,,ii #aaf? ,,congress #a/ ,session ,s4 #ajec ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,april #d1 #bjai,mr4 ,coons 7= himself & ,ms4 ,klobu*>7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to e/abli% a univ]sal p]sonal sav+s program1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,sav+ = ! ,future ,act4 #b4 ,f9d+s ,congress f9ds z foll[s3 7#a7 ,?ree out ( #aj private-sector work]s lack access to any workplace retirem5t plan1 accord+ to a ,bureau ( ,labor ,/ati/ics report 9 ,m>* #bjah4 7#b7 ,a retirem5t /udy conduct$ by ! ,gov]nm5t ,acc\ntability ,(fice f\nd t #eb p]c5t ( h\seholds age #ee-;&-old] h no retirem5t sav+s 9 a def9$ contribution plan or individual retirem5t acc\nt1 & ne>ly #cj p]c5t ( h\seholds age #ee-;&-old] h no retirem5t sav+s & no def9$ b5efit plan4 7#c7 ,a #bjae report on ! economic well-be+ ( ,unit$ ,/ates h\seholds conduct$ by ! ,f$]al ,res]ve f\nd t #ca p]c5t ( non-retirees report$ly h no retirem5t sav+s or p5sion :atsoev]1 & t ne>ly "o-half ( non-retirees ) self-direct$ retirem5t acc\nts are ei!r n confid5t or slightly confid5t 9 _! ability to make ! "r inve/m5t decisions :5 inve/+ 9 su* acc\nts4 #c4 ,univ]sal p]sonal sav+s 7a7 ,9 g5]al ,subtitle ,b ( title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajba et seq47 is am5d$ by add+ at ! end ! foll[+3 #h ,univ]sal ,p]sonal ,sav+s #hja4 ,def9itions ,= purposes ( ?is "p3 7#a7 ,applicable employ] ,! t]m applicable employ] means an employ]-- 7,a7 ) at lea/ #aj full-"t equival5t employees2 & 7,b7 t has employ$ at lea/ #aj full-"t equival5t employees = n less ?an #b ye>s4 7#b7 ,bo>d ,! t]m ,bo>d means ! ,f$]al ,univ]sal ,p]sonal ,sav+s ,inve/m5t ,bo>d e/abli%$ "u section #hjc4 7#c7 ,employee ,! t]m employee1 unless specifi$ o!rwise1 includes full-"t & "p-"t employees ( an applicable employ]4 7#d7 ,executive ,director ,! t]m ,executive ,director means ! ,executive ,director ( ! ,,up ,acc\nt ,bo>d appo9t$ "u section #hjc4 7#e7 ,full "t ,! t]m full "t1 ) respect to employm5t1 means #dj h\rs p] week4 7#f7 ,full-"t equival5t employee ,! t]m full-"t equival5t employee means ! sum (-- 7,a7 ! numb] ( employees work+ full "t2 & 7,b7 ! full-"t equival5t ( ! numb] ( employees work+ "p-"t1 z def9$ & calculat$ 9 ! mann] det]m9$ mo/ appropriate by ! ,secret>y4 #hjb4 ,employ] contribution requirem5ts 7a7 ,m9imum employ] contribution 7#a7 ,9 g5]al ,beg9n+ 9 ! fir/ full taxable ye> foll[+ ! date ( enactm5t ( ! ,sav+ = ! ,future ,act1 ea* applicable employ] %all contribute to a qualify+ plan1 on behalf ( ea* employee t is n enroll$ 9 an active1 def9$ b5efit p5sion plan sponsor$ by su* employ]1 ! applicable m9imum am\nt describ$ 9 p>agraph 7#b74 7#b7 ,m9imum employ] contribution 7,a7 ,initial am\nts ,= ! fir/ ye> 9 :i* ! requirem5ts ( p>agraph 7#a7 apply1 & ! #a ye> imm$iately foll[+ su* fir/ ye>1 ! m9imum am\nt an applicable employ] is requir$ to contribute = ea* full-"t employee is #j4ej p] h\r work$ by ! employee4 7,b7 ,?ird & f\r? ye>s ,= ! #b ye>s imm$iately foll[+ ! p]iod dur+ :i* subp>agraph 7,a7 applies1 ! m9imum am\nt an applicable employ] is requir$ to contribute = ea* full-"t employee is 4#fj p] h\r work$ by ! employee4 7,c7 ,subsequ5t ye>s ,! ,secret>y %all increase ! am\nts describ$ 9 subp>agraph 7,b7 = ! ye> imm$iately foll[+ ! p]iod dur+ :i* subp>agraph 7,b7 applies1 & e #c ye>s !reaft]1 by an am\nt proportional to gr[? 9 av]age base sup]visory wages4 7#c7 ,noncompliance ,9 ! case ( an applicable employ] t is f\nd to be 9 violation ( ! requirem5t "u p>agraph 7#a71 su* employ] %all be requir$ to make ! contributions requir$ "u p>agraph 7#a71 plus int]e/1 at an int]e/ rate set by ! ,secret>y ?r\gh rulemak+4 7b7 ,qualify+ plans 7#a7 ,9 g5]al ,ea* applicable employ] %all provide a p5sion plan = all employees4 7#b7 ,types ( plans ,! p5sion plan requir$ "u p>agraph 7#a7-- 7,a7 7i7 9 ! case ( an applicable employ] ) #ajj or m full-"t equival5t employees1 %all be an employ] plan1 :i* may be a plan describ$ 9 section #dja7k7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 def9$ b5efit p5sion plan1 or any o!r plan describ$ 9 section #bai7;g77#e7 ( ! ,int]nal ,rev5ue ,code ( #aihf2 & 7ii7 9 ! case ( an applicable employ] ) few] ?an #ajj full-"t equival5t employees1 %all be a plan describ$ 9 subp>agraph 7,a71 a simple retirem5t acc\nt "u section #djh7p7 ( ! ,int]nal ,rev5ue ,code ( #aihf or an automatic payroll d$uction individual retirem5t acc\nt or multiple employ] plan1 includ+ any curr5t or prospective ,/ate-e/abli%$ & -facilitat$ payroll d$uction or automatic individual retirem5t acc\nt1 or an ,,up ,acc\nt describ$ 9 section #hjd2 or 7,b7 9 ! case ( an applicable employ] :o does n provide an employ] contribution b (f]s a ,/ate-e/abli%$ or -facilitat$ program describ$ 9 subp>agraph 7,a77ii71 su* employ] %all provide an ,,up ,retirem5t ,acc\nt to :i* ! employ] makes contributions1 & any employee contributions %all be direct$ to ! ,/ate plan4 7#c7 ,cl>ification ( employ] obligations ) respect to c]ta9 employees ,9 ! case ( an applicable employ] t (f]s an ,,up ,retirem5t ,acc\nt plan & any o!r type ( plan describ$ 9 subp>agraph 7,a77i71 7,a77ii71 or 7,b71 z applicable1 ( p>agraph 7#b71 to employees1 ) respect to employees = :om ! employ] is n requir$ "u ?is ,act to (f] p>ticipation 9 su* o!r type ( plan1 ! requirem5ts ( ?is "p may be met by all[+ su* employees to p>ticipate 9 su* o!r plan4 7c7 ,/&>d notice ,! bo>d %all develop a /&>d notice t employ]s ) few] ?an #aj work]s elect+ n to make contributions are requir$ to provide to ea* employee ^u hire1 & annually !reaft]4 ,su* notice %all provide in/ructions on h[ to set up an acc\nt1 make contributions1 & claim ! individual cr$it "u section #be;,,bb ( ! ,int]nal ,rev5ue ,code ( #aihf4 #hjc4 ,,up ,acc\nt ,bo>d 7a7 ,e/abli%m5t ( ,bo>d ,!re is e/abli%$ a ,f$]al ,univ]sal ,p]sonal ,sav+s ,inve/m5t ,bo>d1 an indep5d5t gov]nm5t ag5cy = ! purpose ( ov]see+ ,,up ,acc\nts4 7b7 ,memb]%ip 7#a7 ,appo9tm5t ( memb]s ,! ,presid5t %all appo9t1 by & ) ! cons5t ( ! ,s5ate1 #e memb]s to s]ve on ! ,bo>d4 ,su* memb]s %all h sub/antial exp]i5ce1 tra9+1 & exp]tise 9 ! managem5t ( f9ancial inve/m5ts & p5sion b5efit plans4 7#b7 ,executive director ,! ,bo>d %all hire an ,executive ,director ( ! ,bo>d4 7#c7 ,t]ms ,ea* memb] %all s]ve a t]m ( #e ye>s1 except t1 ( ! memb]s fir/ appo9t$1 #a %all s]ve a t]m ( #a ye>1 "o %all s]ve a t]m ( #b ye>s1 "o %all s]ve a t]m ( #c ye>s1 "o %all s]ve a t]m ( #d ye>s1 & "o %all s]ve a t]m ( #e ye>s4 ,ea* memb] ( ! ,bo>d may s]ve up to #b consecutive t]ms4 7c7 ,fund+ ,adm9i/rative exp5ses incurr$ to c>ry out ?is "p %all be paid fir/ out net e>n+s 9 ! ,,up ,acc\nt ,fund4 #hjd4 ,,up ,acc\nt ,fund 7a7 ,9 g5]al ,!re is e/abli%$ 9 ! ,treasury ( ! ,unit$ ,/ates an ,,up ,acc\nt ,fund4 7b7 ,funds ,! ,,up ,acc\nt ,fund %all consi/ ( all am\nts contribut$ by p>ticipants1 & employees on behalf ( p>ticipants1 into ,,up ,retirem5t ,acc\nts & ,,up ,sav+s ,acc\nts1 increas$ by ! total net e>n+s f inve/m5ts ( sums 9 ! ,,up ,acc\nt ,fund or r$uc$ by ! total net losses f inve/m5ts ( ! ,,up ,acc\nt ,fund1 & r$uc$ by ! total am\nt ( paym5ts made f ! ,,up ,acc\nt ,fund 7includ+ paym5ts = adm9i/rative exp5ses74 7c7 ,p]missible uses ( funds ,! sums 9 ! ,,up ,acc\nt ,fund are appropriat$ & %all rema9 available )\t fiscal ye> limitation-- 7#a7 to inve/ 9 accordance ) section #hje7;h72 7#b7 to pay b5efits or pur*ase annuity contracts "u ?is sub*apt]2 & 7#c7 to pay adm9i/rative exp5ses4 #hje4 ,,up ,retirem5t ,acc\nts 7a7 ,9 g5]al ,! ,bo>d %all e/abli% ,,up ,retirem5t ,acc\nts t are portable1 def9$ contribution p5sion plans4 7b7 ,rollov]s 7#a7 ,def9itions ,= purposes ( ?is subsection-- 7,a7 ! t]m eligible rollov] di/ribution has ! mean+ giv5 su* t]m by section #djb7;c77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf2 & 7,b7 ! t]m qualifi$ tru/ has ! mean+ giv5 su* t]m by section #djb7;c77#h7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7#b7 ,rollov]s ,a p>ticipant may contribute to ! ,,up ,retirem5t ,acc\nt an eligible rollov] t a qualifi$ tru/ c\ld accept "u ! ,int]nal ,rev5ue ,code ( #aihf4 ,a contribution made "u ?is subsection %all be made 9 ! =m describ$ 9 section #dja7;a77#ca7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 ,9 ! case ( an eligible rollov] di/ribution1 ! maximum am\nt transf]r$ to ! ,up ,acc\nt ,fund %all n exce$ ! am\nt :i* w\ld o!rwise h be5 includ$ 9 ! p>ticipant's gross income = ,f$]al income tax purposes4 7#c7 ,regulations ,! ,executive ,director %all prescribe regulations to c>ry out ?is subsection4 7c7 ,adm9i/ration ,! ,bo>d %all contract ) "o or m private inve/m5t firms to adm9i/] ! ,,up ,acc\nts4 ,! ,bo>d %all contract ) multiple private inve/m5t firms1 z necess>y to ensure t no s+le firm adm9i/]s m ?an #ejj1jjj1jjj1jjj 9 ,,up ,acc\nt assets4 7d7 ,individual eligibility 7#a7 ,9 g5]al ,an employee is eligible to p>ticipate 9 an ,,up ,retirem5t ,acc\nt if-- 7,a7 ! employee's employ] e/abli%es an ,,up ,retirem5t ,acc\nt on ! employee's behalf2 or 7,b7 ! employee demon/rates to ! ,bo>d t ! employee works = a employ] t is n an applicable employ]4 7#b7 ,ma9t5ance ( acc\nt ,an individual :o becomes a p>ticipant 9 an ,,up ,retirem5t ,acc\nt z describ$ 9 p>agraph 7#a7 may ma9ta9 su* acc\nt & may cont9ue to make individual contributions to su* acc\nt1 reg>dless ( su* individual's subsequ5t employm5t /atus1 provid$ t ! individual is n a p>ticipant 9 ano!r plan describ$ 9 section #hjb7;b77#b74 7e7 ,qu>t]ly /atem5ts ,! ,bo>d %all provide p>ticipants ) a qu>t]ly /atem5t expla9+ ea* p>ticipant's project$ income 9 retirem5t "u diff]5t di/ribution sc5>ios & id5tify+ ! total doll> am\nt paid 9 fees = ! ye>4 7f7 ,employee & employ] contributions 7#a7 ,employee contributions 7,a7 ,9 g5]al ,applicable employ]s mak+ contributions requir$ "u section #hjb to an ,,up ,retirem5t ,acc\nt %all auto-enroll all employees 9 su* an acc\nt ) an employee contribution t is equal to #d p]c5t ( ! employee's wages1 ) ! option = any su* employee to elect a diff]5t employee contribution level or to opt out ( su* acc\nt at any "t4 7,b7 ,auto-escalation ,employees mak+ contributions to an ,,up ,retirem5t ,acc\nt %all h _! contributions automatically escalat$ by half a p]c5tage po9t at ! conclusion ( ea* full ye> dur+ :i* su* employ] is s enroll$1 until rea*+ ! level ( a #aj p]c5t employee contribution4 ,any employee may opt out ( su* automatic escalation4 7,c7 ,default elections 9 ! case ( *anges 9 employm5t ,9 ! case ( an employee :o 0 enroll$ 9 an ,,up ,retirem5t ,acc\nt ?r\gh "o employ] & subsequ5tly ceases to "w = su* employ]1 if ! employee subsequ5tly is employ$ by ano!r applicable employ]1 ! employee's default contribution level "u ?is p>agraph %all be ! same level t x 0 on ! la/ day ( employm5t ) ! previ\s employ]4 7#b7 ,employ] contributions 7,a7 ,9 g5]al ,applicable employ]s may contribute m to an employee's ,,up ,retirem5t ,acc\nt ?an is requir$ "u section #hjb1 b may n contribute m ?an ! am\nt 9 effect "u section #djb7;g77#a77;,b7 ( ! ,int]nal ,rev5ue ,code ( #aihf = ! taxable ye>4 7,b7 ,default rules ,any employ] mat*+ requirem5ts "u ?is "p %all apply to any employ] contributions t are 9 addition to ! m9imum employ] contribution4 7,c7 ,fiduci>y duties ,an applicable employ]'s fiduci>y duties ) respect to an employee's ,,up ,retirem5t ,acc\nt ext5d only to ! full & timely paym5t ( contributions to _! employees' ,,up ,retirem5t ,acc\nts4 ,= all o!r purposes1 ! memb]s ( ! ,bo>d are ! fiduci>ies ( su* acc\nts4 7g7 ,p>ticipant acc\nts 7#a7 ,9 g5]al ,! ,executive ,director %all e/abli% & ma9ta9 an acc\nt = ea* individual :o makes contributions or = :om contributions are made "u ?is section4 7#b7 ,balances ,! balance 9 a p>ticipant's acc\nt at any "t is ! excess (-- 7,a7 ! sum (-- 7i7 all contributions made to ! ,,up ,retirem5t ,acc\nt by ! p>ticipant2 7ii7 all contributions made to su* ,acc\nt = ! b5efit ( ! p>ticipant2 & 7iii7 ! total am\nt ( ! allocations made to & r$uctions made 9 ! acc\nt pursuant to p>agraph 7#c71 ov] 7,b7 ! am\nts paid out ( ! ,,up ,retirem5t ,acc\nt ) respect to su* p>ticipant4 7#c7 ,adju/m5ts ,pursuant to regulations prescrib$ by ! ,executive ,director1 ! ,executive ,director %all allocate to ea* acc\nt an am\nt equal to a pro rata %>e ( ! net e>n+s & net losses f ea* inve/m5t ( sums 9 ! ,,up ,acc\nt ,fund attributable to sums cr$it$ to su* acc\nt1 r$uc$ by an appropriate %>e ( ! adm9i/rative exp5ses paid out ( ! net e>n+s1 z det]m9$ by ! ,executive ,director4 7h7 ,inve/m5ts ,! foll[+ inve/m5t rules %all apply ) respect to an ,,up ,retirem5t ,acc\nt3 7#a7 ,! ,bo>d %all make available a reasonable m5u ( inve/m5t products1 includ+ l[-fee index funds1 suffici5t to provide p>ticipants ) ! opportunity to div]sify _! ,,up ,retirem5t ,acc\nts 9 ord] to m9imize ! risk ( l>ge losses4 7#b7 ,! default inve/m5t option = p>ticipants %all m9imize fees1 be div]sifi$1 & automatically r$uce risk to ! p>ticipant z ! p>ticipant approa*es retirem5t age4 7#c7 ,,up ,retirem5t ,acc\nts %all all[ p>ticipants to *ange or cu/omize inve/m5t allocation4 7#d7 ,! bo>d %all select inve/m5ts solely 9 ! int]e/s ( p>ticipants & b5efici>ies & = ! exclusive purpose ( provid+ b5efits & def]r+ reasonable exp5ses ) ! prevail+ c>e1 skill1 prud5ce1 & dilig5ce t a prud5t individual act+ 9 a l capacity & famili> ) su* matt]s w\ld use4 7i7 ,di/ributions 7#a7 ,9 g5]al ,! ,bo>d %all ensure t inve/ors are (f]$ =ms ( di/ribution t include-- 7,a7 mon?ly income = life = ! p>ticipant or surviv+ sp\se1 if applicable2 7,b7 mon?ly income until ! normal or maximum ,social ,security retirem5t age = ! p>ticipant or surviv+ sp\se1 if applicable2 & 7,c7 automatic1 regul> )drawals1 "u :i* a set p]c5tage ( initial capital is )drawn ea* ye>1 on a mon?ly basis4 7#b7 ,dea? ( p>ticipant ,9 case ( dea? ( a p>ticipant1 a lump sum %all be paid to designat$ b5efici>y4 #hjf4 ,,up ,sav+s ,acc\nts 7a7 ,9 g5]al ,9 addition to a /&>d ,,up ,retirem5t ,acc\nt "u section #hje1 a p>ticipant may ma9ta9 an ,,up ,sav+s ,acc\nt1 e/abli%$ by ! ,bo>d1 & design$ z safe1 %ort- to m$ium-t]m sav+s vehicles4 7b7 ,contributions2 maximum balance 7#a7 ,9 g5]al ,p>ticipants may make contributions to _! ,,up ,sav+s ,acc\nt until ! acc\nt rea*es ! maximum balance am\nt describ$ 9 p>agraph 7#a74 ,any contributions a p>ticipant wi%es to make aft] ! p>ticipant's acc\nt rea*es su* maximum balance am\nt %all be cr$it$ to ! p>ticipant's ,,up ,retirem5t ,acc\nt e/abli%$ "u section #hje4 ,an ,,up ,sav+s ,acc\nt may gr[ pa/ ! maximum balance am\nt due to accumulation )\t p5alty4 7#b7 ,increas$ am\nts ,! ,bo>d %all e/abli% ! maximum balance am\nt = purposes ( p>agraph 7#a7 z foll[s3 7,a7 ,= ! fir/ fiscal ye> t beg9s aft] ! date ( enactm5t ( ! ,sav+ = ! ,future ,act1 ! maximum balance am\nt %all be #b1ejj4 7,b7 ,= fiscal ye> imm$iately foll[+ ! fiscal ye> describ$ 9 subp>agraph 7,a71 & ea* fiscal ye> !reaft]1 ! ,bo>d %all increase ! maximum balance am\nt f ! previ\s ye>1 9 increm5ts ( #ajj t mo/ closely reflects ! av]age wage gr[? dur+ ! applicable #ab-mon? p]iod4 7#c7 ,default rule ,any contributions a p>ticipant makes pursuant to acc\nts e/abli%$ "u ?is "p %all be cr$it$ to ! p>ticipant's ,,up ,sav+s ,acc\nt1 until su* has rea*$ ! maximum balance am\nt1 unless ! p>ticipant specifies o!rwise4 ,once ! maximum balance is rea*$1 additional contributions w g to a p>ticipant's ,,up ,retirem5t ,acc\nt4 7c7 ,inve/m5t ,! ,bo>d may inve/ contributions to ,,up ,sav+s ,acc\nt only 9 ca%1 money m>ket funds1 c]tificates ( deposit1 or gov]nm5t bonds4 7d7 ,)drawals ,p>ticipants may )draw am\nts f _! ,,up ,sav+s ,acc\nt :5 exp]i5c+ a specific f9ancial situation t requires a non-r\t9e use ( money1 z det]m9$ by ! ,bo>d 79 rules simil> to ! rules gov]n+ h>d%ip di/ributions f a tru/ describ$ 9 section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf :i* is exempt f taxation "u section #eja7;a7 ( su* ,code74 ,su* situations may include a major r$uction 9 e>n+s1 an on-!-job injury1 disability1 family or m$ical leave1 a l>ge m$ical bill1 ! d[n paym5t = a home1 & ! beg9n+ ( a tra9+ or educational exp]i5ce4 ,! ,bo>d %all det]m9e ! rules reg>d+ su* )drawals1 includ+ all[able ne$s1 & demon/ration ( ! ne$1 b %all n impose a )drawal p5alty or impose a repaym5t requirem5t4 ,loans to inve/ors %all n be p]mitt$4 7e7 ,o!r p5sion plans ,any p5sion plan may (f] a safe1 %ort- to m$ium-t]m sav+s acc\nt ) t]ms simil> to ! t]ms t apply to ,,up ,sav+s ,acc\nts describ$ 9 ?is section4 ,= purposes ( ?is ,act1 any su* acc\nt %all be consid]$ "p ( ! p5sion plan4 #hjg4 ,tax treatm5t ( ,,up ,acc\nts 7a7 ,9 g5]al ,= purposes ( ! ,int]nal ,rev5ue ,code ( #aihf-- 7#a7 ! ,,up ,acc\nt ,fund %all be treat$ z a tru/ describ$ 9 section #dja7;a7 ( su* ,code :i* is exempt f taxation "u section #eja7;a7 ( su* ,code2 7#b7 any contribution to1 or di/ribution f1 ! ,,up ,acc\nt ,fund %all be treat$ 9 ! same mann] z contributions to or di/ributions f su* a tru/2 & 7#c7 subject to section #dja7k77#d77;,b7 ( su* ,code & any doll> limitation on ! application ( section #djb7;a77#h7 ( su* ,code1 contributions to ! ,,up ,acc\nt ,fund %all n be treat$ z di/ribut$ or made available to an employee or ,memb] nor z a contribution made to ! ,fund by an employee or ,memb] m]ely because ! employee or ,memb] has1 "u ! provisions ( ?is "p1 an election :e!r ! contribution w be made to ! ,,up ,acc\nt ,fund or receiv$ by ! employee or ,memb] 9 ca%4 7b7 ,nondiscrim9ation requirem5ts ,not)/&+ any o!r provision ( law1 ! ,,up ,acc\nt ,fund is n subject to ! nondiscrim9ation requirem5ts applicable to arrangem5ts describ$ 9 section #dja7k7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 or to mat*+ contributions 7z describ$ 9 section #dja7m7 ( su* ,code71 s long z x meets ! requirem5ts ( ?is section4 7c7 ,rule ( con/ruction ,subsection 7a7 %all n be con/ru$ to provide t any am\nt ( ! employee's or ,memb]'s basic pay :i* is contribut$ to ! ,,up ,acc\nt ,fund %all n be includ$ 9 ! t]m wages = ! purposes ( section #bji ( ! ,social ,security ,act or section #caba7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 #hjh4 ,qualifi$ ,ro? contribution program 7a7 ,def9itions ,= purposes ( ?is section-- 7#a7 ! t]m qualifi$ ,ro? contribution program means a program describ$ 9 p>agraph 7#a7 ( section #djb;,a7b7 ( ! ,int]nal ,rev5ue ,code ( #aihf :i* meets ! requirem5ts ( p>agraph 7#b7 ( su* section2 & 7#b7 ! t]ms designat$ ,ro? contribution & elective def]ral h ! mean+s giv5 su* t]ms 9 section #djb;,a ( ! ,int]nal ,rev5ue ,code ( #aihf4 7b7 ,au?ority ,to e/abli% ,! ,executive ,director %all by regulation provide = ! inclusion 9 ! ,,up ,acc\nts ( a qualifi$ ,ro? contribution program1 "u su* t]ms & conditions z ! ,bo>d may prescribe4 7c7 ,requir$ provisions ,! regulations "u subsection 7b7 %all include-- 7#a7 provisions "u :i* an election to make designat$ ,ro? contributions may be made by any individual :o is eligible to make contributions to an ,,up ,acc\nt "u section #hje7;d72 & 7#b7 any o!r provisions :i* may be necess>y to c>ry out ?is section4 #hji4 ,survivor annuities ,! rules on survivor annuities "u sub*apt] ,,iv ( *apt] #hd ( title #e1 ,unit$ ,/ates ,code1 t are applicable to ! ,?rift ,sav+s ,plan1 %all apply to ,,up ,acc\nts4 ,! ,executive ,director %all promulgate regulations to provide = ! application ( su* rules to ,,up ,acc\nts1 z appropriate4 4 7b7 ,cl]ical am5dm5t ,! table ( cont5ts 9 section #a ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd is am5d$ by ins]t+ aft] ! item relat+ to section #gcd ! foll[+ new items3 ,,"p #h--,univ]sal ,p]sonal ,sav+s ,sec4 #hja4 ,def9itions4 ,sec4 #hjb4 ,employ] contribution requirem5ts4 ,sec4 #hjc4 ,,up ,acc\nt ,bo>d4 ,sec4 #hjd4 ,,up ,acc\nt ,fund4 ,sec4 #hje4 ,,up ,retirem5t ,acc\nts4 ,sec4 #hjf4 ,,up ,sav+s ,acc\nts4 ,sec4 #hjg4 ,tax treatm5t ( ,,up ,acc\nts4 ,sec4 #hjh4 ,qualifi$ ,ro? contribution program4 ,sec4 #hji4 ,survivor annuities4 4 #d4 ,increase 9 cr$it = small employ] p5sion plan />tup co/s 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #de;,e7b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #ejj & ins]t+ #b1jjj4 7b7 ,eligible employ]s ,p>agraph 7#a7 ( section #de;,e7c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 1 appli$ by sub/itut+ #bej = #ajj aft] #djh7p77#b77;,c77i74 7c7 ,p5alty = noncompliant employ]s ,subsection 7c7 ( section #de;,e ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#c7 ,employ]s fail+ to make requir$ contributions ,su* t]m %all n include an employ] subject to ! requirem5t ( section #hjb7;a77#a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd t fails1 )9 ! "t prescrib$ by ! ,secret>y1 to make any requir$ contribution "u su* section #hjb = ! taxable ye> or any ( ! #d taxable ye>s prec$+ su* ye>4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #e4 ,cr$it = m9imum employ] contributions 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,t4 ,cr$it = m9imum employ] contributions 7a7 ,g5]al rule ,= purposes ( section #ch1 ! m9imum employ] contribution cr$it det]m9$ "u ?is section = any taxable ye> is an am\nt equal to ! applicable p]c5tage ( ! qualifi$ retirem5t contributions paid or incurr$ by ! taxpay] dur+ ! taxable ye>4 7b7 ,applicable p]c5tage ,= purposes ( subsection 7a71 ! applicable p]c5tage is-- 7#a7 #ej p]c5t1 9 ! case ( contributions made ) respect to n m ?an #ae employees ( ! employ] 7or ! numb] ( employees ( ! employ] :i* is ! equival5t ( #ae full-"t employees71 & 7#b7 #be p]c5t1 9 ! case ( contributions made ) respect to s _m ( ! employees ( ! employ] 7or ! equival5t ( s _m full-"t employees7 z exce$s #ae b does n exce$ #cj4 7c7 ,qualifi$ retirem5t contributions ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m qualifi$ retirem5t contributions means-- 7,a7 contributions made by an employ] z requir$ "u section #hjb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 & 7,b7 contributions to a plan describ$ 9 section #hjb7;b77#b7 ( su* ,act made by an employ] :i* is n subject to ! requirem5t ( section #hjb7;a77#a7 ( su* ,act4 7#b7 ,only requir$ contribution am\nt tak5 into acc\nt ,! t]m qualifi$ retirem5t contributions does n include any am\nt 9 excess (-- 7,a7 ! am\nt det]m9$ "u section #hjb7;a77#b7 ( ! ,employee ,retirem5t ,income ,security ,act ) respect to ea* employee ( ! employ]1 or 7,b7 ! am\nt :i* w\ld be s det]m9$ if ! employ] 7 subject to ! requirem5t ( section #hjb7;a77#a7 ( su* ,act4 7d7 ,employ]s exclud$ = failure ,to make contributions ,subsection 7a7 %all n apply to any employ] :i* fails1 )9 ! "t prescrib$ by ! ,secret>y1 to make any contribution requir$ to be made by su* employ] "u section #hjb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd = ! taxable ye> or any ( ! #d taxable ye>s prec$+ su* ye>4 7e7 ,special rules ,= purposes ( ?is section-- 7#a7 ,aggregation rules1 etc ,rules simil> to ! rules ( section #de;,e7e7 %all apply4 7#b7 ,d5ial ( d\ble b5efit ,no cr$it %all be all[$ "u ?is section = any taxable ye> 9 :i* ! cr$it "u section #de;,e is all[$ ) respect to ! taxpay]4 7f7 ,cr$it made available to tax-,exempt eligible employ]s 7#a7 ,9 g5]al ,9 ! case ( a tax-exempt eligible employ]1 !re %all be treat$ z a cr$it all[able "u subp>t ,c 7& n all[able "u ?is subp>t7 ! less] (-- 7,a7 ! am\nt ( ! cr$it det]m9$ "u ?is section ) respect to su* employ]1 or 7,b7 ! am\nt ( ! payroll taxes ( ! employ] dur+ ! cal5d> ye> 9 :i* ! taxable ye> beg9s4 7#b7 ,tax-exempt eligible employ] ,= purposes ( ?is section1 ! t]m tax-exempt eligible employ] means an eligible employ] :i* is any organization describ$ 9 section #eja7;c7 :i* is exempt f taxation "u section #eja7;a74 7#c7 ,payroll taxes ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m payroll taxes means-- 7i7 am\nts requir$ to be )held f ! employees ( ! tax-exempt eligible employ] "u section #cdja7;a71 7ii7 am\nts requir$ to be )held f su* employees "u section #caja7;b71 & 7iii7 am\nts ( ! taxes impos$ on ! tax-exempt eligible employ] "u section #caaa7;b74 7,b7 ,special rule ,a rule simil> to ! rule ( section #bd7;d77#b77;,c7 %all apply = purposes ( subp>agraph 7,a74 4 7b7 ,cr$it ,to be made "p ( bus9ess cr$it ,subsection 7b7 ( section #ch ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ plus at ! end ( p>agraph 7#ca71 by /rik+ ! p]iod at ! end ( p>agraph 7#cb7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cc7 9 ! case ( an eligible employ]1 ! m9imum employ] contribution cr$it det]m9$ "u section #de,t7a74 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #de,s ! foll[+ new item3 ,sec4 #de,t4 ,cr$it = m9imum employ] contributions4 4 7d7 ,transf]s to ,f$]al ,old-,age & ,survivors ,insurance ,tru/ ,fund ,!re are h]eby appropriat$ to ! ,f$]al ,old-,age & ,survivors ,tru/ ,fund & ! ,f$]al ,disability ,insurance ,tru/ ,fund e/abli%$ "u section #bja ( ! ,social ,security ,act 7#db ,u4,s4,c4 #dja7 am\nts equal to ! r$uction 9 rev5ues to ! ,treasury by reason ( ! enactm5t ( section #de,t7f7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 ,am\nts appropriat$ by ! prec$+ s5t5ce %all be transf]r$ f ! g5]al fund at su* times & 9 su* mann] z to replicate to ! ext5t possible ! transf]s :i* w\ld h occurr$ to su* ,tru/ ,fund _h su* am5dm5ts n be5 enact$4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #f4 ,additional cr$it = individuals mak+ retirem5t contributions 7a7 ,9 g5]al ,subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #be;,b ! foll[+ new section3 #be;,,bb4 ,additional cr$it = c]ta9 individuals mak+ retirem5t contributions 7a7 ,all[ance ( cr$it ,9 ! case ( an eligible individual1 !re %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is subtitle = ! taxable ye> an am\nt equal to #ej p]c5t ( s mu* ( ! qualifi$ retirem5t contributions ( ! individual = ! taxable ye> z d n exce$ ! base am\nt4 7b7 ,eligible individual ,= purposes ( ?is section1 ! t]m eligible individual means an individual ^: employ] does n provide a def9$ b5efit plan 7z def9$ 9 section #dad7;j771 def9$ contribution plan 7z def9$ 9 section #dad7;i771 or p>ticipation 9 an ,,up ,acc\nt "u section #hje ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 or :o is n employ$1 at ! "t ! qualifi$ retirem5t contributions are made4 7c7 ,qualifi$ retirem5t contributions1 ,etc ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m qualifi$ retirem5t contributions means1 ) respect to any taxable ye>1 any am\nts paid 9 ca% by an individual to-- 7,a7 an individual retirem5t plan1 or 7,b7 an ,,up ,acc\nt e/abli%$ "u section #hje ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 = ! b5efit ( ! individual4 7#b7 ,base am\nt ,! base am\nt = any taxable ye> is an am\nt equal to ! am\nt 9 effect "u section #hjb7;a77#c77;i7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd = su* ye>4 7d7 ,special rules 7#a7 ,inve/m5t 9 ! contract ,rules simil> to ! rules ( section #be;,b7f7 %all apply = purposes ( ?is section4 7#b7 ,coord9ation ) sav]'s cr$it ,! cr$it "u ?is section & ! cr$it "u section #be;,b %all ea* be det]m9$ )\t reg>d to ! o!r4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #be;,b ! foll[+ new item3 ,sec4 #be;,,bb4 ,additional cr$it = c]ta9 individuals mak+ retirem5t contributions4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #g4 ,increase 9 highe/ individual income tax rate 7a7 ,9 g5]al ,ea* ( ! tables conta9$ 9 subp>agraphs 7,a71 7,b71 7,c71 7,d71 & 7,e7 ( section #a7;j77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #cg 9 ! la/ l9e & ins]t+ #ci4f4 7b7 ,con=m+ am5dm5t ,clause 7iii7 ( section #a7;j77#d77;,b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ #cg p]c5t & ins]t+ #ci4f p]c5t1 7#b7 by /rik+ #cg-p]c5t 9 subclause 7,,ii7 & ins]t+ #ci4f-p]c5t1 & 7#c7 by /rik+ #cg-p]c5t 9 ! head+ & ins]t+ #ci4f-p]c5t4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #h4 ,increase 9 corporate income tax rate 7a7 ,9 g5]al ,subsection 7b7 ( section #aa ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #ba p]c5t & ins]t+ #bc p]c5t4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjai4