,,ii #aafth ,,congress #ast ,session ,s4 #adca ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ac1 #bjai,mr4 ,portman 7for himself and ,mr4 ,cardin7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to reform retirement provisions1 and for other purposes4 #a4 ,short title1 etc 7a7 ,short title ,this ,act may be cited as the ,retirement ,security and ,savings ,act of #bjai4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title1 etc4,,title ,i--,expanding coverage and increasing retirement savings,sec4 #aja4 ,secure deferral arrangements4,sec4 #ajb4 ,facilitating automatic enrollment4,sec4 #ajc4 ,credit for employers with respect to modified safe harbor requirements4,sec4 #ajd4 ,expansion of saver's credit4,sec4 #aje4 ,qualified cash or deferred arrangements must allow long-term employees working more than #ejj but less than #a1jjj hours per year to participate4,sec4 #ajf4 ,separate application of top heavy rules to defined contribution plans covering part-time employees4,sec4 #ajg4 #fj-;day rollover to inherited individual retirement plan of nonspouse beneficiary4,sec4 #ajh4 ,increase in age for required beginning date for mandatory distributions4,sec4 #aji4 ,updating of mortality tables for minimum required distributions4,sec4 #aaj4 ,increase in credit limitation for small employer pension plan startup costs of certain employers4,sec4 #aaa4 ,credit for re-enrollment4,sec4 #aab4 ,treatment of student loan payments as elective deferrals for purposes of matching contributions4,sec4 #aac4 ,treatment of qualified retirement planning services4,sec4 #aad4 ,allow additional nonelective contributions to simple plans4,sec4 #aae4 ,reform of the minimum participation rule4,sec4 #aaf4 ,expansion of ,employee ,plans ,compliance ,resolution ,system4,sec4 #aag4 ,enhancement of #djc7;b7 plans4,sec4 #aah4 ,eligibility for participation in retirement plans4,sec4 #aai4 ,small immediate financial incentives for contributing to a plan4,sec4 #abj4 ,indexing ,,ira catch-up limit4,sec4 #aba4 ,higher catch-up limit to apply at age #fj4,,title ,,ii--,preservation of income,sec4 #bja4 ,qualifying longevity annuity contracts4,sec4 #bjb4 ,remove required minimum distribution barriers for life annuities4,sec4 #bjc4 ,eliminating a penalty on partial annuitization4,sec4 #bjd4 ,insurance-dedicated exchange-traded funds4,,title ,,iii--,simplification and clarification of retirement plan rules,sec4 #cja4 ,review and report to the ,congress relating to reporting and disclosure requirements4,sec4 #cjb4 ,consolidation of defined contribution plan notices4,sec4 #cjc4 ,performance benchmarks for asset allocation funds4,sec4 #cjd4 ,permit nonspousal beneficiaries to roll assets to plans4,sec4 #cje4 ,deferral agreements4,sec4 #cjf4 ,simplifying #djb7;f7 notices4,sec4 #cjg4 ,treatment of custodial accounts on termination of section #djc7;b7 plans4,sec4 #cjh4 ,permit plans to use base pay or rate of pay calculation4,sec4 #cji4 ,roth ,,simple ,i,r,as4,sec4 #caj4 ,reduction in excise tax on certain accumulations in qualified retirement plans4,sec4 #caa4 ,clarification of catch-up contributions with respect to separate lines of business4,sec4 #cab4 ,clarification of substantially equal periodic payment rule4,sec4 #cac4 ,clarification of treatment of distributions of annuity contracts4,sec4 #cad4 ,clarification regarding elective deferrals4,sec4 #cae4 ,tax treatment of certain nontrade or business ,,sep contributions4,sec4 #caf4 ,allow certain plan transfers and mergers4,sec4 #cag4 ,exception from required distributions where aggregate retirement savings do not exceed #ajj1jjj4,sec4 #cah4 ,hardship rules for #djc7;b7 plans4,sec4 #cai4 ,,ira preservation4,sec4 #cbj4 ,elimination of additional tax on certain distributions4,sec4 #cba4 ,distributions to firefighters4,sec4 #cbb4 ,eliminating unnecessary plan requirements related to unenrolled participants4,,title ,,iv--,defined benefit plan reforms,sec4 #dja4 ,cash balance4,sec4 #djb4 ,aligning use of lookback months to determine interest rates4,sec4 #djc4 ,corrections of mortality tables4,sec4 #djd4 ,cease double-indexing the variable rate premium4,sec4 #dje4 ,enhancing retiree health benefits in pension plans4,,title ,v--,reforming plan rules to harmonize with ,,ira rules,sec4 #eja4 ,roth plan distribution rules4,sec4 #ejb4 ,distributions for charitable purposes4,sec4 #ejc4 ,surviving spouse election to be treated as employee4,sec4 #ejd4 ,rollovers from ,roth ,i,r,as to plans4,,title ,,vi--,administrative provisions,sec4 #fja4 ,provisions relating to plan amendments4 ,i ,expanding coverage and increasing retirement savings #aja4 ,secure deferral arrangements 7a7 ,in general ,subsection 7k7 of section #dja1 as amended by ,public ,law #aae-abc1 is further amended by adding at the end the following new paragraph3 7#ae7 ,alternative method for secure deferral arrangements to meet nondiscrimination requirements 7,a7 ,in general ,a secure deferral arrangement shall be treated as meeting the requirements of paragraph 7#c77;,a77ii74 7,b7 ,secure deferral arrangement ,for purposes of this paragraph1 the term secure deferral arrangement means any cash or deferred arrangement which meets the requirements of subparagraphs 7,c71 7,d71 and 7,e7 of paragraph 7#ac71 except as modified by this paragraph4 7,c7 ,qualified percentage ,for purposes of this paragraph1 with respect to any employee1 the term qualified percentage means1 in lieu of the meaning given such term in paragraph 7#ac77;,c77iii71 any percentage determined under the arrangement if such percentage is applied uniformly and is-- 7i7 at least #f percent1 but not greater than #aj percent1 during the period ending on the last day of the first plan year which begins after the date on which the first elective contribution described in paragraph 7#ac77;,c77i7 is made with respect to such employee1 7ii7 at least #g percent during the first plan year following the plan year described in clause 7i71 7iii7 at least #h percent during the second plan year following the plan year described in clause 7i71 7iv7 at least #i percent during the third plan year following the plan year described in clause 7i71 and 7v7 at least #aj percent during any subsequent plan year4 7,d7 ,matching contributions 7i7 ,in general ,for purposes of this paragraph1 an arrangement shall be treated as having met the requirements of paragraph 7#ac77;,d77i7 if and only if the employer makes matching contributions on behalf of each employee who is not a highly compensated employee in an amount equal to the sum of-- 7,i7 #ajj percent of the elective contributions of the employee to the extent such contributions do not exceed #b percent of compensation1 7,,ii7 #ej percent of so much of such contributions as exceed #b percent but do not exceed #f percent of compensation1 plus 7,,iii7 #bj percent of so much of such contributions as exceed #f percent but do not exceed #aj percent of compensation4 7ii7 ,application of rules for matching contributions ,the rules of clause 7ii7 of paragraph 7#ab77;,b7 and clauses 7iii7 and 7iv7 of paragraph 7#ac77;,d7 shall apply for purposes of clause 7i71 but the rule of clause 7iii7 of paragraph 7#ab77;,b7 shall not apply for such purposes4 ,the rate of matching contribution for each incremental deferral must be at least as high as the rate specified in clause 7i71 and may be higher1 so long as such rate does not increase as an employee's rate of elective contributions increases4 4 7b7 ,matching contributions and employee contributions ,subsection 7m7 of section #dja is amended by redesignating paragraph 7#ac7 as paragraph 7#ad7 and by inserting after paragraph 7#ab7 the following new paragraph3 7#ac7 ,alternative method for secure deferral arrangements ,a defined contribution plan shall be treated as meeting the requirements of paragraph 7#b7 with respect to matching contributions and employee contributions if the plan-- 7,a7 is a secure deferral arrangement 7as defined in subsection 7k77#ae771 7,b7 meets the requirements of clauses 7ii7 and 7iii7 of paragraph 7#aa77;,b71 and 7,c7 provides that matching contributions on behalf of any employee may not be made with respect to an employee's contributions or elective deferrals in excess of #aj percent of the employee's compensation4 4 7c7 ,conforming amendments ,subparagraph 7,h7 of section #daf7;g77#d7 is amended-- 7#a7 in clause 7i71 by striking section #dja7k77#ab7 or #dja7k77#ac7 and inserting paragraph 7#ab71 7#ac71 or 7#ae7 of section #dja7k71 and 7#b7 in clause 7ii71 by striking section #dja7m77#aa7 or #dja7m77#ab7 and inserting paragraph 7#aa71 7#ab71 or 7#ac7 of section #dja7m74 7d7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjai4 #ajb4 ,facilitating automatic enrollment ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall promulgate regulations or other guidance which-- 7#a7 simplifies and clarifies the rules regarding the timing of participant notices required under the ,internal ,revenue ,code of #aihf with respect to an eligible automatic enrollment contribution arrangement 7within the meaning of section #dad7w77#c7 of the ,internal ,revenue ,code of #aihf7 or required under section #ccf7;c77#c7 of the ,consolidated ,appropriations ,act1 #bjaf with respect to an automatic contribution arrangement 7within the meaning of section #ccf7;c77#b7 of such ,act71 with specific application to-- 7,a7 plans which allow employees to be eligible for participation immediately upon beginning employment2 and 7,b7 employers with multiple payroll and administrative systems2 and 7#b7 simplifies and clarifies the application of automatic escalation features under arrangements described in paragraph 7#a7 in the context of employers with multiple payroll and administrative systems4 ,such regulations or guidance shall address the particular case of employees within the same plan who are subject to different notice timing and different percentage requirements1 and provide assistance for plan sponsors in managing such cases4 #ajc4 ,credit for employers with respect to modified safe harbor requirements 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new section3 #de,t4 ,credit for small employers with respect to modified safe harbor requirements for automatic contribution arrangements 7a7 ,general rule ,for purposes of section #ch1 in the case of a small employer1 the safe harbor adoption credit determined under this section for any taxable year is the amount equal to the total of the employer's matching contributions under section #dja7k77#ae77;,d7 during the taxable year on behalf of employees who are not highly compensated employees4 7b7 ,limitations 7#a7 ,limitation with respect to compensation ,the credit determined under subsection 7a7 with respect to contributions made on behalf of any employee shall not exceed #b percent of the compensation of such employee for the taxable year4 7#b7 ,limitation with respect to years of participation ,credit shall be determined under subsection 7a7 with respect to contributions made on behalf of any employee only during the first #e years such employee participates in the qualified automatic contribution arrangement4 7c7 ,definitions 7#a7 ,in general ,any term used in this section which is also used in section #dja7k77#ae7 shall have the same meaning as when used in such section4 7#b7 ,small employer ,the term small employer means an eligible employer 7as defined in section #djh7p77#b77;,c77i774 7d7 ,denial of double benefit ,no deduction shall be allowable under this title for any contribution with respect to which a credit is allowed under this section4 4 7b7 ,credit ,to be part of general business credit ,subsection 7b7 of section #ch is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 the safe harbor adoption credit determined under section #de,t4 4 7c7 ,conforming amendment ,paragraph 7#b7 of section #ceaa7;d7 is amended-- 7#a7 by redesignating subparagraphs 7,f71 7,g71 and 7,h7 as subparagraphs 7,g71 7,h71 and 7,i71 respectively1 and 7#b7 by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 section #de,t 7safe harbor adoption credit71 4 7d7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by adding after the item relating to section #de,s the following new item3 ,sec4 #de,t4 ,credit for small employers with respect to modified safe harbor requirements for automatic contribution arrangements4 4 7e7 ,effective date ,the amendments made by this section shall apply to taxable years which include any portion of a plan year beginning after ,december #ca1 #bjai4 #ajd4 ,expansion of saver's credit 7a7 ,expansion ,paragraph 7#a7 of section #be;,b7b7 is amended by striking #cb1ejj both places it appears in subparagraphs 7,b7 and 7,c7 of paragraph 7#a7 and inserting #dj1jjj4 7b7 ,testing period ,subparagraph 7,b7 of section #be;,b7d77#b7 is amended to read as follows3 7,b7 ,testing period ,for purposes of subparagraph 7,a71 the testing period1 with respect to a taxable year1 is the period which includes-- 7i7 such taxable year1 and 7ii7 the #c preceding taxable years4 4 7c7 ,treatment as refundable 7#a7 ,credit moved to subpart relating to refundable credits 7,a7 ,in general ,the ,internal ,revenue ,code of #aihf is amended-- 7i7 by redesignating section #be;,b1 as amended by this ,act1 as section #cf;,c2 and 7ii7 by moving such section1 as so redesignated1 from subpart ,a of part ,,iv of subchapter ,a of chapter #a to the location immediately before section #cg in subpart ,c of part ,,iv of subchapter ,a of chapter #a4 7,b7 ,technical amendments 7i7 ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended by striking the item relating to section #be;,b4 7ii7 ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a is amended by inserting after the item relating to section #cf;,b the following new item3 ,sec4 #cf;,c4 ,elective deferrals and ,,ira contributions by certain individuals4 4 7#b7 ,mandatory deposit into qualified account 7,a7 ,no reduction of tax ,subsection 7a7 of section #cf;,c1 as moved and redesignated by paragraph 7#a71 is amended by striking against the tax imposed by this subtitle4 7,b7 ,deposit into qualified account ,section #cf;,c1 as so moved and redesignated1 is amended by adding at the end the following new subsection3 7g7 ,deposit into qualified account 7#a7 ,in general ,any amount allowed as a credit under subsection 7a7 shall not be allowed as a credit against any tax imposed by this subtitle but instead shall be treated as an overpayment under section #fdja7;b7 and-- 7,a7 shall be paid on behalf of the individual taxpayer to a ,roth ,,ira or a designated ,roth account 7within the meaning of section #djb;,a7 under an applicable retirement plan designated by the individual to be invested in a manner designated by the individual1 except that in the case of a joint return each spouse shall be entitled to designate an applicable retirement plan and investments with respect to payments attributable to such spouse1 or 7,b7 in the case of a taxpayer who does not properly designate an applicable retirement plan in a timely manner or who designates an applicable retirement plan which does not accept such amount in a timely manner1 shall be paid or credited on behalf of the individual taxpayer in a manner determined under rules prescribed by the ,secretary which provides treatment comparable to the treatment under subparagraph 7,a7 and which-- 7i7 is designed to maintain fees and other charges at an appropriately low level taking into account the size of the account balance1 and 7ii7 utilizes1 to the extent appropriate1 private sector services4 7#b7 ,applicable retirement plan ,for purposes of this subsection1 the term applicable retirement plan means a plan which elects to accept deposits under this subsection and which is described in clause 7iii71 7iv71 7v71 or 7vi7 of section #djb7;c77#h77;,b7 or in section #djh;,a7b74 7#c7 ,treatment of payments ,in the case of any payment under this subsection-- 7,a7 except as otherwise provided in this section or by the ,secretary under regulations1 such payment shall be treated in the same manner as a payment made by the individual on whose behalf such payment was made1 7,b7 such payment shall not be treated as income to the taxpayer1 and 7,c7 such payment shall not be taken into account with respect to any applicable limitation under section #djb7;g77#a71 #djc7;b71 #djh7;a77#a71 #djh7;b77#b77;,b71 #djh;,a7c77#b71 #dad7v77#b71 #dae7;c71 or #deg7;b77#b74 7#d7 ,treatment of qualified plans1 etc ,a plan or arrangement to which a payment is made under this subsection shall not be treated as violating any requirement under section #dja1 #djc1 #djh1 or #deg solely by reason of accepting such payment4 7#e7 ,erroneous credits ,if any payment is erroneously paid under this subsection1 the amount of such erroneous payment shall be treated as an underpayment of tax4 4 7d7 ,regulation and promotion ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall take such steps as the ,secretary 7or delegate7 determines are necessary and appropriate to increase public awareness of the credit provided under section #cf;,c of the ,internal ,revenue ,code of #aihf 7as amended and redesignated by this section74 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #aje4 ,qualified cash or deferred arrangements must allow long-term employees working more than #ejj but less than #a1jjj hours per year to participate 7a7 ,participation requirement 7#a7 ,in general ,subparagraph 7,d7 of section #dja7k77#b7 is amended to read as follows3 7,d7 which does not require1 as a condition of participation in the arrangement1 that an employee complete a period of service with the employer 7or employers7 maintaining the plan extending beyond the close of the earlier of-- 7i7 the period permitted under section #daj7;a77#a7 7determined without regard to subparagraph 7,b77i7 thereof71 or 7ii7 subject to the provisions of paragraph 7#af71 the first period of #b consecutive #ab-month periods during each of which the employee has at least #ejj hours of service4 4 7#b7 ,special rules ,section #dja7k71 as amended by this ,act1 is further amended by adding at the end the following new paragraph3 7#af7 ,special rules for participation requirement for long-term1 part-time workers ,for purposes of paragraph 7#b77;,d77ii7-- 7,a7 ,age requirement must be met ,paragraph 7#b77;,d77ii7 shall not apply to an employee unless the employee has met the requirement of section #daj7;a77#a77;,a77i7 by the close of the last of the #ab-month periods described in such paragraph4 7,b7 ,nondiscrimination and top-heavy rules not to apply 7i7 ,nondiscrimination rules ,in the case of employees who are eligible to participate in the arrangement solely by reason of paragraph 7#b77;,d77ii7-- 7,i7 notwithstanding subsection 7a77#d71 an employer shall not be required to make nonelective or matching contributions on behalf of such employees even if such contributions are made on behalf of other employees eligible to participate in the arrangement1 and 7,,ii7 an employer may elect to exclude such employees from the application of paragraphs 7#c71 7#aa71 7#ab71 7#ac71 and 7#ae71 subsection 7a77#d71 paragraphs 7#b71 7#aj71 7#aa71 7#ab71 and 7#ac7 of subsection 7m71 and section #daj7;b74 7ii7 ,top-heavy rules ,an employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of paragraph 7#b77;,d77ii7 from the application of the vesting and benefit requirements under subsections 7b7 and 7c7 of section #daf4 7iii7 ,vesting ,for purposes of determining whether an employee described in clause 7i7 has a nonforfeitable right to employer contributions 7other than contributions described in paragraph 7#c77;,d77i77 under the arrangement1 each #ab-month period for which the employee has at least #ejj hours of service shall be treated as a year of service4 7iv7 ,employees who become full-time employees ,this subparagraph shall cease to apply to any employee as of the first plan year beginning after the plan year in which the employee meets the requirements of section #daj7;a77#a77;,a77ii7 without regard to paragraph 7#b77;,d77ii7 of this subsection4 7,c7 ,exception for employees under collectively bargained plans1 etc ,paragraph 7#b77;,d77ii7 shall not apply to employees described in section #daj7;b77#c74 7,d7 ,special rules 7i7 ,time of participation ,the rules of section #daj7;a77#d7 shall apply to an employee eligible to participate in an arrangement solely by reason of paragraph 7#b77;,d77ii74 7ii7 #ab-month periods #ab-month periods shall be determined in the same manner as under the last sentence of section #daj7;a77#c77;,a74 4 7#c7 ,conforming amendment ,paragraph 7#a7 of section #dac7;c7 is amended by striking ,section #daj7;a7 and inserting ,sections #dja7k77#b77;,d77ii7 and #daj7;a74 7b7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjai1 except that1 for purposes of section #dja7k77#b77;,d77ii7 of the ,internal ,revenue ,code of #aihf 7as added by such amendments71 #ab-month periods beginning before ,january #a1 #bjbj1 shall not be taken into account4 #ajf4 ,separate application of top heavy rules to defined contribution plans covering part-time employees 7a7 ,in general ,paragraph 7#b7 of section #daf7;c7 is amended by adding at the end the following3 7,c7 ,separate application to employees not meeting age and service requirements ,if employees not meeting the age or service requirements of section #daj7;a77#a7 7without regard to subparagraph 7,b7 thereof7 are covered under a plan of the employer which meets the requirements of paragraphs 7,a7 and 7,b7 separately with respect to such employees1 such employees may be excluded from consideration in determining whether any plan of the employer meets the requirements of subparagraphs 7,a7 and 7,b74 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to plan years beginning after the date of the enactment of this ,act4 #ajg4 #fj-;day rollover to inherited individual retirement plan of nonspouse beneficiary 7a7 ,in general ,section #djb7;c77#aa7 is amended by redesignating subparagraph 7,b7 as subparagraph 7,c7 and by striking subparagraph 7,a7 and inserting the following3 7,a7 ,in general ,if-- 7i7 any portion of a distribution attributable to an employee is paid after the death of the employee to an individual who is a designated beneficiary 7as defined by section #dja7;a77#i77;,e77 of the employee and who is not the surviving spouse of the employee1 and 7ii7 such portion is transferred or paid to an individual retirement plan in a transfer or payment meeting the requirements of subparagraph 7,b71 the preceding provisions of this subsection shall apply to such distribution in the same manner as if the designated beneficiary were the employee4 7,b7 ,requirements for transfer of distribution ,the requirements of this subparagraph are met with respect to the portion of any distribution if-- 7i7 such portion is transferred or paid to an individual retirement plan described in clause 7i7 or 7ii7 of paragraph 7#h77;,b7 established for the purposes of receiving the distribution on behalf of the designated beneficiary1 7ii7 such individual retirement plan is established as an inherited individual retirement account or individual retirement annuity 7within the meaning of section #djh7;d77#c77;,c771 whichever is applicable1 and 7iii7 notice is provided to the trustee1 insurance company1 or other provider of the individual retirement plan that such individual retirement plan is being established as an inherited individual retirement account or individual retirement annuity4 ,section #dja7;a77#i77;,b7 7other than clause 7iv7 thereof7 shall apply to such individual retirement plan4 4 7b7 ,rollover treatment for inherited accounts ,section #djh7;d77#c77;,c7 is amended by adding at the end the following3 7iii7 ,exception for qualified transfers to another inherited account ,clause 7i7 shall not apply to any portion of a distribution from an inherited individual retirement account or inherited individual retirement annuity if such portion is paid to another such individual retirement plan or annuity1 but only if the requirements of subparagraphs 7,a71 7,b71 and 7,e7 of this paragraph and the requirements of section #djb7;c77#aa77;,b7 are met with respect to such transfer or payment4 4 7c7 ,effective date ,the amendments made by this section shall apply to distributions made after ,december #ca1 #bjai4 #ajh4 ,increase in age for required beginning date for mandatory distributions 7a7 ,increase in age for required beginning date 7#a7 ,in general ,subclause 7,i7 of section #dja7;a77#i77;,c77i7 is amended to read as follows3 7,i7 the first calendar year in which the employee attains the applicable age for such calendar year1 or 4 7#b7 ,special rule for owners ,subclause 7,i7 of section #dja7;a77#i77;,c77ii7 is amended by striking in which the employee attains age #gja_/b and inserting described in clause 7i77,i7 with respect to the employee4 7b7 ,mandatory distribution age ,paragraph 7#i7 of section #dja7;a7 is amended by inserting at the end the following new subparagraph3 7,h7 ,applicable age ,for purposes of this paragraph-- 7i7 ,in general ,the applicable age is-- 7,i7 for calendar years before #bjbc1 age #gja_/b1 7,,ii7 for calendar years #bjbc1 #bjbd1 #bjbe1 #bjbf1 #bjbg1 #bjbh1 and #bjbi1 age #gb1 and 7,,iii7 for calendar years after #bjbi1 age #ge4 7ii7 ,transition rule ,if1 as of a calendar year1 an employee has not attained the applicable age with respect to such year1 such employee shall be treated as not having attained the applicable age under this paragraph for such year without regard to whether1 in a previous calendar year1 the employee had attained the applicable age with respect to such previous calendar year4 4 7c7 ,spouse beneficiaries ,subclause 7,i7 of section #dja7;a77#i77;,b77iv7 is amended by striking age #gja_/b and inserting the applicable age4 7d7 ,conforming amendment ,subsection 7b7 of section #djh is amended by striking age #gja_/b and inserting the applicable age determined under section #dja7;a77#i77;,h7 with respect to such individual4 7e7 ,effective date ,the amendments made by this section shall apply to calendar years beginning after ,december #ca1 #bjai4 #aji4 ,updating of mortality tables for minimum required distributions ,section #dja7;a77#i71 as amended by this ,act1 is further amended by adding at the end the following new subparagraph3 7,i7 ,mortality tables 7i7 ,initial update ,not later than #a year after the date of the enactment of this subparagraph1 the ,secretary shall either update1 or provide new tables to replace1 the mortality tables used as of such date for purposes of this paragraph4 7ii7 ,periodic revision ,the ,secretary shall 7at least every #aj years7 make revisions in1 or provide new tables to replace1 any table in effect under this subparagraph to reflect the actual experience of pension plans and projected trends in such experience4 7iii7 ,effective date ,any table prescribed under this subparagraph shall apply to plan years beginning after the date which is #a year after publication of the final table4 4 #aaj4 ,increase in credit limitation for small employer pension plan startup costs of certain employers 7a7 ,in general ,subsection 7a7 of section #de;,e is amended by inserting before the period at the end the following3 7#ge percent of such costs in the case of an eligible employer1 as determined by substituting #be for #ajj in section #djh7p77#b77;,c77i774 7b7 ,increase ,paragraph 7#a7 of section #de;,e7b7 is amended to read as follows3 7#a7 for the first credit year and each of the #b taxable years immediately following the first credit year1 the greater of-- 7,a7 #ejj1 or 7,b7 the lesser of-- 7i7 #bej for each employee of the eligible employer who is not a highly compensated employee 7as defined in section #dae7q77 and who is eligible to participate in the eligible employer plan maintained by the eligible employer1 or 7ii7 #e1jjj1 and 4 7c7 ,conforming amendment ,paragraph 7#b7 of section #ceaa7;d71 as amended by this ,act1 is further amended-- 7#a7 by redesignating subparagraphs 7,e71 7,f71 7,g71 7,h71 and 7,i7 as subparagraphs 7,f71 7,g71 7,h71 7,i71 and 7,j71 respectively1 and 7#b7 by inserting after subparagraph 7,d7 the following new subparagraph3 7,e7 section #de;,e 7small employer pension plan startup cost credit71 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #aaa4 ,credit for re-enrollment 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a1 as amended by this ,act1 is further amended by adding at the end the following new section3 #de,u4 ,credit for re-enrollment provisions in plans provided by small employers 7a7 ,in general ,for purposes of section #ch1 in the case of an eligible employer1 the retirement re-enrollment credit determined under this section for any taxable year is an amount equal to-- 7#a7 #ejj for any taxable year occurring during the credit period1 and 7#b7 zero for any other taxable year4 7b7 ,credit period ,for purposes of subsection 7a7-- 7#a7 ,in general ,the credit period with respect to any eligible employer is the #c-taxable-year period beginning with the first taxable year for which the employer includes a re-enrollment provision in an eligible automatic contribution arrangement 7as defined in section #dad7w77#c77 in a qualified employer plan 7as defined in section #digb7;d77 maintained by the employer4 7#b7 ,maintenance of arrangement ,no taxable year with respect to an employer shall be treated as occurring within the credit period unless the provision described in paragraph 7#a7 is included in the plan for such year4 7c7 ,eligible employer ,for purposes of this section1 the term eligible employer has the meaning given such term in section #djh7p77#b77;,c77i74 7d7 ,re-,enrollment provision ,for purposes of this section1 the term re-enrollment provision means a provision of an eligible automatic contribution arrangement under which-- 7#a7 ,in general ,each employee eligible to participate in the arrangement who is not contributing or is contributing less than the percentage applicable to an eligible employee in the first year of eligibility is treated as being in such first year of eligibility in each applicable year with respect to the employee4 7#b7 ,election out ,the election treated as having been made under paragraph 7#a7 shall cease to apply with respect to any employee if such employee makes an affirmative election-- 7,a7 to not have such contributions made1 or 7,b7 to make elective contributions at a level specified in such affirmative election4 7#c7 ,applicable year every third year 7,a7 ,in general ,for purposes of this section1 the term applicable year means1 with respect to an employee1 such employee's first plan year of eligibility under the arrangement1 and all subsequent plan years of eligibility4 7,b7 ,exception ,following any applicable year of an employee 7determined after the application of this subparagraph71 the plan may elect to treat the next #a or #b plan years as not being applicable years with respect to such employee4 4 7b7 ,credit ,to be part of general business credit ,subsection 7b7 of section #ch1 as amended by this ,act1 is further amended by striking plus at the end of paragraph 7#cb71 by striking the period at the end of paragraph 7#cc7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cd7 in the case of an eligible employer 7as defined in section #de,u7c771 the retirement re-enrollment credit determined under section #de,u7a74 4 7c7 ,conforming amendment ,paragraph 7#b7 of section #ceaa7;d71 as amended by this ,act1 is further amended-- 7#a7 by redesignating subparagraphs 7,h71 7,i71 and 7,j7 as subparagraphs 7,i71 7,j71 and 7,k71 respectively1 and 7#b7 by inserting after subparagraph 7,g7 the following new subparagraph3 7,h7 section #de,u 7retirement re-enrollment credit71 4 7d7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by inserting after the item relating to section #de,t the following new item3 ,sec4 #de,u4 ,credit for re-enrollment provisions in plans provided by small employers4 4 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #aab4 ,treatment of student loan payments as elective deferrals for purposes of matching contributions 7a7 ,in general ,subparagraph 7,a7 of section #dja7m77#d7 is amended by striking and at the end of clause 7i71 by striking the period at the end of clause 7ii7 and inserting 1 and1 and by adding at the end the following new clause3 7iii7 subject to the requirements of paragraph 7#ad71 any employer contribution made to a defined contribution plan on behalf of an employee on account of a qualified student loan payment4 4 7b7 ,qualified student loan payment ,paragraph 7#d7 of section #dja7m7 is amended by adding at the end the following new subparagraph3 7,d7 ,qualified student loan payment ,the term qualified student loan payment means a payment made by an employee in repayment of a qualified education loan 7as defined in section #bba7;d77#a77 incurred to pay qualified higher education expenses of the employee1 but only-- 7i7 to the extent such payments in the aggregate for the year do not exceed an amount equal to-- 7,i7 the limitation applicable under section #djb7;g7 for the year 7or1 if lesser1 the employee's compensation 7as defined in section #dae7;c77#c77 for the year71 reduced by 7,,ii7 the elective deferrals made by the employee for such year1 and 7ii7 if the employee certifies to the employer making the matching contribution under this paragraph that such payment has been made on such loan4 ,for purposes of this subparagraph1 the term qualified higher education expenses means the cost of attendance 7as defined in section #dgb of the ,higher ,education ,act of #aife1 as in effect on the day before the date of the enactment of the ,taxpayer ,relief ,act of #aiig7 at an eligible educational institution 7as defined in section #bba7;d77#b774 4 7c7 ,matching contributions for qualified student loan payments ,subsection 7m7 of section #dja1 as amended by this ,act1 is further amended by redesignating paragraph 7#ad7 as paragraph 7#ae71 and by inserting after paragraph 7#ac7 the following new paragraph3 7#ad7 ,matching contributions for qualified student loan payments 7,a7 ,in general ,for purposes of paragraph 7#d77;,a77iii71 an employer contribution made to a defined contribution plan on account of a qualified student loan payment shall be treated as a matching contribution for purposes of this title if-- 7i7 the plan provides matching contributions on account of elective deferrals at the same rate as contributions on account of qualified student loan payments1 7ii7 the plan provides matching contributions on account of qualified student loan payments only on behalf of employees otherwise eligible to make elective deferrals1 and 7iii7 under the plan1 all employees eligible to receive matching contributions on account of elective deferrals are eligible to receive matching contributions on account of qualified student loan payments4 7,b7 ,treatment for purposes of nondiscrimination rules1 etc 7i7 ,nondiscrimination rules ,for purposes of subparagraph 7,a77iii71 subsection 7a77#d71 and section #daj7;b71 matching contributions described in paragraph 7#d77;,a77iii7 shall not fail to be treated as available to an employee solely because such employee does not have debt incurred under a qualified education loan 7as defined in section #bba7;d77#a774 7ii7 ,student loan payments not treated as plan contribution ,except as provided in clause 7iii71 a qualified student loan payment shall not be treated as a contribution to a plan under this title4 7iii7 ,matching contribution rules ,solely for purposes of meeting the requirements of paragraph 7#aa77;,b71 7#ab71 or 7#ac7 of this subsection1 or paragraph 7#aa77;,b77i77,,ii71 7#ab77;,b71 7#ac77;,d71 or 7#ae77;,d7 of subsection 7k71 a plan may treat a qualified student loan payment as an elective deferral or an elective contribution1 whichever is applicable4 4 7d7 ,simple retirement accounts ,paragraph 7#b7 of section #djh7p7 is amended by adding at the end the following new subparagraph3 7,f7 ,matching contributions for qualified student loan payments 7i7 ,in general ,subject to the rules of clause 7iii71 an arrangement shall not fail to be treated as meeting the requirements of subparagraph 7,a77iii7 solely because under the arrangement1 solely for purposes of such subparagraph1 qualified student loan payments are treated as amounts elected by the employee under subparagraph 7,a77i77,i7 to the extent such payments do not exceed-- 7,i7 the applicable dollar amount under subparagraph 7,e7 7after application of section #dad7v77 for the year 7or1 if lesser1 the employee's compensation 7as defined in section #dae7;c77#c77 for the year71 reduced by 7,,ii7 any other amounts elected by the employee under subparagraph 7,a77i77,i7 for the year4 7ii7 ,qualified student loan payment ,for purposes of this subparagraph-- 7,i7 ,in general ,the term qualified student loan payment means a payment made by an employee in repayment of a qualified education loan 7as defined in section #bba7;d77#a77 incurred to pay qualified higher education expenses of the employee1 but only if the employee certifies to the employer making the matching contribution that such payment has been made on such a loan4 7,,ii7 ,qualified higher education expenses ,the term qualified higher education expenses has the same meaning as when used in section #dja7m77#d77;,d74 7iii7 ,applicable rules ,clause 7i7 shall apply to an arrangement only if1 under the arrangement-- 7,i7 matching contributions on account of qualified student loan payments are provided only on behalf of employees otherwise eligible to elect contributions under subparagraph 7,a77i77,i71 and 7,,ii7 all employees otherwise eligible to participate in the arrangement are eligible to receive matching contributions on account of qualified student loan payments4 4 7e7 #djc7;b7 plans ,subparagraph 7,a7 of section #djc7;b77#ab7 is amended by adding at the end the following3 ,the fact that the employer offers matching contributions on account of qualified student loan payments as described in section #dja7m77#ad7 shall not be taken into account in determining whether the arrangement satisfies the requirements of clause 7ii7 7and any regulation thereunder744 7f7 #deg7;b7 plans ,subsection 7b7 of section #deg of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,a plan which is established and maintained by an employer which is described in subsection 7e77#a77;,a7 shall not be treated as failing to meet the requirements of this subsection solely because the plan1 or another plan maintained by the employer which meets the requirements of section #dja7;a71 provides for matching contributions on account of qualified student loan payments as described in section #dja7m77#ad744 7g7 ,regulatory authority ,the ,secretary shall prescribe regulations for purposes of implementing the amendments made by this section1 including regulations-- 7#a7 permitting a plan to make matching contributions for qualified student loan payments1 as defined in sections #dja7m77#d77;,d7 and #djh7p77#b77;,f7 of the ,internal ,revenue ,code of #aihf1 as added by this section1 at a different frequency than matching contributions are otherwise made under the plan1 provided that the frequency is not less than annually1 7#b7 permitting employers to establish reasonable procedures to claim matching contributions for such qualified student loan payments under the plan1 including an annual deadline 7not earlier than #c months after the close of each plan year7 by which a claim must be made1 and 7#c7 promulgating model amendments which plans may adopt to implement matching contributions on such qualified student loan payments for purposes of sections #dja7m71 #djh7p71 #djc7;b71 and #deg7;b7 of the ,internal ,revenue ,code of #aihf4 7h7 ,effective date ,the amendments made by this section shall apply to contributions made for years beginning after ,december #ca1 #bjai4 #aac4 ,treatment of qualified retirement planning services 7a7 ,in general ,subsection 7m7 of section #acb is amended by adding at the end the following new paragraph3 7#d7 ,no constructive receipt ,no amount shall be included in the gross income of any employee solely because the employee may choose between any qualified retirement planning services and compensation which would otherwise be includible in the gross income of such employee4 ,the preceding sentence shall apply to highly compensated employees only if the choice described in such sentence is available on substantially the same terms to each member of the group of employees normally provided education and information regarding the employer's qualified employer plan4 4 7b7 ,definition ,paragraph 7#a7 of section #acb7m7 is amended by inserting before the period the following3 81 including-- 7,a7 advice regarding investments in any arrangement described in section #bai7;g77#e7 7without regard to the last sentence thereof71 and 7,b7 retirement advice regarding investments held outside such an arrangement4 4 7c7 ,conforming amendments 7#a7 ,section #djc7;b77#c77;,b7 is amended by inserting #acb7m77#d71 after #acb7;f77#d714 7#b7 ,section #dad7s77#b7 is amended by inserting #acb7m77#d71 after #acb7;f77#d714 7#c7 ,section #dae7;c77#c77;,d77ii7 is amended by inserting #acb7m77#d71 after #acb7;f77#d714 7d7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #aad4 ,allow additional nonelective contributions to simple plans 7a7 ,in general 7#a7 ,modification to definition ,subparagraph 7,a7 of section #djh7p77#b7 is amended by striking and at the end of clause 7iii71 by redesignating clause 7iv7 as clause 7v71 and by inserting after clause 7iii7 the following new clause3 7iv7 the employer may make nonelective contributions of a uniform percentage 7up to #aj percent7 of compensation for each employee who is eligible to participate in the arrangement and who has at least #e1jjj of compensation from the employer for the year1 and 4 7#b7 ,limitation ,subparagraph 7,a7 of section #djh7p77#b7 is amended by adding at the end the following3 ,the compensation taken into account under clause 7iv7 for any year shall not exceed the limitation in effect for such year under section #dja7;a77#ag744 7#c7 ,overall dollar limit on contributions ,paragraph 7#h7 of section #djh7p7 is amended to read as follows3 7#h7 ,coordination with maximum limitation under subsection 7a7 ,in the case of any simple retirement account1 subsections 7a77#a7 and 7b77#b7 shall be applied by substituting for the dollar amount in effect under section #bai7;b77#a77;,a7 the following3 the sum 7but not to exceed #ej percent of the amount in effect under section #dae7;c77#a77;,a7 7except as provided in section #dad7v777 of the dollar amount in effect under paragraph 7#b77;,a77ii7 of this subsection2 the employer contribution required under paragraph 7#b77;,a77iii7 or 7#b77;,b77i7 of this subsection1 whichever is applicable2 and the employer contribution made on behalf of the employee under paragraph 7#b77;,a77iv7 of this subsection4 4 7b7 ,conforming amendments 7#a7 ,section #djh7p77#b77;,a77v71 as redesignated by subsection 7a71 is amended by striking or 7iii7 and inserting 1 7iii71 or 7iv74 7#b7 ,paragraph 7#h7 of section #djh7p7 is amended by inserting 1 the employer contribution actually made under paragraph 7#b77;,a77iv7 of this subsection1 after paragraph 7#b77;,a77ii7 of this subsection4 7#c7 ,section #dja7k77#aa77;,b77i7 is amended by striking and at the end of subclause 7,,ii71 by redesignating subclause 7,,iii7 as subclause 7,v71 and by inserting after subclause 7,,ii7 the following new subclauses3 7,,iii7 the employer may make nonelective contributions of a uniform percentage 7up to #aj percent7 of compensation for each employee who is eligible to participate in the arrangement and who has at least #e1jjj of compensation from the employer for the year1 7,,iv7 contributions on behalf of any employee for any year may not exceed #ej percent of the amount in effect under section #dae7;c77#a77;,a7 7except as provided in section #dad7v771 and 4 7#d7 ,section #dja7k77#aa77;,b77i77,v71 as redesignated by paragraph 7#c71 is amended by striking or 7,,ii7 and inserting 1 7,,ii71 or 7,,iii74 7c7 ,effective date ,the amendments made by this section shall apply to years beginning after ,december #ca1 #bjai4 #aae4 ,reform of the minimum participation rule 7a7 ,in general ,subparagraph 7,h7 of section #dja7;a77#bf7 is amended by adding at the end the following3 ,not later than ,december #ca1 #bjbj1 the ,secretary shall issue final regulations under which this paragraph may be applied separately to bona fide separate subsidiaries or divisions44 7b7 ,effective date ,the amendment made by subsection 7a7 shall take effect on the date of enactment of this ,act4 #aaf4 ,expansion of ,employee ,plans ,compliance ,resolution ,system 7a7 ,in general ,except as otherwise provided in regulations prescribed by the ,secretary of the ,treasury or the ,secretary's delegate 7referred to in this section as the ,secretary71 any inadvertent failure to comply with the rules applicable under section #dja7;a71 #djc7;a71 #djc7;b71 #djh7p71 or #djh7k7 of the ,internal ,revenue ,code of #aihf may be self-corrected under the ,employee ,plans ,compliance ,resolution ,system 7as described in ,revenue ,procedure #bjai-ai or any successor guidance71 except to the extent that such failure was identified by the ,secretary prior to any actions which demonstrate a commitment to implement a self-correction4 ,revenue ,procedure #bjai-ai is deemed amended as of the date of the enactment of this ,act to provide that the correction period under section #i4jb of such ,revenue ,procedure 7or any successor provision7 for an inadvertent failure is indefinite and has no last day1 other than with respect to failures identified by the ,secretary prior to any self-correction as described in the preceding sentence4 7b7 ,loan error ,the ,secretary of ,labor shall treat any loan error corrected pursuant to subsection 7a7 as meeting the requirements of the ,voluntary ,fiduciary ,correction ,program of the ,department of ,labor4 7c7 ,,epcrs for ,i,r,as ,the ,secretary shall expand the ,employee ,plans ,compliance ,resolution ,system to allow custodians of individual retirement plans to address inadvertent failures for which the owner of an individual retirement plan was not at fault1 including 7but not limited to7-- 7#a7 waivers of the excise tax which would otherwise apply under section #digd of the ,internal ,revenue ,code of #aihf2 7#b7 under the self-correction component of the ,employee ,plans ,compliance ,resolution ,system1 waivers of the #fj-;day deadline for a rollover where the deadline is missed for reasons beyond the reasonable control of the account owner2 and 7#c7 rules permitting a nonspouse beneficiary to return distributions to an inherited individual retirement plan described in section #djh7;d77#c77;,c7 of the ,internal ,revenue ,code of #aihf in a case where1 due to an inadvertent error by a service provider1 the beneficiary had reason to believe that the distribution could be rolled over without inclusion in income of any part of the distributed amount4 7d7 ,required minimum distribution corrections ,the ,secretary shall expand the ,employee ,plans ,compliance ,resolution ,system to allow plans to which such system applies and custodians and owners of individual retirement plans to self-correct1 without an excise tax1 any inadvertent failures pursuant to which a distribution is made no more than #ahj days after it was required to be made4 7e7 ,additional safe harbors ,the ,secretary shall expand the ,employee ,plans ,compliance ,resolution ,system 7as described in ,revenue ,procedure #bjai-ai or any successor guidance7 to provide additional safe harbor means of correcting inadvertent failures described in subsection 7a71 including safe harbor means of calculating the earnings which must be restored to a plan in cases where plan assets have been depleted by reason of an inadvertent failure4 7f7 ,definitions and special rules 7#a7 ,inadvertent failure ,for purposes of this section-- 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term inadvertent failure means a failure that occurs despite the existence of practices and procedures which-- 7i7 satisfy the standards set forth in section #d4jd of ,revenue ,procedure #bjai-ai 7or any successor provision72 or 7ii7 satisfy similar standards in the case of an individual retirement plan4 7,b7 ,correction by owner of individual retirement plan ,in the case of a correction by an owner of an individual retirement plan under subsection 7d71 the term inadvertent failure means a failure due to reasonable cause4 7#b7 ,plan loan corrections ,in the case of an inadvertent failure relating to a loan to a participant from a plan1 such failure may be self-corrected under subsection 7a7 according to the rules of section #f4jg of ,revenue ,procedure #bjai-ai 7or any successor provision71 including the provisions related to whether a deemed distribution must be reported on ,form #ajii-,r4 #aag4 ,enhancement of #djc7;b7 plans 7a7 ,in general 7#a7 ,permitted investments ,clause 7i7 of section #djc7;b77#g77;,a7 is amended to read as follows3 7i7 the amounts to be held in that custodial account are invested in regulated investment company stock or a group trust intended to satisfy the requirements of ,internal ,revenue ,service ,revenue ,ruling #ha-ajj 7or any successor guidance71 and 4 7#b7 ,conforming amendment ,the heading of paragraph 7#g7 of section #djc7;b7 is amended by striking for regulated investment company stock4 7#c7 ,effective date ,the amendments made by this subsection shall apply to amounts invested after ,december #ca1 #bjai4 7b7 ,amendments to the ,investment ,company ,act of #aidj ,section #c7;c77#aa7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77#aa77 is amended to read as follows3 7#aa7 ,any-- 7,a7 employee's stock bonus1 pension1 or profit-sharing trust which meets the requirements for qualification under section #dja of the ,internal ,revenue ,code of #aihf2 7,b7 custodial account meeting the requirements of section #djc7;b77#g7 of such ,code2 7,c7 governmental plan described in section #c7;a77#b77;,c7 of the ,securities ,act of #aicc2 7,d7 collective trust fund maintained by a bank consisting solely of assets of one or more of such trusts1 government plans1 or church plans1 companies or accounts that are excluded from the definition of an investment company under paragraph 7#ad7 of this subsection2 7,e7 plan which meets the requirements of section #djc7;b7 of the ,internal ,revenue ,code of #aihf if-- 7i7 such plan is subject to title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq472 7ii7 any employer making such plan available agrees to serve as a fiduciary for the plan with respect to the selection of the plan's investments among which participants can choose2 or 7iii7 such plan is a governmental plan 7as defined in section #dad7;d7 of such ,code72 or 7,f7 separate account the assets of which are derived solely from-- 7i7 contributions under pension or profit-sharing plans which meet the requirements of section #dja of the ,internal ,revenue ,code of #aihf or the requirements for deduction of the employer's contribution under section #djd7;a77#b7 of such ,code2 7ii7 contributions under governmental plans in connection with which interests1 participations1 or securities are exempted from the registration provisions of section #e of the ,securities ,act of #aicc by section #c7;a77#b77;,c7 of such ,act2 7iii7 advances made by an insurance company in connection with the operation of such separate account2 and 7iv7 contributions to a plan described in subparagraph 7,e74 4 7c7 ,amendments to the ,securities ,act of #aicc ,section #c7;a77#b7 of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;c7a77#b77 is amended-- 7#a7 by striking or 7,d7 and inserting 7,d7 a plan which meets the requirements of section #djc7;b7 of such ,code if 7i7 such plan is subject to title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq471 7ii7 any employer making such plan available agrees to serve as a fiduciary for the plan with respect to the selection of the plan's investments among which participants can choose1 or 7iii7 such plan is a governmental plan 7as defined in section #dad7;d7 of such ,code72 or 7,e72 7#b7 by striking 7,c71 or 7,d7 and inserting 7,c71 7,d71 or 7,e72 and 7#c7 by striking 7iii7 which is a plan funded and inserting 7iii7 in the case of a plan not described in subparagraph 7,d71 which is a plan funded4 7d7 ,amendments to the ,securities ,exchange ,act of #aicd ,section #c7;a77#ab77;,c7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#ab77;,c77 is amended-- 7#a7 by striking or 7iv7 and inserting 7iv7 a plan which meets the requirements of section #djc7;b7 of such ,code if 7,i7 such plan is subject to title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq471 7,,ii7 any employer making such plan available agrees to serve as a fiduciary for the plan with respect to the selection of the plan's investments among which participants can choose1 or 7,,iii7 such plan is a governmental plan 7as defined in section #dad7;d7 of such ,code71 or 7v72 7#b7 by striking 7ii71 or 7iii7 and inserting 7ii71 7iii71 or 7iv72 and 7#c7 by striking 7,,ii7 is a plan funded and inserting 7,,ii7 in the case of a plan not described in clause 7iv71 is a plan funded4 #aah4 ,eligibility for participation in retirement plans ,an individual shall not be precluded from participating in an eligible deferred compensation plan by reason of having received a distribution under section #deg7;e77#i7 of the ,internal ,revenue ,code of #aihf1 as in effect prior to the enactment of the ,small ,business ,job ,protection ,act of #aiif4 #aai4 ,small immediate financial incentives for contributing to a plan 7a7 ,in general ,subparagraph 7,a7 of section #dja7k77#d7 is amended by inserting 7other than a de minimis financial incentive7 after any other benefit4 7b7 ,section #djc7;b7 plans ,subparagraph 7,a7 of section #djc7;b77#ab71 as amended by this ,act1 is further amended by adding at the end the following3 ,a plan shall not fail to satisfy clause 7ii7 solely by reason of the offering of a de minimis financial incentive for employees to elect to have the employer make contributions pursuant to a salary reduction agreement44 7c7 ,exemption from prohibited transaction rules ,subsection 7d7 of section #dige is amended by striking or at the end of paragraph 7#bb71 by striking the period at the end of paragraph 7#bc7 and inserting 1 or1 and by adding at the end the following new paragraph3 7#bd7 the provision of a de minimis financial incentive described in section #dja7k77#d77;,a7 or #djc7;b77#ab77;,a74 4 7d7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd ,subsection 7b7 of section #djh of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajh7;b77 is amended by adding at the end the following new paragraph3 7#ba7 ,the provision of a de minimis financial incentive described in section #dja7k77#d77;,a7 or #djc7;b77#ab77;,a7 of the ,internal ,revenue ,code of #aihf4 4 7e7 ,effective date ,the amendments made by this section shall apply with respect to plan years beginning after the date of enactment of this ,act4 #abj4 ,indexing ,,ira catch-up limit 7a7 ,in general ,subparagraph 7,c7 of section #bai7;b77#e7 is amended by adding at the end the following new clause3 7iii7 ,indexing of catch-up limitation ,in the case of any taxable year beginning in a calendar year after #bjbj1 the #a1jjj amount under subparagraph 7,b77ii7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any amount after adjustment under the preceding sentence is not a multiple of #bjj1 such amount shall be rounded to the next lower multiple of #bjj4 4 7b7 ,effective date ,the amendments made by this section shall apply to years beginning after ,december #ca1 #bjbj4 #aba4 ,higher catch-up limit to apply at age #fj 7a7 ,in general 7#a7 ,plans other than simple plans ,section #dad7v77#b77;,b77i7 is amended by inserting the following before the period3 7#aj1jjj1 in the case of an eligible participant who has attained age #fj before the close of the taxable year74 7#b7 ,simple plans ,section #dad7v77#b77;,b77ii7 is amended by inserting the following before the period3 7#e1jjj1 in the case of an eligible participant who has attained age #fj before the close of the taxable year74 7b7 ,cost-of-,living adjustments ,subparagraph 7,c7 of section #dad7v77#b7 is amended by adding at the end the following3 ,in the case of a year beginning after ,december #ca1 #bjbj1 the ,secretary shall adjust annually the #aj1jjj amount in subparagraph 7,b77i7 and the #e1jjj amount in subparagraph 7,b77ii7 for increases in the cost-of-living at the same time and in the same manner as adjustments under the preceding sentence2 except that the base period taken into account shall be the calendar quarter beginning ,july #a1 #bjai44 7c7 ,effective date ,the amendments made by this section shall apply to years beginning after ,december #ca1 #bjai4 ,,ii ,preservation of income #bja4 ,qualifying longevity annuity contracts 7a7 ,in general ,not later than the date which is #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend the regulation issued by the ,department of the ,treasury relating to ,longevity ,annuity ,contracts 7#gi ,fed4 ,reg4 #cgfcc 7,july #b1 #bjad771 as follows3 7#a7 ,repeal #be-percent premium limit ,the ,secretary 7or delegate7 shall amend ,q,a-#ag7;b77#c7 of ,treas4 ,reg4 section #a4dja7;a77#i7-f and ,q,a-#ab7;b77#c7 of ,treas4 ,reg4 section #a4djh-h to eliminate the requirement that premiums for qualifying longevity annuity contracts be limited to #be percent of an individual's account balance1 and to make such corresponding changes to the regulations and related forms as are necessary to reflect the elimination of this requirement4 7#b7 ,increase dollar limitation 7,a7 ,in general ,the ,secretary 7or delegate7 shall amend ,q,a-#ag7;b77#b77;i7 of ,treas4 ,reg4 section #a4dja7;a77#i7-f and ,q,a-#ab7;b77#b77;i7 of ,treas4 ,reg4 section #a4djh-h to increase the dollar limitation on premiums for qualifying longevity annuity contracts from #abe1jjj to #bjj1jjj1 and to make such corresponding changes to the regulations and related forms as are necessary to reflect this increase in the dollar limitation4 7,b7 ,adjustments for inflation ,the ,secretary 7or delegate7 shall amend ,q,a-#ag7;d77#b77;i7 of ,treas4 ,reg4 section #a4dja7;a77#i7-f to provide that1 in the case of calendar years beginning on or after ,january #a of the second year following the year of enactment of this ,act1 the #bjj1jjj dollar limitation 7as increased by subparagraph 7,a77 will be adjusted at the same time and in the same manner as the limits are adjusted under section #dae7;d7 of the ,internal ,revenue ,code of #aihf1 except that the base period shall be the calendar quarter beginning ,july #a of the year of enactment of this ,act1 and any increase to such dollar limitation which is not a multiple of #aj1jjj will be rounded to the next lowest multiple of #aj1jjj4 7#c7 ,facilitate joint and survivor benefits ,the ,secretary 7or delegate7 shall amend ,q,a-#ag7;c7 of ,treas4 ,reg4 section #a4dja7;a77#i7-f1 and make such corresponding changes to the regulations and related forms as are necessary1 to provide that1 in the case of a qualifying longevity annuity contract which was purchased with joint and survivor annuity benefits for the individual and the individual's spouse which were permissible under the regulations at the time the contract was originally purchased1 a divorce occurring after the original purchase and before the annuity payments commence under the contract will not affect the permissibility of the joint and survivor annuity benefits or other benefits under the contract1 or require any adjustment to the amount or duration of benefits payable under the contract1 provided that any qualified domestic relations order 7within the meaning of section #dad7p7 of the ,internal ,revenue ,code of #aihf7 or any divorce or separation instrument 7within the meaning of section #ga7;b77#b7 of the ,internal ,revenue ,code of #aihf7-- 7,a7 provides that the former spouse is entitled to the survivor benefits under the contract2 7,b7 does not modify the treatment of the former spouse as the beneficiary under the contract who is entitled to the survivor benefits2 or 7,c7 does not modify the treatment of the former spouse as the measuring life for the survivor benefits under the contract4 7#d7 ,permit short free look period ,the ,secretary 7or delegate7 shall amend ,q,a-#ag7;a77#d7 of ,treas4 ,reg4 section #a4dja7;a77#i7-f to ensure that such ,q,a does not preclude a contract from including a provision under which an employee may rescind the purchase of the contract within a period not exceeding #ij days from the date of purchase4 7#e7 ,facilitate indexed and variable contracts with guaranteed benefits ,the ,secretary 7or delegate7 shall amend ,q,a-#ag7;d77#d7 of ,treas4 ,reg4 section #a4dja7;a77#i7-f1 and make such corresponding changes to the regulations and related forms as are necessary1 to provide that an annuity contract is not treated as a contract described in such ,q,a-#ag7;a77#g7 to the extent that the contract-- 7,a7 either-- 7i7 is a variable contract under section #hag7;d7 of the ,internal ,revenue ,code of #aihf2 or 7ii7 is an indexed contract2 7,b7 provides for the possibility of annuity payment increases 7but not decreases7 based on the investment return and market value of #a or more segregated asset accounts 7in the case of a variable contract7 or based on the performance of #a or more specified indexes 7in the case of an indexed contract72 7,c7 provides for a guaranteed minimum level of annuity payments irrespective of such investment return1 market value1 or performance2 and 7,d7 in the event of death before the annuity starting date1 provides that any death benefit that is payable in a lump sum is equal to the premiums paid1 without reduction for investment return1 market value1 index performance1 surrender charges1 market value adjustments1 or any other amounts4 ,for purposes of the preceding sentence1 a downward adjustment to the dollar amount of annuity payments shall not be treated as an impermissible reduction in such payments1 provided that the adjustment is made to reflect a change in annuitant that is required or permitted under the ,internal ,revenue ,code of #aihf or regulations and the adjustment is based on reasonable actuarial assumptions4 7b7 ,effective dates1 enforcement1 and interpretations 7#a7 ,effective dates 7,a7 ,paragraphs 7#a71 7#b71 and 7#e7 of subsection 7a7 shall be effective with respect to contracts purchased or received in an exchange on or after the date of the enactment of this ,act4 7,b7 ,paragraphs 7#c7 and 7#d7 of subsection 7a7 shall be effective with respect to contracts purchased or received in an exchange on or after ,july #b1 #bjad4 7#b7 ,enforcement and interpretations ,prior to the date on which the ,secretary of the ,treasury issues final regulations pursuant to subsection 7a7-- 7,a7 the ,secretary 7or delegate7 shall administer and enforce the law in accordance with subsection 7a7 and the effective dates in paragraph 7#a7 of this subsection2 and 7,b7 taxpayers may rely upon their reasonable good faith interpretations of subsection 7a74 #bjb4 ,remove required minimum distribution barriers for life annuities 7a7 ,in general ,paragraph 7#i7 of section #dja7;a71 as amended by this ,act1 is further amended by adding at the end the following new subparagraph3 7,j7 ,certain increases in payments under a commercial annuity ,nothing in this section shall prohibit a commercial annuity 7within the meaning of section #cdje7;e77#f77 which is issued in connection with any eligible retirement plan 7within the meaning of section #djb7;c77#h77;,b77 from providing #a or more of the following types of payments on or after the annuity starting date3 7i7 ,annuity payments which increase by a constant percentage1 applied not less frequently than annually1 at a rate which is less than #e percent per year4 7ii7 ,a lump sum payment which-- 7,i7 results in a shortening of the payment period with respect to an annuity or a full or partial commutation of the future annuity payments1 provided that such lump sum is determined using reasonable actuarial methods and assumptions1 as determined in good faith by the issuer of the contract1 or 7,,ii7 accelerates the receipt of annuity payments which are scheduled to be received within the ensuing #ab months1 regardless of whether such acceleration shortens the payment period with respect to the annuity1 reduces the dollar amount of benefits to be paid under the contract1 or results in a suspension of annuity payments during the period being accelerated4 7iii7 ,an amount which is in the nature of a dividend or similar distribution1 provided that the issuer of the contract determines such amount based on a reasonable comparison of the actuarial factors assumed when calculating the initial annuity payments and the issuer's experience with respect to those factors4 7iv7 ,a final payment upon death which does not exceed the excess of-- 7,i7 the total amount of the consideration paid for the annuity payments1 over 7,,ii7 the aggregate amount of prior distributions or payments from or under the contract4 4 7b7 ,regulations and enforcement 7#a7 ,regulations ,not later than the date which is #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend the regulation issued by the ,department of the ,treasury relating to ,required ,distributions from ,retirement ,plans 7#fi ,fed4 ,reg4 #ccbhh 7,june #ae1 #bjjd771 and make any necessary corresponding amendments to other regulations1 in order to-- 7,a7 conform such regulations to the amendments made by subsection 7a71 including by eliminating the types of payments described in section #dja7;a77#i77;,j7 of the ,internal ,revenue ,code of #aihf1 as added by subsection 7a71 from the scope of the requirement in ,q,a-#ad7;c7 of ,treas4 ,reg4 section #a4dja7;a77#i7-f that the total future expected payments must exceed the total value being annuitized2 7,b7 amend ,q,a-#ad7;c7 of such section #a4dja7;a77#i7-f to provide that a commercial annuity which provides an initial payment which is at least equal to the initial payment which would be required from an individual account pursuant to ,treas4 ,reg4 section #a4dja7;a77#i7-e will be deemed to satisfy the requirement in ,q,a-#ad7;c7 of such section #a4dja7;a77#i7-f that the total future expected payments must exceed the total value being annuitized2 and 7,c7 amend ,q,a-#ad7;e77#c7 of ,treas4 ,reg4 section #a4dja7;a77#i7-f to provide that the total future expected payments under a commercial annuity are determined using the tables or other actuarial assumptions which the issuer of the contract actually uses in pricing the premiums and benefits with respect to the contract1 provided that such tables or other actuarial assumptions are reasonable4 7#b7 ,effective date ,the modifications and amendments required under paragraph 7#a7 shall be deemed to have been made as of the date of the enactment of this ,act1 and as of such date the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall administer and enforce the law with respect to plan years beginning before1 on1 or after the date of the enactment of this ,act in accordance with the amendments made by subsection 7a7 and as though the actions which the ,secretary is required to take under paragraph 7#a7 had been taken4 #bjc4 ,eliminating a penalty on partial annuitization 7a7 ,eliminating a penalty on partial annuitization ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend the regulations under section #dja7;a77#i7 of the ,internal ,revenue ,code of #aihf to provide that if an employee's benefit is in the form of an individual account under a defined contribution plan1 the plan may allow the employee to elect to have the amount required to be distributed from such account under such section for a year to be calculated as the excess of the total required amount for such year over the annuity amount for such year4 7b7 ,definitions ,for purposes of this section-- 7#a7 ,total required amount ,the term total required amount1 with respect to a year1 means the amount which would be required to be distributed under ,treas4 ,reg4 section #a4dja7;a77#i7-e for the year1 determined by treating the account balance as of the last valuation date in the immediately preceding calendar year as including the value on that date of all annuity contracts which were purchased with a portion of the account and from which payments are made in accordance with ,treas4 ,reg4 section #a4dja7;a77#i7-f4 7#b7 ,annuity amount ,the term annuity amount1 with respect to a year1 is the total amount distributed in the year from all annuity contracts described in paragraph 7#a74 7c7 ,conforming regulatory amendments ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend the regulations under sections #djc7;b77#aj71 #djh7;a77#f71 #djh7;b77#c71 and #deg7;d77#b7 of the ,internal ,revenue ,code of #aihf to conform to the amendments described in subsection 7a74 ,such conforming amendments shall treat all individual retirement plans 7as defined in section #ggja7;a77#cg7 of such ,code7 which an individual holds as the owner1 or which an individual holds as a beneficiary of the same decedent1 as one such plan for purposes of the amendments described in subsection 7a74 ,such conforming amendments shall also treat all contracts described in section #djc7;b7 of such ,code which an individual holds as an employee1 or which an individual holds as a beneficiary of the same decedent1 as one such contract for such purposes4 7d7 ,effective date ,the modifications and amendments required under subsections 7a7 and 7c7 shall be deemed to have been made as of the date of the enactment of this ,act1 and as of such date all applicable laws shall be applied in all respects as though the actions which the ,secretary of the ,treasury 7or the ,secretary's delegate7 is required to take under such subsections had been taken4 #bjd4 ,insurance-dedicated exchange-traded funds 7a7 ,in general ,not later than the date which is #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend the regulation issued by the ,department of the ,treasury relating to ,income ,tax2 ,diversification ,requirements for ,variable ,annuity1 ,endowment1 and ,life ,insurance ,contracts1 #ed ,fed4 ,reg4 #hgbh 7,march #b1 #aihi71 and make any necessary corresponding amendments to other regulations1 in order to facilitate the use of exchange-traded funds as investment options under variable contracts within the meaning of section #hag7;d7 of the ,internal ,revenue ,code of #aihf1 in accordance with subsections 7b7 and 7c7 of this section4 7b7 ,designate certain authorized participants and market makers as eligible investors ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend ,treas4 ,reg4 section #a4hag-e7;f77#c7 to provide that satisfaction of the requirements in ,treas4 ,reg4 section #a4hag-e7;f77#b77;i7 with respect to an exchange-traded fund shall not be prevented by reason of beneficial interests in such a fund being held by #a or more authorized participants or market makers4 7c7 ,confirm that similarities to other funds are irrelevant ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend ,treas4 ,reg4 section #a4hag-e7;f7 to confirm that1 for ,federal income tax purposes1 a regulated investment company1 partnership1 or trust 7including an exchange-traded fund7 that satisfies the requirements of ,treas4 ,reg4 section #a4hag-e7;f7 7#b7 and 7#c7 shall not be treated as owned by the holder of a variable contract pursuant to the principles of ,rev4 ,rul4 #ha-bbe1 #aiha-b ,c4,b4 #ab1 merely because another regulated investment company1 partnership1 trust1 or similar investment vehicle follows the same investment strategy1 has the same investment manager1 or holds the same investments4 7d7 ,define relevant terms ,in amending ,treas4 ,reg4 section #a4hag-e7;f77#c7 in accordance with subsections 7b7 and 7c7 of this section1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall provide definitions consistent with the following3 7#a7 ,exchange-traded fund ,the term exchange-traded fund means a regulated investment company1 partnership1 or trust-- 7,a7 that is registered with the ,securities and ,exchange ,commission as an open-end investment company or a unit investment trust2 7,b7 the shares of which can be purchased or redeemed directly from the fund only by an authorized participant2 and 7,c7 the shares of which are traded throughout the day on a national stock exchange at market prices that may or may not be the same as the net asset value of the shares4 7#b7 ,authorized participant ,the term authorized participant means a financial institution that is a member or participant of a clearing agency registered under section #ag;,a7b7 of the ,securities ,exchange ,act of #aicd that enters into a contractual relationship with an exchange-traded fund pursuant to which the financial institution is permitted to purchase and redeem shares directly from the fund and to sell such shares to third parties1 but only if the contractual arrangement or applicable law precludes the financial institution from-- 7,a7 purchasing the shares for its own investment purposes rather than for the exclusive purpose of creating and redeeming such shares on behalf of third parties2 and 7,b7 selling the shares to third parties who are not market makers or otherwise described in ,treas4 ,reg4 section #a4hag-e7;f7 7#a7 and 7#c74 7#c7 ,market maker ,the term market maker means a financial institution that is a registered broker or dealer under section #ae7;b7 of the ,securities ,exchange ,act of #aicd that maintains liquidity for an exchange-traded fund on a national stock exchange by being always ready to buy and sell shares of such fund on the market1 but only if the financial institution is contractually or legally precluded from selling or buying such shares to or from persons who are not authorized participants or otherwise described in ,treas4 ,reg4 section #a4hag-e7;f7 7#b7 and 7#c74 7e7 ,effective dates1 enforcement1 and interpretations 7#a7 ,effective dates 7,a7 ,subsection 7b71 and the definitions under subsection 7d71 shall apply to segregated asset account investments made on or after the date of enactment of this ,act4 7,b7 ,subsection 7c7 shall apply to taxable years beginning after ,december #ca1 #aihc4 7#b7 ,enforcement and interpretations ,prior to the date that the ,secretary of the ,treasury 7or the ,secretary's delegate7 issues final regulations pursuant to this section-- 7,a7 the ,secretary 7or delegate7 shall administer and enforce the law in accordance with this section and the effective dates in paragraph 7#a7 of this subsection2 and 7,b7 taxpayers may rely upon their reasonable good faith interpretations of the preceding subsections of this section4 ,,iii ,simplification and clarification of retirement plan rules #cja4 ,review and report to the ,congress relating to reporting and disclosure requirements 7a7 ,study ,as soon as practicable after the date of the enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,director of the ,pension ,benefit ,guaranty ,corporation 7or their delegates7 shall review the reporting and disclosure requirements of-- 7#a7 title ,i of the ,employee ,retirement ,income ,security ,act of #aigd1 as applicable to pension plans 7as defined in section #c7b7 of such ,act72 and 7#b7 the ,internal ,revenue ,code of #aihf1 as applicable to qualified retirement plans 7as defined in section #digd7;c7 of such ,code1 without regard to paragraphs 7#d7 and 7#e7 thereof74 7b7 ,report ,not later than #ah months after the date of the enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,director of the ,pension ,benefit ,guaranty ,corporation 7or their delegates71 jointly1 shall make such recommendations as may be appropriate to the appropriate committees of the ,congress to consolidate1 simplify1 standardize1 and improve the applicable reporting and disclosure requirements so as to simplify reporting for plans described in subsection 7a7 and ensure that necessary1 comprehensible information is provided to participants and beneficiaries of such plans4 #cjb4 ,consolidation of defined contribution plan notices ,not later than #ah months after the date of the enactment of this ,act1 the ,secretary of ,labor and the ,secretary of the ,treasury 7or such ,secretaries' delegates7 shall adopt regulations providing that a plan may1 but is not required to1 consolidate #b or more of the notices required under sections #djd7;c77#e77;,b7 and #ead7;e77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;c77#e77;,b7 and #bi ,u4,s4,c4 #aadd7;e77#c77 and sections #dja7k77#ab77;,d71 #dja7k77#ac77;,e71 and #dad7w77#d7 of the ,internal ,revenue ,code of #aihf into a single notice so long as the combined notice includes the required content1 clearly identifies the issues addressed therein1 is provided at the time and with the frequency required for each such notice1 and is presented in a manner that is understandable and does not obscure or fail to highlight important points for participants and beneficiaries4 #cjc4 ,performance benchmarks for asset allocation funds 7a7 ,in general ,not later than #f months after the date of the enactment of this ,act1 the ,secretary of ,labor 7or the ,secretary's delegate7 shall modify the regulations under section #djd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7 to provide that1 in the case of a designated investment alternative which contains a mix of asset classes1 a plan administrator may1 but is not required to1 use a benchmark which is a blend of different broad-based securities market indices if-- 7#a7 the blend is reasonably representative of the asset class holdings of the designated investment alternative2 7#b7 for purposes of determining the blend's returns for #a-1 #e-1 and #aj-;calendar-year periods 7or for the life of the alternative1 if shorter71 the blend is modified at least once per year to reflect changes in the asset class holdings of the designated investment alternative2 7#c7 the blend is presented to participants and beneficiaries in a manner that is reasonably designed to be understandable and helpful2 and 7#d7 each securities market index which is used for an associated asset class would separately satisfy the requirements of such regulations for such asset class4 7b7 ,study ,not later than ,december #ca1 #bjbj1 the ,secretary of ,labor 7or the ,secretary's delegate7 shall deliver a report to the ,committees on ,ways and ,means and ,education and ,labor of the ,house of ,representatives and the ,committees on ,finance and ,health1 ,education1 ,labor1 and ,pensions of the ,senate regarding the effectiveness of the benchmarking requirements under section #beej4djd;a-#e of title #bi1 ,code of ,federal ,regulations4 #cjd4 ,permit nonspousal beneficiaries to roll assets to plans 7a7 ,in general ,section #djb7;c7 is amended by adding at the end the following new paragraph3 7#ab7 ,distributions to qualified plan of nonspouse beneficiary ,if1 with respect to any portion of a distribution from an eligible retirement plan described in clause 7iii71 7iv71 7v71 or 7vi7 of paragraph 7#h77;,b7 of a deceased employee1 a direct trustee-to-trustee transfer is made to another such plan of an individual who is a designated beneficiary 7as defined by section #dja7;a77#i77;,e77 of the employee and who is not the surviving spouse of the employee-- 7,a7 the transfer shall be treated as an eligible rollover distribution1 and 7,b7 section #dja7;a77#i77;,b7 7other than clause 7iv7 thereof7 shall apply to such plan4 4 7b7 ,conforming amendments - 7#a7 #djc7;a7 plans ,subparagraph 7,b7 of section #djc7;a77#d7 is amended by striking and 7#aa7 and 7#i7 and inserting 1 7#i71 7#aa71 and 7#ab74 7#b7 #djc7;b7 plans ,subparagraph 7,b7 of section #djc7;b77#h7 is amended by striking and 7#aa7 and inserting 7#aa71 and 7#ab74 7#c7 #deg plans ,subparagraph 7,b7 of section #deg7;e77#af7 is amended by striking and 7#aa7 and inserting 7#aa71 and 7#ab74 7c7 ,effective date ,the amendments made by this section shall apply to distributions made after the date of the enactment of this ,act4 #cje4 ,deferral agreements 7a7 ,in general ,paragraph 7#d7 of section #deg7;b7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 or1 in the case of a plan of an eligible employer described in subsection 7e77#a77;,a71 before the date on which the compensation is 7but for the deferral7 available before the comma at the end4 7b7 ,effective date ,the amendment made by this section shall apply to years beginning after ,december #ca1 #bjai4 #cjf4 ,simplifying #djb7;f7 notices ,not later than ,december #ca1 #bjbj1 the ,secretary of the ,treasury 7or the ,secretary's delegate71 in consultation with the ,secretary of ,labor and the ,director of the ,pension ,benefit ,guaranty ,corporation 7or their delegates71 shall simplify the model notices issued under section #djb7;f7 of the ,internal ,revenue ,code of #aihf so as to facilitate better understanding by recipients of different distribution options and corresponding tax consequences4 ,such model notices shall include an explanation of the effect of elections on spousal rights4 #cjg4 ,treatment of custodial accounts on termination of section #djc7;b7 plans 7a7 ,in general ,not later than #f months after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall issue guidance to provide that1 if an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph 7,a7 of section #djc7;b77#g7 of the ,internal ,revenue ,code of #aihf-- 7#a7 the plan administrator or custodian may distribute an individual custodial account in kind to a participant or beneficiary of the plan1 and 7#b7 the distributed custodial account shall be maintained by the custodian on the same basis as a custodial account to which section #djc7;b77#g7 of such ,code applies1 similar to the treatment of fully paid individual annuity contracts under ,revenue ,ruling #bjaa-g1 until amounts are actually paid to the participant or beneficiary4 7b7 ,treatment of accounts ,the guidance issued under subsection 7a7 shall also provide that-- 7#a7 the status of the distributed custodial account under section #djc7;b77#g7 of the ,internal ,revenue ,code of #aihf is generally maintained if the custodial account thereafter adheres to the requirements of section #djc7;b7 of such ,code which are in effect at the time of the distribution of the account1 and 7#b7 a custodial account will not be considered distributed to the participant or beneficiary if the employer has any material retained rights under the account4 ,for purposes of paragraph 7#b71 an employer shall not be treated as retaining material rights over a custodial account solely because the custodial account was originally opened under a group contract4 7c7 ,distribution upon termination 7#a7 ,in general ,paragraph 7#aa7 of section #djc7;b7 is amended by striking or at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 or1 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 in the case of a termination of the plan under which contributions were made1 without the establishment or maintenance of another plan under this subsection4 4 7#b7 ,custodial accounts ,section #djc7;b77#g77;,a77ii7 is amended by striking before the employee dies and inserting before the termination of the plan under which contributions were made to the custodial account 7without the establishment or maintenance of another plan under this subsection71 or before the employee dies4 7d7 ,effective date ,the guidance issued under subsections 7a7 and 7b71 and the amendments made by subsection 7c71 shall apply to taxable years beginning after ,december #ca1 #bjjh4 #cjh4 ,permit plans to use base pay or rate of pay calculation 7a7 ,in general ,not later than ,december #ca1 #bjbj1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall modify ,treasury ,regulation section #a4dad7s7-#a7;d77#c7 to facilitate the use of the safe harbors in sections #dja7k77#ab71 #dja7k77#ac71 #dja7k77#ae71 #dja7m77#aa71 #dja7m77#ab71 and #dja7m77#ac7 of the ,internal ,revenue ,code of #aihf1 and in ,treasury ,regulation section #a4dja7;a77#d7-c7;b71 by plans which use base pay or rate of pay in determining contributions or benefits4 ,such facilitation shall include increased flexibility in meeting the definition in section #dad7s7 of such ,code in situations where the amount of overtime compensation payable in a year can vary significantly4 7b7 ,exception ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 may make any modification under subsection 7a7 inapplicable to plans with respect to which1 on a consistent basis1 overtime is a major component of a substantial portion of the employees eligible to participate in the plan who are not highly compensated employees 7as defined in section #dad7q7 of the ,internal ,revenue ,code of #aihf74 #cji4 ,roth ,,simple ,i,r,as 7a7 ,in general ,section #djh;,a7f7 is amended-- 7#a7 by striking or a simple retirement account in paragraph 7#a72 and 7#b7 by striking or account in paragraph 7#b74 7b7 ,conforming amendments ,section #djh;,a7c77#b7 is amended by adding at the end the following flush sentence3 ,in applying this paragraph to an individual on whose behalf elective employer contributions are made to a simple retirement account1 the amount described in subparagraph 7,a7 shall be increased by the amount of elective employer contributions made on behalf of the individual to such account1 except to the extent that such contributions exceed the applicable dollar amount 7as defined in subsection 7p77#b77;,e77 or cause the elective deferrals 7as defined in section #djb7;g77#c77 on behalf of such individual to exceed the limitation under section #djb7;g77#a7 7taking into account subparagraph 7,c7 thereof74 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #caj4 ,reduction in excise tax on certain accumulations in qualified retirement plans 7a7 ,in general ,subsection 7a7 of section #digd is amended by striking #ej percent and inserting #be percent4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #caa4 ,clarification of catch-up contributions with respect to separate lines of business 7a7 ,in general ,subparagraph 7,b7 of section #dad7v77#d7 is amended-- 7#a7 by striking except that a plan and inserting 8except that-- 7i7 a plan 2 7#b7 by striking the period at the end and inserting 1 and2 and 7#c7 by adding at the end the following new clause3 7ii7 for any year in which an employer complies with section #daj7;b7 on the basis of separate lines of business pursuant to section #daj7;b77#e71 the employer may apply subparagraph 7,a7 for such year separately with respect to employees in each separate line of business4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #cab4 ,clarification of substantially equal periodic payment rule 7a7 ,in general ,paragraph 7#d7 of section #gb7t7 is amended by inserting at the end the following new subparagraph3 7,c7 ,rollovers to subsequent plan ,if-- 7i7 payments described in paragraph 7#b77;,a77iv7 are being made from a qualified retirement plan1 7ii7 a transfer or a rollover from such qualified retirement plan of all or a portion of the taxpayer's benefit under the plan is made to another qualified retirement plan1 and 7iii7 distributions from the transferor and transferee plans would in combination continue to satisfy the requirements of paragraph 7#b77;,a77iv7 if they had been made only from the transferor plan1 such transfer or rollover shall not be treated as a modification under subparagraph 7,a77ii71 and compliance with paragraph 7#b77;,a77iv7 shall be determined on the basis of the combined distributions described in clause 7iii74 4 7b7 ,nonqualified annuity contracts ,paragraph 7#c7 of section #gb7q7 is amended-- 7#a7 by redesignating clauses 7i7 and 7ii7 of subparagraph 7,b7 as subclauses 7,i7 and 7,,ii71 and by moving such subclauses #b ems to the right2 7#b7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 by moving such clauses #b ems to the right1 and by adjusting the flush language at the end accordingly2 7#c7 by striking payments4--,if and inserting 8payments4-- 7,a7 ,in general ,if-- 2 and 7#d7 by adding at the end the following new subparagraph3 7,b7 ,exchanges to subsequent contracts ,if-- 7i7 payments described in paragraph 7#b77;,d7 are being made from an annuity contract1 7ii7 an exchange of all or a portion of such contract for another contract is made under section #ajce1 and 7iii7 the aggregate distributions from the contracts involved in the exchange continue to satisfy the requirements of paragraph 7#b77;,d7 as if the exchange had not taken place1 such exchange shall not be treated as a modification under subparagraph 7,a77ii71 and compliance with paragraph 7#b77;,d7 shall be determined on the basis of the combined distributions described in clause 7iii74 4 7c7 ,information reporting ,section #fgbd is amended by inserting at the end the following new subsection3 7g7 ,special rule for reporting certain additional taxes ,no penalty shall be imposed under section #fgba or #fgbb if-- 7#a7 a person makes a return or report under section #fjdg7;d7 or #djh7;i7 with respect to any distribution1 7#b7 such distribution is made following a rollover1 transfer1 or exchange described in section #gb7t77#d77;,c7 or section #gb7q77#c77;,c71 7#c7 in making such return or report the person relies upon a certification provided by the taxpayer that the distributions satisfy the requirements of section #gb7t77#d77;,c77iii7 or section #gb7q77#c77;,b77iii71 as applicable1 and 7#d7 such person does not have actual knowledge that the distributions do not satisfy such requirements4 4 7d7 ,safe harbor for annuity payments 7#a7 ,qualified retirement plans ,subparagraph 7,a7 of section #gb7t77#b7 is amended by adding at the end the following flush sentence3 ,for purposes of clause 7iv71 periodic payments shall not fail to be treated as substantially equal merely because they are amounts received as an annuity1 and such periodic payments shall be deemed to be substantially equal if they are payable over a period described in clause 7iv7 and satisfy the requirements applicable to annuity payments under section #dja7;a77#i74 4 7#b7 ,other annuity contracts ,paragraph 7#b7 of section #gb7q7 is amended by adding at the end the following flush sentence3 ,for purposes of subparagraph 7,d71 periodic payments shall not fail to be treated as substantially equal merely because they are amounts received as an annuity1 and such periodic payments shall be deemed to be substantially equal if they are payable over a period described in subparagraph 7,d7 and would satisfy the requirements applicable to annuity payments under section #dja7;a77#i7 if such requirements applied4 4 7e7 ,effective dates 7#a7 ,in general ,the amendments made by subsections 7a71 7b71 and 7c7 shall apply to transfers1 rollovers1 and exchanges occurring on or after the date of the enactment of this ,act4 7#b7 ,annuity payments ,the amendment made by subsection 7d7 shall apply to distributions commencing on or after the date of the enactment of this ,act4 7#c7 ,no inference ,nothing in the amendments made by this section shall be construed to create an inference with respect to the law in effect prior to the effective date of such amendments4 #cac4 ,clarification of treatment of distributions of annuity contracts 7a7 ,in general ,clause 7i7 of section #djb7;e77#d77;,d7 is amended by inserting after section #dja7;c77#a74 at the end of the second sentence the following3 ,a distribution of an annuity contract from a trust or annuity plan referred to in the first sentence of this clause may be treated as a part of a lump sum distribution44 7b7 ,effective date ,the amendment made by this section shall take effect as if included in section #adja7;b77#a7 of the ,small ,business ,job ,protection ,act of #aiif4 #cad4 ,clarification regarding elective deferrals 7a7 ,in general ,not later than #f months after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend ,treas4 ,reg4 section #a4dae7;c7-#b7;e71 and make any necessary conforming amendments to other ,treasury ,regulations1 to provide that plans may allow employees who have had a severance from employment to make deferrals or contributions described in subsection 7b7 with respect to payments of severance or back pay4 ,the ,secretary of the ,treasury 7or delegate7 may provide for such other conditions on such deferrals or contributions as are necessary to carry out the purposes of this section4 7b7 ,deferrals and contributions described ,the deferrals or contributions described in this subsection are-- 7#a7 elective deferrals described in subparagraph 7,a71 7,b71 or 7,c7 of section #djb7;g77#c7 of the ,internal ,revenue ,code of #aihf 7other than elective deferrals under section #dja7k77#aa7 of such ,code72 7#b7 elective contributions under an eligible deferred compensation plan described in section #deg7;b7 of such ,code2 and 7#c7 to the extent provided by such ,secretary 7or delegate71 elective deferrals described in section #djb7;g77#c77;,d7 or #dja7k77#aa7 of such ,code4 7c7 ,treatment of deferrals ,except as otherwise determined by the ,secretary of the ,treasury 7or the ,secretary's delegate7 to be necessary to carry out the purposes of this section1 the rules described in subsection 7a7 shall provide that the contributions or deferrals shall1 for purposes of section #deg and subchapter ,d of chapter #a of subtitle ,a of the ,internal ,revenue ,code of #aihf1 be treated as contributions or deferrals made on behalf of active employees1 not on behalf of former employees4 #cae4 ,tax treatment of certain nontrade or business ,,sep contributions 7a7 ,in general ,subparagraph 7,b7 of section #digb7;c77#f7 is amended-- 7#a7 by striking #djh7p77 or and inserting #djh7p7712 and 7#b7 by inserting 1 or a simplified employee pension 7within the meaning of section #djh7k77 after #dja7k77#aa774 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #caf4 ,allow certain plan transfers and mergers 7a7 ,amendments to the ,internal ,revenue ,code of #aihf 7#a7 ,in general ,section #dad is amended by adding at the end the following new subsection3 7aa7 ,certain plan transfers and mergers 7#a7 ,in general ,under rules prescribed by the ,secretary1 no amount shall be includible in gross income by reason of-- 7,a7 a transfer of all or a portion of the account balance of a participant or beneficiary1 whether or not vested1 from a defined contribution plan described in section #dja7;a7 or section #djc7;a7 of an employer to an annuity contract described in section #djc7;b7 of the same employer1 7,b7 a transfer of all or a portion of the account balance of a participant or beneficiary1 whether or not vested1 from an annuity contract described in section #djc7;b7 of an employer to a defined contribution plan described in section #dja7;a7 or section #djc7;a7 of the same employer1 or 7,c7 a merger of a defined contribution plan described in section #dja7;a7 or section #djc7;a7 of an employer with an annuity contract described in section #djc7;b7 of the same employer1 so long as the transfer or merger does not cause a reduction in the vested benefit or total benefit 7including non-vested benefit7 of any participant or beneficiary4 ,a plan or contract shall not fail to be considered to be described in section #dja7;a71 #djc7;a71 or #djc7;b7 7as applicable7 merely because such plan or contract engages in a transfer or merger described in this paragraph4 7#b7 ,distributions ,amounts transferred or merged pursuant to paragraph 7#a7 shall be subject to the requirements of paragraphs 7#c7 and 7#d7 and to the distribution requirements under section #dja7;a71 #djc7;a71 or #djc7;b7 applicable to the transferee or merged plan4 7#c7 ,spousal consent and anti-cutback protection ,in the case of a transfer or merger described in paragraph 7#a71 amounts in the transferee or merged plan that are attributable to the transferor or predecessor plan shall-- 7,a7 7i7 be subject to section #dja7;a77#aa7 and section #bje of the ,employee ,retirement ,income ,security ,act of #aigd to the extent that such sections applied to such amounts in the transferor or predecessor plan1 or 7ii7 be required to satisfy the requirements of section #dja7;a77#aa77;,b77iii77,i7 and section #bje7;b77#a77;,c77i7 of the ,employee ,retirement ,income ,security ,act of #aigd to the extent that such sections applied to such amounts in the transferor or predecessor plan1 and 7,b7 be treated as subject to section #daa7;d77#f7 and section #bjd7;g7 of the ,employee ,retirement ,income ,security ,act of #aigd to the extent that such amounts were subject to such sections in the transferor or predecessor plan4 7#d7 ,special rules ,under rules prescribed by the ,secretary1 to the extent amounts transferred or merged pursuant to paragraph 7#a7 were otherwise entitled to grandfather treatment under the transferor or predecessor plan1 such amounts 7and income or loss attributable thereto7 shall remain entitled to such treatment under the transferee or merged plan4 ,the rules prescribed by the ,secretary shall require that such amounts be separately accounted for by the transferee or merged plan4 ,for purposes of this paragraph1 the term grandfather treatment means any special treatment under this title that is provided for prior benefits1 prior periods of time1 or certain individuals in connection with a change in the applicable law4 7#e7 ,consent ,in the case of a qualified trust described in section #dja7;a7 or #djc7;a7 and an annuity contract described in section #djc7;b7 with respect to which transfers may be made only with the consent of a participant or beneficiary pursuant to the terms of such trust or contract or pursuant to applicable law1 such consent requirement shall apply without regard to this subsection4 ,nothing in this subsection shall affect the application of contract or plan terms otherwise applicable in the case of a withdrawal from the contract or plan4 4 7#b7 ,aggregation ,paragraph 7#b7 of section #dad7t7 is amended by inserting #dad7;aa71 after #bgd7;j714 7#c7 ,technical amendment ,the heading of subsection 7z7 of section #dad is amended by striking plan and inserting church plan4 7b7 ,amendment to the ,employee ,retirement ,income ,security ,act of #aigd ,section #d of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjc7 is amended by adding at the end the following new subsection3 7d7 ,this title shall apply to any plan or contract described in section #dad7;aa7 of the ,internal ,revenue ,code of #aihf to the extent necessary to comply with the requirements of such section4 4 7c7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to transfers or mergers in years beginning after the ,secretary of the ,treasury 7or the ,secretary's delegate7 prescribes rules under section #dad7;aa7 of the ,internal ,revenue ,code of #aihf1 as added by this section4 7#b7 ,rules ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall issue rules under section #dad7;aa7 of the ,internal ,code of #aihf1 as so added1 within #a year after the date of the enactment of this ,act4 #cag4 ,exception from required distributions where aggregate retirement savings do not exceed #ajj1jjj 7a7 ,in general ,section #dja7;a77#i71 as amended by this ,act1 is further amended by adding at the end the following new subparagraph3 7,k7 ,exception from required minimum distributions during life of employee or beneficiary where assets do not exceed #ajj1jjj 7i7 ,in general ,if1 as of a measurement date1 the aggregate value of the entire interest of an employee under all applicable eligible retirement plans does not exceed #ajj1jjj1 then1 with respect to any applicable eligible retirement plan of the employee1 during any succeeding calendar year beginning before the next measurement date the requirements of subparagraph 7,a7 shall not apply to the employee4 7ii7 ,applicable eligible retirement plan ,for purposes of this subparagraph1 the term applicable eligible retirement plan means an eligible retirement plan 7as defined in section #djb7;c77#h77;,b77 and any other plan1 contract1 or arrangement to which the requirements of this paragraph apply1 but does not include any defined benefit plan4 7iii7 ,measurement date 7,i7 ,initial measurement dates ,the initial measurement date for an employee is the last day of the calendar year preceding the earlier of-- 7aa7 the calendar year in which the employee attains the applicable age1 or 7bb7 the calendar year in which the employee dies4 7,,ii7 ,subsequent measurement dates ,if1 in a calendar year1 an employee to whom subparagraph 7,a7 does not apply by reason of clause 7i7 receives contributions1 rollovers1 or transfers of amounts which were not previously taken into account in applying this subparagraph1 then the last day of that calendar year shall be a new measurement date and a new determination shall be made as to whether clause 7i7 applies to such employee4 7,,iii7 ,special rule ,in the case of an employee who receives account statements at least annually with respect to a plan1 the value of the employee's interest in such plan as shown on the last account statement provided to such employee for such calendar year may 7at the election of the employee7 be treated as the value of the employee's interest in such plan on the measurement date4 ,if such last account statement does not include all amounts described in subclause 7,,ii7 for such calendar year1 the last day of the next calendar year shall be a new measurement date in accordance with subclause 7,,ii7 and a new determination shall be made as to whether clause 7i7 applies to such employee4 7iv7 ,determination of value ,for purposes of this subparagraph1 the value of an employee's interest in a plan is the account balance of such plan4 7v7 ,phase-out of exception ,in the case of an employee whose aggregate balance described in clause 7i7 as of a measurement date exceeds the dollar amount in effect under such clause by less than #aj1jjj1 the required distributions under this paragraph for calendar years beginning after such measurement date and before the next measurement date shall be equal to the amount which bears the same ratio to the required distributions otherwise determined under this paragraph as-- 7,i7 the amount by which such aggregate balance exceeds such dollar amount so in effect1 bears to 7,,ii7 #aj1jjj4 7vi7 ,cost-of-living adjustments ,the ,secretary shall adjust annually the #ajj1jjj amount specified in clause 7i7 for increases in the cost-of-living at the same time and in the same manner as adjustments under section #dae7;d72 except that the base period shall be the calendar quarter beginning ,july #a1 #bjai1 and any increase which is not a multiple of #e1jjj shall be rounded to the next lowest multiple of #e1jjj4 7vii7 ,plan reliance ,the plan administrator of an applicable eligible retirement plan shall be entitled to rely on a certification provided by an employee that such employee's interest in other applicable eligible retirement plans does not prevent such employee from being described in clause 7i74 ,any such certification shall apply to all future years in the absence of a contrary certification from the employee1 and shall apply to the current year if received not later than ,march #a of such current year4 ,if no such certification is received by the plan administrator by ,march #a of a year for which a required distribution is to be made under subparagraph 7,a71 the plan administrator shall be treated as required to make the distribution required under subparagraph 7,a7 for such year4 4 7b7 ,effective date ,the amendment made by this section shall apply to initial measurement dates occurring on or after ,december #ca1 #bjai4 #cah4 ,hardship rules for #djc7;b7 plans 7a7 ,in general ,section #djc7;b7 is amended by adding at the end the following new paragraph3 7#ae7 ,special rules relating to hardship withdrawals ,for purposes of paragraphs 7#g7 and 7#aa7-- 7,a7 ,amounts which may be withdrawn ,the following amounts may be distributed upon hardship of the employee3 7i7 ,contributions made pursuant to a salary reduction agreement 7within the meaning of section #caba7;a77#e77;,d774 7ii7 ,qualified nonelective contributions 7as defined in section #dja7m77#d77;,c774 7iii7 ,qualified matching contributions described in section #dja7k77#c77;,d77ii77,i74 7iv7 ,earnings on any contributions described in clause 7i71 7ii71 or 7iii74 7,b7 ,no requirement to take available loan ,a distribution shall not be treated as failing to be made upon the hardship of an employee solely because the employee does not take any available loan under the plan4 4 7b7 ,conforming amendments 7#a7 ,section #djc7;b77#g77;,a77ii7 is amended by striking in the case of contributions made pursuant to a salary reduction agreement 7within the meaning of section #caba7;a77#e77;,d77 and inserting subject to the provisions of paragraph 7#ae74 7#b7 ,paragraph 7#aa7 of section #djc7;b71 as amended by this ,act1 is further amended-- 7,a7 by striking in in subparagraph 7,b7 and inserting subject to the provisions of paragraph 7#ae71 in2 and 7,b7 by striking the last sentence4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjai4 #cai4 ,,ira preservation 7a7 ,information made available ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall make available to the public the following information3 7#a7 ,an overview of the laws and regulations related to individual retirement plans 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf71 including-- 7,a7 limits on contributions2 7,b7 limits on deductions for contributions2 7,c7 rollovers2 7,d7 minimum required distributions2 7,e7 non-exempt prohibited transactions2 and 7,f7 tax consequences for early distributions4 7#b7 ,examples of common errors by taxpayers with respect to the laws and regulations described in paragraph 7#a7 and instructions on how to avoid such errors4 7b7 ,reduction in excise tax on excess contributions ,section #digc is amended by adding at the end the following new subsection3 7i7 ,reduction of tax in certain cases 7#a7 ,reduction ,in the case of a taxpayer who-- 7,a7 corrects1 during the correction window1 an excess contribution which was made to an individual retirement plan and which resulted in imposition of a tax under paragraph 7#a7 or 7#c7 of subsection 7a71 and 7,b7 submits a return1 during the correction window1 reflecting such tax 7as modified by this subsection71 the first and second sentences of subsection 7a7 shall be applied by substituting #c percent for #f percent each place it appears4 7#b7 ,correction window ,for purposes of this subsection1 the term correction window means the period beginning on the date on which the tax under subsection 7a7 is imposed with respect to an excess contribution1 and ending on the earlier of-- 7,a7 the date on which the ,secretary initiates an audit1 or otherwise demands payment1 with respect to the excess contribution1 or 7,b7 the last day of the second taxable year that begins after the end of the taxable year in which the tax under subsection 7a7 is imposed4 4 7c7 ,reduction in excise tax on failures ,to take required minimum distributions ,section #digd1 as amended by this ,act1 is further amended by adding at the end the following new subsection3 7e7 ,reduction of tax in certain cases 7#a7 ,reduction ,in the case of a taxpayer who-- 7,a7 corrects1 during the correction window1 a shortfall of distributions from an individual retirement plan which resulted in imposition of a tax under subsection 7a71 and 7,b7 submits a return1 during the correction window1 reflecting such tax 7as modified by this subsection71 the first sentence of subsection 7a7 shall be applied by substituting #aj percent for #be percent4 7#b7 ,correction window ,for purposes of this subsection1 the term correction window means the period of time beginning on the date on which the tax under subsection 7a7 is imposed with respect to a shortfall of distributions from an individual retirement plan1 and ending on the earlier of-- 7,a7 the date on which the ,secretary initiates an audit1 or otherwise demands payment1 with respect to the shortfall of distributions1 or 7,b7 the last day of the second taxable year that begins after the end of the taxable year in which the tax under subsection 7a7 is imposed4 4 7d7 ,repeal of tax disqualification penalty 7#a7 ,in general ,paragraph 7#b7 of subsection 7e7 of section #djh is repealed4 7#b7 ,conforming amendments 7,a7 ,section #djh7;e77#a7 is amended by striking 7#b7 or4 7,b7 ,sections #bbj7;e77#b71 #bbc7;e77#b71 and #ecj7;e7 are each amended by striking paragraphs 7#b7 and 7#d7 of section #djh7;e7 and inserting section #djh7;e77#d74 7,c7 ,section #dige7;c77#c7 is amended by striking the account ceases to be an individual retirement account by reason of the application of section #djh7;e77#b77;,a7 or if4 7e7 ,statute of limitations ,subsection 7l7 of section #feja of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in paragraph 7#a71 by inserting 7other than with respect to an individual retirement plan7 after section #dige2 and 7#b7 by adding at the end the following new paragraph3 7#d7 ,individual retirement plans ,for purposes of any tax imposed by section #digc1 #digd1 or #dige in connection with an individual retirement plan1 the return referred to in this section shall be the income tax return filed by the person on whom the tax under such section is imposed for the year in which the act 7or failure to act7 giving rise to the liability for such tax occurred4 ,in the case of a person who is not required to file an income tax return for such year-- 7,a7 the return referred to in this section shall be the income tax return that such person would have been required to file but for the fact that such person was not required to file such return1 and 7,b7 the #c-year period referred to in subsection 7a7 with respect to the return shall be deemed to begin on the date by which the return would have been required to be filed 7excluding any extension thereof74 4 7f7 ,effective date 7#a7 ,in general ,subject to paragraphs 7#b7 and 7#c71 this section and the amendments made by this section shall take effect on the date of the enactment of this ,act4 7#b7 ,transition provisions 7,a7 ,in general ,the amendments made by this section shall apply to any determination of or affecting liability for taxes1 interest1 or penalties which is made on or after the date of the enactment of this ,act1 without regard to whether the conduct upon which the determination is based occurred before such date of enactment4 7,b7 ,calculation of correction window in certain cases ,in the case of an error that would have been eligible for correction under section #digc7;i7 or #digd7;e7 of the ,internal ,revenue ,code of #aihf if tax had not been imposed under section #digc7;a7 or #digd7;a71 as the case may be1 of such ,code before the date of the enactment of this ,act1 the correction window referred to in sections #digc7;i7 and #digd7;e7 of such ,code 7as added by this section7 shall be the period beginning on the date on which such tax was imposed and ending on the earlier of-- 7i7 the date on which the ,secretary of the ,treasury 7or the ,secretary's delegate7 initiates an audit or otherwise demands payment with respect to the conduct described in section #digc7;a7 or #digd7;a71 as the case may be1 of such ,code2 or 7ii7 the last day of the second taxable year that begins after the taxable year in which the date of the enactment of this ,act occurs4 7#c7 ,implementation ,subsection 7a7 shall be implemented as soon as reasonably practicable after the enactment of this ,act but in no case later than the date that is #a year after such date of enactment4 #cbj4 ,elimination of additional tax on certain distributions 7a7 ,in general ,subparagraph 7,a7 of section #gb7t77#b71 as amended by this ,act1 is further amended-- 7#a7 by striking or at the end of clause 7vii72 7#b7 by striking the period at the end of clause 7viii7 and inserting 1 or2 and 7#c7 by inserting after clause 7viii7 the following new clause3 7ix7 attributable to withdrawal of interest or other income earned on excess contributions 7as defined in section #digc7;b7 7without regard to the second to last sentence thereof77 to an individual retirement plan4 4 7b7 ,effective date ,the amendments made by this section shall apply to any determination of1 or affecting1 liability for taxes1 interest1 or penalties which is made on or after the date of the enactment of this ,act1 without regard to whether the act 7or failure to act7 upon which the determination is based occurred before such date of enactment4 ,notwithstanding the preceding sentence1 nothing in the amendments made by this section shall be construed to create an inference with respect to the law in effect prior to the effective date of such amendments4 #cba4 ,distributions to firefighters 7a7 ,in general ,subparagraph 7,a7 of section #gb7t77#aj7 is amended by striking #dad7;d77 and inserting #dad7;d77 or a distribution from a plan described in clause 7iii71 7iv71 or 7vi7 of section #djb7;c77#h77;,b7 to an employee who provides firefighting services4 7b7 ,conforming amendment ,the heading of paragraph 7#aj7 of section #gb7t7 is amended-- 7#a7 by striking public1 and 7#b7 by striking in governmental plans4 7c7 ,effective date ,the amendments made by this section shall apply to distributions made after ,december #ca1 #bjai4 #cbb4 ,eliminating unnecessary plan requirements related to unenrolled participants 7a7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,in general ,part #a of subtitle ,b of subchapter ,i of the ,employee ,retirement ,income ,security ,act of #aigd is amended by redesignating section #aaa as section #aab and by inserting after section #aaj the following new section3 #aaa4 ,eliminating unnecessary plan requirements related to unenrolled participants 7a7 ,in general ,notwithstanding any other provision of this title1 with respect to any individual account plan1 no disclosure1 notice1 or other plan document 7other than the notices and documents described in paragraphs 7#a7 and 7#b77 shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives-- 7#a7 in connection with the annual open season election period with respect to the plan or1 if there is no such period1 within a reasonable period prior to the beginning of each plan year1 an annual reminder notice of such participant's eligibility to participate in such plan and any applicable election deadlines under the plan2 and 7#b7 any document requested by such participant which the participant would be entitled to receive without regard to this section4 7b7 ,unenrolled participant ,for purposes of this section1 the term unenrolled participant means an employee who-- 7#a7 is eligible to participate in an individual account plan2 7#b7 has received all required notices1 disclosures1 and other plan documents1 including the summary plan description1 required to be furnished under this title in connection with such participant's initial eligibility to participate in such plan2 7#c7 is not participating in such plan2 and 7#d7 does not have a balance in the plan4 ,for purposes of this section1 any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility4 7c7 ,annual reminder notice ,for purposes of this section1 the term annual reminder notice means a notice provided in accordance with section #bebj4ajd;b-#a of title #bi1 ,code of ,federal ,regulations 7or any successor regulation71 which-- 7#a7 is furnished in connection with the annual open season election period with respect to the plan or1 if there is no such period1 is furnished within a reasonable period prior to the beginning of each plan year2 7#b7 notifies the unenrolled participant of-- 7,a7 the unenrolled participant's eligibility to participate in the plan2 and 7,b7 the key benefits under the plan and the key rights and features under the plan affecting such benefits2 and 7#c7 provides such information in a prominent manner calculated to be understood by the average participant4 4 7#b7 ,clerical amendment ,the table of contents in section #a of the ,employee ,retirement ,income ,security ,act of #aigd is amended by striking the item relating to section #aaa and by inserting after the item relating to section #aaj the following new items3 ,sec4 #aaa4 ,eliminating unnecessary plan requirements related to unenrolled participants4,sec4 #aab4 ,repeal and effective date4 4 7b7 ,amendment of ,internal ,revenue ,code of #aihf ,section #dad1 as amended by this ,act1 is further amended by adding at the end the following new subsection3 7bb7 ,eliminating unnecessary plan requirements related to unenrolled participants 7#a7 ,in general ,notwithstanding any other provision of this title1 with respect to any defined contribution plan1 no disclosure1 notice1 or other plan document 7other than the notices and documents described in subparagraphs 7,a7 and 7,b77 shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives-- 7,a7 in connection with the annual open season election period with respect to the plan or1 if there is no such period1 within a reasonable period prior to the beginning of each plan year1 an annual reminder notice of such participant's eligibility to participate in such plan and any applicable election deadlines under the plan1 and 7,b7 any document requested by such participant which the participant would be entitled to receive without regard to this subsection4 7#b7 ,unenrolled participant ,for purposes of this subsection1 the term unenrolled participant means an employee who-- 7,a7 is eligible to participate in a defined contribution plan1 7,b7 has received all required notices1 disclosures1 and other plan documents required to be furnished under this title and the summary plan description as provided in section #ajd7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd in connection with such participant's initial eligibility to participate in such plan1 7,c7 is not participating in such plan1 and 7,d7 does not have a balance in the plan4 ,for purposes of this subsection1 any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility4 7#c7 ,annual reminder notice ,for purposes of this subsection1 the term annual reminder notice means the notice described in section #aaa7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd4 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjai4 ,,iv ,defined benefit plan reforms #dja4 ,cash balance 7a7 ,in general ,section #dad1 as amended by this ,act1 is further amended by adding at the end the following new subsection3 7cc7 ,projected interest crediting rate ,for purposes of this part1 in the case of an applicable defined benefit plan which provides variable interest crediting rates1 the interest crediting rate which is treated as in effect and as the projected interest crediting rate shall be a reasonable projection of such variable interest crediting rate1 not to exceed #f percent4 4 7b7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd ,section #baj of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajfj7 is amended by adding at the end the following new subsection3 7g7 ,projected interest crediting rate ,for purposes of this title1 in the case of an applicable defined benefit plan 7within the meaning of section #bjc7;f77#c77 which provides variable interest crediting rates1 the interest crediting rate which is treated as in effect and as the projected interest crediting rate shall be a reasonable projection of such variable interest crediting rate1 not to exceed #f percent4 4 7c7 ,effective date ,the amendments made by this section shall apply with respect to years beginning after the date of the enactment of this ,act4 #djb4 ,aligning use of lookback months to determine interest rates 7a7 ,in general ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall modify ,treasury ,regulation section #a4dag7;e7-#a7;d77#aj77;ii7 7or any successor provision7 to provide that the same rule applicable to modifications of the time for determining the applicable interest rate shall apply to modifications of the time for determining any interest rate used by a plan to the extent that the use of such interest rate is permissible under section #dag7;e77#c7 of the ,internal ,revenue ,code of #aihf4 ,such modified regulations shall require that after any such modification of such time under a plan pursuant to this section1 no further modifications of such time are to be permitted for #e years with respect to such plan without the consent of the ,secretary of the ,treasury 7or delegate74 7b7 ,effective date ,the modifications and amendments required under subsection 7a7 shall be deemed to have been made as of the date of the enactment of this ,act1 and as of such date all applicable laws shall be applied in all respects as though the actions which the ,secretary of the ,treasury 7or the ,secretary's delegate7 is required to take under such subsection had been taken4 #djc4 ,corrections of mortality tables 7a7 ,in general ,not later than #f months after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend the regulation relating to ,mortality ,tables for ,determining ,present ,value ,under ,defined ,benefit ,pension ,plans 7#hb ,fed4 ,reg4 #dfchh 7,october #e1 #bjag774 ,under such amendment-- 7#a7 except as provided in paragraphs 7#b7 and 7#c71 the mortality improvement rates for valuation dates occurring during #bjah shall be based on the mortality improvement rates in the ,mortality ,improvement ,scale ,,mp-#bjag ,report issued by the ,retirement ,plans ,experience ,committee of the ,society of ,actuaries2 7#b7 for valuation dates occurring during or after #bjah1 such mortality improvement rates shall not assume future mortality improvements at any age which are greater than 4#gh percent2 and 7#c7 plan sponsors shall be permitted to elect for the modifications under paragraphs 7#a7 and 7#b7 not to apply to a plan for valuation dates occurring during #bjah4 ,the ,secretary of the ,treasury 7or delegate7 shall by regulation modify the 4#gh percent figure in paragraph 7#b7 as necessary to reflect material changes in the overall rate of improvement projected by the ,social ,security ,administration4 7b7 ,preservation of current law option ,notwithstanding the modifications made under subsection 7a71 with respect to a plan for which substitute mortality tables are not used pursuant to ,treas4 ,reg4 section #a4dcj7;h77#c7-b for a plan year beginning during #bjah1 mortality tables determined in accordance with ,treas4 ,reg4 section #a4dcj7;h77#c7-a as in effect on ,december #ca1 #bjag1 may be used for purposes of applying the rules of section #dcj of the ,internal ,revenue ,code of #aihf for a valuation date occurring during #bjah if the plan sponsor-- 7#a7 concludes that the use of mortality tables determined in accordance with ,treas4 ,reg4 section #a4dcj7;h77#c7-a 7without regard to any modification under this section7 for the plan year would be administratively impracticable or would result in an adverse business impact that is greater than de minimis2 and 7#b7 informs the plan actuary of the intent to apply the option under this subsection4 7c7 ,effective date ,the modifications and amendments required under subsections 7a7 and 7b7 shall be deemed to have been made as of the date of the enactment of this ,act1 and as of such date all applicable laws shall be applied in all respects as though the actions which the ,secretary of the ,treasury 7or the ,secretary's delegate7 is required to take under such subsections had been taken4 #djd4 ,cease double-indexing the variable rate premium 7a7 ,in general ,clause 7ii7 of section #djjf7;a77#c77;,e7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77;,e77ii77 is amended by striking the applicable dollar amount under paragraph 7#h7 and inserting #ch4 7b7 ,conforming amendment ,subsection 7a7 of section #djjf of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77 is amended by striking paragraph 7#h74 7c7 ,technical amendment ,clause 7i7 of section #djjf7;a77#c77;,e7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77;,e77 is amended by striking subparagraph 7,h7 and inserting subparagraph 7,i74 7d7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjai4 #dje4 ,enhancing retiree health benefits in pension plans 7a7 ,extension of transfers of excess pension assets to retiree health accounts ,paragraph 7#d7 of section #dbj7;b7 is amended by striking ,december #ca1 #bjbe and inserting ,december #ca1 #bjbi4 7b7 ,de minimis transfer rule 7#a7 ,in general ,subsection 7e7 of section #dbj is amended by adding at the end the following new paragraph3 7#g7 ,special rule for de minimis transfers 7,a7 ,in general ,in the case of a transfer of an amount which is not more than #a4ge percent of the amount determined under paragraph 7#b77;,a7 by a plan which meets the requirements of subparagraph 7,b71 paragraph 7#b77;,b7 shall be applied by substituting #aaj percent for #abe percent4 7,b7 ,two-year lookback requirement ,a plan is described in this subparagraph if1 as of any valuation date in each of the #b plan years immediately preceding the plan year in which the transfer occurs1 the amount determined under paragraph 7#b77;,a7 with respect to such plan exceeded #aaj percent of the sum of the funding target and the target normal cost determined under section #dcj for such plan year4 4 7#b7 ,cost maintenance period ,subparagraph 7,d7 of section #dbj7;c77#c7 is amended by striking #e taxable years and inserting #e taxable years 7#g taxable years in the case of a transfer to which subsection 7e77#g7 applies74 7#c7 ,conforming amendments 7,a7 ,excess pension assets ,clause 7i7 of section #dbj7;f77#b77;,b7 is amended-- 7i7 by striking ,in general4--,in and inserting 8,in general4-- 7,i7 ,determination ,in 1 7ii7 by striking subsection 7e77#b7 and inserting subsection 7e77#b77;,b71 and 7iii7 by adding at the end the following new subclause3 7,,ii7 ,special rule for collectively bargained transfers ,in determining excess pension assets for purposes of a collectively bargained transfer1 subsection 7e77#g7 shall not apply4 4 7,b7 ,minimum cost ,subclause 7,i7 of section #dbj7;f77#b77;,d77i7 is amended by striking #dth year and inserting #dth year 7the #fth year in the case of a transfer to which subsection 7e77#g7 applies74 7c7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,definitions ,section #aja7;e77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba7;e77#c77 is amended by striking 7as in effect on the date of the enactment of the ,surface ,transportation and ,veterans ,health ,care ,choice ,improvement ,act of #bjae7 and inserting 7as in effect on the date of the enactment of the ,retirement ,security and ,savings ,act of #bjai74 7#b7 ,use of assets ,section #djc7;c77#a7 of such ,act 7#bi ,u4,s4,c4 #aajc7;c77#a77 is amended by striking 7as in effect on the date of the enactment of the ,surface ,transportation and ,veterans ,health ,care ,choice ,improvement ,act of #bjae7 and inserting 7as in effect on the date of the enactment of the ,retirement ,security and ,savings ,act of #bjai74 7#c7 ,exemption ,section #djh7;b77#ac7 of such ,act 7#bi ,u4,s4,c4 #aajh7;b77#ac77 is amended-- 7,a7 by striking ,january #a1 #bjbf and inserting ,january #a1 #bjcj2 and 7,b7 by striking 7as in effect on the date of the enactment of the ,surface ,transportation and ,veterans ,health ,care ,choice ,improvement ,act of #bjae7 and inserting 7as in effect on the date of the enactment of the ,retirement ,security and ,savings ,act of #bjai74 7d7 ,effective date ,the amendments made by this section shall apply to transfers made after the date of the enactment of this ,act4 ,v ,reforming plan rules to harmonize with ,,ira rules #eja4 ,roth plan distribution rules 7a7 ,in general ,subsection 7d7 of section #djb;,a is amended by adding at the end the following new paragraph3 7#e7 ,mandatory distribution rules not to apply before death ,notwithstanding sections #djc7;b77#aj7 and #deg7;d77#b71 the following provisions shall not apply to any designated ,roth account3 7,a7 ,section #dja7;a77#i77;,a74 7,b7 ,the incidental death benefit requirements of section #dja7;a74 4 7b7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 7#b7 ,special rule ,the amendment made by this section shall not apply to distributions which are required with respect to years beginning before ,january #a1 #bjbj1 but are permitted to be paid on or after such date4 #ejb4 ,distributions for charitable purposes 7a7 ,in general ,section #djb is amended by adding at the end the following new subsection3 7m7 ,distributions for charitable purposes 7#a7 ,in general ,gross income for any taxable year shall not include so much of the aggregate amount of qualified charitable distributions made with respect to a taxpayer during such taxable year which does not exceed the applicable amount4 7#b7 ,qualified charitable distribution ,for purposes of this subsection1 the term qualified charitable distribution means any distribution from an eligible retirement plan described in clause 7iii71 7iv71 7v71 or 7vi7 of section #djb7;c77#h77;,b7-- 7,a7 which is made directly by the plan to an organization described in section #agj7;b77#a77;,a7 7other than any organization described in section #eji7;a77#c7 or any fund or account described in section #diff7;d77#b771 and 7,b7 which is made on or after the date that the individual on whose behalf the distribution is made has attained age #gj4 ,a distribution shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to paragraph 7#a74 7#c7 ,special rules 7,a7 ,in general ,rules similar to the rules of subparagraphs 7,c7 and 7,e7 of section #djh7;d77#h7 shall apply for purposes of this subsection4 7,b7 ,application of #gb ,rules similar to the rules of section #djh7;d77#h77;,d7 shall apply for purposes of this subsection1 by taking into account all amounts in the eligible retirement plan to which the taxpayer has a nonforfeitable right in lieu of all amounts in all individual retirement plans of the individual4 7#d7 ,applicable amount ,for purposes of this subsection1 the term applicable amount means the excess of-- 7,a7 #ajj1jjj1 over 7,b7 the total amount of any distributions not includible in gross income of the taxpayer for the taxable year by reason of sections #djc7;b77#af71 #djh7;d77#h71 and #deg7;e77#ai74 4 7b7 ,s,e,ps and ,s,i,m,p,l,es ,subparagraph 7,b7 of section #djh7;d77#h7 is amended by striking 7other than a plan described in subsection 7k7 or 7p774 7c7 #djc7;b7 plans ,section #djc7;b71 as amended by this ,act1 is further amended by adding at the end the following new paragraph3 7#af7 ,distributions for charitable purposes ,the rules of section #djb7m7 shall apply to distributions under an annuity contract described in this subsection4 4 7d7 #deg7;b7 plans ,subsection 7e7 of section #deg is amended by adding at the end the following new paragraph3 7#ai7 ,distributions for charitable purposes ,the rules of section #djb7m7 shall apply to distributions under an eligible deferred compensation plan established and maintained by an employer described in subsection 7e77#a77;,a74 4 7e7 ,effective date ,the amendments made by this section shall apply to distributions made after ,december #ca1 #bjai4 #ejc4 ,surviving spouse election to be treated as employee 7a7 ,in general ,clause 7iv7 of section #dja7;a77#i77;,b7 is amended-- 7#a7 by inserting or at the election of the surviving spouse1 after begin1 in subclause 7,,ii72 and 7#b7 by adding at the end the following flush sentence3 ,an election described in subclause 7,,ii7 shall be made at such time and in such manner as prescribed by the ,secretary1 shall include a timely notice to the plan administrator1 and once made may not be revoked except with the consent of the ,secretary4 4 7b7 ,effective date ,the amendment made by this section shall apply to distributions with respect to employees who die after ,december #ca1 #bjai4 #ejd4 ,rollovers from ,roth ,i,r,as to plans 7a7 ,in general ,subparagraph 7,b7 of section #djb;,a7c77#c7 is amended by striking shall not and inserting or1 in the case of a rollover from a ,roth ,,ira1 under section #djh shall not4 7b7 ,regulations ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall amend the regulations with respect to rollovers from ,roth ,i,r,as to permit such rollovers to be made to an applicable retirement plan 7as defined in section #djb;,a7e77#a7 of the ,internal ,revenue ,code of #aihf7 in accordance with the amendment made by subsection 7a74 7c7 ,effective date 7#a7 ,in general ,the amendment made by subsection 7a7 shall apply to distributions made after ,december #ca1 #bjai4 7#b7 ,effective date ,the modifications and amendments required under subsection 7b7 shall be deemed to have been made as of ,january #a1 #bjbj1 and as of such date all applicable laws shall be applied in all respects as though the actions which the ,secretary of the ,treasury 7or the ,secretary's delegate7 is required to take under such subsection had been taken4 ,,vi ,administrative provisions #fja4 ,provisions relating to plan amendments 7a7 ,in general ,if this section applies to any retirement plan or contract amendment-- 7#a7 such retirement plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection 7b77#b77;,a72 and 7#b7 except as provided by the ,secretary of the ,treasury 7or the ,secretary's delegate71 such retirement plan shall not fail to meet the requirements of section #daa7;d77#f7 of the ,internal ,revenue ,code of #aihf and section #bjd7;g7 of the ,employee ,retirement ,income ,security ,act of #aigd by reason of such amendment4 7b7 ,amendments to which section applies 7#a7 ,in general ,this section shall apply to any amendment to any retirement plan or annuity contract which is made-- 7,a7 pursuant to any amendment made by this ,act or pursuant to any regulation issued by the ,secretary of the ,treasury or the ,secretary of ,labor 7or a delegate of either such ,secretary7 under this ,act2 and 7,b7 on or before the last day of the first plan year beginning on or after ,january #a1 #bjbb4 ,in the case of a governmental plan 7as defined in section #dad7;d7 of the ,internal ,revenue ,code of #aihf71 this paragraph shall be applied by substituting #bjbd for #bjbb4 7#b7 ,conditions ,this section shall not apply to any amendment unless-- 7,a7 during the period-- 7i7 beginning on the date the legislative or regulatory amendment described in paragraph 7#a77;,a7 takes effect 7or in the case of a plan or contract amendment not required by such legislative or regulatory amendment1 the effective date specified by the plan72 and 7ii7 ending on the date described in paragraph 7#a77;,b7 7as modified by the second sentence of paragraph 7#a77 7or1 if earlier1 the date the plan or contract amendment is adopted71 the plan or contract is operated as if such plan or contract amendment were in effect2 and 7,b7 such plan or contract amendment applies retroactively for such period4