,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #adbh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #ac1 #bjai,mr4    
,wyd5 7= himself1 ,ms4 ,cantwell1 ,mr4  
,c>d91 ,mr4 ,:iteh\se1 ,mr4 ,br[n1 &    
,ms4 ,hassan7 introduc$ ! foll[+ bill2  
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 p]mit treatm5t ( /ud5t loan paym5ts z  
elective def]rals = purposes ( employ]  
mat*+ contributions1 & = o!r purposes4  
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,retirem5t ,p>ity = ,/ud5t ,loans     
,act4  #b4 ,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 ( ! ,int]nal ,rev5ue ,code (    
#aihf 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$ 9 section       
#bba7;d77#a77 incurr$ to pay qualifi$   
high] education exp5ses ( ! employee1 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 (
 ! ,int]nal ,rev5ue ,code ( #aihf 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 make 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 paym5ts4  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 ( ! ,int]nal     
,rev5ue ,code ( #aihf 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$ to
 pay qualifi$ high] education exp5ses ( 
! employee1 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 ( ! ,int]nal      
,rev5ue ,code ( #aihf 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 ( 
! ,int]nal ,rev5ue ,code ( #aihf 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 #bjai4