,i #aaf? ,,congress #b;d ,session ,h4 ,r4 #hfif ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,octob] #bg1 #bjbj,mr4 ,neal 7= himself & ,mr4 ,brady7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committees on ,f9ancial ,s]vices1 & ,education & ,labor1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to increase retirem5t sav+s1 simplify & cl>ify retirem5t plan rules1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,secur+ a ,/rong ,retirem5t ,act ( #bjbj4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4,title ,i--,exp&+ ,cov]age & ,increas+ ,retirem5t ,savings,sec4 #aja4 ,exp&+ automatic enrollm5t 9 retirem5t plans4,sec4 #ajb4 ,modification ( cr$it = small employ] p5sion plan />tup co/s4,sec4 #ajc4 ,simplification & increase 9 ,sav]'s ,cr$it4,sec4 #ajd4 ,enhancem5t ( #djc7;b7 plans4,sec4 #aje4 ,increase 9 age = requir$ beg9n+ date = m&atory di/ributions4,sec4 #ajf4 ,def]ral ( tax = c]ta9 sales ( employ] /ock to employee /ock own]%ip plan sponsor$ by ,s corporation4,sec4 #ajg4 ,index+ ,,ira cat*-up limit4,sec4 #ajh4 ,high] cat*-up limit to apply at age #fj4,sec4 #aji4 ,multiple employ] #djc7;b7 plans4,sec4 #aaj4 ,treatm5t ( /ud5t loan paym5ts z elective def]rals = purposes ( mat*+ contributions4,sec4 #aaa4 ,application ( cr$it = small employ] p5sion plan />tup co/s to employ]s :i* jo9 an exi/+ plan4,sec4 #aab4 ,milit>y sp\se retirem5t plan eligibility cr$it = small employ]s4,sec4 #aac4 ,small imm$iate f9ancial inc5tives = contribut+ to a plan4,sec4 #aad4 ,safe h>bor = corrections ( employee elective def]ral failures4,sec4 #aae4 ,"o-ye> r$uction 9 p]iod ( s]vice requirem5t = long-t]m1 "p-"t work]s4,sec4 #aaf4 ,gov]nm5tal p5sion plans may include c]ta9 firefight]s1 em]g5cy m$ical te*nicians1 & p>am$ics4,title ,,ii--,pres]vation ( ,income,sec4 #bja4 ,remove requir$ m9imum di/ribution b>ri]s = life annuities4,sec4 #bjb4 ,qualify+ longevity annuity contracts4,sec4 #bjc4 ,insurance-d$icat$ ex*ange-trad$ funds4,title ,,iii--,simplification & ,cl>ification ( ,retirem5t ,plan ,rules,sec4 #cja4 ,recov]y ( retirem5t plan ov]paym5ts4,sec4 #cjb4 ,r$uction 9 excise tax on c]ta9 accumulations 9 qualifi$ retirem5t plans4,sec4 #cjc4 ,p]=mance b5*m>ks = asset allocation funds4,sec4 #cjd4 ,review & report to ! ,congress relat+ to report+ & disclosure requirem5ts4,sec4 #cje4 ,elim9at+ unnecess>y plan requirem5ts relat$ to un5roll$ p>ticipants4,sec4 #cjf4 ,retirem5t sav+s lo/ & f\nd4,sec4 #cjg4 ,exemption f requir$ m9imum di/ribution rules = individuals ) c]ta9 acc\nt balances4,sec4 #cjh4 ,expansion ( ,employee ,plans ,compliance ,resolution ,sy/em4,sec4 #cji4 ,elim9ate ! fir/ day ( ! mon? requirem5t = gov]nm5tal section #deg7;b7 plans4,sec4 #caj4 ,"o-"t election = qualifi$ *>itable di/ribution to split-int]e/ entity2 increase 9 qualifi$ *>itable di/ribution limitation4,sec4 #caa4 ,retirem5t plan di/ributions = *>itable purpose4,sec4 #cab4 ,di/ributions to firefight]s4,sec4 #cac4 ,exclusion ( c]ta9 disability-relat$ fir/ respond] retirem5t paym5ts4,sec4 #cad4 ,individual retirem5t plan /atute ( limitations = excise tax on excess contributions1 c]ta9 accumulations1 & prohibit$ transactions4,sec4 #cae4 ,requirem5t to provide pap] /atem5ts 9 c]ta9 cases4,title ,,iv--,te*nical ,amendments,sec4 #dja4 ,am5dm5ts relat+ to ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai4,title ,v--,adm9i/rative ,provisions,sec4 #eja4 ,provisions relat+ to plan am5dm5ts4 ,i ,exp&+ ,cov]age & ,increas+ ,retirem5t ,sav+s #aja4 ,exp&+ automatic enrollm5t 9 retirem5t plans 7a7 ,9 g5]al ,subp>t ,b ( "p ,i ( sub*apt] ,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #dad ! foll[+ new section3 #dad;,a4 ,requirem5ts relat$ to automatic enrollm5t 7a7 ,9 g5]al ,except z o!rwise provid$ 9 ?is section-- 7#a7 an arrangem5t %all n be treat$ z a qualifi$ ca% or def]r$ arrangem5t describ$ 9 section #dja7k7 or z a qualifi$ sal>y r$uction arrangem5t describ$ 9 section #djh7p7 unless su* arrangem5t meets ! automatic enrollm5t requirem5ts ( subsection 7b71 & 7#b7 an annuity contract o!rwise describ$ 9 section #djc7;b77#a7 :i* is pur*as$ "u a sal>y r$uction agreem5t %all n be treat$ z describ$ 9 su* section unless su* agreem5t meets ! automatic enrollm5t requirem5ts ( subsection 7b74 7b7 ,automatic enrollm5t requirem5ts 7#a7 ,9 g5]al ,an arrangem5t or agreem5t meets ! requirem5ts ( ?is subsection if su* arrangem5t or agreem5t is an eligible automatic contribution arrangem5t 7z def9$ 9 section #dad7w77#c77 :i* meets ! requirem5ts ( p>agraphs 7#b7 ?r\gh 7#d74 7#b7 ,all[ance ( p]missible )drawals ,an eligible automatic contribution arrangem5t meets ! requirem5ts ( ?is p>agraph if su* arrangem5t all[s employees to make p]missible )drawals 7z def9$ 9 section #dad7w77#b774 7#c7 ,m9imum contribution p]c5tage ,an eligible automatic contribution arrangem5t meets ! requirem5ts ( ?is p>agraph if-- 7,a7 ! uni=m p]c5tage ( comp5sation contribut$ by ! p>ticipant "u su* arrangem5t dur+ ! fir/ ye> ( p>ticipation is n less ?an #c p]c5t & n m ?an #aj p]c5t 7unless ! p>ticipant specifically elects n to h su* contributions made or to h su* contributions made at a diff]5t p]c5tage71 & 7,b7 su* uni=m p]c5tage is increas$ by #a p]c5tage po9t = ea* ye> ( p>ticipation "u su* arrangem5t 7b n above #aj p]c5t7 unless ! p>ticipant specifically elects n to h su* contributions made or to h su* contributions made at a diff]5t p]c5tage4 7#d7 ,inve/m5t requirem5ts ,an eligible automatic contribution arrangem5t meets ! requirem5ts ( ?is p>agraph if am\nts contribut$ pursuant to su* arrangem5t1 & = :i* no inve/m5t is elect$ by ! p>ticipant1 are inve/$ consi/5t ) ! requirem5ts ( section #beej4djd;c-#e ( title #bi1 ,code ( ,f$]al ,regulations 7or any successor regulations74 7c7 ,exceptions ,= purposes ( ?is section-- 7#a7 ,exception = plans or arrangem5ts e/abli%$ be=e enactm5t ( section ,subsection 7a7 %all n apply to-- 7,a7 any qualifi$ ca% or def]r$ arrangem5t or qualifi$ sal>y r$uction arrangem5t e/abli%$ be=e ! date ( ! enactm5t ( ?is section1 or 7,b7 any annuity contract pur*as$ "u a plan e/abli%$ be=e ! date ( ! enactm5t ( ?is section4 7#b7 ,exception = gov]nm5tal & *ur* plans ,subsection 7a7 %all n apply to any gov]nm5tal plan 7)9 ! mean+ ( section #dad7;d77 or any *ur* plan 7)9 ! mean+ ( section #dad7;e774 7#c7 ,exception = new bus9esses ,subsection 7a7 %all n apply to-- 7,a7 any qualifi$ ca% or def]r$ arrangem5t or qualifi$ sal>y r$uction arrangem5t e/abli%$ :ile all employ]s ma9ta9+ ! plan 7& any pr$ecessor employ]s7 h be5 9 exi/5ce = less ?an #c ye>s1 or 7,b7 any annuity contract pur*as$ "u a plan e/abli%$ :ile all employ]s ma9ta9+ su* plan h be5 9 exi/5ce = less ?an #c ye>s4 7#d7 ,exception = small bus9esses ,subsection 7a7 %all n apply to-- 7,a7 any qualifi$ ca% or def]r$ arrangem5t or qualifi$ sal>y r$uction arrangem5t if su* arrangem5t is e/abli%$ n lat] ?an #a ye> aft] ! close ( ! la/ taxable ye> ) respect to :i* all employ]s ma9ta9+ ! plan normally employ$ #aj or few] employees on a typical bus9ess day1 or 7,b7 any annuity contract pur*as$ "u a plan e/abli%$ n lat] ?an #a ye> aft] ! close ( ! la/ taxable ye> ) respect to :i* all employ]s ma9ta9+ su* plan normally employ$ #aj or few] employees on a typical bus9ess day4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,b ( "p ,i ( sub*apt] ,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #dad ! foll[+ new item3 ,sec4 #dad;,a4 ,requirem5ts relat$ to automatic enrollm5t4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjba4 #ajb4 ,modification ( cr$it = small employ] p5sion plan />tup co/s 7a7 ,increase 9 cr$it p]c5tage = small] employ]s ,section #de;,e7e7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,increas$ cr$it = c]ta9 small employ]s ,9 ! case ( an employ] :i* w\ld be an eligible employ] "u subsection 7c7 if section #djh7p77#b77;,c77i7 0 appli$ by sub/itut+ #ej employees = #ajj employees1 subsection 7a7 %all be appli$ by sub/itut+ #ajj p]c5t = #ej p]c5t4 4 7b7 ,additional cr$it = employ] contributions by c]ta9 small employ]s ,section #de;,e ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,additional cr$it = employ] contributions by c]ta9 eligible employ]s 7#a7 ,9 g5]al ,9 ! case ( an eligible employ]1 ! cr$it all[$ = ! taxable ye> "u subsection 7a7 7det]m9$ )\t reg>d to ?is subsection7 %all be increas$ by an am\nt equal to ! applicable p]c5tage ( employ] contributions 7o!r ?an any elective def]rals 7z def9$ 9 section #djb7;g77#c777 by ! employ] to an eligible employ] plan 7o!r ?an a def9$ b5efit plan 7z def9$ 9 section #dad7;j7774 7#b7 ,limitations 7,a7 ,doll> limitation ,! am\nt det]m9$ "u p>agraph 7#a7 7be=e ! application ( subp>agraph 7,b77 ) respect to any employee ( ! employ] %all n exce$ #a1jjj4 7,b7 ,cr$it phase-9 ,9 ! case ( any eligible employ] :i* _h = ! prec$+ taxable ye> m ?an #ej employees1 ! am\nt det]m9$ "u p>agraph 7#a7 7)\t reg>d to ?is subp>agraph7 %all be r$uc$ by an am\nt equal to ! product (-- 7i7 ! am\nt o!rwise s det]m9$ "u p>agraph 7#a71 multipli$ by 7ii7 a p]c5tage equal to #b p]c5tage po9ts = ea* employee ( ! employ] = ! prec$+ taxable ye> 9 excess ( #ej employees4 7#c7 ,applicable p]c5tage ,= purposes ( ?is section1 ! applicable p]c5tage = ! taxable ye> dur+ :i* ! eligible employ] plan is e/abli%$ %all be #ajj p]c5t1 & = taxable ye>s !reaft] %all be det]m9$ "u ! foll[+ table3 ,9 ! case ( ! foll[+ taxable ye> beg9n+ aft] ! taxable ye> dur+ :i* plan is e/abli%$3 ,! applicable p]c5tage %all be3 #a/#ajjbnd#gecrd#ejd?#be;,any taxable ye> !reaft]#j 7#d7 ,det]m9ation ( eligible employ]2 numb] ( employees ,= purposes ( ?is subsection1 :e!r an employ] is an eligible employ] & ! numb] ( employees ( an employ] %all be det]m9$ "u ! rules ( subsection 7c71 except t p>agraph 7#b7 !re( %all only apply to ! taxable ye> dur+ :i* ! eligible employ] plan to :i* ?is section applies is e/abli%$4 4 7c7 ,disall[ance ( d$uction ,section #de;,e7e77#b7 ( su* ,code is am5d$ to read z foll[s3 7#b7 ,disall[ance ( d$uction ,no d$uction %all be all[$-- 7,a7 = t portion ( ! qualifi$ />tup co/s paid or incurr$ = ! taxable ye> :i* is equal to s mu* ( ! portion ( ! cr$it det]m9$ "u subsection 7a7 z is prop]ly allocable to su* co/s1 & 7,b7 = t portion ( ! employ] contributions by ! employ] = ! taxable ye> :i* is equal to s mu* ( ! cr$it increase det]m9$ "u subsection 7f7 z is prop]ly allocable to su* contributions4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbj4 #ajc4 ,simplification & increase 9 ,sav]'s ,cr$it 7a7 ,9 g5]al ,section #be;,b7a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ ! applicable p]c5tage & all t foll[s ?r\gh #b1jjj & ins]t+ ! foll[+3 #ej p]c5t ( s mu* ( ! qualifi$ retirem5t sav+s contributions ( ! eligible individual = ! taxable ye> z does n exce$ #c1jjj4 7b7 ,income limitation ,section #be;,b7b7 ( su* ,code is am5d$ to read z foll[s3 7b7 ,income limitation 7#a7 ,9 g5]al ,! am\nt all[able z a cr$it "u subsection 7a7 = any taxable ye> 7det]m9$ )\t reg>d to ?is subsection7 %all be r$uc$ 7b n bel[ z]o7 by an am\nt :i* be>s ! same ratio to ! am\nt s all[able 7z s det]m9$7 z-- 7,a7 ! am\nt by :i* ! taxpay]'s adju/$ gross income exce$s ! applicable ?re%old1 be>s to 7,b7 #bj1jjj4 7#b7 ,applicable ?re%old ,= purposes ( ?is subsection1 ! applicable ?re%old is-- 7,a7 except z provid$ 9 subp>agraph 7,b7 or 7,c71 #dj1jjj1 7,b7 9 ! case ( a jo9t return1 #bjj p]c5t ( ! am\nt 9 effect = ! taxable ye> "u subp>agraph 7,a71 or 7,c7 9 ! case ( a head ( h\sehold1 #aej p]c5t ( ! am\nt 9 effect = ! taxable ye> "u subp>agraph 7,a74 7#c7 ,inflation adju/m5t ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjba1 ! #dj1jjj doll> am\nt 9 p>agraph 7#b7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjbj = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,any increase det]m9$ "u ! prec$+ s5t5ce %all be r\nd$ to ! ne>e/ multiple ( #ejj4 4 7c7 ,sav]'s cr$it ,! head+ = section #be;,b ( su* ,code is am5d$ to read z foll[s3 ,sav]'s cr$it44 7d7 ,sav]'s cr$it promotion 7#a7 ,9 g5]al ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all take su* /eps z ! ,secret>y 7or delegate7 det]m9es are necess>y & appropriate to increase public aw>5ess ( ! cr$it provid$ "u section #be;,b ( su* ,code 7z am5d$ by ?is section74 7#b7 ,report ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y 7or delegate7 %all submit to ,congress a report detail+ ! /eps tak5 "u p>agraph 7#a74 7e7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by /rik+ ! item relat+ to section #be;,b & ins]t+ ! foll[+ new item3 ,sec4 #be;,b4 ,sav]'s cr$it4 4 7f7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ajd4 ,enhancem5t ( #djc7;b7 plans 7a7 ,9 g5]al 7#a7 ,p]mitt$ inve/m5ts ,section #djc7;b77#g77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ if ! am\nts are to be inve/$ 9 regulat$ inve/m5t company /ock to be held 9 t cu/odial acc\nt & ins]t+ if ! am\nts are to be held 9 t cu/odial acc\nt & inve/$ 9 regulat$ inve/m5t company /ock or a gr\p tru/ int5d$ to satisfy ! requirem5ts ( ,int]nal ,rev5ue ,s]vice ,rev5ue ,rul+ #ha-ajj 7or any successor guidance74 7#b7 ,con=m+ am5dm5t ,! head+ ( p>agraph 7#g7 ( section #djc7;b7 ( su* ,code is am5d$ by /rik+ = regulat$ inve/m5t company /ock4 7#c7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to am\nts inve/$ aft] ,decemb] #ca1 #bjbj4 7b7 ,am5dm5ts to ! ,inve/m5t ,company ,act ( #aidj ,section #c7;c77#aa7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77#aa77 is am5d$ to read z foll[s3 7#aa7 ,any-- 7,a7 employee's /ock bonus1 p5sion1 or pr(it-%>+ tru/ :i* meets ! requirem5ts = qualification "u section #dja ( ! ,int]nal ,rev5ue ,code ( #aihf2 7,b7 cu/odial acc\nt meet+ ! requirem5ts ( section #djc7;b77#g7 ( su* ,code2 7,c7 gov]nm5tal plan describ$ 9 section #c7;a77#b77;,c7 ( ! ,securities ,act ( #aicc2 7,d7 collective tru/ fund ma9ta9$ by a bank consi/+ solely ( assets ( "o or m-- 7i7 tru/s describ$ 9 subp>agraph 7,a72 7ii7 gov]nm5t plans describ$ 9 subp>agraph 7,c72 7iii7 *ur* plans1 companies1 or acc\nts t are exclud$ f ! def9ition ( an inve/m5t company "u p>agraph 7#ad7 ( ?is subsection2 or 7iv7 plans :i* meet ! requirem5ts ( section #djc7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf if-- 7,i7 su* plan is subject to title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajja et seq472 7,,ii7 any employ] mak+ su* plan available agrees to s]ve z a fiduci>y = ! plan ) respect to ! selection ( ! plan's inve/m5ts among :i* p>ticipants c *oose2 or 7,,iii7 su* plan is a gov]nm5tal plan 7z def9$ 9 section #dad7;d7 ( su* ,code72 or 7,e7 sep>ate acc\nt ! assets ( :i* are d]iv$ solely f-- 7i7 contributions "u p5sion or pr(it-%>+ plans :i* meet ! requirem5ts ( section #dja ( ! ,int]nal ,rev5ue ,code ( #aihf or ! requirem5ts = d$uction ( ! employ]'s contribution "u section #djd7;a77#b7 ( su* ,code2 7ii7 contributions "u gov]nm5tal plans 9 connection ) :i* int]e/s1 p>ticipations1 or securities are exempt$ f ! regi/ration provisions ( section #e ( ! ,securities ,act ( #aicc by section #c7;a77#b77;,c7 ( su* ,act2 7iii7 advances made by an insurance company 9 connection ) ! op]ation ( su* sep>ate acc\nt2 & 7iv7 contributions to a plan describ$ 9 subp>agraph 7,d77iv74 4 7c7 ,am5dm5ts to ! ,securities ,act ( #aicc ,section #c7;a77#b7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;c7a77#b77 is am5d$-- 7#a7 by /rik+ or 7,d7 & ins]t+ 7,d7 a plan :i* meets ! requirem5ts ( section #djc7;b7 ( su* ,code if 7i7 su* plan is subject to title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajja et seq471 7ii7 any employ] mak+ su* plan available agrees to s]ve z a fiduci>y = ! plan ) respect to ! selection ( ! plan's inve/m5ts among :i* p>ticipants c *oose1 or 7iii7 su* plan is a gov]nm5tal plan 7z def9$ 9 section #dad7;d7 ( su* ,code72 or 7,e72 7#b7 by /rik+ 7,c71 or 7,d7 & ins]t+ 7,c71 7,d71 or 7,e72 & 7#c7 by /rik+ 7iii7 :i* is a plan fund$ & ins]t+ 7iii7 9 ! case ( a plan n describ$ 9 subp>agraph 7,d71 :i* is a plan fund$4 7d7 ,am5dm5ts to ! ,securities ,ex*ange ,act ( #aicd ,section #c7;a77#ab77;,c7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77#ab77;,c77 is am5d$-- 7#a7 by /rik+ or 7iv7 & ins]t+ 7iv7 a plan :i* meets ! requirem5ts ( section #djc7;b7 ( su* ,code if 7,i7 su* plan is subject to title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajja et seq471 7,,ii7 any employ] mak+ su* plan available agrees to s]ve z a fiduci>y = ! plan ) respect to ! selection ( ! plan's inve/m5ts among :i* p>ticipants c *oose1 or 7,,iii7 su* plan is a gov]nm5tal plan 7z def9$ 9 section #dad7;d7 ( su* ,code71 or 7v72 7#b7 by /rik+ 7ii71 or 7iii7 & ins]t+ 7ii71 7iii71 or 7iv72 & 7#c7 by /rik+ 7,,ii7 is a plan fund$ & ins]t+ 7,,ii7 9 ! case ( a plan n describ$ 9 clause 7iv71 is a plan fund$4 #aje4 ,increase 9 age = requir$ beg9n+ date = m&atory di/ributions 7a7 ,9 g5]al ,section #dja7;a77#i77;,c77i77,i7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ age #gb & ins]t+ age #ge4 7b7 ,sp\se b5efici>ies2 special rule = own]s ,subp>agraphs 7,b77iv77,i7 & 7,c77ii77,i7 ( section #dja7;a77#i7 ( su* ,code are ea* am5d$ by /rik+ age #gb & ins]t+ age #ge4 7c7 ,con=m+ am5dm5ts ,! la/ s5t5ce ( section #djh7;b7 ( su* ,code is am5d$ by /rik+ age #gb & ins]t+ age #ge4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions requir$ to be made aft] ,decemb] #ca1 #bjbj1 ) respect to individuals :o atta9 age #gb aft] su* date4 #ajf4 ,def]ral ( tax = c]ta9 sales ( employ] /ock to employee /ock own]%ip plan sponsor$ by ,s corporation 7a7 ,9 g5]al ,section #ajdb7;c77#a77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ dome/ic ,c corporation & ins]t+ dome/ic corporation4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to sales aft] ! date ( ! enactm5t ( ?is ,act4 #ajg4 ,index+ ,,ira cat*-up limit 7a7 ,9 g5]al ,subp>agraph 7,c7 ( section #bai7;b77#e7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new clause3 7iii7 ,index+ ( cat*-up limitation ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjba1 ! #a1jjj am\nt "u subp>agraph 7,b77ii7 %all be increas$ by an am\nt equal to-- 7,i7 su* doll> am\nt1 multipli$ by 7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjbj = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,if any am\nt aft] adju/m5t "u ! prec$+ s5t5ce is n a multiple ( #ajj1 su* am\nt %all be r\nd$ to ! next l[] multiple ( #ajj4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjba4 #ajh4 ,high] cat*-up limit to apply at age #fj 7a7 ,9 g5]al 7#a7 ,plans o!r ?an simple plans ,section #dad7v77#b77;,b77i7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ ! foll[+ be=e ! p]iod3 7#aj1jjj1 9 ! case ( an eligible p>ticipant :o has atta9$ age #fj be=e ! close ( ! taxable ye>74 7#b7 ,simple plans ,section #dad7v77#b77;,b77ii7 ( su* ,code is am5d$ by ins]t+ ! foll[+ be=e ! p]iod3 7#e1jjj1 9 ! case ( an eligible p>ticipant :o has atta9$ age #fj be=e ! close ( ! taxable ye>74 7b7 ,co/-(-,liv+ adju/m5ts ,subp>agraph 7,c7 ( section #dad7v77#b7 ( su* ,code is am5d$ by add+ at ! end ! foll[+3 ,9 ! case ( a ye> beg9n+ aft] ,decemb] #ca1 #bjba1 ! ,secret>y %all adju/ annually ! #aj1jjj am\nt 9 subp>agraph 7,b77i7 & ! #e1jjj am\nt 9 subp>agraph 7,b77ii7 = increases 9 ! co/-(-liv+ at ! same "t & 9 ! same mann] z adju/m5ts "u ! prec$+ s5t5ce2 except t ! base p]iod tak5 into acc\nt %all be ! cal5d> qu>t] beg9n+ ,july #a1 #bjbj44 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjbj4 #aji4 ,multiple employ] #djc7;b7 plans 7a7 ,9 g5]al ,section #djc7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ae7 ,multiple employ] plans 7,a7 ,9 g5]al ,except 9 ! case ( a *ur* plan1 ?is subsection %all n be treat$ z fail+ to apply to an annuity contract solely by reason ( su* contract be+ pur*as$ "u a plan ma9ta9$ by m ?an #a employ]4 7,b7 ,treatm5t ( employ]s fail+ to meet requirem5ts ( plan 7i7 ,9 g5]al ,9 ! case ( a plan ma9ta9$ by m ?an #a employ]1 ?is subsection %all n be treat$ z fail+ to apply to an annuity contract held "u su* plan m]ely because ( "o or m employ]s fail+ to meet ! requirem5ts ( ?is subsection if su* plan satisfies rules simil> to ! rules ( section #dac7;e77#b7 ) respect to any su* employ] failure4 7ii7 ,additional requirem5ts 9 case ( non-gov]nm5tal plans ,a plan %all n be treat$ z meet+ ! requirem5ts ( ?is subp>agraph unless ! plan meets ! requirem5ts ( subp>agraph 7,a7 or 7,b7 ( section #dac7;e77#a71 except 9 ! case ( a multiple employ] plan ma9ta9$ solely by any ( ! foll[+3 ,a ,/ate1 a political subdivision ( a ,/ate1 or an ag5cy or in/rum5tality ( any "o or m ( ! =ego+4 4 7b7 ,annual regi/ration = #djc7;b7 multiple employ] plan ,section #fjeg ( su* ,code is am5d$ by r$esignat+ subsection 7g7 z subsection 7h7 & by ins]t+ aft] subsection 7f7 ! foll[+ new subsection3 7g7 #djc7;b7 multiple employ] plans treat$ z "o plan ,9 ! case ( annuity contracts to :i* ?is section applies & to :i* section #djc7;b7 applies by reason ( ! plan "u :i* su* contracts are pur*as$ meet+ ! requirem5ts ( p>agraph 7#ae7 !re(1 su* plan %all be treat$ z a s+le plan = purposes ( ?is section4 4 7c7 ,annual in=mation returns = #djc7;b7 multiple employ] plan ,section #fjeh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7f7 z subsection 7g7 & by ins]t+ aft] subsection 7e7 ! foll[+ new subsection3 7f7 #djc7;b7 multiple employ] plans treat$ z "o plan ,9 ! case ( annuity contracts to :i* ?is section applies & to :i* section #djc7;b7 applies by reason ( ! plan "u :i* su* contracts are pur*as$ meet+ ! requirem5ts ( p>agraph 7#ae7 !re(1 su* plan %all be treat$ z a s+le plan = purposes ( ?is section4 4 7d7 ,am5dm5ts to ,employee ,retirem5t ,income ,security ,act ( #aigd 7#a7 ,treat$ z pool$ employ] plan 7,a7 ,9 g5]al ,section #c7dc77;,a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd is am5d$-- 7i7 9 clause 7ii71 by /rik+ section #eja7;a7 ( su* ,code or & ins]t+ #eja7;a7 ( su* ,code1 a plan t consi/s ( contracts describ$ 9 section #djc7;b7 ( su* ,code1 or2 & 7ii7 9 ! flu% text at ! end1 by /rik+ ! plan4 & ins]t+ ! plan1 b su* t]m %all include any program 7o!r ?an a gov]nm5tal plan7 ma9ta9$ = ! b5efit ( ! employees ( m ?an #a employ] t consi/s ( contracts describ$ 9 section #djc7;b7 ( su* ,code & t meets ! requirem5ts ( subp>agraph 7,a7 or 7,b7 ( section #dac7;e77#a7 ( su* ,code44 7,b7 ,con=m+ am5dm5ts ,sections #c7dc77;,b77v77,,ii7 & #c7dd77;,a77i77,i7 ( su* ,act are ea* am5d$ by /rik+ section #dja7;a7 ( su* ,code or & ins]t+ #dja7;a7 ( su* ,code1 a plan t consi/s ( contracts describ$ 9 section #djc7;b7 ( su* ,code1 or4 7#b7 ,fiduci>ies ,section #c7dc77;,b77ii7 ( su* ,act is am5d$-- 7,a7 by /rik+ tru/ees meet+ ! requirem5ts ( section #djh7;a77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf & ins]t+ tru/ees 7or o!r fiduci>ies 9 ! case ( a plan t consi/s ( contracts describ$ 9 section #djc7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 meet+ ! requirem5ts ( section #djh7;a77#b7 ( su* ,code1 & 7,b7 by /rik+ hold+ & ins]t+ hold+ 7or caus+ to be held "u ! t]ms ( a plan consi/+ ( su* contracts74 7e7 ,regulations relat+ to plan t]m9ation ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's designee7 %all prescribe su* regulations z may be necess>y to cl>ify ! treatm5t ( a plan t]m9ation by an employ] 9 ! case ( plans to :i* section #djc7;b77#ae7 ( su* ,code applies4 7f7 ,modification ( model plan language 7#a7 ,plan notifications ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's designee7 %all modify ! model plan language publi%$ "u section #dac7;e77#e7 ( ! ,int]nal ,rev5ue ,code ( #aihf to include language :i* notifies p>ticipat+ employ]s :i* are exempt f tax "u section #eja7;a7 ( su* ,code t ! plan is subject to ! ,employee ,retirem5t ,income ,security ,act ( #aigd & t su* employ] is a plan sponsor ) respect to its employees p>ticipat+ 9 ! multiple employ] plan &1 z su*1 has c]ta9 fiduci>y duties ) respect to ! plan & to its employees4 7#b7 ,model plans = multiple employ] #djc7;b7 non-gov]nm5tal plans ,= plans to :i* section #djc7;b77#ae77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf applies 7o!r ?an a plan ma9ta9$ = its employees by a ,/ate1 a political subdivision ( a ,/ate1 or an ag5cy or in/rum5tality ( any "o or m ( ! =ego+7 ! ,secret>y %all publi% model plan language simil> to model plan language publi%$ "u section #dac7;e77#e7 ( su* ,code4 7g7 ,no inf]5ce ) respect to *ur* plans ,reg>d+ any application ( section #djc7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf to an annuity contract pur*as$ "u a *ur* plan 7z def9$ 9 section #dad7;e7 ( su* ,code7 ma9ta9$ by m ?an #a employ]1 or to any application ( rules simil> to section #dac7;e7 ( su* ,code to su* a plan1 no inf]5ce %all be made f section #djc7;b77#ae77;,a7 ( su* ,code 7z add$ by ?is ,act7 n apply+ to su* plans4 7h7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbj4 7#b7 ,rule ( con/ruction ,no?+ 9 ! am5dm5ts made by subsection 7a7 %all be con/ru$ z limit+ ! au?ority ( ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate 7det]m9$ )\t reg>d to su* am5dm5t7 to provide = ! prop] treatm5t ( a failure to meet any requirem5t applicable "u su* ,code ) respect to "o employ] 7& its employees7 9 ! case ( a plan to :i* section #djc7;b77#ae7 applies4 #aaj4 ,treatm5t ( /ud5t loan paym5ts z elective def]rals = purposes ( mat*+ contributions 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dja7m77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ & at ! end ( clause 7i71 by /rik+ ! p]iod at ! end ( clause 7ii7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new clause3 7iii7 subject to ! requirem5ts ( p>agraph 7#ac71 any employ] contribution made to a def9$ contribution plan on behalf ( an employee on acc\nt ( a qualifi$ /ud5t loan paym5t4 4 7b7 ,qualifi$ /ud5t loan paym5t ,p>agraph 7#d7 ( section #dja7m7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,d7 ,qualifi$ /ud5t loan paym5t ,! t]m qualifi$ /ud5t loan paym5t means a paym5t made by an employee 9 repaym5t ( a qualifi$ education loan 7z def9$ section #bba7;d77#a77 incurr$ by ! employee to pay qualifi$ high] education exp5ses1 b only-- 7i7 to ! ext5t su* paym5ts 9 ! aggregate = ! ye> d n exce$ an am\nt equal to-- 7,i7 ! limitation applicable "u section #djb7;g7 = ! ye> 7or1 if less]1 ! employee's comp5sation 7z def9$ 9 section #dae7;c77#c77 = ! ye>71 r$uc$ by 7,,ii7 ! elective def]rals made by ! employee = su* ye>1 & 7ii7 if ! employee c]tifies to ! employ] mak+ ! mat*+ contribution "u ?is p>agraph t su* paym5t has be5 made on su* loan4 ,= purposes ( ?is subp>agraph1 ! t]m qualifi$ high] education exp5ses means ! co/ ( att5dance 7z def9$ 9 section #dgb ( ! ,high] ,education ,act ( #aife1 z 9 effect on ! day be=e ! date ( ! enactm5t ( ! ,taxpay] ,relief ,act ( #aiig7 at an eligible educational in/itution 7z def9$ 9 section #bba7;d77#b774 4 7c7 ,mat*+ contributions = qualifi$ /ud5t loan paym5ts ,subsection 7m7 ( section #dja ( su* ,code is am5d$ by r$esignat+ p>agraph 7#ac7 z p>agraph 7#ad71 & by ins]t+ aft] p>agraph 7#ab7 ! foll[+ new p>agraph3 7#ac7 ,mat*+ contributions = qualifi$ /ud5t loan paym5ts 7,a7 ,9 g5]al ,= purposes ( p>agraph 7#d77;,a77iii71 an employ] contribution made to a def9$ contribution plan on acc\nt ( a qualifi$ /ud5t loan paym5t %all be treat$ z a mat*+ contribution = purposes ( ?is title if-- 7i7 ! plan provides mat*+ contributions on acc\nt ( elective def]rals at ! same rate z contributions on acc\nt ( qualifi$ /ud5t loan paym5ts1 7ii7 ! plan provides mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts only on behalf ( employees o!rwise eligible to receive mat*+ contributions on acc\nt ( elective def]rals1 7iii7 "u ! plan1 all employees eligible to receive mat*+ contributions on acc\nt ( elective def]rals are eligible to receive mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts1 & 7iv7 ! plan provides t mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts ve/ 9 ! same mann] z mat*+ contributions on acc\nt ( elective def]rals4 7,b7 ,treatm5t = purposes ( nondiscrim9ation rules1 etc 7i7 ,nondiscrim9ation rules ,= purposes ( subp>agraph 7,a77iii71 subsection 7a77#d71 & section #daj7;b71 mat*+ contributions describ$ 9 p>agraph 7#d77;,a77iii7 %all n fail to be treat$ z available to an employee solely because su* employee does n h debt incurr$ "u a qualifi$ education loan 7z def9$ 9 section #bba7;d77#a774 7ii7 ,/ud5t loan paym5ts n treat$ z plan contribution ,except z provid$ 9 clause 7iii71 a qualifi$ /ud5t loan paym5t %all n be treat$ z a contribution to a plan "u ?is title4 7iii7 ,mat*+ contribution rules ,solely = purposes ( meet+ ! requirem5ts ( p>agraph 7#aa77;,b7 or 7#ab7 ( ?is subsection1 or p>agraph 7#aa77;,b77i77,,ii71 7#ab77;,b71 or 7#ac77;,d7 ( subsection 7k71 a plan may treat a qualifi$ /ud5t loan paym5t z an elective def]ral or an elective contribution1 :i*ev] is applicable4 4 7d7 ,simple retirem5t acc\nts ,p>agraph 7#b7 ( section #djh7p7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,f7 ,mat*+ contributions = qualifi$ /ud5t loan paym5ts 7i7 ,9 g5]al ,subject to ! rules ( clause 7iii71 an arrangem5t %all n fail to be treat$ z meet+ ! requirem5ts ( subp>agraph 7,a77iii7 solely because "u ! arrangem5t1 solely = purposes ( su* subp>agraph1 qualifi$ /ud5t loan paym5ts are treat$ z am\nts elect$ by ! employee "u subp>agraph 7,a77i77,i7 to ! ext5t su* paym5ts d n exce$-- 7,i7 ! applicable doll> am\nt "u subp>agraph 7,e7 7aft] application ( section #dad7v77 = ! ye> 7or1 if less]1 ! employee's comp5sation 7z def9$ 9 section #dae7;c77#c77 = ! ye>71 r$uc$ by 7,,ii7 any o!r am\nts elect$ by ! employee "u subp>agraph 7,a77i77,i7 = ! ye>4 7ii7 ,qualifi$ /ud5t loan paym5t ,= purposes ( ?is subp>agraph-- 7,i7 ,9 g5]al ,! t]m qualifi$ /ud5t loan paym5t means a paym5t made by an employee 9 repaym5t ( a qualifi$ education loan 7z def9$ 9 section #bba7;d77#a77 incurr$ by ! employee to pay qualifi$ high] education exp5ses1 b only if ! employee c]tifies to ! employ] mak+ ! mat*+ contribution t su* paym5t has be5 made on su* a loan4 7,,ii7 ,qualifi$ high] education exp5ses ,! t]m qualifi$ high] education exp5ses has ! same mean+ z :5 us$ 9 section #dja7m77#d77;,d74 7iii7 ,applicable rules ,clause 7i7 %all apply to an arrangem5t only if1 "u ! arrangem5t-- 7,i7 mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts are provid$ only on behalf ( employees o!rwise eligible to elect contributions "u subp>agraph 7,a77i77,i71 & 7,,ii7 all employees o!rwise eligible to p>ticipate 9 ! arrangem5t are eligible to receive mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts4 4 7e7 #djc7;b7 plans ,subp>agraph 7,a7 ( section #djc7;b77#ab7 ( su* ,code is am5d$ by add+ at ! end ! foll[+3 ,! fact t ! employ] (f]s mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts z describ$ 9 section #dja7m77#ac7 %all n be tak5 into acc\nt 9 det]m9+ :e!r ! arrangem5t satisfies ! requirem5ts ( clause 7ii7 7& any regulation !reund]744 7f7 #deg7;b7 plans ,subsection 7b7 ( section #deg ( su* ,code is am5d$ by add+ at ! end ! foll[+3 ,a plan :i* is e/abli%$ & ma9ta9$ by an employ] :i* is describ$ 9 subsection 7e77#a77;,a7 %all n be treat$ z fail+ to meet ! requirem5ts ( ?is subsection solely because ! plan1 or ano!r plan ma9ta9$ by ! employ] :i* meets ! requirem5ts ( section #dja7;a71 provides = mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts z describ$ 9 section #dja7m77#ac744 7g7 ,regulatory au?ority ,! ,secret>y %all prescribe regulations = purposes ( implem5t+ ! am5dm5ts made by ?is section1 includ+ regulations-- 7#a7 p]mitt+ a plan to make mat*+ contributions = qualifi$ /ud5t loan paym5ts1 z def9$ 9 sections #dja7m77#d77;,d7 & #djh7p77#b77;,f7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is section1 at a diff]5t frequ5cy ?an mat*+ contributions are o!rwise made "u ! plan1 provid$ t ! frequ5cy is n less ?an annually2 7#b7 p]mitt+ employ]s to e/abli% reasonable proc$ures to claim mat*+ contributions = su* qualifi$ /ud5t loan paym5ts "u ! plan1 includ+ an annual deadl9e 7n e>li] ?an #c mon?s aft] ! close ( ea* plan ye>7 by :i* a claim mu/ be made2 & 7#c7 promulgat+ model am5dm5ts :i* plans may adopt to implem5t mat*+ contributions on su* qualifi$ /ud5t loan paym5ts = purposes ( sections #dja7m71 #djh7p71 #djc7;b71 & #deg7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7h7 ,effective date ,! am5dm5ts made by ?is section %all apply to contributions made = ye>s beg9n+ aft] ,decemb] #ca1 #bjbj4 #aaa4 ,application ( cr$it = small employ] p5sion plan />tup co/s to employ]s :i* jo9 an exi/+ plan 7a7 ,9 g5]al ,section #de;,e7d77#c77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ effective & ins]t+ effective ) respect to ! eligible employ]4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to eligible employ] plans :i* become effective ) respect to ! eligible employ] aft] ! date ( ! enactm5t ( ?is ,act4 #aab4 ,milit>y sp\se retirem5t plan eligibility cr$it = small employ]s 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #de,u4 ,milit>y sp\se retirem5t plan eligibility cr$it = small employ]s 7a7 ,9 g5]al ,= purposes ( section #ch1 9 ! case ( any eligible small employ]1 ! milit>y sp\se retirem5t plan eligibility cr$it det]m9$ "u ?is section = any taxable ye> is an am\nt equal to ! sum (-- 7#a7 #bej ) respect to ea* milit>y sp\se :o is an employee ( su* employ] & :o is eligible to p>ticipate 9 an eligible def9$ contribution plan ( su* employ] at any "t dur+ su* taxable ye>1 plus 7#b7 s mu* ( ! contributions made by su* employ] to all su* plans ) respect to su* employee dur+ su* taxable ye> z d n exce$ #bej4 7b7 ,limitation ,an individual %all only be tak5 into acc\nt z a milit>y sp\se "u subsection 7a7 = ! taxable ye> :i* includes ! date on :i* su* individual began p>ticipat+ 9 ! eligible def9$ contribution plan ( ! employ] & ! #b succe$+ taxable ye>s4 7c7 ,eligible small employ] ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m eligible small employ] means an eligible employ] 7z def9$ 9 section #djh7p77#b77;,c77i77,i774 7#b7 ,application ( #b-ye> grace p]iod ,a rule simil> to ! rule ( section #djh7p77#b77;,c77i77,,ii7 %all apply = purposes ( ?is section4 7d7 ,milit>y sp\se ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m milit>y sp\se means1 ) respect to any employ]1 any individual :o is m>ri$ 7)9 ! mean+ ( section #ggjc z ( ! fir/ date t ! employee is employ$ by ! employ]7 to an individual :o is a memb] ( ! uni=m$ s]vices 7z def9$ section #aja7;a77#e7 ( title #aj1 ,unit$ ,/ates ,code74 ,= purposes ( ?is section1 an employ] may rely on an employee's c]tification t su* employee's sp\se is a memb] ( ! uni=m$ s]vices if su* c]tification provides ! "n1 rank1 & s]vice bran* ( su* sp\se4 7#b7 ,exclusion ( highly comp5sat$ employees ,) respect to any employ]1 ! t]m milit>y sp\se %all n include any individual if su* individual is a highly comp5sat$ employee ( su* employ] 7)9 ! mean+ ( section #dad7q774 7e7 ,eligible def9$ contribution plan ,= purposes ( ?is section1 ! t]m eligible def9$ contribution plan means1 ) respect to any eligible small employ]1 any def9$ contribution plan 7z def9$ 9 section #dad7;i77 ( su* employ] if1 "u ! t]ms ( su* plan-- 7#a7 milit>y sp\ses employ$ by su* employ] are eligible to p>ticipate 9 su* plan n lat] ?an ! date :i* is #b mon?s aft] ! date on :i* su* individual beg9s employm5t ) su* employ]1 & 7#b7 milit>y sp\ses :o are eligible to p>ticipate 9 su* plan-- 7,a7 are imm$iately eligible to receive an am\nt ( employ] contributions "u su* plan :i* is n less ! am\nt ( su* contributions t a simil>ly situat$ p>ticipant :o is n a milit>y sp\se w\ld be eligible to receive "u su* plan aft] #b ye>s ( s]vice1 & 7,b7 imm$iately h a non=feitable "r to ! employee's accru$ b5efit d]iv$ f employ] contributions "u su* plan4 7f7 ,aggregation rule ,all p]sons treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad %all be treat$ z "o employ] = purposes ( ?is section4 4 7b7 ,cr$it all[$ z "p ( g5]al bus9ess cr$it ,section #ch7;b7 ( su* ,code is am5d$ by /rik+ plus at ! end ( p>agraph 7#cb71 by /rik+ ! p]iod at ! end ( p>agraph 7#cc7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cd7 9 ! case ( an eligible small employ] 7z def9$ 9 section #de,u7c771 ! milit>y sp\se retirem5t plan eligibility cr$it det]m9$ "u section #de,u7a74 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #de,u4 ,milit>y sp\se retirem5t plan eligibility cr$it = small employ]s4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #aac4 ,small imm$iate f9ancial inc5tives = contribut+ to a plan 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dja7k77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 7o!r ?an a de m9imis f9ancial inc5tive7 aft] any o!r b5efit4 7b7 ,section #djc7;b7 plans ,subp>agraph 7,a7 ( section #djc7;b77#ab7 ( su* ,code1 z am5d$ by ! prec$+ provisions ( ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+3 ,a plan %all n fail to satisfy clause 7ii7 solely by reason ( (f]+ a de m9imis f9ancial inc5tive to employees to elect to h ! employ] make contributions pursuant to a sal>y r$uction agreem5t44 7c7 ,exemption f prohibit$ transaction rules ,subsection 7d7 ( section #dige ( su* ,code is am5d$ by /rik+ or at ! end ( p>agraph 7#bb71 by /rik+ ! p]iod at ! end ( p>agraph 7#bc7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+ new p>agraph3 7#bd7 ! provision ( a de m9imis f9ancial inc5tive describ$ 9 section #dja7k77#d77;,a7 or #djc7;b77#ab77;,a74 4 7d7 ,am5dm5t ( ,employee ,retirem5t ,income ,security ,act ( #aigd ,subsection 7b7 ( section #djh ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajh7;b77 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ba7 ,! provision ( a de m9imis f9ancial inc5tive describ$ 9 section #dja7k77#d77;,a7 or #djc7;b77#ab77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply ) respect to plan ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #aad4 ,safe h>bor = corrections ( employee elective def]ral failures 7a7 ,9 g5]al ,section #dad ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7aa7 ,correct+ automatic contribution errors 7#a7 ,9 g5]al ,any plan or arrangem5t %all n fail to be treat$ z a plan describ$ 9 sections #dja7;a71 #djc7;b71 #djh1 or #deg7;b71 z applicable1 solely by reason ( a correct$ error4 7#b7 ,correct$ error def9$ ,= purposes ( ?is subsection1 ! t]m correct$ error means a reasonable adm9i/rative error 9 implem5t+ an automatic enrollm5t or automatic escalation feature 9 accordance ) ! t]ms ( an eligible automatic contribution arrangem5t 7z def9$ "u subsection 7w77#c771 provid$ t su* implem5tation error-- 7,a7 is correct$ by ! date t is #i mon?s aft] ! end ( ! plan ye> dur+ :i* ! failure occurr$1 7,b7 is correct$ 9 a mann] t is favorable to ! p>ticipant1 & 7,c7 is ( a type :i* is s correct$ = all simil>ly situat$ p>ticipants 9 a nondiscrim9atory mann]4 ,su* correction may occur be=e or aft] ! p>ticipant has t]m9at$ employm5t & may occur )\t reg>d to :e!r ! error is id5tifi$ by ! ,secret>y4 7#c7 ,regulations & guidance = favorable correction me?ods ,! ,secret>y %all1 by regulations or o!r guidance ( g5]al applicability1 specify ! correction me?ods t are 9 a mann] favorable to ! p>ticipant = purposes ( p>agraph 7#b77;,b74 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply ) respect to any errors ) respect to :i* ! date ref]r$ to 9 section #dad7;aa7 7z add$ by ?is section7 is aft] ! date ( enactm5t ( ?is ,act4 #aae4 ,"o-ye> r$uction 9 p]iod ( s]vice requirem5t = long-t]m1 "p-"t work]s 7a7 ,9 g5]al ,section #dja7k77#b77;,d77ii7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #c & ins]t+ #b4 7b7 ,effective date ,! am5dm5t made by ?is section %all take effect z if includ$ 9 ! addition ( section #dja7k77#b77;,d77ii7 ( su* ,code by section #aab ( ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai4 #aaf4 ,gov]nm5tal p5sion plans may include c]ta9 firefight]s1 em]g5cy m$ical te*nicians1 & p>am$ics 7a7 ,int]nal ,rev5ue ,code ( #aihf ,section #dad7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7relat+ to gov]nm5tal plans7 is am5d$ by add+ at ! end ! foll[+3 ,! t]m gov]nm5tal plan also includes a plan :i* is e/abli%$ by a ,/ate or political subdivision !re( & ma9ta9$ by a public safety ag5cy 7describ$ 9 section #eja7;c7 & exempt f taxation "u section #eja7;a771 & all ( ! p>ticipants ( :i* are employees ( su* ag5cy :o are em]g5cy response provid]s 7def9$ 9 section #b ( ! ,homel& ,security ,act ( #bjjb 7#f ,u4,s4,c4 #aja771 sub/antially all ( ^: s]vices z em]g5cy response provid]s are 9 ! p]=mance ( firefight+ s]vices or out-(-hospital em]g5cy m$ical s]vices = a political subdivision ( a ,/ate "u a contract betwe5 su* public safety ag5cy & ! political subdivision ( a ,/ate44 7b7 ,employee ,retirem5t ,income ,security ,act ( #aigd 7#a7 ,9 g5]al ,section #c7cb7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajjb7cb77 is am5d$ by add+ at ! end ! foll[+3 4 ,! t]m gov]nm5tal plan also includes a plan :i* is e/abli%$ by a ,/ate or political subdivision !re( & ma9ta9$ by a public safety ag5cy 7describ$ 9 section #eja7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf & exempt f taxation "u section #eja7;a7 ( su* ,code71 & all ( ! p>ticipants ( :i* are employees ( su* ag5cy :o are em]g5cy response provid]s 7def9$ 9 section #b ( ! ,homel& ,security ,act ( #bjjb 7#f ,u4,s4,c4 #aja771 sub/antially all ( ^: s]vices z em]g5cy response provid]s are 9 ! p]=mance ( firefight+ s]vices or out-(-hospital em]g5cy m$ical s]vices = a political subdivision ( a ,/ate "u a contract betwe5 su* public safety ag5cy & ! political subdivision ( a ,/ate44 7#b7 ,,pbgc exception ,section #djba7;b77#b7 ( su* ,act 7#bi ,u4,s4,c4 #acba7;b77#b77 is am5d$ by /rik+ describ$ 9 ! la/ s5t5ce ( section #c7cb7 & ins]t+ describ$ 9 ei!r ( ! la/ two s5t5ces ( section #c7cb744 7c7 ,con=m+ am5dm5ts 7#a7 ,section #dad7;h77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ describ$ 9 ! la/ s5t5ce ( section #dad7;d7 7relat+ to plans ( ,indian tribal gov]nm5ts7 & ins]t+ describ$ 9 ei!r ( ! la/ two s5t5ces ( subsection 7d74 7#b7 ,section #dae7;b77#b77;,h77i7 ( su* ,code is am5d$ by add+ at ! end ! foll[+3 or a public safety ag5cy describ$ 9 ! la/ s5t5ce ( section #dad7;d714 7#c7 ,section #dae7;b77#b77;,h77ii77,i7 ( su* ,code is am5d$ by /rik+ or any political subdivision & ins]t+ any political subdivision1 or a public safety ag5cy describ$ 9 ! la/ s5t5ce ( section #dad7;d74 7#d7 ,section #dae7;b77#aj77;,a7 ( su* ,code is am5d$ by /rik+ describ$ 9 ! la/ s5t5ce ( section #dad7;d7 7relat+ to plans ( ,indian tribal gov]nm5ts7 & ins]t+ describ$ 9 ei!r ( ! la/ two s5t5ces ( section #dad7;d74 7d7 ,effective date ,! am5dm5t made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 ,,ii ,pres]vation ( ,income #bja4 ,remove requir$ m9imum di/ribution b>ri]s = life annuities 7a7 ,9 g5]al ,p>agraph 7#i7 ( section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,j7 ,c]ta9 increases 9 paym5ts "u a comm]cial annuity ,no?+ 9 ?is section %all prohibit a comm]cial annuity 7)9 ! mean+ ( section #cdje7;e77#f77 t is issu$ 9 connection ) any eligible retirem5t plan 7)9 ! mean+ ( section #djb7;c77#h77;,b71 o!r ?an a def9$ b5efit plan7 f provid+ "o or m ( ! foll[+ types ( paym5ts on or aft] ! annuity />t+ date3 7i7 annuity paym5ts t increase by a con/ant p]c5tage1 appli$ n less frequ5tly ?an annually1 at a rate t is less ?an #e p]c5t p] ye>1 7ii7 a lump sum paym5t t-- 7,i7 results 9 a %ort5+ ( ! paym5t p]iod ) respect to an annuity or a full or p>tial commutation ( ! future annuity paym5ts1 provid$ t su* lump sum is det]m9$ us+ reasonable actu>ial me?ods & assumptions1 z det]m9$ 9 good fai? by ! issu] ( ! contract1 or 7,,ii7 accel]ates ! receipt ( annuity paym5ts t are s*$ul$ to be receiv$ )9 ! ensu+ #ab mon?s1 reg>dless ( :e!r su* accel]ation %ort5s ! paym5t p]iod ) respect to ! annuity1 r$uces ! doll> am\nt ( b5efits to be paid "u ! contract1 or results 9 a susp5sion ( annuity paym5ts dur+ ! p]iod be+ accel]at$1 7iii7 an am\nt :i* is 9 ! nature ( a divid5d or simil> di/ribution1 provid$ t ! issu] ( ! contract det]m9es su* am\nt bas$ on a reasonable comp>ison ( ! actu>ial factors assum$ :5 calculat+ ! initial annuity paym5ts & ! issu]'s exp]i5ce ) respect to ^? factors1 or 7iv7 a f9al paym5t ^u dea? t does n exce$ ! excess ( ! total am\nt ( ! consid]ation paid = ! annuity paym5ts1 less ! aggregate am\nt ( prior di/ributions or paym5ts f or "u ! contract4 4 7b7 ,regulations & en=cem5t 7#a7 ,regulations ,by ! date t is "o ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all am5d ! regulation issu$ by ! ,dep>tm5t ( ! ,treasury relat+ to ,requir$ ,di/ributions f ,retirem5t ,plans1 #fi ,f$4 ,reg4 #ccbhh 7,june #ae1 #bjjd71 & make any correspond+ am5dm5ts to o!r regulations1 9 ord] to-- 7,a7 con=m su* regulations to subsection 7a71 includ+ by elim9at+ ! types ( paym5ts describ$ 9 subsection 7a7 f ! scope ( ! requirem5t 9 ,q,a-#ad7;c7 ( ,treasury ,regulation section #a4dja7;a77#i7-f t ! total future expect$ paym5ts mu/ exce$ ! total value be+ annuitiz$2 7,b7 am5d ,q,a-#ad7;c7 ( ,treasury ,regulation section #a4dja7;a77#i7-f to provide t a comm]cial annuity t provides an initial paym5t t is at lea/ equal to ! initial paym5t t w\ld be requir$ f an individual acc\nt pursuant to ,treasury ,regulation section #a4dja7;a77#i7-e w be deem$ to satisfy ! requirem5t 9 ,q,a-#ad7;c7 ( ,treasury ,regulation section #a4dja7;a77#i7-f t ! total future expect$ paym5ts mu/ exce$ ! total value be+ annuitiz$2 & 7,c7 am5d ,q,a-#ad7;e77#c7 ( ,treasury ,regulation section #a4dja7;a77#i7-f to provide t ! total future expect$ paym5ts "u a comm]cial annuity are det]m9$ us+ ! tables or o!r actu>ial assumptions t ! issu] ( ! contract actually uses 9 pric+ ! premiums & b5efits ) respect to ! contract1 provid$ t su* tables or o!r actu>ial assumptions are reasonable4 7#b7 ,en=cem5t ,z ( ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all adm9i/] & en=ce ! law 9 accordance ) subsections 7a7 & 7b74 7c7 ,effective date ,?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 #bjb4 ,qualify+ longevity annuity contracts 7a7 ,9 g5]al ,n lat] ?an ! date :i* is #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate 7h]eaft] 9 ?is section ref]r$ to z ! ,secret>y7 %all am5d ! regulation issu$ by ! ,dep>tm5t ( ! ,treasury relat+ to ,longevity ,annuity ,contracts 7#gi ,f$4 ,reg4 #cgfcc 7,july #b1 #bjad771 z foll[s3 7#a7 ,repeal #be-p]c5t premium limit ,! ,secret>y %all am5d ,q,a-#ag7;b77#c7 ( ,treasury ,regulation section #a4dja7;a77#i7-f & ,q,a-#ab7;b77#c7 ( ,treasury ,regulation section #a4djh-h to elim9ate ! requirem5t t premiums = qualify+ longevity annuity contracts be limit$ to a p]c5tage ( an individual's acc\nt balance1 & to make su* correspond+ *anges to ! regulations & relat$ =ms z are necess>y to reflect ! elim9ation ( ?is requirem5t4 7#b7 ,increase doll> limitation 7,a7 ,9 g5]al ,! ,secret>y %all am5d ,q,a-#ag7;b77#b77;i7 ( ,treasury ,regulation section #a4dja7;a77#i7-f & ,q,a-#ab7;b77#b77;i7 ( ,treasury ,regulation section #a4djh-h to increase ! doll> limitation on premiums = qualify+ longevity annuity contracts f #abe1jjj to #bjj1jjj1 & to make su* correspond+ *anges to ! regulations & relat$ =ms z are necess>y to reflect ?is increase 9 ! doll> limitation4 7,b7 ,adju/m5ts = inflation ,! ,secret>y %all am5d ,q,a-#ag7;d77#b77;i7 ( ,treasury ,regulation section #a4dja7;a77#i7-f to provide t1 9 ! case ( cal5d> ye>s beg9n+ on or aft] ,janu>y #a ( ! second ye> foll[+ ! ye> ( enactm5t ( ?is ,act1 ! #bjj1jjj doll> limitation 7z increas$ by subp>agraph 7,a77 w be adju/$ at ! same "t & 9 ! same mann] z ! limits are adju/$ "u section #dae7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 except t ! base p]iod %all be ! cal5d> qu>t] beg9n+ ,july #a ( ! ye> ( enactm5t ( ?is ,act1 & any increase to su* doll> limitation :i* is n a multiple ( #aj1jjj w be r\nd$ to ! next l[e/ multiple ( #aj1jjj4 7#c7 ,facilitate jo9t & survivor b5efits ,! ,secret>y %all am5d ,q,a-#ag7;c7 ( ,treasury ,regulation section #a4dja7;a77#i7-f1 & make su* correspond+ *anges to ! regulations & relat$ =ms z are necess>y1 to provide t1 9 ! case ( a qualify+ longevity annuity contract :i* 0 pur*as$ ) jo9t & survivor annuity b5efits = ! individual & ! individual's sp\se :i* 7 p]missible "u ! regulations at ! "t ! contract 0 orig9ally pur*as$1 a divorce occurr+ aft] ! orig9al pur*ase & be=e ! annuity paym5ts comm5ce "u ! contract w n affect ! p]missibility ( ! jo9t & survivor annuity b5efits or o!r b5efits "u ! contract1 or require any adju/m5t to ! am\nt or duration ( b5efits payable "u ! contract1 provid$ t any qualifi$ dome/ic relations ord] 7)9 ! mean+ ( section #dad7p7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 or any divorce or sep>ation in/rum5t 7z def9$ 9 subsection 7b77-- 7,a7 provides t ! =m] sp\se is entitl$ to ! survivor b5efits "u ! contract2 7,b7 does n modify ! treatm5t ( ! =m] sp\se z ! b5efici>y "u ! contract :o is entitl$ to ! survivor b5efits2 or 7,c7 does n modify ! treatm5t ( ! =m] sp\se z ! measur+ life = ! survivor b5efits "u ! contract4 7#d7 ,p]mit %ort free look p]iod ,! ,secret>y %all am5d ,q,a-#ag7;a77#d7 ( ,treasury ,regulation section #a4dja7;a77#i7-f to ensure t su* ,q,a does n preclude a contract f includ+ a provision "u :i* an employee may resc9d ! pur*ase ( ! contract )9 a p]iod n exce$+ #ij days f ! date ( pur*ase4 7b7 ,divorce or sep>ation in/rum5t ,= purposes ( subsection 7a77#c71 ! t]m divorce or sep>ation in/rum5t means-- 7#a7 a decree ( divorce or sep>ate ma9t5ance or a writt5 in/rum5t incid5t to su* a decree1 7#b7 a writt5 sep>ation agreem5t1 or 7#c7 a decree 7n describ$ 9 p>agraph 7#a77 requir+ a sp\se to make paym5ts = ! support or ma9t5ance ( ! o!r sp\se4 7c7 ,effective dates1 en=cem5t1 & int]pretations 7#a7 ,effective dates 7,a7 ,p>agraphs 7#a7 & 7#b7 ( subsection 7a7 %all be effective ) respect to contracts pur*as$ or receiv$ 9 an ex*ange on or aft] ! date ( ! enactm5t ( ?is ,act4 7,b7 ,p>agraphs 7#c7 & 7#d7 ( subsection 7a7 %all be effective ) respect to contracts pur*as$ or receiv$ 9 an ex*ange on or aft] ,july #b1 #bjad4 7#b7 ,en=cem5t & int]pretations ,prior to ! date on :i* ! ,secret>y issues f9al regulations pursuant to subsection 7a7-- 7,a7 ! ,secret>y 7or delegate7 %all adm9i/] & en=ce ! law 9 accordance ) subsection 7a7 & ! effective dates 9 p>agraph 7#a7 ( ?is subsection2 & 7,b7 taxpay]s may rely ^u _! reasonable good fai? int]pretations ( subsection 7a74 #bjc4 ,insurance-d$icat$ ex*ange-trad$ funds 7a7 ,9 g5]al ,n lat] ?an ! date :i* is #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all am5d ! regulation issu$ by ! ,dep>tm5t ( ! ,treasury relat+ to ,income ,tax2 ,div]sification ,requirem5ts = ,v>iable ,annuity1 ,end[m5t1 & ,life ,insurance ,contracts1 #ed ,f$4 ,reg4 #hgbh 7,m>* #b1 #aihi71 & make any necess>y correspond+ am5dm5ts to o!r regulations1 9 ord] to facilitate ! use ( ex*ange-trad$ funds z inve/m5t options "u v>iable contracts )9 ! mean+ ( section #hag7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 9 accordance ) subsections 7b7 & 7c7 ( ?is section4 7b7 ,designate c]ta9 au?oriz$ p>ticipants & m>ket mak]s z eligible inve/ors ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all am5d ,treas4 ,reg4 section #a4hag-e7;f77#c7 to provide t satisfaction ( ! requirem5ts 9 ,treas4 ,reg4 section #a4hag-e7;f77#b77;i7 ) respect to an ex*ange-trad$ fund %all n be prev5t$ by reason ( b5eficial int]e/s 9 su* a fund be+ held by #a or m au?oriz$ p>ticipants or m>ket mak]s4 7c7 ,confirm t simil>ities to o!r funds are irrelevant ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all am5d ,treas4 ,reg4 section #a4hag-e7;f7 to confirm t1 = ,f$]al income tax purposes1 a regulat$ inve/m5t company1 p>tn]%ip1 or tru/ 7includ+ an ex*ange-trad$ fund7 t satisfies ! requirem5ts ( ,treas4 ,reg4 section #a4hag-e7;f7 7#b7 & 7#c7 %all n be treat$ z own$ by ! hold] ( a v>iable contract pursuant to ! pr9ciples ( ,rev4 ,rul4 #ha-bbe1 #aiha-b ,c4,b4 #ab1 m]ely because ano!r regulat$ inve/m5t company1 p>tn]%ip1 tru/1 or simil> inve/m5t vehicle foll[s ! same inve/m5t /rategy1 has ! same inve/m5t manag]1 or holds ! same inve/m5ts4 7d7 ,def9e relevant t]ms ,9 am5d+ ,treas4 ,reg4 section #a4hag-e7;f77#c7 9 accordance ) subsections 7b7 & 7c7 ( ?is section1 ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all provide def9itions consi/5t ) ! foll[+3 7#a7 ,ex*ange-trad$ fund ,! t]m ex*ange-trad$ fund means a regulat$ inve/m5t company1 p>tn]%ip1 or tru/-- 7,a7 t is regi/]$ ) ! ,securities & ,ex*ange ,commission z an op5-end inve/m5t company or a unit inve/m5t tru/2 7,b7 ! %>es ( :i* c be pur*as$ or r$eem$ directly f ! fund only by an au?oriz$ p>ticipant2 & 7,c7 ! %>es ( :i* are trad$ ?r\gh\t ! day on a national /ock ex*ange at m>ket prices t may or may n be ! same z ! net asset value ( ! %>es4 7#b7 ,au?oriz$ p>ticipant ,! t]m au?oriz$ p>ticipant means a f9ancial in/itution t is a memb] or p>ticipant ( a cle>+ ag5cy regi/]$ "u section #ag;,a7b7 ( ! ,securities ,ex*ange ,act ( #aicd t ent]s into a contractual relation%ip ) an ex*ange-trad$ fund pursuant to :i* ! f9ancial in/itution is p]mitt$ to pur*ase & r$eem %>es directly f ! fund & to sell su* %>es to ?ird p>ties1 b only if ! contractual arrangem5t or applicable law precludes ! f9ancial in/itution f-- 7,a7 pur*as+ ! %>es = its own inve/m5t purposes r ?an = ! exclusive purpose ( creat+ & r$eem+ su* %>es on behalf ( ?ird p>ties2 & 7,b7 sell+ ! %>es to ?ird p>ties :o are n m>ket mak]s or o!rwise describ$ 9 ,treas4 ,reg4 section #a4hag-e7;f7 7#a7 & 7#c74 7#c7 ,m>ket mak] ,! t]m m>ket mak] means a f9ancial in/itution t is a regi/]$ brok] or deal] "u section #ae7;b7 ( ! ,securities ,ex*ange ,act ( #aicd t ma9ta9s liquidity = an ex*ange-trad$ fund on a national /ock ex*ange by be+ always ready to buy & sell %>es ( su* fund on ! m>ket1 b only if ! f9ancial in/itution is contractually or legally preclud$ f sell+ or buy+ su* %>es to or f p]sons :o are n au?oriz$ p>ticipants or o!rwise describ$ 9 ,treas4 ,reg4 section #a4hag-e7;f7 7#b7 & 7#c74 7e7 ,effective dates1 en=cem5t1 & int]pretations 7#a7 ,effective dates 7,a7 ,subsection 7b7 ,subsection 7b71 & ! def9itions "u subsection 7d71 %all apply to segregat$ asset acc\nt inve/m5ts made on or aft] ! e>li] (-- 7i7 ! date t is #ah mon?s aft] ! date ( ! ( enactm5t ( ?is ,act1 or 7ii7 ! date on :i* ! am5dm5ts to regulations "u subsection 7b7 are made4 7,b7 ,subsection 7c7 ,subsection 7c7 %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,en=cem5t & int]pretations ,prior to ! date t ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 issues f9al regulations pursuant to ?is section-- 7,a7 ! ,secret>y 7or delegate7 %all adm9i/] & en=ce ! law 9 accordance ) ?is section & ! effective dates "u p>agraph 7#a71 & 7,b7 taxpay]s may rely ^u _! reasonable good fai? int]pretations ( ! prec$+ subsections ( ?is section4 7#c7 ,no inf]5ce ,no?+ conta9$ 9 ! am5dm5ts to regulations pursuant to subsection 7c71 or ! adm9i/ration & en=cem5t ( su* subsection "u p>agraph 7#b71 %all be con/ru$ to create any inf]5ce z to a *ange 9 law or guidance 9 effect prior to enactm5t ( ?is section4 ,,iii ,simplification & ,cl>ification ( ,retirem5t ,plan ,rules #cja4 ,recov]y ( retirem5t plan ov]paym5ts 7a7 ,ov]paym5ts "u ,int]nal ,rev5ue ,code ( #aihf 7#a7 ,qualification requirem5ts ,section #dad ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by ! prec$+ provisions ( ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subsection3 7bb7 ,special rules applicable to b5efit ov]paym5ts 7#a7 ,9 g5]al ,a plan %all n fail to be treat$ z describ$ 9 clause 7i71 7ii71 7iii71 or 7iv7 ( section #bai7;g77#e77;,a7 7& %all n fail to be treat$ z satisfy+ ! requirem5ts ( section #dja7;a7 or #djc7 m]ely because-- 7,a7 ! plan fails to obta9 paym5t f any p>ticipant1 b5efici>y1 employ]1 plan sponsor1 fiduci>y1 or o!r p>ty on acc\nt ( any inadv]t5t b5efit ov]paym5t made by ! plan1 or 7,b7 ! plan sponsor am5ds ! plan to increase pa/ or future b5efit paym5ts to affect$ p>ticipants & b5efici>ies 9 ord] to adju/ = prior inadv]t5t b5efit ov]paym5ts4 7#b7 ,r$uction 9 future b5efit paym5ts & recov]y f responsible p>ty ,p>agraph 7#a7 %all n fail to apply to a plan m]ely because1 aft] discov]+ a b5efit ov]paym5t1 su* plan-- 7,a7 r$uces future b5efit paym5ts to ! correct am\nt provid$ = "u ! t]ms ( ! plan1 or 7,b7 seeks recov]y f ! p]son or p]sons responsible = su* ov]paym5t4 7#c7 ,employ] fund+ obligations ,no?+ 9 ?is subsection %all relieve an employ] ( any obligation impos$ on x to make contributions to a plan to meet ! m9imum fund+ /&>ds "u section #dab or to prev5t or re/ore an imp]missible =feiture 9 accordance ) section #daa4 7#d7 ,obs]vance ( b5efit limitations ,not)/&+ p>agraph 7#a71 a plan to :i* p>agraph 7#a7 applies %all obs]ve any limitations impos$ on x by section #dja7;a77#ag7 or #dae4 ,! plan may en=ce su* limitations us+ any me?od approv$ by ! ,secret>y = rec\p+ b5efits previ\sly paid or allocations previ\sly made 9 excess ( su* limitations4 7#e7 ,coord9ation ) o!r qualification requirem5ts ,! ,secret>y may issue regulations or o!r guidance ( g5]al applicability specify+ h[ b5efit ov]paym5ts & _! rec\pm5t or non-rec\pm5t f a p>ticipant or b5efici>y %all be tak5 into acc\nt = purposes ( satisfy+ any requirem5t applicable to a plan to :i* p>agraph 7#a7 applies4 4 7#b7 ,rollov]s ,section #djb7;c7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ac7 ,9 ! case ( an inadv]t5t b5efit ov]paym5t f a plan to :i* section #dad7;bb77#a7 applies :i* is transf]r$ to an eligible retirem5t plan by or on behalf ( a p>ticipant or b5efici>y-- 7,a7 ! portion ( su* ov]paym5t ) respect to :i* rec\pm5t is n s\ght on behalf ( ! plan %all be treat$ z hav+ be5 paid 9 an eligible rollov] di/ribution if ! paym5t w\ld h be5 an eligible rollov] di/ribution b = be+ an ov]paym5t1 & 7,b7 ! portion ( su* ov]paym5t ) respect to :i* rec\pm5t is s\ght on behalf ( ! plan %all be p]mitt$ to be return$ to su* plan & 9 su* case %all be treat$ z an eligible rollov] di/ribution transf]r$ to su* plan by ! p>ticipant or b5efici>y :o receiv$ su* ov]paym5t 7& ! plans mak+ & receiv+ su* transf] %all be treat$ z p]mitt+ su* transf]74 ,9 any case 9 :i* rec\pm5t is s\ght on behalf ( ! plan b is disput$ by ! p>ticipant or b5efici>y :o receiv$ su* ov]paym5t1 su* dispute %all be subject to ! claims & appeals proc$ures ( ! plan t made su* ov]paym5t1 su* plan %all notify ! plan receiv+ ! rollov] ( su* dispute1 & ! plan receiv+ ! rollov] %all reta9 su* ov]paym5t on behalf ( ! p>ticipant or b5efici>y 7& %all be entitl$ to treat su* ov]paym5t z plan assets7 p5d+ ! outcome ( su* proc$ures4 4 7b7 ,ov]paym5ts "u ,,erisa ,section #bjf ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajef7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7h7 ,special rules applicable to b5efit ov]paym5ts 7#a7 ,g5]al rule ,9 ! case ( an inadv]t5t b5efit ov]paym5t by any p5sion plan1 ! responsible plan fiduci>y %all n be consid]$ to h fail$ to comply ) ! requirem5ts ( ?is title m]ely because su* fiduci>y det]m9es1 9 ! ex]cise ( its fiduci>y discretion1 n to seek recov]y ( all or "p ( su* ov]paym5t f-- 7,a7 any p>ticipant or b5efici>y1 7,b7 any plan sponsor (1 or contribut+ employ] to-- 7i7 an individual acc\nt plan1 provid$ t ! am\nt ne$$ to prev5t or re/ore any imp]missible =feiture f any p>ticipant's or b5efici>y's acc\nt aris+ 9 connection ) ! ov]paym5t is1 sep>ately f & indep5d5tly ( ! ov]paym5t1 allocat$ to su* acc\nt pursuant to ! non=feitability requirem5ts ( section #bjc 7= example1 out ( ! plan's =feiture acc\nt1 additional employ] contributions1 or recov]ies f ^? responsible = ! ov]paym5t71 or 7ii7 a def9$ b5efit p5sion plan subject to ! fund+ rules 9 "p #c ( ?is subtitle ,b1 unless ! responsible plan fiduci>y det]m9es1 9 ! ex]cise ( its fiduci>y discretion1 t failure to recov] all or "p ( ! ov]paym5t fa/] ?an requir$ "u su* fund+ rules w\ld mat]ially affect ! plan's ability to pay b5efits due to o!r p>ticipants & b5efici>ies1 or 7,c7 any fiduci>y ( ! plan1 o!r ?an a fiduci>y 7includ+ a plan sponsor or contribut+ employ] act+ 9 a fiduci>y capacity7 ^: brea* ( its fiduci>y duties result$ 9 su* ov]paym5t1 provid$ t if ! plan has e/abli%$ prud5t proc$ures to prev5t & m9imize ov]paym5t ( b5efits & ! relevant plan fiduci>ies h foll[$ su* proc$ures1 an inadv]t5t b5efit ov]paym5t w n give rise to a brea* ( fiduci>y duty4 7#b7 ,r$uction 9 future b5efit paym5ts & recov]y f responsible p>ty ,p>agraph 7#a7 %all n fail to apply ) respect to any inadv]t5t b5efit ov]paym5t m]ely because1 aft] discov]+ su* ov]paym5t1 ! responsible plan fiduci>y-- 7,a7 r$uces future b5efit paym5ts to ! correct am\nt provid$ = "u ! t]ms ( ! plan1 or 7,b7 seeks recov]y f ! p]son or p]sons responsible = ! ov]paym5t4 7#c7 ,employ] fund+ obligations ,no?+ 9 ?is subsection %all relieve an employ] ( any obligation impos$ on x to make contributions to a plan to meet ! m9imum fund+ /&>ds "u "p #c ( ?is subtitle ,b or to prev5t or re/ore an imp]missible =feiture 9 accordance ) section #bjc4 7#d7 ,rec\pm5t f p>ticipants & b5efici>ies ,if ! responsible plan fiduci>y1 9 ! ex]cise ( its fiduci>y discretion1 decides to seek rec\pm5t f a p>ticipant or b5efici>y ( all or "p ( an inadv]t5t b5efit ov]paym5t made by ! plan to su* p>ticipant or b5efici>y1 x may d s1 subject to ! foll[+ conditions3 7,a7 ,no int]e/ or o!r additional am\nts 7su* z collection co/s or fees7 are s\ght on ov]paid am\nts4 7,b7 ,if ! plan seeks to rec\p pa/ ov]paym5ts ( a non-decreas+ p]iodic b5efit by r$uc+ future b5efit paym5ts-- 7i7 ! r$uction ceases aft] ! plan has recov]$ ! full doll> am\nt ( ! ov]paym5t1 7ii7 ! am\nt rec\p$ ea* cal5d> ye> does n exce$ #aj p]c5t ( ! full doll> am\nt ( ! ov]paym5t1 & 7iii7 future b5efit paym5ts are n r$uc$ to bel[ #ij p]c5t ( ! p]iodic am\nt o!rwise payable "u ! t]ms ( ! plan4 ,alt]natively1 if ! plan seeks to rec\p pa/ ov]paym5ts ( a non-decreas+ p]iodic b5efit ?r\gh "o or m in/allm5t paym5ts1 ! sum ( su* in/allm5t paym5ts 9 any cal5d> ye> does n exce$ ! sum ( ! r$uctions t w\ld be p]mitt$ 9 su* ye> "u ! prec$+ s5t5ce4 7,c7 ,if ! plan seeks to rec\p pa/ ov]paym5ts ( a b5efit o!r ?an a non-decreas+ p]iodic b5efit1 ! plan satisfies requirem5ts develop$ by ! ,secret>y ( ! ,treasury = purposes ( ?is subp>agraph4 7,d7 ,ef=ts to rec\p ov]paym5ts are n made ?r\gh a collection ag5cy or simil> ?ird p>ty & su* ef=ts are n accompani$ by ?reats ( litigation1 unless ! responsible plan fiduci>y reasonably believes x c\ld prevail 9 a civil action br\ght 9 ,f$]al or ,/ate c\rt to rec\p ! ov]paym5ts4 7,e7 ,rec\pm5t ( pa/ ov]paym5ts to a p>ticipant is n s\ght f any b5efici>y ( ! p>ticipant1 includ+ a sp\se1 surviv+ sp\se1 =m] sp\se1 or o!r b5efici>y4 7,f7 ,rec\pm5t may n be s\ght if ! fir/ ov]paym5t occurr$ m ?an #c ye>s be=e ! p>ticipant or b5efici>y is fir/ notifi$ 9 writ+ ( ! error4 7,g7 ,a p>ticipant or b5efici>y f :om rec\pm5t is s\ght is entitl$ to conte/ all or "p ( ! rec\pm5t pursuant to ! plan's claims & appeals proc$ures4 7,h7 ,9 det]m9+ ! am\nt ( rec\pm5t to seek1 ! responsible plan fiduci>y may take into acc\nt ! h>d%ip t rec\pm5t likely w\ld impose on ! p>ticipant or b5efici>y4 7#e7 ,effect ( culpability ,subp>agraphs 7,a7 ?r\gh 7,f7 ( p>agraph 7#d7 %all n apply to protect a p>ticipant or b5efici>y :o is culpable4 ,= purposes ( ?is p>agraph1 a p>ticipant or b5efici>y is culpable if ! individual be>s responsibility = ! ov]paym5t 7su* z ?r\gh misrepres5tations or omissions t l$ to ! ov]paym5t71 or if ! individual knew1 or _h good reason to "k "u ! circum/ances1 t ! b5efit paym5t or paym5ts 7 mat]ially 9 excess ( ! correct am\nt4 ,not)/&+ ! prec$+ s5t5ce1 an individual is n culpable m]ely because ! individual believ$ ! b5efit paym5t or paym5ts 7 or might be 9 excess ( ! correct am\nt1 if ! individual rais$ t "q ) an au?oriz$ plan repres5tative & 0 told ! paym5t or paym5ts 7 n 9 excess ( ! correct am\nt4 ,) respect to a culpable p>ticipant or b5efici>y1 ef=ts to rec\p ov]paym5ts %all n be made ?r\gh ?reats ( litigation1 unless a lawy] = ! plan c\ld make ! repres5tations requir$ "u ,rule #aa ( ! ,f$]al ,rules ( ,civil ,proc$ure if ! litigation 7 br\ght 9 ,f$]al c\rt4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply z ( ! date ( ! enactm5t ( ?is ,act4 7d7 ,c]ta9 actions be=e date ( enactm5t ,plans1 fiduci>ies1 employ]s1 & plan sponsors are entitl$ to rely on-- 7#a7 a good fai? int]pretation ( !n exi/+ adm9i/rative guidance = inadv]t5t b5efit ov]paym5t rec\pm5ts & recov]ies t comm5c$ be=e ! date ( enactm5t ( ?is ,act1 & 7#b7 det]m9ations made be=e su* date ( enactm5t by ! responsible plan fiduci>y1 9 ! ex]cise ( its fiduci>y discretion1 n to seek rec\pm5t or recov]y ( all or "p ( an inadv]t5t b5efit ov]paym5t4 ,9 ! case ( a b5efit ov]paym5t t occurr$ prior to ! date ( enactm5t ( ?is ,act1 any in/allm5t paym5ts by ! p>ticipant or b5efici>y to ! plan or any r$uction 9 p]iodic b5efit paym5ts to ! p>ticipant or b5efici>y1 :i* 7 made 9 rec\pm5t ( su* ov]paym5t & :i* comm5c$ prior to su* date1 may cont9ue aft] su* date4 ,no?+ 9 ?is subsection %all relieve a fiduci>y f responsibility = an ov]paym5t t result$ f a brea* ( its fiduci>y duties4 #cjb4 ,r$uction 9 excise tax on c]ta9 accumulations 9 qualifi$ retirem5t plans 7a7 ,9 g5]al ,subsection 7a7 ( section #digd ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #ej p]c5t & ins]t+ #be p]c5t4 7b7 ,r$uction 9 excise tax on failures ,to take requir$ m9imum di/ributions ,section #digd ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subsection3 7e7 ,r$uction ( tax 9 c]ta9 cases 7#a7 ,r$uction ,9 ! case ( a taxpay] :o-- 7,a7 corrects1 dur+ ! correction w9d[1 a %ortfall ( di/ributions f an individual retirem5t plan :i* result$ 9 imposition ( a tax "u subsection 7a71 & 7,b7 submits a return1 dur+ ! correction w9d[1 reflect+ su* tax 7z modifi$ by ?is subsection71 ! fir/ s5t5ce ( subsection 7a7 %all be appli$ by sub/itut+ #aj p]c5t = #be p]c5t4 7#b7 ,correction w9d[ ,= purposes ( ?is subsection1 ! t]m correction w9d[ means ! p]iod ( "t beg9n+ on ! date on :i* ! tax "u subsection 7a7 is impos$ ) respect to a %ortfall ( di/ributions f an individual retirem5t plan1 & end+ on ! e>li] (-- 7,a7 ! date on :i* ! ,secret>y initiates an audit1 or o!rwise dem&s paym5t1 ) respect to ! %ortfall ( di/ributions1 or 7,b7 ! la/ day ( ! second taxable ye> t beg9s aft] ! end ( ! taxable ye> 9 :i* ! tax "u subsection 7a7 is impos$4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbj4 #cjc4 ,p]=mance b5*m>ks = asset allocation funds 7a7 ,9 g5]al ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor 7or ! ,secret>y's delegate7 %all modify ! regulations "u section #djd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7 to provide t1 9 ! case ( a designat$ inve/m5t alt]native :i* conta9s a mix ( asset classes1 a plan adm9i/rator may1 b is n requir$ to1 use a b5*m>k :i* is a bl5d ( diff]5t broad-bas$ securities m>ket indices if-- 7#a7 ! bl5d is reasonably repres5tative ( ! asset class hold+s ( ! designat$ inve/m5t alt]native2 7#b7 = purposes ( det]m9+ ! bl5d's returns = #a-1 #e-1 & #aj-;cal5d>-ye> p]iods 7or = ! life ( ! alt]native1 if %ort]71 ! bl5d is modifi$ at lea/ once p] ye> to reflect *anges 9 ! asset class hold+s ( ! designat$ inve/m5t alt]native2 7#c7 ! bl5d is furni%$ to p>ticipants & b5efici>ies 9 a mann] t is reasonably design$ to be und]/&able & helpful2 & 7#d7 ea* securities m>ket index :i* is us$ = an associat$ asset class w\ld sep>ately satisfy ! requirem5ts ( su* regulations = su* asset class4 7b7 ,/udy ,n lat] ?an ,decemb] #ca1 #bjba1 ! ,secret>y ( ,labor 7or ! ,secret>y's delegate7 %all deliv] a report to ! ,committees on ,ways & ,means & ,education & ,labor ( ! ,h\se ( ,repres5tatives & ! ,committees on ,f9ance & ,heal?1 ,education1 ,labor1 & ,p5sions ( ! ,s5ate reg>d+ ! effectiv5ess ( ! b5*m>k+ requirem5ts "u section #beej4djd;a-#e ( title #bi1 ,code ( ,f$]al ,regulations4 #cjd4 ,review & report to ! ,congress relat+ to report+ & disclosure requirem5ts 7a7 ,/udy ,z soon z practicable aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,p5sion ,b5efit ,gu>anty ,corporation %all review ! report+ & disclosure requirem5ts (-- 7#a7 title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd applicable to p5sion plans 7z def9$ 9 section #c7b7 ( su* ,act72 & 7#b7 ! ,int]nal ,rev5ue ,code ( #aihf applicable to qualifi$ retirem5t plans 7z def9$ 9 section #digd7;c7 ( su* ,code )\t reg>d to p>agraphs 7#d7 & 7#e7 !re(74 7b7 ,report ,n lat] ?an #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,p5sion ,b5efit ,gu>anty ,corporation1 jo9tly1 & aft] consultation ) a balanc$ gr\p ( p>ticipant & employ] repres5tatives1 %all ) respect to plans ref]5c$ 9 subsection 7a7 report on ! effectiv5ess ( ! applicable report+ & disclosure requirem5ts & make su* recomm5dations z may be appropriate to ! appropriate committees ( ! ,congress to consolidate1 simplify1 /&>dize1 & improve su* requirem5ts s z to simplify report+ = su* plans & ensure t plans c simply furni% & p>ticipants & b5efici>ies timely receive & bett] und]/& ! in=mation !y ne$ to monitor _! plans1 plan = retirem5t1 & obta9 ! b5efits !y h e>n$4 ,su* report %all assess ! ext5t to :i* retirem5t plans are reta9+ disclosures1 "w records1 & plan docum5ts t are ne$$ to ensure accurate calculation ( future b5efits4 ,to assess ! effectiv5ess ( ! applicable report+ & disclosure requirem5ts1 ! report %all include an analysis1 bas$ on plan data1 ( h[ p>ticipants & b5efici>ies are provid+ pref]r$ contact in=mation1 ! me?ods by :i* plan sponsors & plans are furni%+ disclosures1 & ! rate at :i* p>ticipants & b5efici>ies 7gr\p$ by key demographics7 are receiv+1 access+1 & reta9+ disclosures4 ,! ag5cies %all conduct appropriate surveys & data collection to obta9 any ne$$ in=mation4 #cje4 ,elim9at+ unnecess>y plan requirem5ts relat$ to un5roll$ p>ticipants 7a7 ,am5dm5t ( ,int]nal ,rev5ue ,code ( #aihf ,section #dad ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by ! prec$+ provisions ( ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subsection3 7cc7 ,elim9at+ unnecess>y plan requirem5ts relat$ to un5roll$ p>ticipants 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is title1 ) respect to any def9$ contribution plan1 no disclosure1 notice1 or o!r plan docum5t 7o!r ?an ! notices & docum5ts describ$ 9 subp>agraphs 7,a7 & 7,b77 %all be requir$ to be furni%$ "u ?is title to any un5roll$ p>ticipant if ! un5roll$ p>ticipant receives-- 7,a7 9 connection ) ! annual op5 season election p]iod ) respect to ! plan or1 if !re is no su* p]iod1 )9 a reasonable p]iod prior to ! beg9n+ ( ea* plan ye>1 an annual rem9d] notice 79 pap] =mat1 or 9 any electronic =mat cons5t$ to by ! p>ticipant7 ( su* p>ticipant's eligibility to p>ticipate 9 su* plan & any applicable election deadl9es "u ! plan1 & 7,b7 any docum5t reque/$ by su* p>ticipant :i* ! p>ticipant w\ld be entitl$ to receive )\t reg>d to ?is subsection4 7#b7 ,un5roll$ p>ticipant ,= purposes ( ?is subsection1 ! t]m un5roll$ p>ticipant means an employee :o-- 7,a7 is eligible to p>ticipate 9 a def9$ contribution plan1 7,b7 has be5 furni%$ all requir$ notices1 disclosures1 & o!r plan docum5ts requir$ to be furni%$ "u ?is title & ! summ>y plan description z provid$ 9 section #ajd7;b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 9 connection ) su* p>ticipant's initial eligibility to p>ticipate 9 su* plan1 7,c7 is n p>ticipat+ 9 su* plan1 & 7,d7 does n h a balance 9 ! plan4 ,= purposes ( ?is subsection1 any eligibility to p>ticipate 9 ! plan foll[+ any p]iod = :i* su* employee 0 n eligible to p>ticipate %all be treat$ z initial eligibility4 7#c7 ,annual rem9d] notice ,= purposes ( ?is subsection1 ! t]m annual rem9d] notice means ! notice describ$ 9 section #aaa7;c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd4 4 7b7 ,am5dm5t ( ,employee ,retirem5t ,income ,security ,act ( #aigd 7#a7 ,9 g5]al ,"p #a ( subtitle ,b ( sub*apt] ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd is am5d$ by r$esignat+ section #aaa z section #aab & by ins]t+ aft] section #aaj ! foll[+ new section3 #aaa4 ,elim9at+ unnecess>y plan requirem5ts relat$ to un5roll$ p>ticipants 7a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is title1 ) respect to any individual acc\nt plan1 no disclosure1 notice1 or o!r plan docum5t 7o!r ?an ! notices & docum5ts describ$ 9 p>agraphs 7#a7 & 7#b77 %all be requir$ to be furni%$ "u ?is title to any un5roll$ p>ticipant if ! un5roll$ p>ticipant receives-- 7#a7 9 connection ) ! annual op5 season election p]iod ) respect to ! plan or1 if !re is no su* p]iod1 )9 a reasonable p]iod prior to ! beg9n+ ( ea* plan ye>1 an annual rem9d] notice ( su* p>ticipant's eligibility to p>ticipate 9 su* plan & any applicable election deadl9es "u ! plan2 & 7#b7 any docum5t reque/$ by su* p>ticipant :i* ! p>ticipant w\ld be entitl$ to receive )\t reg>d to ?is section4 7b7 ,un5roll$ p>ticipant ,= purposes ( ?is section1 ! t]m un5roll$ p>ticipant means an employee :o-- 7#a7 is eligible to p>ticipate 9 an individual acc\nt plan2 7#b7 has receiv$ all requir$ notices1 disclosures1 & o!r plan docum5ts1 includ+ ! summ>y plan description1 requir$ to be furni%$ "u ?is title 9 connection ) su* p>ticipant's initial eligibility to p>ticipate 9 su* plan2 7#c7 is n p>ticipat+ 9 su* plan2 & 7#d7 does n h a balance 9 ! plan4 ,= purposes ( ?is section1 any eligibility to p>ticipate 9 ! plan foll[+ any p]iod = :i* su* employee 0 n eligible to p>ticipate %all be treat$ z initial eligibility4 7c7 ,annual rem9d] notice ,= purposes ( ?is section1 ! t]m annual rem9d] notice means a notice provid$ 9 accordance ) section #bebj4ajd;b-#a ( title #bi1 ,code ( ,f$]al ,regulations 7or any successor regulation71 :i*-- 7#a7 is furni%$ 9 connection ) ! annual op5 season election p]iod ) respect to ! plan or1 if !re is no su* p]iod1 is furni%$ )9 a reasonable p]iod prior to ! beg9n+ ( ea* plan ye>2 7#b7 notifies ! un5roll$ p>ticipant (-- 7,a7 ! un5roll$ p>ticipant's eligibility to p>ticipate 9 ! plan2 & 7,b7 ! key b5efits "u ! plan & ! key rights & features "u ! plan affect+ su* b5efits2 & 7#c7 provides su* in=mation 9 a prom95t mann] calculat$ to be und]/ood by ! av]age p>ticipant4 4 7#b7 ,cl]ical am5dm5t ,! table ( cont5ts 9 section #a ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd is am5d$ by /rik+ ! item relat+ to section #aaa & by ins]t+ aft] ! item relat+ to section #aaj ! foll[+ new items3 ,sec4 #aaa4 ,elim9at+ unnecess>y plan requirem5ts relat$ to un5roll$ p>ticipants4 ,sec4 #aab4 ,repeal & effective date4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbj4 #cjf4 ,retirem5t sav+s lo/ & f\nd 7a7 ,retirem5t ,sav+s ,lo/ & ,f\nd 7#a7 ,e/abli%m5t 7,a7 ,9 g5]al ,n lat] ?an #b ye>s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,secret>y ( ,comm]ce1 9 coop]ation1 %all e/abli% an ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd1 :i* %all develop & ma9ta9 an onl9e se>*able database 7to be manag$ by ! ,p5sion ,b5efit ,gu>anty ,corporation7 ( unclaim$ ve/$ b5efits ( p>ticipants & b5efici>ies 9 plans-- 7i7 to all[ an individual to se>* = in=mation t enables ! individual to locate ! plan adm9i/rator ( any plans ) respect to :i* ! individual is a p>ticipant or b5efici>y1 & to provide contact in=mation = ! plan adm9i/rator ( any plan describ$ 9 subp>agraph 7,b7 ) respect to :i* ! individual may be entitl$ to a b5efit2 7ii7 to all[ ! corporation to assi/ su* an individual 9 locat+ any plan ( ! individual2 & 7iii7 to all[ ! corporation to make any necess>y *anges to contact in=mation on record = ! plan adm9i/rator bas$ on any *anges to ! plan due to m]g] or consolidation ( ! plan ) any o!r plan1 division ( ! plan into two or m plans1 bankruptcy1 t]m9ation1 *ange 9 "n ( ! plan1 *ange 9 "n or address ( ! plan adm9i/rator1 or o!r causes4 ,! ,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ "u ?is p>agraph %all conta9 ! in=mation obta9$ by ! corporation f ! ,int]nal ,rev5ue ,s]vice reg>d+ def]r$ ve/$ b5efits ( sep>at$ p>ticipants & b5efici>ies 9 plans z report$ "u section #fjeg7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by ?is subsection1 & ! in=mation on miss+ p>ticipants collect$ z "p ( ! corporation's ,miss+ ,p>ticipant ,program e/abli%$ "u section #djej ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd4 7,b7 ,plans describ$ ,a plan describ$ 9 ?is subp>agraph is a plan to :i* ! ve/+ /&>ds ( section #bjc ( "p #b ( subtitle ,b ( title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd apply4 7#b7 ,adm9i/ration ,! ,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ "u p>agraph 7#a7 %all provide individuals describ$ 9 p>agraph 7#a77;,a7 only ) ! ability to view contact in=mation = ! plan adm9i/rator ( any plan ) respect to :i* ! individual is a p>ticipant or b5efici>y1 suffici5t to all[ ! individual to locate ! individual's plan 9 ord] to recov] any b5efit ow+ to ! individual "u ! plan4 7#c7 ,curr5t in=mation 7,a7 ,9 g5]al ,p>agraph 7#b7 ( section #fjeg7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7i7 9 subp>agraph 7,c7-- 7,i7 by /rik+ dur+ su* plan ye> 9 clause 7i7 & ins]t+ dur+ ! plan ye> imm$iately prec$+ su* plan ye>2 7,,ii7 by add+ & at ! end ( clause 7i72 & 7,,iii7 by /rik+ clause 7iii72 7ii7 by r$esignat+ subp>agraph 7,e7 z subp>agraph 7,g72 7iii7 by /rik+ & at ! end ( subp>agraph 7,d72 & 7iv7 by ins]t+ aft] subp>agraph 7,d7 ! foll[+ new subp>agraphs3 7,e7 ! "n & taxpay] id5tify+ numb] ( ea* p>ticipant or =m] p>ticipant 9 ! plan-- 7i7 :o1 dur+ any previ\s plan ye>1 0 report$ "u subp>agraph 7,c71 & ) respect to :om ! b5efits describ$ 9 subp>agraph 7,c77ii7 7 fully paid dur+ ! plan ye>1 7ii7 ) respect to :om any am\nt 0 di/ribut$ "u section #dja7;a77#ca77;,b7 dur+ ! plan ye>1 or 7iii7 ) respect to :om a def]r$ annuity contract 0 di/ribut$ dur+ ! plan ye>1 7,f7 9 ! case ( a p>ticipant or =m] p>ticipant to :om subp>agraph 7,e7 applies-- 7i7 9 ! case ( a p>ticipant describ$ 9 clause 7ii7 !re(1 ! "n & address ( ! designat$ tru/ee or issu] describ$ 9 section #dja7;a77#ca77;,b77i7 & ! acc\nt numb] ( ! individual retirem5t plan to :i* ! am\nt 0 di/ribut$1 & 7ii7 9 ! case ( a p>ticipant describ$ 9 clause 7iii7 !re(1 ! "n & address ( ! issu] ( su* annuity contract & ! contract or c]tificate numb]1 & 4 7,b7 ,rules relat+ to direct tru/ee-to-tru/ee transf]s 7i7 ,9 g5]al ,p>agraph 7#f7 ( section #djb7;e7 ( su* ,code is am5d$-- 7,i7 by /rik+ transf]s4--,any & ins]t+ 8transf]s4-- 7,a7 ,9 g5]al ,any 2 & 7,,ii7 by add+ at ! end ! foll[+ new subp>agraph3 7,b7 ,notification ( tru/ee ,9 ! case ( a di/ribution "u section #dja7;a77#ca77;,b71 ! plan adm9i/rator %all notify ! designat$ tru/ee or issu] describ$ 9 clause 7i7 !re( t ! transf] is a m&atory di/ribution requir$ by su* section4 4 7ii7 ,p5alty ,subsection 7i7 ( section #ffeb ( su* ,code is am5d$-- 7,i7 by /rik+ to recipi5ts 9 ! head+ & ins]t+ or notification2 7,,ii7 by /rik+ #djb7;f71 & ins]t+ #djb7;f7 or a notification z requir$ by section #djb7;e77#f77;,b712 & 7,,iii7 by /rik+ su* writt5 explanation & ins]t+ su* writt5 explanation or notification4 7iii7 ,reports ,subsection 7i7 ( section #djh ( su* ,code is am5d$-- 7,i7 by r$esignat+ subp>agraphs 7,a7 & 7,b7 ( p>agraph 7#b7 z clauses 7i7 & 7ii71 respectively1 & by mov+ su* clauses #b ems to ! "r2 7,,ii7 by r$esignat+ p>agraphs 7#a7 & 7#b7 z subp>agraphs 7,a7 & 7,b71 respectively1 & by mov+ su* subp>agraphs #b ems to ! "r2 & 7,,iii7 by /rik+ z ! ,secret>y prescribes 9 subp>agraph 7,b77ii71 z s r$esignat$1 & all t foll[s ?r\gh a simple retirem5t acc\nt & ins]t+ 8z ! ,secret>y prescribes4 7#c7 ,simple retirem5t acc\nts ,9 ! case ( a simple retirem5t acc\nt 2 7,,iv7 by /rik+ ,reports4--,! tru/ee ( & ins]t+ 8,reports4-- 7#a7 ,9 g5]al ,! tru/ee ( 2 7,v7 by /rik+ "u p>agraph 7#b7 9 p>agraph 7#c71 z r$esignat$ by clause 7iii71 & ins]t+ "u p>agraph 7#a77;,b72 & 7,,vi7 by ins]t+ aft] p>agraph 7#a77;,b77ii71 z r$esignat$ by ! prec$+ clauses1 ! foll[+ new p>agraph3 7#b7 ,m&atory di/ributions ,9 ! case ( an acc\nt1 contract1 or annuity to :i* a transf] "u section #dja7;a77#ca77;,b7 is made 7includ+ a transf] f ! individual retirem5t plan to :i* ! orig9al transf] "u su* section 0 made to ano!r individual retirem5t plan71 ! report requir$ by ?is subsection = ! ye> ( ! transf] %all-- 7,a7 id5tify su* transf] z a m&atory di/ribution requir$ by su* section1 7,b7 include ! "n1 address1 & taxpay] id5tify+ numb] ( ! tru/ee or issu] ( ! individual retirem5t plan to :i* ! am\nt is transf]r$1 & 7,c7 be fil$ ) ! ,p5sion ,b5efit ,gu>anty ,corporation z well z ) ! ,secret>y4 4 7,c7 ,notification ( p>ticipants ^u sep>ation ,subsection 7e7 ( section #fjeg ( su* ,code is am5d$ by ins]t+ 1 & a notice ( ! availability (1 & ! contact in=mation =1 ! ,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ "u section #cjf7;a77#a7 ( ! ,secur+ a ,/rong ,retirem5t ,act ( #bjbj be=e ! p]iod at ! end ( ! second s5t5ce4 7,d7 ,effective date ,! am5dm5ts made by ?is p>agraph %all apply to di/ributions made 91 & returns & reports relat+ to1 ye>s beg9n+ aft] ! second ,decemb] #ca occurr+ aft] ! date ( ! enactm5t ( ?is ,act4 7#d7 ,coord9ation ) di/ribution requirem5ts1 fiduci>y duties1 etc 7,a7 ,am5dm5t ( ,int]nal ,rev5ue ,code ( #aihf ,p>agraph 7#i7 ( section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by ! prec$+ provisions ( ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,k7 ,coord9ation ) ,retirem5t ,sav+s ,lo/ & ,f\nd 7i7 ,9 g5]al ,) respect to any lo/ or miss+ p>ticipant ( a plan1 ! plan %all n be treat$ z fail+ to satisfy ! requirem5ts ( ?is p>agraph or any o!r requirem5t ( ?is title :i* _c be satisfi$ due to ! plan's inability to locate ! p>ticipant4 7ii7 ,lo/ or miss+ p>ticipant ,= purposes ( subclause 7i71 ! t]m lo/ or miss+ p>ticipant %all be def9$ 9 guidance to be issu$ jo9tly by ! ,int]nal ,rev5ue ,s]vice1 ,dep>tm5t ( ! ,treasury1 ! ,employee ,b5efits ,security ,adm9i/ration1 ,dep>tm5t ( ,labor1 & ! ,p5sion ,b5efit ,gu>anty ,corporation4 ,su* guidance %all be s issu$ n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is subp>agraph4 4 7,b7 ,am5dm5t ( ,employee ,retirem5t ,income ,security ,act ( #aigd 7i7 ,9 g5]al ,section #djd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7e7 ,coord9ation ) ,retirem5t ,sav+s ,lo/ & ,f\nd 7#a7 ,9 g5]al ,) respect to any lo/ or miss+ p>ticipant ( a plan1 a fiduci>y ( ! plan %all n be treat$ z fail+ to satisfy any requirem5t to se>* = or attempt to locate1 or to provide any docum5t or in=mation to1 su* individual1 or any o!r requirem5t ( ?is title :i* _c be satisfi$ due to ! plan's inability to locate ! p>ticipant4 7#b7 ,lo/ or miss+ p>ticipant ,= purposes ( p>agraph 7#a71 ! t]m lo/ or miss+ p>ticipant %all be def9$ 9 guidance to be issu$ jo9tly by ! ,int]nal ,rev5ue ,s]vice1 ,dep>tm5t ( ! ,treasury1 ! ,employee ,b5efits ,security ,adm9i/ration1 ,dep>tm5t ( ,labor1 & ! ,p5sion ,b5efit ,gu>anty ,corporation4 4 7ii7 ,con=m+ am5dm5ts ,section #djej7;a77#a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acej7;a77#a77 is am5d$ 9 subp>agraph 7,b7-- 7,i7 by /rik+ provides & ins]t+ ei!r-- 7i7 provides 2 7,,ii7 by /rik+ ! p]iod at ! end & ins]t+ 2 or2 & 7,,iii7 by add+ at ! end ! foll[+ new clause3 7ii7 satisfies ! requirem5ts ( section #fjeg7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 4 7#e7 ,requirem5t ( electronic fil+ 7,a7 ,9 g5]al ,p>agraph 7#b7 ( section #fjaa7;e7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7i7 by r$esignat+ subp>agraphs 7,a7 & 7,b7 z clauses 7i7 & 7ii71 respectively1 & by mov+ su* clauses #b ems to ! "r2 7ii7 by /rik+ ! requirem5ts ( su* regulations & all t foll[s ?r\gh ! ,secret>y %all require & ins]t+ 8! requirem5ts ( su* regulations4 7,b7 ,c]ta9 p>tn]%ips ,not)/&+ subp>agraph 7,a71 ! ,secret>y %all require 2 7iii7 by /rik+ regulations4--,9 prescrib+ & ins]t+ 8regulations4-- 7,a7 ,9 g5]al ,9 prescrib+ 2 & 7iv7 by add+ at ! end ! foll[+ new subp>agraph3 7,c7 ,exceptions ,not)/&+ subp>agraph 7,a71 ! ,secret>y %all require returns or reports requir$ "u-- 7i7 sections #fjeg1 #fjeh1 & #fjei1 & 7ii7 sections #djh7;i71 #fjda1 & #fjdg to ! ext5t su* return or report relates to ! tax treatm5t ( a di/ribution f a plan1 acc\nt1 contract1 or annuity1 to be fil$ on magnetic m$ia1 b only ) respect to p]sons :o are requir$ to file at lea/ #ej returns dur+ ! cal5d> ye> :i* includes ! fir/ day ( ! plan ye> to :i* su* returns or reports relate4 4 7,b7 ,effective date ,! am5dm5ts made by ?is p>agraph %all apply to returns & reports relat+ to ye>s beg9n+ aft] ! second ,decemb] #ca occurr+ aft] ! date ( ! enactm5t ( ?is ,act4 7#f7 ,safegu>d+ p>ticipant privacy & security ,9 e/abli%+ ! ,retirem5t ,sav+s ,lo/ & ,f\nd "u p>agraph 7#a71 ! ,secret>y ( ,labor1 ! ,secret>y ( ,treasury1 & ! ,secret>y ( ,comm]ce %all take all necess>y & prop] precautions to ensure t individuals' plan in=mation ma9ta9$ by ! ,retirem5t ,sav+s ,lo/ & ,f\nd is protect$ & t p]sons o!r ?an ! individual _c fraudul5tly claim ! b5efits to :i* any individual is entitl$1 & to all[ any individual to opt out ( inclusion 9 ! ,retirem5t ,sav+s ,lo/ & ,f\nd at ! election ( ! individual4 7#g7 ,au?orization ( appropriations ,!re are au?oriz$ to be appropriat$ su* sums z may be necess>y to c>ry out ! purposes ( ?is subsection4 7b7 ,m&atory transf]s ( rollov] di/ributions 7#a7 ,inve/m5t options 7,a7 ,9 g5]al ,subp>agraph 7,b7 ( section #djd7;c77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7;c77#c77 is am5d$ by /rik+ ! p]iod at ! end & ins]t+ 81 &1 to ! ext5t ! ,secret>y provides 9 guidance or regulations issu$ aft] ! enactm5t ( ! ,secur+ a ,/rong ,retirem5t ,act ( #bjbj1 is made to-- 7i7 a t>get date or life cycle fund held "u su* acc\nt2 7ii7 z describ$ 9 section #beej4djd;a-#b ( title #bi1 ,code ( ,f$]al ,regulations1 an inve/m5t product held "u su* acc\nt design$ to pres]ve pr9cipal & provide a reasonable rate ( return2 7iii7 ! ,p5sion ,b5efit ,gu>anty ,corporation 9 accordance ) section #dja7;a77#ca77;,b77iv7 ( ! ,int]nal ,rev5ue ,code ( #aihf & section #cjf7;c77#b77;,a77ii7 ( ! ,secur+ a ,/rong ,retirem5t ,act ( #bjbj2 or 7iv7 su* o!r option z ! ,secret>y may s provide4 4 7,b7 ,regulations ,n lat] ?an #bgj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor %all promulgate regulations id5tify+ ! t>get date or life cycle funds1 or specify+ ! *>act]i/ics ( su* a fund1 t w be deem$ to meet ! requirem5ts ( section #djd7;c77#c77;,b77i7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7;c77#c77;,b771 z am5d$ by subp>agraph 7,a74 7#b7 ,expansion ( cap2 au?ority to transf] less] am\nts 7,a7 ,cap ,sections #dja7;a77#ca77;,b77ii7 & #daa7;a77#aa77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf & section #bjc7;e77#a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd are ea* am5d$ by /rik+ #e1jjj & ins]t+ #f1jjj4 7,b7 ,di/ribution ( l>g] am\nts to individual retirem5t plans only ,section #dja7;a77#ca77;,b77i7 ( su* ,code is am5d$ by add+ at ! end ! foll[+3 ,! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ by ,section #cjf ( ! ,secur+ a ,/rong ,retirem5t ,act %all n be treat$ z a tru/ee or issu] t is eligible to receive su* di/ributions44 7,c7 ,less] am\nts ,section #dja7;a77#ca77;,b7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new clauses3 7iii7 ,treatm5t ( less] am\nts ,9 ! case ( a tru/ :i* is "p ( an eligible plan1 su* tru/ %all n be a qualifi$ tru/ "u ?is section unless su* plan provides t1 if a p>ticipant 9 ! plan sep>ates f ! s]vice cov]$ by ! plan & ! non=feitable accru$ b5efit describ$ 9 clause 7ii7 is n 9 excess ( #a1jjj1 ! plan adm9i/rator %all 7ei!r sep>ately or z "p ( ! notice "u section #djb7;f77 notify ! p>ticipant t ! p>ticipant is entitl$ to su* b5efit or attempt to pay ! b5efit directly to ! p>ticipant4 7iv7 ,transf]s to ,retirem5t ,sav+s ,lo/ & ,f\nd ,if1 aft] a plan adm9i/rator takes ! action requir$ "u clause 7iii71 ! p>ticipant does n-- 7,i7 )9 #f mon?s ( ! notification "u su* clause1 make an election "u subp>agraph 7,a7 or elect to receive a di/ribution ( ! b5efit directly1 or 7,,ii7 accept any direct paym5t made "u su* clause )9 #f mon?s ( ! attempt$ paym5t1 ! plan adm9i/rator %all transf] ! am\nt ( su* b5efit to ! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd 9 accordance ) section #cjf7;c77#b77;a77ii7 ( ! ,secur+ a ,/rong ,retirem5t ,act ( #bjbj4 7v7 ,income tax treatm5t ( transf]s to ,retirem5t ,sav+s ,lo/ & ,f\nd ,= purposes ( det]m9+ ! income tax treatm5t ( transf]s to ! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd "u clause 7iv7-- 7,i7 su* a transf] %all be treat$ z a transf] to an individual retirem5t plan "u clause 7i71 & 7,,ii7 ! di/ribution ( su* am\nts by ! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd %all be treat$ z a di/ribution f an individual retirem5t plan4 4 7,d7 ,effective date ,! am5dm5ts made by ?is p>agraph %all apply to ve/$ b5efits ) respect to p>ticipants :o sep>ate f s]vice connect$ to ! plan 9 plan ye>s beg9n+ aft] ! second ,decemb] #ca occurr+ aft] ! date ( ! enactm5t ( ?is ,act4 7c7 ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd 7#a7 ,9 g5]al ,n lat] ?an "o ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ,treasury1 & ! ,secret>y ( ,comm]ce %all e/abli% )9 ! ,p5sion ,b5efit ,gu>anty ,corporation an ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd to op]ate 9 conjunction ) section #djej ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acej74 7#b7 ,responsibilities ( ,(fice 7,a7 ,9 g5]al ,9 addition to adm9i/]+ ! ,retirem5t ,sav+s ,lo/ & ,f\nd "u subsection 7a7 & c>ry+ out ! duties describ$ 9 clauses 7ii7 & 7iii7 ( subsection 7a77#a77;,a71 ! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ "u ?is section %all-- 7i7 p]=m an annual audit ( plan in=mation conta9$ 9 ! ,retirem5t ,sav+s ,lo/ & ,f\nd & ensure t su* in=mation is curr5t & accurate2 7ii7 inve/ any am\nt transf]r$ "u section #dja7;a77#ca77;,b77iv7 ( ! ,int]nal ,rev5ue ,code ( #aihf 9 ,unit$ ,/ates ,treasury securities2 7iii7 ^u application fil$ by ! p>ticipant or b5efici>y 9 su* =m & mann] z may be prescrib$ 9 regulations1 pay to ! p>ticipant or b5efici>y ! am\nt transf]r$ 7or ! appropriate survivor b5efit7 ei!r-- 7,i7 9 a s+le sum 7plus int]e/72 or 7,,ii7 9 su* o!r =m z is specifi$ 9 regulations2 & 7iv7 id5tify su* am\nt z eligible to be paid into an eligible retirem5t plan describ$ 9 section #djb7;c77#h77;,b7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7,b7 ,option to contract ,! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd %all conduct an analysis ( ! co/ effectiv5ess ( contract+ ) a ?ird p>ty to c>ry out ! responsibilities "u subp>agraph 7,a7 &1 if ! ,p5sion ,b5efit ,gu>anty ,corporation det]m9es t x w\ld be m co/ effective to d s ?an to c>ry out su* responsibilities )9 ! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd1 ! ,director %all report to ! ,committees on ,f9ance & ,heal?1 ,education1 ,labor1 & ,p5sions ( ! ,s5ate & ! ,committees on ,ways & ,means & ,education & ,labor ( ! ,h\se ( ,repres5tatives ! int5tion to s contract4 7,c7 ,option to prescribe protocols ,! ,p5sion ,b5efit ,gu>anty ,corporation may e/abli% protocols to assi/ p>ticipants orig9ally treat$ z lo/ or miss+ 9 claim+ _! b5efits "u a plan4 7,d7 ,coord9ation ,! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd %all coord9ate ) ! ,social ,security ,adm9i/ration1 ! ,employee ,b5efits ,security ,adm9i/ration1 & o!r applicable ag5cies to integrate in=mation & databases on lo/1 miss+1 & inactive p>ticipants4 7d7 ,transmission ( in=mation to ,p5sion ,b5efit ,gu>anty ,corporation ,section #fjeg ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$ by r$esignat+ subsection 7h7 z subsection 7i7 & by ins]t+ aft] subsection 7g7 ! foll[+ new subsection3 7h7 ,transmission ( in=mation to ,director ( ,p5sion ,b5efit ,gu>anty ,corporation ,! ,secret>y %all transmit copies ( any /atem5ts1 notifications1 reports1 or o!r in=mation obta9$ by him "u ?is section to ! ,director ( ! ,p5sion ,b5efit ,gu>anty ,corporation4 4 #cjg4 ,exemption f requir$ m9imum di/ribution rules = individuals ) c]ta9 acc\nt balances 7a7 ,9 g5]al ,section #dja7;a77#i7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by ! prec$+ provisions ( ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,l7 ,exception f requir$ m9imum di/ributions dur+ life ( employee :]e assets d n exce$ #ajj1jjj 7i7 ,9 g5]al ,if1 z ( a measurem5t date1 ! aggregate value ( an employee's entire int]e/ "u all def9$ contribution plans does n exce$ #ajj1jjj1 !n1 dur+ any succe$+ cal5d> ye> beg9n+ be=e ! next measurem5t date1 ! requirem5ts ( subp>agraph 7,a7 %all n apply ) respect to su* employee4 7ii7 ,def9$ contribution plan ,= purposes ( ?is subp>agraph1 ! t]m def9$ contribution plan has ! same mean+ z :5 us$ 9 subp>agraph 7,h74 7iii7 ,limit on requir$ m9imum di/ribution ,! requir$ m9imum di/ribution det]m9$ "u subp>agraph 7,a7 = an employee "u all def9$ contribution plans %all n exce$ an am\nt equal to ! excess (-- 7,i7 ! aggregate value ( an employee's entire int]e/ "u su* plans on ! la/ day ( ! cal5d> ye> to :i* su* di/ribution relates1 ov] 7,,ii7 ! doll> am\nt 9 effect "u clause 7i7 = su* cal5d> ye>4 ,! ,secret>y 9 regulations or o!r guidance may provide h[ su* am\nt %all be di/ribut$ 9 ! case ( an individual ) m ?an "o def9$ contribution plan4 7iv7 ,measurem5t date ,= purposes ( ?is subp>agraph1 ! t]m measurem5t date means1 ) respect to any employee-- 7,i7 ! la/ day ( ! cal5d> ye> prec$+ ! cal5d> ye> 9 :i* ! employee atta9s age #ge1 & 7,,ii7 9 ! case ( any employee :o 7aft] a measurem5t date det]m9$ "u subclause 7,i7 ) respect to su* employee7 receives contributions1 rollov]s1 or transf]s ( am\nts t 7 n previ\sly tak5 into acc\nt 9 apply+ ?is subp>agraph1 ! la/ day ( ! cal5d> ye> 9 :i* su* contribution1 rollov]1 or transf] 0 s receiv$4 7v7 ,inflation adju/m5t ,9 ! case ( any cal5d> ye> beg9n+ aft] #bjbj1 ! #ajj1jjj am\nt 9 clause 7i7 %all be increas$ by an am\nt equal to-- 7,i7 su* doll> am\nt1 multipli$ by 7,,ii7 ! co/ ( liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye>1 det]m9$ by sub/itut+ cal5d> ye> #bjai = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,any increase det]m9$ "u ?is clause %all be r\nd$ to ! next l[e/ multiple ( #e1jjj4 7vi7 ,plan adm9i/rator reliance on employee c]tification ,a def9$ contribution plan describ$ 9 clause 7iii71 7iv71 7v71 or 7vi7 ( section #djb7;c77#h77;,b7 %all n be treat$ z fail+ to meet ! requirem5ts ( ?is p>agraph 9 ! case ( any failure to make a requir$ m9imum di/ribution = a cal5d> ye> if-- 7,i7 ! aggregate value ( an employee's entire int]e/ "u all def9$ contribution plans ( ! employ] on ! la/ day ( ! cal5d> ye> to :i* su* di/ribution relates does n exce$ ! doll> am\nt 9 effect = su* ye> "u clause 7i71 & 7,,ii7 ! employee c]tifies t ! aggregate value ( ! employee's entire int]e/ "u all def9$ contribution plans on ! mo/ rec5t measurem5t date ) respect to ! employee 7z det]m9$ by ! employee bas$ on guidance provid$ by ! ,secret>y7 did n exce$ ! doll> am\nt 9 effect = su* ye> "u clause 7i74 7vii7 ,aggregation rule ,all employ]s treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad %all be treat$ z a s+le employ] = purposes ( clause 7v74 4 7b7 ,plan adm9i/rator report+ ,section #fjdg ( su* ,code is am5d$ by r$esignat+ subsection 7h7 z subsection 7i7 & by ins]t+ aft] subsection 7g7 ! foll[+ new subsection3 7h7 ,acc\nt balance = p>ticipants :o h atta9$ age #gd 7#a7 ,9 g5]al ,n lat] ?an ,janu>y #ca ( ea* ye>1 ! plan adm9i/rator 7z def9$ 9 section #dad7;g77 ( ea* def9$ contribution plan 7z def9$ 9 section #dja7;a77#i77,l77 %all make a return to ! ,secret>y ) respect to ea* p>ticipant ( su* plan :o has atta9$ age #gd z ( ! end ( ! prec$+ cal5d> ye> :i* /ates-- 7,a7 ! "n & plan numb] ( ! plan1 7,b7 ! "n & address ( ! plan adm9i/rator1 7,c7 ! "n1 address1 & taxpay] id5tification numb] ( ! p>ticipant1 & 7,d7 ! acc\nt balance ( su* p>ticipant z ( ! end ( ! prec$+ cal5d> ye>4 7#b7 ,/atem5t furni%$ to p>ticipant ,e p]son requir$ to make a return "u p>agraph 7#a7 ) respect to a p>ticipant %all furni% a copy ( su* return to su* p>ticipant4 7#c7 ,application to individual retirem5t plans & annuities ,9 ! case ( an def9$ contribution plan describ$ 9 clause 7i7 or 7ii7 ( section #djb7;c77#h77;,b7-- 7,a7 any ref]5ce 9 ?is subsection to ! plan adm9i/rator %all be treat$ z a ref]5ce to ! tru/ee or issu]1 z ! case may be1 & 7,b7 any ref]5ce 9 ?is subsection to ! p>ticipant %all be treat$ z a ref]5ce to ! individual = :om su* acc\nt or annuity is ma9ta9$4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions requir$ to be made 9 cal5d> ye>s beg9n+ m ?an #abj days aft] ! date ( ! enactm5t ( ?is ,act4 #cjh4 ,expansion ( ,employee ,plans ,compliance ,resolution ,sy/em 7a7 ,9 g5]al ,except z o!rwise provid$ 9 ! ,int]nal ,rev5ue ,code ( #aihf or regulations prescrib$ by ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate 7ref]r$ to 9 ?is section z ! ,secret>y71 any eligible inadv]t5t failure to comply ) ! rules applicable "u section #dja7;a71 #djc7;a71 #djc7;b71 #djh7p71 or #djh7k7 ( su* ,code may be self-correct$ "u ! ,employee ,plans ,compliance ,resolution ,sy/em 7z describ$ 9 ,rev5ue ,proc$ure #bjai-ai or any successor guidance & h]eaft] 9 ?is section ref]r$ to z ! ,,epcrs71 except to ! ext5t t su* failure 0 id5tifi$ by ! ,secret>y prior to any actions :i* demon/rate a commitm5t to implem5t a self-correction4 ,rev5ue ,proc$ure #bjai-ai is deem$ am5d$ z ( ! date ( ! enactm5t ( ?is ,act to provide t ! correction p]iod "u section #i4jb ( su* ,rev5ue ,proc$ure 7or any successor guidance7 = an eligible inadv]t5t failure1 except z o!rwise provid$ "u su* ,code or 9 regulations prescrib$ by ! ,secret>y1 is indef9ite & has no la/ day1 o!r ?an ) respect to failures id5tifi$ by ! ,secret>y prior to any self-correction z describ$ 9 ! prec$+ s5t5ce4 7b7 ,loan errors ,9 ! case ( an eligible inadv]t5t failure relat+ to a loan f a plan to a p>ticipant-- 7#a7 su* failure may be self-correct$ "u subsection 7a7 accord+ to ! rules ( section #f4jg ( ,rev5ue ,proc$ure #bjai-ai 7or any successor guidance71 includ+ ! provisions relat$ to :e!r a deem$ di/ribution mu/ be report$ on ,=m #ajii-,r1 & 7#b7 ! ,secret>y ( ,labor %all treat any su* failure :i* is s self-correct$ "u subsection 7a7 z meet+ ! requirem5ts ( ! ,volunt>y ,fiduci>y ,correction ,program ( ! ,dep>tm5t ( ,labor if1 ) respect to ! violation ( ! fiduci>y /&>ds ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 !re is a simil> loan error eligible = correction "u ,,epcrs & ! loan error is correct$ 9 su* mann]4 7c7 ,,epcrs = ,i,r,as ,! ,secret>y %all exp& ! ,,epcrs to all[ cu/odians ( individual retirem5t plans 7z def9$ 9 section #ggja7;a77#cg7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 to address eligible inadv]t5t failures = :i* ! own] ( an individual retirem5t plan 7z s def9$7 0 n at fault1 includ+ 7b n limit$ to7-- 7#a7 waiv]s ( ! excise tax :i* w\ld o!rwise apply "u section #digd ( ! ,int]nal ,rev5ue ,code ( #aihf1 7#b7 "u ! self-correction compon5t ( ! ,,epcrs1 waiv]s ( ! #fj-;day deadl9e = a rollov] :]e ! deadl9e is miss$ = reasons beyond ! reasonable control ( ! acc\nt own]1 & 7#c7 rules p]mitt+ a nonsp\se b5efici>y to return di/ributions to an inh]it$ individual retirem5t plan describ$ 9 section #djh7;d77#c77;,c7 ( ! ,int]nal ,rev5ue ,code ( #aihf 9 a case :]e1 due to an inadv]t5t error by a s]vice provid]1 ! b5efici>y _h reason to believe t ! di/ribution c\ld be roll$ ov] )\t inclusion 9 income ( any "p ( ! di/ribut$ am\nt4 7d7 ,requir$ m9imum di/ribution corrections ,! ,secret>y %all exp& ! ,,epcrs to all[ plans to :i* su* sy/em applies & cu/odians & own]s ( individual retirem5t plans to self-correct1 )\t an excise tax1 any eligible inadv]t5t failures pursuant to :i* a di/ribution is made no m ?an #ahj days aft] x 0 requir$ to be made4 7e7 ,additional safe h>bors ,! ,secret>y %all exp& ! ,,epcrs to provide additional safe h>bor means ( correct+ eligible inadv]t5t failures describ$ 9 subsection 7a71 includ+ safe h>bor means ( calculat+ ! e>n+s :i* mu/ be re/or$ to a plan 9 cases :]e plan assets h be5 deplet$ by reason ( an eligible inadv]t5t failure4 7f7 ,eligible inadv]t5t failure ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! t]m eligible inadv]t5t failure means a failure t occurs despite ! exi/5ce ( practices & proc$ures :i*-- 7,a7 satisfy ! /&>ds set =? 9 section #d4jd ( ,rev5ue ,proc$ure #bjai-ai 7or any successor guidance71 or 7,b7 satisfy simil> /&>ds 9 ! case ( an individual retirem5t plan4 7#b7 ,exception ,! t]m eligible inadv]t5t failure %all n include any failure :i* is egregi\s1 relates to ! div]sion or misuse ( plan assets1 or is directly or indirectly relat$ to an abusive tax avoidance transaction4 7g7 ,application ( c]ta9 requirem5ts = correct+ errors ,?is section %all n apply to any failure unless ! correction ( su* failure "u ?is section is made 9 con=mity ) ! g5]al pr9ciples t apply to corrections ( su* failures "u ! ,int]nal ,rev5ue ,code ( #aihf1 includ+ regulations or o!r guidance issu$ !reund] & includ+ ^? pr9ciples & corrections set =? 9 ,rev5ue ,proc$ure #bjai-ai 7or any successor guidance740 #cji4 ,elim9ate ! fir/ day ( ! mon? requirem5t = gov]nm5tal section #deg7;b7 plans 7a7 ,9 g5]al ,p>agraph 7#d7 ( section #deg7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7#d7 :i* provides t comp5sation-- 7,a7 9 ! case ( an eligible employ] describ$ 9 subsection 7e77#a77;,a71 w be def]r$ only if an agreem5t provid+ = su* def]ral has be5 ent]$ into be=e ! comp5sation is curr5tly available to ! individual1 & 7,b7 9 any o!r case1 w be def]r$ = any cal5d> mon? only if an agreem5t provid+ = su* def]ral has be5 ent]$ into be=e ! beg9n+ ( su* mon?1 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #caj4 ,"o-"t election = qualifi$ *>itable di/ribution to split-int]e/ entity2 increase 9 qualifi$ *>itable di/ribution limitation 7a7 ,increase 9 limitation ,section #djh7;d77#h77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #ajj1jjj & ins]t+ #acj1jjj4 7b7 ,"o-,"t election = qualifi$ *>itable di/ribution to split-,int]e/ entity ,section #djh7;d77#h7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,f7 ,"o-"t election = qualifi$ *>itable di/ribution to split-int]e/ entity 7i7 ,9 g5]al ,a taxpay] may = a taxable ye> elect "u ?is subp>agraph to treat z meet+ ! requirem5t ( subp>agraph 7,b77i7 any di/ribution f an individual retirem5t acc\nt :i* is made directly by ! tru/ee to a split-int]e/ entity1 b only if-- 7,i7 an election is n 9 effect "u ?is subp>agraph = a prec$+ taxable ye>1 & 7,,ii7 su* di/ribution meets ! requirem5ts ( clauses 7iii7 & 7iv74 7ii7 ,split-int]e/ entity ,= purposes ( ?is subp>agraph1 ! t]m split-int]e/ entity means-- 7,i7 a *>itable rema9d] annuity tru/ 7z def9$ 9 section #ffd7;d77#a771 b only if su* tru/ is fund$ exclusively by qualifi$ *>itable di/ributions1 7,,ii7 a *>itable rema9d] unitru/ 7z def9$ 9 section #ffd7;d77#b771 b only if su* unitru/ is fund$ exclusively by qualifi$ *>itable di/ributions1 or 7,,iii7 a *>itable gift annuity 7z def9$ 9 section #eja7m77#e771 b only if su* annuity is fund$ exclusively by qualifi$ *>itable di/ributions & comm5ces fix$ paym5ts ( #e p]c5t or great] n lat] ?an #a ye> f ! date ( fund+4 7iii7 ,contributions mu/ be o!rwise d$uctible ,a di/ribution meets ! requirem5t ( ?is clause only if-- 7,i7 9 ! case ( a di/ribution to a *>itable rema9d] annuity tru/ or a *>itable rema9d] unitru/1 a d$uction = ! entire value ( ! rema9d] int]e/ 9 ! di/ribution = ! b5efit ( a specifi$ *>itable organization w\ld be all[able "u section #agj 7det]m9$ )\t reg>d to subsection 7b7 !re( & ?is p>agraph71 & 7,,ii7 9 ! case ( a *>itable gift annuity1 a d$uction 9 an am\nt equal to ! am\nt ( ! di/ribution r$uc$ by ! value ( ! annuity describ$ 9 section #eja7m77#e77;,b7 w\ld be all[able "u section #agj 7det]m9$ )\t reg>d to subsection 7b7 !re( & ?is p>agraph74 7iv7 ,limitation on income int]e/s ,a di/ribution meets ! requirem5ts ( ?is clause only if-- 7,i7 no p]son holds an income int]e/ 9 ! split-int]e/ entity o!r ?an ! individual = ^: b5efit su* acc\nt is ma9ta9$1 ! sp\se ( su* individual1 or bo?1 & 7,,ii7 ! income int]e/ 9 ! split-int]e/ entity is nonassignable4 7v7 ,special rules 7,i7 ,*>itable rema9d] tru/s ,not)/&+ section #ffd7;b71 di/ributions made f a tru/ describ$ 9 subclause 7,i7 or 7,,ii7 ( clause 7ii7 %all be treat$ z ord9>y income 9 ! h&s ( ! b5efici>y to :om ! annuity describ$ 9 section #ffd7;d77#a77;,a7 or ! paym5t describ$ 9 section #ffd7;d77#b77;,a7 is paid4 7,,ii7 ,*>itable gift annuities ,qualifi$ *>itable di/ributions made to fund a *>itable gift annuity %all n be treat$ z an inve/m5t 9 ! contract = purposes ( section #gb7;c74 4 7c7 ,effective date ,! am5dm5t made by ?is section %all apply to di/ributions made 9 taxable ye>s end+ aft] ! date ( ! enactm5t ( ?is ,act4 #caa4 ,retirem5t plan di/ributions = *>itable purpose 7a7 ,9 g5]al ,section #djb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7m7 ,di/ributions = *>itable purposes 7#a7 ,9 g5]al ,gross income = any taxable ye> %all n include s mu* ( ! aggregate am\nt ( qualifi$ *>itable di/ributions made ) respect to a taxpay] dur+ su* taxable ye> :i* does n exce$ ! applicable am\nt4 7#b7 ,qualifi$ *>itable di/ribution ,= purposes ( ?is subsection1 ! t]m qualifi$ *>itable di/ribution means any di/ribution f a tru/ z def9$ 9 section #dja7;a7 t is exempt f tax "u #eja7;a7-- 7,a7 :i* is made directly by ! plan to an organization describ$ 9 section #agj7;b77#a77;,a7 7o!r ?an any organization describ$ 9 section #eji7;a77#c7 or any fund or acc\nt describ$ 9 section #diff7;d77#b771 & 7,b7 :i* is made on or aft] ! date t ! individual on ^: behalf ! di/ribution is made has atta9$ age #gj4 ,a di/ribution %all be treat$ z a qualifi$ *>itable di/ribution only to ! ext5t t ! di/ribution w\ld be includible 9 gross income )\t reg>d to p>agraph 7#a74 7#c7 ,special rules 7,a7 ,9 g5]al ,rules simil> to ! rules ( subp>agraphs 7,c71 7,e71 & 7,f7 ( section #djh7;d77#h7 %all apply = purposes ( ?is subsection4 7,b7 ,application ( section #gb ,rules simil> to ! rules ( section #djh7;d77#h77;,d7 %all apply = purposes ( ?is subsection1 by tak+ into acc\nt all am\nts 9 ! eligible retirem5t plan to :i* ! taxpay] has a non=feitable "r 9 lieu ( all am\nts 9 all individual retirem5t plans ( ! individual4 7#d7 ,applicable am\nt ,= purposes ( ?is subsection1 ! t]m applicable am\nt means ! excess (-- 7,a7 #acj1jjj1 ov] 7,b7 ! total am\nt ( any di/ributions n includible 9 gross income ( ! taxpay] = ! taxable ye> by reason ( sections #djc7;d71 #djh7;d77#h71 & #deg7;e77#ai74 4 7b7 ,s,e,ps & ,s,i,m,p,l,es ,section #djh7;d77#h77;,b7 ( su* ,code is am5d$ by /rik+ 7o!r ?an a plan describ$ 9 subsection 7k7 or 7p774 7c7 ,c]ta9 annuity plans ,section #djc ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subsection3 7d7 ,di/ributions = *>itable purposes ,! rules ( section #djb7m7 %all apply to di/ributions "u an annuity plan describ$ 9 subsection 7a7 or an annuity contract describ$ 9 subsection 7b74 4 7d7 #deg7;b7 plans ,subsection 7e7 ( section #deg ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ai7 ,di/ributions = *>itable purposes ,! rules ( section #djb7m7 %all apply to di/ributions "u an eligible def]r$ comp5sation plan e/abli%$ & ma9ta9$ by an employ] describ$ 9 subsection 7e77#a77;,a74 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made 9 taxable ye>s end+ aft] ! date ( ! enactm5t ( ?is ,act4 #cab4 ,di/ributions to firefight]s 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #gb7t77#aj7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #dad7;d77 & ins]t+ #dad7;d77 or a di/ribution f a plan describ$ 9 clause 7iii71 7iv71 or 7vi7 ( section #djb7;c77#h77;,b7 to an employee :o provides firefight+ s]vices4 7b7 ,con=m+ am5dm5t ,! head+ ( p>agraph 7#aj7 ( section #gb7t7 ( su* ,code is am5d$-- 7#a7 by /rik+ qualifi$1 & 7#b7 by /rik+ 9 gov]nm5tal plans4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ,decemb] #ca1 #bjbj4 #cac4 ,exclusion ( c]ta9 disability-relat$ fir/ respond] retirem5t paym5ts 7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #aci;,b ! foll[+ new section3 #aci;,c4 ,c]ta9 disability-relat$ fir/ respond] retirem5t paym5ts 7a7 ,9 g5]al ,9 ! case ( an individual :o receives qualifi$ fir/ respond] retirem5t paym5ts = any taxable ye>1 gross income %all n include s mu* ( su* paym5ts z d n exce$ ! annualiz$ excludable disability am\nt ) respect to su* individual4 7b7 ,qualifi$ fir/ respond] retirem5t paym5ts ,= purposes ( ?is section1 ! t]m qualifi$ fir/ respond] retirem5t paym5ts means1 ) respect to any taxable ye>1 any p5sion or annuity :i* b = ?is section w\ld be includible 9 gross income = su* taxable ye> & :i* is receiv$-- 7#a7 f a plan describ$ 9 clause 7iii71 7iv71 7v71 or 7vi7 ( section #djb7;c77#h77;,b71 & 7#b7 9 connection ) su* individual's qualifi$ fir/ respond] s]vice4 7c7 ,annualiz$ excludable disability am\nt ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m annualiz$ excludable disability am\nt means1 ) respect to any individual1 ! s]vice-connect$ excludable disability am\nts :i* are prop]ly attributable to ! #ab-mon? p]iod imm$iately prec$+ ! date on :i* su* individual atta9s retirem5t age4 7#b7 ,s]vice-connect$ excludable disability am\nt ,! t]m s]vice-connect$ excludable disability am\nt means p]iodic paym5ts receiv$ by an individual :i*-- 7,a7 are n includible 9 su* individual's gross income "u section #ajd7;a77#a71 7,b7 are receiv$ 9 connection ) su* individual's qualifi$ fir/ respond] s]vice1 & 7,c7 t]m9ate :5 su* individual atta9s retirem5t age4 7#c7 ,special rule = p>tial-ye> paym5ts ,9 ! case ( an individual :o only receives s]vice-connect$ excludable disability am\nts prop]ly attributable to a portion ( ! #ab-mon? p]iod describ$ 9 p>agraph 7#a71 su* p>agraph %all be appli$ by multiply+ su* am\nts by ! ratio ( #cfe to ! numb] ( days 9 su* p]iod to :i* su* am\nts 7 prop]ly attributable4 7d7 ,qualifi$ fir/ respond] s]vice ,= purposes ( ?is section1 ! t]m qualifi$ fir/ respond] s]vice means s]vice z a law en=cem5t (fic]1 firefight]1 p>am$ic1 or em]g5cy m$ical te*nician4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = "p ,,iii ( sub*apt] ,b ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #aci;,b ! foll[+ new item3 ,sec4 #aci;,c4 ,c]ta9 disability-relat$ fir/ respond] retirem5t paym5ts4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to am\nts receiv$ ) respect to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #cad4 ,individual retirem5t plan /atute ( limitations = excise tax on excess contributions1 c]ta9 accumulations1 & prohibit$ transactions ,section #feja7l7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 9 p>agraph 7#a71 by ins]t+ 7o!r ?an ) respect to an individual retirem5t plan70 aft] 8section #dige1 & 7#b7 by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,individual retirem5t plans 7,a7 ,9 g5]al ,= purposes ( any tax impos$ by section #digc1 #digd1 or #dige 9 connection ) an individual retirem5t plan1 ! return ref]r$ to 9 ?is section %all be ! income tax return fil$ by ! p]son on :om ! tax "u su* section is impos$ = ! ye> 9 :i* ! act 7or failure to act7 giv+ rise to ! liability = su* tax occurr$4 7,b7 ,rule 9 case ( individuals n requir$ to file return ,9 ! case ( a p]son :o is n requir$ to file an income tax return = su* ye>-- 7i7 ! return ref]r$ to 9 ?is section %all be ! income tax return t su* p]son w\ld h be5 requir$ to file b = ! fact t su* p]son 0 n requir$ to file su* return1 & 7ii7 ! #c-ye> p]iod ref]r$ to 9 subsection 7a7 ) respect to ! return %all be deem$ to beg9 on ! date by :i* ! return w\ld h be5 requir$ to be fil$ 7exclud+ any ext5sion !re(74 4 #cae4 ,requirem5t to provide pap] /atem5ts 9 c]ta9 cases 7a7 ,9 g5]al ,section #aje7;a77#b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbe7;a77#b77 is am5d$-- 7#a7 9 subp>agraph 7,a77iv71 by ins]t+ subject to subp>agraph 7,e71 be=e may be deliv]$2 & 7#b7 by add+ at ! end ! foll[+3 7,e7 ,provision ( pap] /atem5ts ,) respect to at lea/ #a p5sion b5efit /atem5t furni%$ = a cal5d> ye> ) respect to an individual acc\nt plan "u p>agraph 7#a77;,a71 & ) respect to at lea/ #a p5sion b5efit /atem5t furni%$ e #c cal5d> ye>s ) respect to a def9$ b5efit plan "u p>agraph 7#a77;,b71 su* /atem5t %all be furni%$ on pap] 9 writt5 =m except-- 7i7 9 ! case ( a plan t furni%es su* /atem5t 9 accordance ) section #bebj4ajd;b-#a7;c7 ( title #bi1 ,code ( ,f$]al ,regulations2 or 7ii7 9 ! case ( a plan t p]mits a p>ticipant or b5efici>y to reque/ t ! /atem5ts ref]r$ to 9 ! matt] prec$+ clause 7i7 be furni%$ by electronic deliv]y1 if ! p>ticipant or b5efici>y reque/s t su* /atem5ts be deliv]$ electronically & ! /atem5ts are s deliv]$4 4 7b7 ,implem5tation 7#a7 ,9 g5]al ,! ,secret>y ( ,labor %all1 n lat] ?an ,july #a1 #bjba1 update section #bebj4ajd;b-#a7;c7 ( title #bi1 ,code ( ,f$]al ,regulations1 to provide t a plan may furni% ! /atem5ts ref]r$ to 9 subp>agraph 7,e7 ( section #aje7;a77#b7 by electronic deliv]y only if1 9 addition to meet+ ! o!r requirem5ts "u ! regulations-- 7,a7 su* plan furni%es ea* p>ticipant1 includ+ p>ticipants describ$ 9 subp>agraph 7,b71 a "o-"t initial notice on pap] 9 writt5 =m1 prior to ! electronic deliv]y ( any p5sion b5efit /atem5t1 ( _! "r to reque/ t all docum5ts requir$ to be disclos$ "u title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd be furni%$ on pap] 9 writt5 =m2 & 7,b7 su* plan furni%es ea* p>ticipant :o is sep>at$ f s]vice ) at lea/ #a p5sion b5efit /atem5t on pap] 9 writt5 =m = ea* cal5d> ye>4 7#b7 ,o!r guidance ,9 implem5t+ ! am5dm5t made by subsection 7a7 ) respect to a plan t discloses requir$ docum5ts or /atem5ts electronically1 9 accordance ) applicable guidance gov]n+ electronic disclosure by ! ,dep>tm5t ( ,labor 7) ! exception ( section #bebj4ajd;b-#a7;c7 ( title #bi1 ,code ( ,f$]al ,regulations71 ! ,secret>y ( ,labor %all1 n lat] ?an ,july #a1 #bjba1 update su* guidance to ! ext5t necess>y to ensure t-- 7,a7 a p>ticipant or b5efici>y "u su* a plan is p]mitt$ ! opportunity to reque/ t any disclosure requir$ to be deliv]$ on pap] "u applicable guidance by ! ,dep>tm5t ( ,labor %all be furni%$ by electronic deliv]y2 7,b7 ea* pap] /atem5t furni%$ "u su* a plan pursuant to ! am5dm5t %all include-- 7i7 an explanation ( h[ to reque/ t all su* /atem5ts1 & any o!r docum5t requir$ to be disclos$ "u title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 be furni%$ by electronic deliv]y2 & 7ii7 contact in=mation = ! plan sponsor1 includ+ a telephone numb]2 7,c7 ! plan may n *>ge any fee to a p>ticipant or b5efici>y = ! deliv]y ( pap] /atem5ts2 7,d7 ea* pap] p5sion b5efit /atem5t %all id5tify ea* plan docum5t requir$ to be disclos$ & %all include in=mation ab\t h[ a p>ticipant or b5efici>y may access ea* su* docum5t2 7,e7 ea* docum5t requir$ to be disclos$ t is furni%$ by electronic deliv]y "u su* a plan %all include an explanation ( h[ to reque/ t all su* docum5ts be furni%$ on pap] 9 writt5 =m2 7,f7 a plan is p]mitt$ to furni% a duplicate electronic /atem5t 9 any case 9 :i* ! plan furni%es a pap] /atem5t2 & 7,g7 furni%m5t ( su* a pap] p5sion b5efit /atem5t may be comb9$1 9 "o docum5t1 ) a notice expla9+ electronic deliv]y ( o!r disclosure docum5ts z a default selection & ! "r to opt out ( su* electronic deliv]y1 b only if su* pap] /atem5t is furni%$ prior to ! electronic deliv]y ( any su* /atem5t4 7c7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply ) respect to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjba4 ,,iv ,te*nical ,am5dm5ts #dja4 ,am5dm5ts relat+ to ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai 7a7 ,te*nical am5dm5ts 7#a7 ,am5dm5t relat+ to section #aad ,section #dja7;a77#i77;,c77iii7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ employee to :om clause 7i77,,ii7 applies & ins]t+ employee 7o!r ?an an employee to :om clause 7i77,,ii7 does n apply by reason ( clause 7ii774 7#b7 ,am5dm5t relat+ to section #aaf ,section #digc7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ( ! flu% matt] ! foll[+3 ,su* t]m %all n include any designat$ nond$uctible contribution 7z def9$ 9 subp>agraph 7,c7 ( section #djh7o77#b77 :i* does n exce$ ! nond$uctible limit "u subp>agraph 7,b7 !re( by reason ( an election "u section #djh7o77#e744 7#c7 ,effective date ,! am5dm5ts made by ?is section %all take effect z if includ$ 9 section ( ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai to :i* ! am5dm5t relates4 7b7 ,cl]ical am5dm5t ,section #gb7t77#b77;,h77vi77,,iv7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #djc7;b77#g77;,a77ii7 & ins]t+ #djc7;b77#g77;,a77i74 ,v ,adm9i/rative ,provisions #eja4 ,provisions relat+ to plan am5dm5ts 7a7 ,9 g5]al ,if ?is section applies to any retirem5t plan or contract am5dm5t-- 7#a7 su* retirem5t plan or contract %all be treat$ z be+ op]at$ 9 accordance ) ! t]ms ( ! plan dur+ ! p]iod describ$ 9 subsection 7b77#b77;,a72 & 7#b7 except z provid$ by ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate71 su* retirem5t plan %all n fail to meet ! requirem5ts ( section #daa7;d77#f7 ( ! ,int]nal ,rev5ue ,code ( #aihf & section #bjd7;g7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd by reason ( su* am5dm5t4 7b7 ,am5dm5ts to :i* section applies 7#a7 ,9 g5]al ,?is section %all apply to any am5dm5t to any retirem5t plan or annuity contract :i* is made-- 7,a7 pursuant to any am5dm5t made by ?is ,act or pursuant to any regulation issu$ by ! ,secret>y ( ! ,treasury or ! ,secret>y ( ,labor 7or a delegate ( ei!r su* ,secret>y7 "u ?is ,act2 & 7,b7 on or be=e ! la/ day ( ! fir/ plan ye> beg9n+ on or aft] ,janu>y #a1 #bjbb4 ,9 ! case ( a gov]nm5tal plan 7z def9$ 9 section #dad7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf71 ?is p>agraph %all be appli$ by sub/itut+ #bjbd = #bjbb4 7#b7 ,conditions ,?is section %all n apply to any am5dm5t unless-- 7,a7 dur+ ! p]iod-- 7i7 beg9n+ on ! date ! legislative or regulatory am5dm5t describ$ 9 p>agraph 7#a77;,a7 takes effect 7or 9 ! case ( a plan or contract am5dm5t n requir$ by su* legislative or regulatory am5dm5t1 ! effective date specifi$ by ! plan72 & 7ii7 end+ on ! date describ$ 9 p>agraph 7#a77;,b7 7z modifi$ by ! second s5t5ce ( p>agraph 7#a77 7or1 if e>li]1 ! date ! plan or contract am5dm5t is adopt$71 ! plan or contract is op]at$ z if su* plan or contract am5dm5t 7 9 effect2 & 7,b7 su* plan or contract am5dm5t applies retroactively = su* p]iod4