,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #cbb  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #d1 #bjai,ms4 
,coll9s 7= h]self & ,mr4 ,w>n]7         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to promote        
retirem5t sav+s on behalf ( small       
bus9ess employees by mak+ improvem5ts to
 ,,simple retirem5t acc\nts & eas+ !    
transition f a ,,simple plan to a       
#dja7k7 plan1 & = o!r purposes4  #a4    
,%ort title ,?is ,act may be cit$ z !   
,,simple ,plan ,mod]nization ,act4  #b4 
,contribution limit = simple ,i,r,as    
7a7 ,9 g5]al ,subp>agraph 7,e7 ( section
 #djh7p77#b7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$--  7#a7 by /rik+ am\nt 
is & all t foll[s 9 clause 7i7 & ins]t+ 
8doll> am\nt is--  7,i7 #af1jjj 9 ! case
 ( an eligible employ] describ$ 9 clause
 7iii7 :i* _h n m ?an #be employees :o  
receiv$ at lea/ #e1jjj ( comp5sation f !
 employ] = ! prec$+ ye>1  7,,ii7 #af1jjj

 9 ! case ( an eligible employ] describ$
 9 clause 7iii7 :i* is n describ$ 9     
subclause 7,i7 & :i* elects1 at su* "t &
 9 su* mann] z prescrib$ by ! ,secret>y1
 ! application ( ?is subclause = ! ye>1 
&  7,,iii7 #aj1jjj 9 any o!r case4  2   
7#b7 by /rik+ adju/m5t4--,9 ! case ( 9  
clause 7ii7 & ins]t+ 8adju/m5t4--  7,i7 
,c]ta9 l>ge employ]s ,9 ! case (  2     
7#c7 by /rik+ clause 7i7 9 clause 7ii7 &
 ins]t+ clause 7i77,,iii72 &  7#d7 by   
add+ at ! end ( clause 7ii7 ! foll[+ new
 subclause3  7,,ii7 ,o!r employ]s ,9 !  
case ( a ye> beg9n+ aft] ,decemb] #ca1  
#bjbj1 ! ,secret>y %all adju/ annually !
 #af1jjj am\nt 9 subclauses 7,i7 &      
7,,ii7 ( clause 7i7 9 ! mann] provid$ "u
 subclause 7,i7 ( ?is clause1 except t !
 base p]iod tak5 into acc\nt %all be !  
cal5d> qu>t] beg9n+ ,july #a1 #bjai4  4 
7b7 ,cat*-,up contributions ,p>agraph   
7#b7 ( section #dad7v7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$-- 7#a7 9 
subp>agraph 7,b7--  7,a7 by /rik+ !     
applicable 9 clause 7ii7 & ins]t+ except

 z provid$ 9 clause 7iii71 ! applicable2
 &  7,b7 by add+ at ! end ! foll[+ new  
clause3  7iii7 ,9 ! case ( an applicable
 employ] plan-- 7,i7 :i* is ma9ta9$ by  
an eligible employ] describ$ 9 section  
#djh7p77#b77;,e77i77,i71 or  7,,ii7 to  
:i* an election "u section              
#djh7p77#b77;,e77i77,,ii7 applies = !   
ye> 7includ+ a plan describ$ 9 section  
#dja7k77#aa7 :i* is ma9ta9$ by an       
eligible employ] describ$ 9 section     
#djh7p77#b77;,e77i77,,ii7 & to :i* su*  
election applies by reason (            
subp>agraphs 7,b77i77,i7 & 7,e7 (       
section #dja7k77#aa771  ! applicable    
doll> am\nt is #d1ejj4  2 &  7#b7 9     
subp>agraph 7,c71 by /rik+ ! #e1jjj     
am\nt 9 subp>agraph 7,b77i7 & ! #b1ejj  
am\nt 9 subp>agraph 7,b77ii7 & ins]t+   
ea* ( ! doll> am\nts 9 subp>agraph 7,b74
  7c7 ,employ] mat* ,clause 7ii7 (      
section #djh7p77#b77;,c7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$--  7#a7  
by /rik+ ,! t]m 9 subclause 7,i7 &      
ins]t+ ,except z provid$ 9 subclause    

7,,iv71 ! t]m2  7#b7 by add+ at ! end ! 
foll[+ new subclause3  7,,iv7 ,special  
rule = elect+ l>g] employ]s ,9 ! case ( 
an employ] :i* _h m ?an #be employees :o
 receiv$ at lea/ #e1jjj ( comp5sation f 
! employ] = ! prec$+ ye>1 & :i* makes ! 
election "u subp>agraph 7,e77i77,,ii7 = 
any ye>1 subclause 7,i7 %all be appli$ =
 su* ye> by sub/itut+ #d p]c5t = #c     
p]c5t4  2 &  7#c7 by /rik+ #c p]c5t ea* 
place x appe>s 9 subclauses 7,,ii7 &    
7,,iii7 & ins]t+ ! applicable p]c5tage4 
7d7 ,increase 9 nonelective employ]     
contribution = elect+ l>g] employ]s     
,subp>agraph 7,b7 ( section #djh7p77#b7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by add+ at ! end ! foll[+ new     
clause3  7iii7 ,special rule = elect+   
l>g] employ]s ,9 ! case ( an employ] :i*
 _h m ?an #be employees :o receiv$ at   
lea/ #e1jjj ( comp5sation f ! employ] = 
! prec$+ ye>1 & :i* makes ! election "u 
subp>agraph 7,e77i77,,ii7 = any ye>1    
clause 7i7 %all be appli$ = su* ye> by  
sub/itut+ #c p]c5t = #b p]c5t4  4  7e7  

,transition rule ,p>agraph 7#b7 (       
section #djh7p7 ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subp>agraph3  7,f7 #b-ye>  
grace p]iod ,an eligible employ] :i* _h 
n m ?an #be employees :o receiv$ at lea/
 #e1jjj ( comp5sation f ! employ] = #a  
or m ye>s1 & :i* has m ?an #be su*      
employees = any subsequ5t ye>1 %all be  
treat$ = purposes ( subp>agraph 7,e77i7 
z hav+ #be su* employees = ! #b ye>s    
foll[+ ! la/ ye> ! employ] _h n m ?an   
#be su* employees1 & n z hav+ made !    
election "u subp>agraph 7,e77i77,,ii7 = 
su* #b ye>s4 ,rules simil> to ! second  
s5t5ce ( subp>agraph 7,c77i77,,ii7 %all 
apply = purposes ( ?is subp>agraph4  4  
7f7 ,am5dm5ts apply only if employ] has 
n _h ano!r plan )9 #c ye>s ,subp>agraph 
7,e7 ( section #djh7p77#b7 ( ! ,int]nal 
,rev5ue ,code ( #aihf1 z am5d$ by       
subsection 7a71 is am5d$ by add+ at !   
end ! foll[+ new clause3  7iii7 ,employ]
 has n _h ano!r plan )9 #c ye>s ,an     
eligible employ] is describ$ 9 ?is      

clause only if1 dur+ ! #c-taxable-ye>   
p]iod imm$iately prec$+ ! #a/ ye> !     
employ] ma9ta9s ! qualifi$ sal>y        
r$uction arrangem5t "u ?is p>agraph1    
nei!r ! employ] nor any memb] ( any     
controll$ gr\p includ+ ! employ] 7or any
 pr$ecessor ( ei!r7 e/abli%$ or ma9ta9$ 
any plan describ$ 9 clause 7i71 7ii71 or
 7iv7 ( section #bai7;g77#e77;,a7 )     
respect to :i* contributions 7 made1 or 
b5efits 7 accru$1 = sub/antially ! same 
employees z are eligible to p>ticipate 9
 su* qualifi$ sal>y r$uction arrangem5t4
  4  7g7 ,con=m+ am5dm5ts relat+ to     
simple #dja7k7s  7#a7 ,subclause 7,i7 ( 
section #dja7k77#aa77;,b77i7 ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ 7aft] ! application ( any     
election "u section                     
#djh7p77#b77;,e77i77,,ii77 be=e ! comma4
  7#b7 ,p>agraph 7#aa7 ( section #dja7k7
 ( su* ,code is am5d$ by add+ at ! end !
 foll[+ new subp>agraph3  7,e7 ,employ]s
 elect+ increas$ contributions ,9 ! case
 ( an employ] :i* applies an election "u

 section #djh7p77#b77;,e77i77,,ii7 =    
purposes ( ! contribution requirem5ts ( 
?is p>agraph "u subp>agraph 7,b77i77,i71
 rules simil> to ! rules ( subp>agraphs 
7,b77iii71 7,c77ii77,,iv71 & 7,f7 (     
section #djh7p77#b7 %all apply =        
purposes ( subp>agraphs 7,b77i77,,ii7 & 
7,b77ii7 ( ?is p>agraph4  4  7h7 ,plan  
=ms ,to be %>$ ) ,secret>y ,subsection  
7p7 ( section #djh ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new p>agraph3  7#aa7 ,plan     
arrangem5t & notices to be %>$ )        
,secret>y ,! tru/ee or issu] 79 ! case (
 an individual retirem5t annuity7 ( a   
simple retirem5t acc\nt %all provide to 
! ,secret>y1 at ! "t ! qualifi$ sal>y   
r$uction arrangem5t is e/abli%$ 7or n   
lat] ?an ,decemb] #ca1 #bjbj1 9 ! case (
 arrangem5ts 9 effect on ! date ( !     
enactm5t ( ?is p>agraph71 a copy ( !    
writt5 arrangem5t describ$ 9 p>agraph   
7#b77;,a74  4  7i7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    

#ca1 #bjai4  7j7 ,reports by ,secret>y  
7#a7 ,9 g5]al ,! ,secret>y ( ! ,treasury
 %all1 n lat] ?an ,decemb] #ca1 #bjbj1 &
 annually !reaft]1 report to !          
,committees on ,f9ance & ,heal?1        
,education1 ,labor1 & ,p5sions ( !      
,s5ate & ! ,committees on ,ways & ,means
 & ,education & ,labor ( ! ,h\se (      
,repres5tatives on ! data describ$ 9    
p>agraph 7#b71 toge!r ) any             
recomm5dations ! ,secret>y deems        
appropriate4  7#b7 ,data describ$ ,=    
purposes ( ! report requir$ "u p>agraph 
7#a71 ! ,secret>y ( ! ,treasury %all    
collect data & in=mation on--  7,a7 !   
numb] ( plans describ$ 9 section #djh7p7
 or #dja7k77#aa7 ( ! ,int]nal ,rev5ue   
,code ( #aihf t are ma9ta9$ or e/abli%$ 
dur+ a ye>2  7,b7 ! numb] ( p>ticipants 
eligible to p>ticipate 9 su* plans = su*
 ye>2  7,c7 m$ian contribution am\nts = 
! p>ticipants describ$ 9 subp>agraph    
7,b72  7,d7 ! types ( inve/m5ts t are   
mo/ common "u su* plans2 &  7,e7 ! fee  
levels *>g$ 9 connection ) ! ma9t5ance (

 acc\nts "u su* plans4  ,su* data &     
in=mation %all be collect$ sep>ately =  
ea* type ( plan4 ,= purposes ( collect+ 
su* data1 ! ,secret>y ( ! ,treasury may 
use su* data z is o!rwise available to !
 ,secret>y = publication & may use su*  
approa*es z are appropriate "u !        
circum/ances1 includ+ ! use ( volunt>y  
surveys & collaboration on /udies4  #c4 
,employ]s all[$ to replace simple       
retirem5t acc\nts ) safe h>bor #dja7k7  
plans dur+ a ye>  7a7 ,9 g5]al ,section 
#djh7p7 ( ! ,int]nal ,rev5ue ,code (    
#aihf1 z am5d$ by section #b1 is am5d$  
by add+ at ! end ! foll[+ new p>agraph3 
7#ab7 ,replacem5t ( simple retirem5t    
acc\nts ) safe h>bor plans dur+ plan ye>
  7,a7 ,9 g5]al ,subject to !           
requirem5ts ( ?is p>agraph1 an employ]  
may elect 79 su* =m & mann] z !         
,secret>y may prescribe7 at any "t dur+ 
a ye> to t]m9ate ! qualifi$ sal>y       
r$uction arrangem5t "u p>agraph 7#b71 b 
only if ! employ] e/abli%es & ma9ta9s 7z
 ( ! day aft] ! t]m9ation date7 a safe  

h>bor plan to replace ! t]m9at$         
arrangem5t4  7,b7 ,comb9$ limits on     
contributions ,! t]m9at$ arrangem5t &   
safe h>bor plan %all bo? be treat$ z    
violat+ ! requirem5ts ( p>agraph        
7#b77;,a77ii7 or section #dja7;a77#cj7  
7:i*ev] is applicable7 if ! aggregate   
elective contributions ( ! employee "u !
 t]m9at$ arrangem5t dur+ its la/ plan   
ye> & "u ! safe h>bor plan dur+ its     
transition ye> exce$ ! sum (--  7i7 !   
applicable doll> am\nt = su* arrangem5t 
7det]m9$ on a full-ye> basis7 "u ?is    
subsection 7aft] ! application ( section
 #dad7v77 ) respect to ! employee = su* 
la/ plan ye> multipli$ by a fraction    
equal to ! numb] ( days 9 su* plan ye>  
divid$ by #cfe1 &  7ii7 ! applicable    
doll> am\nt 7z s det]m9$7 "u section    
#djb7;g77#a7 = su* safe h>bor plan on   
su* elective contributions dur+ !       
transition ye> multipli$ by a fraction  
equal to ! numb] ( days 9 su* transition
 ye> divid$ by #cfe4  7,c7 ,transition  
ye> ,= purposes ( ?is p>agraph1 !       

transition ye> is ! p]iod beg9n+ aft] ! 
t]m9ation date & end+ on ! la/ day ( !  
cal5d> ye> dur+ :i* ! t]m9ation occurs4 
7,d7 ,safe h>bor plan ,= purposes ( ?is 
p>agraph1 ! t]m safe h>bor plan means a 
qualifi$ ca% or def]r$ arrangem5t :i*   
meets ! requirem5ts ( p>agraph 7#aa71   
7#ab71 or 7#ac7 ( section #dja7k74  4   
7b7 ,waiv] ( #b-,ye> )drawal limitation 
9 case ( plans conv]t+ to #dja7k7 or    
#djc7;b7  7#a7 ,9 g5]al ,p>agraph 7#f7 (
 section #gb7t7 ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$-- 7,a7 by /rik+  
acc\nts4--,9 ! case ( & ins]t+          
8acc\nts4--  7,a7 ,9 g5]al ,9 ! case (  
2 &  7,b7 by add+ at ! end ! foll[+ new 
subp>agraph3  7,b7 ,waiv] 9 case ( plan 
conv]sion to #dja7k7 or #djc7;b7 ,9 !   
case ( an employee ( an employ] :i*     
t]m9ates ! qualifi$ sal>y r$uction      
arrangem5t ( ! employ] "u section       
#djh7p7 & e/abli%es a qualifi$ ca% or   
def]r$ arrangem5t describ$ 9 section    
#dja7k7 or pur*ases annuity contracts   
describ$ 9 section #djc7;b71 subp>agraph

 7,a7 %all n apply to any am\nt :i* is  
paid 9 a rollov] contribution describ$ 9
 section #djh7;d77#c7 into a qualifi$   
tru/ "u section #dja7k7 7b only if su*  
contribution is subsequ5tly subject to !
 rules ( section #dja7k77#b77;,b77 or an
 annuity contract describ$ 9 section    
#djc7;b7 7b only if su* contribution is 
subsequ5tly subject to ! rules ( section
 #djc7;b77#aa77 = ! b5efit ( ! employee4
  4  7#b7 ,con=m+ am5dm5t ,subp>agraph  
7,g7 ( section #djh7;d77#c7 ( su* ,code 
is am5d$ by /rik+ #gb7t77#f7 & ins]t+   
#gb7t77#f77;,a74  7c7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to plan ye>s beg9n+ aft] ,decemb] #ca1 
#bjai4