jg of ,revenue ,procedure #bjai-ai 7or any successor guidance71 including the provisions related to whether a deemed distribution must be reported on ,form #ajii-,r1 and 7#b7 the ,secretary of ,labor shall treat any such failure which is so self-corrected under subsection 7a7 as meeting the requirements of the ,voluntary ,fiduciary ,correction ,program of the ,department of ,labor if1 with respect to the violation of the fiduciary standards of the ,employee ,retirement ,income ,security ,act of #aigd1 there is a similar loan error eligible for correction under ,,epcrs and the loan error is corrected in such manner4 7c7 ,,epcrs for ,i,r,as ,the ,secretary shall expand the ,,epcrs to allow custodians of individual retirement plans 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf7 to address eligible inadvertent failures for which the owner of an individual retirement plan 7as so defined7 was not at fault1 including 7but not limited to7-- 7#a7 waivers of the excise tax which would otherwise apply under section #digd of the ,internal ,revenue ,code of #aihf1 7#b7 under the self-correction component of the ,,epcrs1 waivers of the #fj-;day deadline for a rollover where the deadline is missed for reasons beyond the reasonable control of the account owner1 and 7#c7 rules permitting a nonspouse beneficiary to return distributions to an inherited individual retirement plan described in section #djh7;d77#c77;,c7 of the ,internal ,revenue ,code of #aihf in a case where1 due to an inadvertent error by a service provider1 the beneficiary had reason to believe that the distribution could be rolled over without inclusion in income of any part of the distributed amount4 7d7 ,required minimum distribution corrections ,the ,secretary shall expand the ,,epcrs to allow plans to which such system applies and custodians and owners of individual retirement plans to self-correct1 without an excise tax1 any eligible inadvertent failures pursuant to which a distribution is made no more than #ahj days after it was required to be made4 7e7 ,additional safe harbors ,the ,secretary shall expand the ,,epcrs to provide additional safe harbor means of correcting eligible inadvertent failures described in subsection 7a71 including safe harbor means of calculating the earnings which must be restored to a plan in cases where plan assets have been depleted by reason of an eligible inadvertent failure4 7f7 ,eligible inadvertent failure ,for purposes of this section-- 7#a7 ,in general ,except as provided in paragraph 7#b71 the term eligible inadvertent failure means a failure that occurs despite the existence of practices and procedures which-- 7,a7 satisfy the standards set forth in section #d4jd of ,revenue ,procedure #bjai-ai 7or any successor guidance71 or 7,b7 satisfy similar standards in the case of an individual retirement plan4 7#b7 ,exception ,the term eligible inadvertent failure shall not include any failure which is egregious1 relates to the diversion or misuse of plan assets1 or is directly or indirectly related to an abusive tax avoidance transaction4 7g7 ,application of certain requirements for correcting errors ,this section shall not apply to any failure unless the correction of such failure under this section is made in conformity with the general principles that apply to corrections of such failures under the ,internal ,revenue ,code of #aihf1 including regulations or other guidance issued thereunder and including those principles and corrections set forth in ,revenue ,procedure #bjai-ai 7or any successor guidance740 #cji4 ,eliminate the first day of the month requirement for governmental section #deg7;b7 plans 7a7 ,in general ,paragraph 7#d7 of section #deg7;b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#d7 which provides that compensation-- 7,a7 in the case of an eligible employer described in subsection 7e77#a77;,a71 will be deferred only if an agreement providing for such deferral has been entered into before the compensation is currently available to the individual1 and 7,b7 in any other case1 will be deferred for any calendar month only if an agreement providing for such deferral has been entered into before the beginning of such month1 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 #caj4 ,one-time election for qualified charitable distribution to split-interest entity2 increase in qualified charitable distribution limitation 7a7 ,increase in limitation ,section #djh7;d77#h77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking #ajj1jjj and inserting #acj1jjj4 7b7 ,one-,time election for qualified charitable distribution to split-,interest entity ,section #djh7;d77#h7 of such ,code is amended by adding at the end the following new subparagraph3 7,f7 ,one-time election for qualified charitable distribution to split-interest entity 7i7 ,in general ,a taxpayer may for a taxable year elect under this subparagraph to treat as meeting the requirement of subparagraph 7,b77i7 any distribution from an individual retirement account which is made directly by the trustee to a split-interest entity1 but only if-- 7,i7 an election is not in effect under this subparagraph for a preceding taxable year1 and 7,,ii7 such distribution meets the requirements of clauses 7iii7 and 7iv74 7ii7 ,split-interest entity ,for purposes of this subparagraph1 the term split-interest entity means-- 7,i7 a charitable remainder annuity trust 7as defined in section #ffd7;d77#a771 but only if such trust is funded exclusively by qualified charitable distributions1 7,,ii7 a charitable remainder unitrust 7as defined in section #ffd7;d77#b771 but only if such unitrust is funded exclusively by qualified charitable distributions1 or 7,,iii7 a charitable gift annuity 7as defined in section #eja7m77#e771 but only if such annuity is funded exclusively by qualified charitable distributions and commences fixed payments of #e percent or greater not later than #a year from the date of funding4 7iii7 ,contributions must be otherwise deductible ,a distribution meets the requirement of this clause only if-- 7,i7 in the case of a distribution to a charitable remainder annuity trust or a charitable remainder unitrust1 a deduction for the entire value of the remainder interest in the distribution for the benefit of a specified charitable organization would be allowable under section #agj 7determined without regard to subsection 7b7 thereof and this paragraph71 and 7,,ii7 in the case of a charitable gift annuity1 a deduction in an amount equal to the amount of the distribution reduced by the value of the annuity described in section #eja7m77#e77;,b7 would be allowable under section #agj 7determined without regard to subsection 7b7 thereof and this paragraph74 7iv7 ,limitation on income interests ,a distribution meets the requirements of this clause only if-- 7,i7 no person holds an income interest in the split-interest entity other than the individual for whose benefit such account is maintained1 the spouse of such individual1 or both1 and 7,,ii7 the income interest in the split-interest entity is nonassignable4 7v7 ,special rules 7,i7 ,charitable remainder trusts ,notwithstanding section #ffd7;b71 distributions made from a trust described in subclause 7,i7 or 7,,ii7 of clause 7ii7 shall be treated as ordinary income in the hands of the beneficiary to whom the annuity described in section #ffd7;d77#a77;,a7 or the payment described in section #ffd7;d77#b77;,a7 is paid4 7,,ii7 ,charitable gift annuities ,qualified charitable distributions made to fund a charitable gift annuity shall not be treated as an investment in the contract for purposes of section #gb7;c74 4 7c7 ,effective date ,the amendment made by this section shall apply to distributions made in taxable years ending after the date of the enactment of this ,act4 #caa4 ,retirement plan distributions for charitable purpose 7a7 ,in general ,section #djb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7m7 ,distributions for charitable purposes 7#a7 ,in general ,gross income for any taxable year shall not include so much of the aggregate amount of qualified charitable distributions made with respect to a taxpayer during such taxable year which does not exceed the applicable amount4 7#b7 ,qualified charitable distribution ,for purposes of this subsection1 the term qualified charitable distribution means any distribution from a trust as defined in section #dja7;a7 that is exempt from tax under #eja7;a7-- 7,a7 which is made directly by the plan to an organization described in section #agj7;b77#a77;,a7 7other than any organization described in section #eji7;a77#c7 or any fund or account described in section #diff7;d77#b771 and 7,b7 which is made on or after the date that the individual on whose behalf the distribution is made has attained age #gj4 ,a distribution shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to paragraph 7#a74 7#c7 ,special rules 7,a7 ,in general ,rules similar to the rules of subparagraphs 7,c71 7,e71 and 7,f7 of section #djh7;d77#h7 shall apply for purposes of this subsection4 7,b7 ,application of section #gb ,rules similar to the rules of section #djh7;d77#h77;,d7 shall apply for purposes of this subsection1 by taking into account all amounts in the eligible retirement plan to which the taxpayer has a nonforfeitable right in lieu of all amounts in all individual retirement plans of the individual4 7#d7 ,applicable amount ,for purposes of this subsection1 the term applicable amount means the excess of-- 7,a7 #acj1jjj1 over 7,b7 the total amount of any distributions not includible in gross income of the taxpayer for the taxable year by reason of sections #djc7;d71 #djh7;d77#h71 and #deg7;e77#ai74 4 7b7 ,s,e,ps and ,s,i,m,p,l,es ,section #djh7;d77#h77;,b7 of such ,code is amended by striking 7other than a plan described in subsection 7k7 or 7p774 7c7 ,certain annuity plans ,section #djc of such ,code is amended by adding at the end the following new subsection3 7d7 ,distributions for charitable purposes ,the rules of section #djb7m7 shall apply to distributions under an annuity plan described in subsection 7a7 or an annuity contract described in subsection 7b74 4 7d7 #deg7;b7 plans ,subsection 7e7 of section #deg of such ,code is amended by adding at the end the following new paragraph3 7#ai7 ,distributions for charitable purposes ,the rules of section #djb7m7 shall apply to distributions under an eligible deferred compensation plan established and maintained by an employer described in subsection 7e77#a77;,a74 4 7e7 ,effective date ,the amendments made by this section shall apply to distributions made in taxable years ending after the date of the enactment of this ,act4 #cab4 ,distributions to firefighters 7a7 ,in general ,subparagraph 7,a7 of section #gb7t77#aj7 of the ,internal ,revenue ,code of #aihf is amended by striking #dad7;d77 and inserting #dad7;d77 or a distribution from a plan described in clause 7iii71 7iv71 or 7vi7 of section #djb7;c77#h77;,b7 to an employee who provides firefighting services4 7b7 ,conforming amendment ,the heading of paragraph 7#aj7 of section #gb7t7 of such ,code is amended-- 7#a7 by striking qualified1 and 7#b7 by striking in governmental plans4 7c7 ,effective date ,the amendments made by this section shall apply to distributions made after ,december #ca1 #bjbj4 #cac4 ,exclusion of certain disability-related first responder retirement payments 7a7 ,in general ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #aci;,b the following new section3 #aci;,c4 ,certain disability-related first responder retirement payments 7a7 ,in general ,in the case of an individual who receives qualified first responder retirement payments for any taxable year1 gross income shall not include so much of such payments as do not exceed the annualized excludable disability amount with respect to such individual4 7b7 ,qualified first responder retirement payments ,for purposes of this section1 the term qualified first responder retirement payments means1 with respect to any taxable year1 any pension or annuity which but for this section would be includible in gross income for such taxable year and which is received-- 7#a7 from a plan described in clause 7iii71 7iv71 7v71 or 7vi7 of section #djb7;c77#h77;,b71 and 7#b7 in connection with such individual's qualified first responder service4 7c7 ,annualized excludable disability amount ,for purposes of this section-- 7#a7 ,in general ,the term annualized excludable disability amount means1 with respect to any individual1 the service-connected excludable disability amounts which are properly attributable to the #ab-month period immediately preceding the date on which such individual attains retirement age4 7#b7 ,service-connected excludable disability amount ,the term service-connected excludable disability amount means periodic payments received by an individual which-- 7,a7 are not includible in such individual's gross income under section #ajd7;a77#a71 7,b7 are received in connection with such individual's qualified first responder service1 and 7,c7 terminate when such individual attains retirement age4 7#c7 ,special rule for partial-year payments ,in the case of an individual who only receives service-connected excludable disability amounts properly attributable to a portion of the #ab-month period described in paragraph 7#a71 such paragraph shall be applied by multiplying such amounts by the ratio of #cfe to the number of days in such period to which such amounts were properly attributable4 7d7 ,qualified first responder service ,for purposes of this section1 the term qualified first responder service means service as a law enforcement officer1 firefighter1 paramedic1 or emergency medical technician4 4 7b7 ,clerical amendment ,the table of sections for part ,,iii of subchapter ,b of chapter #a of such ,code is amended by inserting after the item relating to section #aci;,b the following new item3 ,sec4 #aci;,c4 ,certain disability-related first responder retirement payments4 4 7c7 ,effective date ,the amendments made by this section shall apply to amounts received with respect to taxable years beginning after the date of the enactment of this ,act4 #cad4 ,individual retirement plan statute of limitations for excise tax on excess contributions1 certain accumulations1 and prohibited transactions ,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 plan70 after 8section #dige1 and 7#b7 by adding at the end the following new paragraph3 7#d7 ,individual retirement plans 7,a7 ,in general ,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 7,b7 ,rule in case of individuals not required to file return ,in the case of a person who is not required to file an income tax return for such year-- 7i7 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 7ii7 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 #cae4 ,requirement to provide paper statements in certain cases 7a7 ,in general ,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 subparagraph 7,a77iv71 by inserting subject to subparagraph 7,e71 before may be delivered2 and 7#b7 by adding at the end the following3 7,e7 ,provision of paper statements ,with respect to at least #a pension benefit statement furnished for a calendar year with respect to an individual account plan under paragraph 7#a77;,a71 and with respect to at least #a pension benefit statement furnished every #c calendar years with respect to a defined benefit plan under paragraph 7#a77;,b71 such statement shall be furnished on paper in written form except-- 7i7 in the case of a plan that furnishes such statement in accordance with section #bebj4ajd;b-#a7;c7 of title #bi1 ,code of ,federal ,regulations2 or 7ii7 in the case of a plan that permits a participant or beneficiary to request that the statements referred to in the matter preceding clause 7i7 be furnished by electronic delivery1 if the participant or beneficiary requests that such statements be delivered electronically and the statements are so delivered4 4 7b7 ,implementation 7#a7 ,in general ,the ,secretary of ,labor shall1 not later than ,july #a1 #bjba1 update section #bebj4ajd;b-#a7;c7 of title #bi1 ,code of ,federal ,regulations1 to provide that a plan may furnish the statements referred to in subparagraph 7,e7 of section #aje7;a77#b7 by electronic delivery only if1 in addition to meeting the other requirements under the regulations-- 7,a7 such plan furnishes each participant1 including participants described in subparagraph 7,b71 a one-time initial notice on paper in written form1 prior to the electronic delivery of any pension benefit statement1 of their right to request that all documents required to be disclosed under title ,i of the ,employee ,retirement ,income ,security ,act of #aigd be furnished on paper in written form2 and 7,b7 such plan furnishes each participant who is separated from service with at least #a pension benefit statement on paper in written form for each calendar year4 7#b7 ,other guidance ,in implementing the amendment made by subsection 7a7 with respect to a plan that discloses required documents or statements electronically1 in accordance with applicable guidance governing electronic disclosure by the ,department of ,labor 7with the exception of section #bebj4ajd;b-#a7;c7 of title #bi1 ,code of ,federal ,regulations71 the ,secretary of ,labor shall1 not later than ,july #a1 #bjba1 update such guidance to the extent necessary to ensure that-- 7,a7 a participant or beneficiary under such a plan is permitted the opportunity to request that any disclosure required to be delivered on paper under applicable guidance by the ,department of ,labor shall be furnished by electronic delivery2 7,b7 each paper statement furnished under such a plan pursuant to the amendment shall include-- 7i7 an explanation of how to request that all such statements1 and any other document required to be disclosed under title ,i of the ,employee ,retirement ,income ,security ,act of #aigd1 be furnished by electronic delivery2 and 7ii7 contact information for the plan sponsor1 including a telephone number2 7,c7 the plan may not charge any fee to a participant or beneficiary for the delivery of paper statements2 7,d7 each paper pension benefit statement shall identify each plan document required to be disclosed and shall include information about how a participant or beneficiary may access each such document2 7,e7 each document required to be disclosed that is furnished by electronic delivery under such a plan shall include an explanation of how to request that all such documents be furnished on paper in written form2 7,f7 a plan is permitted to furnish a duplicate electronic statement in any case in which the plan furnishes a paper statement2 and 7,g7 furnishment of such a paper pension benefit statement may be combined1 in one document1 with a notice explaining electronic delivery of other disclosure documents as a default selection and the right to opt out of such electronic delivery1 but only if such paper statement is furnished prior to the electronic delivery of any such statement4 7c7 ,effective date ,the amendment made by subsection 7a7 shall apply with respect to plan years beginning after ,december #ca1 #bjba4 ,,iv ,technical ,amendments #dja4 ,amendments relating to ,setting ,every ,community ,up for ,retirement ,enhancement ,act of #bjai 7a7 ,technical amendments 7#a7 ,amendment relating to section #aad ,section #dja7;a77#i77;,c77iii7 of the ,internal ,revenue ,code of #aihf is amended by striking employee to whom clause 7i77,,ii7 applies and inserting employee 7other than an employee to whom clause 7i77,,ii7 does not apply by reason of clause 7ii774 7#b7 ,amendment relating to section #aaf ,section #digc7;b7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end of the flush matter the following3 ,such term shall not include any designated nondeductible contribution 7as defined in subparagraph 7,c7 of section #djh7o77#b77 which does not exceed the nondeductible limit under subparagraph 7,b7 thereof by reason of an election under section #djh7o77#e744 7#c7 ,effective date ,the amendments made by this section shall take effect as if included in section of the ,setting ,every ,community ,up for ,retirement ,enhancement ,act of #bjai to which the amendment relates4 7b7 ,clerical amendment ,section #gb7t77#b77;,h77vi77,,iv7 of the ,internal ,revenue ,code of #aihf is amended by striking #djc7;b77#g77;,a77ii7 and inserting #djc7;b77#g77;,a77i74 ,v ,administrative ,provisions #eja4 ,provisions relating to plan amendments 7a7 ,in general ,if this section applies to any retirement plan or contract amendment-- 7#a7 such retirement plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection 7b77#b77;,a72 and 7#b7 except as provided by the ,secretary of the ,treasury 7or the ,secretary's delegate71 such retirement 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 7b7 ,amendments to which section applies 7#a7 ,in general ,this section shall apply to any amendment to any retirement plan or annuity contract which is made-- 7,a7 pursuant to any amendment made by this ,act or pursuant to any regulation issued by the ,secretary of the ,treasury or the ,secretary of ,labor 7or a delegate of either such ,secretary7 under this ,act2 and 7,b7 on or before the last day of the first plan year beginning on or after ,january #a1 #bjbb4 ,in the case of a governmental plan 7as defined in section #dad7;d7 of the ,internal ,revenue ,code of #aihf71 this paragraph shall be applied by substituting #bjbd for #bjbb4 7#b7 ,conditions ,this section shall not apply to any amendment unless-- 7,a7 during the period-- 7i7 beginning on the date the legislative or regulatory amendment described in paragraph 7#a77;,a7 takes effect 7or in the case of a plan or contract amendment not required by such legislative or regulatory amendment1 the effective date specified by the plan72 and 7ii7 ending on the date described in paragraph 7#a77;,b7 7as modified by the second sentence of paragraph 7#a77 7or1 if earlier1 the date the plan or contract amendment is adopted71 the plan or contract is operated as if such plan or contract amendment were in effect2 and 7,b7 such plan or contract amendment applies retroactively for such period4