,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #igb  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,april #a1 #bjai ,mr4  
,grassley 7= himself & ,mr4 ,wyd57      
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to enc\rage       
retirem5t sav+s1 & = o!r purposes4  #a4 
,%ort title1 etc  7a7 ,%ort title ,?is  
,act may be cit$ z ! ,retirem5t         
,enhancem5t & ,sav+s ,act ( #bjai4  7b7 
,table ( cont5ts ,! table ( cont5ts (   
?is ,act is z foll[s3  ,sec4 #a4 ,%ort  
title1 etc4 ,title ,i--,exp&+ & ,pres]v+
 ,retirem5t ,sav+s ,sec4 #aja4 ,multiple
 employ] plans2 pool$ employ] plans4    
,sec4 #ajb4 ,pool$ employ] & multiple   
employ] plan report+4 ,sec4 #ajc4       
,removal ( #aj-p]c5t cap f automatic    
enrollm5t safe h>bor aft] fir/ plan ye>4
 ,sec4 #ajd4 ,rules relat+ to election (
 safe h>bor #dja7k7 /atus4 ,sec4 #aje4  
,increase 9 cr$it limitation = small    
employ] p5sion plan />tup co/s4 ,sec4   

#ajf4 ,small employ] automatic enrollm5t
 cr$it4 ,sec4 #ajg4 ,c]ta9 taxable      
non-tuition fell[%ip & /ip5d paym5ts    
treat$ z comp5sation = ,,ira purposes4  
,sec4 #ajh4 ,repeal ( maximum age =     
traditional ,,ira contributions4 ,sec4  
#aji4 ,expansion ( ,,ira own]%ip ( ,s   
corporation bank /ock4 ,sec4 #aaj4      
,qualifi$ employ] plans prohibit$ f mak+
 loans ?r\gh cr$it c>ds & o!r simil>    
arrangem5ts4 ,sec4 #aaa4 ,portability ( 
lifetime income options4 ,sec4 #aab4    
,treatm5t ( cu/odial acc\nts on         
t]m9ation ( section #djc7;b7 plans4     
,sec4 #aac4 ,cl>ification ( retirem5t   
income acc\nt rules relat+ to           
*ur*-controll$ organizations4 ,title    
,,ii--,adm9i/rative ,improvem5ts ,sec4  
#bja4 ,plan adopt$ by fil+ due date =   
ye> may be treat$ z 9 effect z ( close (
 ye>4 ,sec4 #bjb4 ,comb9$ annual report 
= gr\p ( plans4 ,sec4 #bjc4 ,disclosure 
reg>d+ lifetime income4 ,sec4 #bjd4     
,fiduci>y safe h>bor = selection (      
lifetime income provid]4 ,sec4 #bje4    

,modification ( nondiscrim9ation rules  
to protect old]1 long] s]vice           
p>ticipants4 ,sec4 #bjf4 ,modification (
 ,,pbgc premiums = ,,csec plans4 ,title 
,,iii--,b5efits ,relat+ to ,unit$ ,/ates
 ,tax ,c\rt ,sec4 #cja4 ,?rift ,sav+s   
,plan contributions = judges 9 ! ,f$]al 
,employees ,retirem5t ,sy/em4 ,sec4     
#cjb4 ,*ange 9 ve/+ p]iod = survivor    
annuities & waiv] ( ve/+ p]iod 9 ! ev5t 
( assass9ation4 ,sec4 #cjc4 ,coord9ation
 ( retirem5t & survivor annuity ) !     
,f$]al ,employees ,retirem5t ,sy/em4    
,sec4 #cjd4 ,limit on tea*+ comp5sation 
( retir$ judges4 ,sec4 #cje4 ,g5]al     
provisions relat+ to magi/rate judges ( 
! ,tax ,c\rt4 ,sec4 #cjf4 ,life         
insurance = magi/rate judges ( ! tax    
c\rt age #fe or old]4 ,sec4 #cjg4       
,retirem5t & annuity program4 ,sec4     
#cjh4 ,provisions = recall4 ,title      
,,iv--,o!r ,b5efits ,sec4 #dja4 ,b5efits
 provid$ to volunte] firefight]s &      
em]g5cy m$ical respond]s4 ,title        
,v--,rev5ue ,provisions ,sec4 #eja4     

,modifications ( requir$ di/ribution    
rules = def9$ contribution acc\nts &    
plans4 ,sec4 #ejb4 ,increase 9 p5alty = 
failure to file4 ,sec4 #ejc4 ,increas$  
p5alties = failure to file retirem5t    
plan returns4 ,sec4 #ejd4 ,increase     
in=mation %>+ to adm9i/] excise taxes4  
,i ,exp&+ & ,pres]v+ ,retirem5t ,sav+s  
#aja4 ,multiple employ] plans2 pool$    
employ] plans  7a7 ,qualification       
requirem5ts  7#a7 ,9 g5]al ,section #dac
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7e7 ,application (         
qualification requirem5ts = c]ta9       
multiple employ] plans ) pool$ plan     
provid]s  7#a7 ,9 g5]al ,except z       
provid$ 9 p>agraph 7#b71 if a def9$     
contribution plan to :i* subsection 7c7 
applies--  7,a7 is ma9ta9$ by employ]s  
:i* h a common int]e/ o!r ?an hav+      
adopt$ ! plan1 or  7,b7 9 ! case ( a    
plan n describ$ 9 subp>agraph 7,a71 has 
a pool$ plan provid]1  !n ! plan %all n 
be treat$ z fail+ to meet ! requirem5ts 

"u ?is title applicable to a plan       
describ$ 9 section #dja7;a7 or to a plan
 t consi/s ( individual retirem5t       
acc\nts describ$ 9 section #djh 7includ+
 by reason ( subsection 7c7 !re(71      
:i*ev] is applicable1 m]ely because "o  
or m employ]s ( employees cov]$ by !    
plan fail to take su* actions z are     
requir$ ( su* employ]s = ! plan to meet 
su* requirem5ts4  7#b7 ,limitations     
7,a7 ,9 g5]al ,p>agraph 7#a7 %all n     
apply to any plan unless ! t]ms ( ! plan
 provide t 9 ! case ( any employ] 9 !   
plan fail+ to take ! actions describ$ 9 
p>agraph 7#a7-- 7i7 ! assets ( ! plan   
attributable to employees ( su* employ] 
7or b5efici>ies ( su* employees7 w be   
transf]r$ to a plan ma9ta9$ only by su* 
employ] 7or its successor71 to an       
eligible retirem5t plan z def9$ 9       
section #djb7;c77#h77;,b7 = ea*         
individual ^: acc\nt is transf]r$1 or to
 any o!r arrangem5t t ! ,secret>y       
det]m9es is appropriate1 unless !       
,secret>y det]m9es x is 9 ! be/ int]e/s 

( ! employees ( su* employ] 7& !        
b5efici>ies ( su* employees7 to reta9 ! 
assets 9 ! plan1 &  7ii7 su* employ] 7& 
n ! plan ) respect to :i* ! failure     
occurr$ or any o!r employ] 9 su* plan7  
%all1 except to ! ext5t provid$ by !    
,secret>y1 be liable = any liabilities )
 respect to su* plan attributable to    
employees ( su* employ] 7or b5efici>ies 
( su* employees74  7,b7 ,failures by    
pool$ plan provid]s ,if ! pool$ plan    
provid] ( a plan describ$ 9 p>agraph    
7#a77;,b7 does n p]=m sub/antially all (
 ! adm9i/rative duties :i* are requir$ (
 ! provid] "u p>agraph 7#c77;,a77i7 =   
any plan ye>1 ! ,secret>y may provide t 
! det]m9ation z to :e!r ! plan meets !  
requirem5ts "u ?is title applicable to a
 plan describ$ 9 section #dja7;a7 or to 
a plan t consi/s ( individual retirem5t 
acc\nts describ$ 9 section #djh 7includ+
 by reason ( subsection 7c7 !re(71      
:i*ev] is applicable1 %all be made 9 !  
same mann] z w\ld be made )\t reg>d to  
p>agraph 7#a74  7#c7 ,pool$ plan provid]

  7,a7 ,9 g5]al ,= purposes ( ?is       
subsection1 ! t]m pool$ plan provid]    
means1 ) respect to any plan1 a p]son   
:o-- 7i7 is designat$ by ! t]ms ( ! plan
 z a nam$ fiduci>y 7)9 ! mean+ ( section
 #djb7;a77#b7 ( ! ,employee ,retirem5t  
,income ,security ,act ( #aigd71 z !    
plan adm9i/rator1 & z ! p]son           
responsible to p]=m all adm9i/rative    
duties 7includ+ conduct+ prop] te/+ )   
respect to ! plan & ! employees ( ea*   
employ] 9 ! plan7 :i* are reasonably    
necess>y to ensure t--  7,i7 ! plan     
meets any requirem5t applicable "u !    
,employee ,retirem5t ,income ,security  
,act ( #aigd or ?is title to a plan     
describ$ 9 section #dja7;a7 or to a plan
 t consi/s ( individual retirem5t       
acc\nts describ$ 9 section #djh 7includ+
 by reason ( subsection 7c7 !re(71      
:i*ev] is applicable1 &  7,,ii7 ea*     
employ] 9 ! plan takes su* actions z !  
,secret>y or su* p]son det]m9es are     
necess>y = ! plan to meet ! requirem5ts 
describ$ 9 subclause 7,i71 includ+      

provid+ to su* p]son any disclosures or 
o!r in=mation :i* ! ,secret>y may       
require or :i* su* p]son o!rwise        
det]m9es are necess>y to adm9i/] ! plan 
or to all[ ! plan to meet su*           
requirem5ts1  7ii7 regi/]s z a pool$    
plan provid] ) ! ,secret>y1 & provides  
su* o!r in=mation to ! ,secret>y z !    
,secret>y may require1 be=e beg9n+      
op]ations z a pool$ plan provid]1  7iii7
 ackn[l$ges 9 writ+ t su* p]son is a    
nam$ fiduci>y 7)9 ! mean+ ( section     
#djb7;a77#b7 ( ! ,employee ,retirem5t   
,income ,security ,act ( #aigd71 & !    
plan adm9i/rator1 ) respect to ! plan1 &
  7iv7 is responsible = ensur+ t all    
p]sons :o h&le assets (1 or :o are      
fiduci>ies (1 ! plan are bond$ 9        
accordance ) section #dab ( ! ,employee 
,retirem5t ,income ,security ,act (     
#aigd4  7,b7 ,audits1 exam9ations &     
inve/igations ,! ,secret>y may p]=m     
audits1 exam9ations1 & inve/igations (  
pool$ plan provid]s z may be necess>y to
 en=ce & c>ry out ! purposes ( ?is      

subsection4  7,c7 ,aggregation rules ,= 
purposes ( ?is p>agraph1 9 det]m9+ :e!r 
a p]son meets ! requirem5ts ( ?is       
p>agraph to be a pool$ plan provid] )   
respect to any plan1 all p]sons :o p]=m 
s]vices = ! plan & :o are treat$ z a    
s+le employ] "u subsection 7b71 7c71    
7m71 or 7o7 ( section #dad %all be      
treat$ z "o p]son4  7,d7 ,treatm5t (    
employ]s z plan sponsors ,except )      
respect to ! adm9i/rative duties ( !    
pool$ plan provid] describ$ 9           
subp>agraph 7,a77i71 & except to ! ext5t
 t employ]s 9 ! plan are treat$ z a s+le
 employ] "u subsection 7c71 ea* employ] 
9 a plan :i* has a pool$ plan provid]   
%all be treat$ z ! plan sponsor )       
respect to ! portion ( ! plan           
attributable to employees ( su* employ] 
7or b5efici>ies ( su* employees74  7#d7 
,guidance  7,a7 ,9 g5]al ,! ,secret>y   
%all issue su* guidance z ! ,secret>y   
det]m9es appropriate to c>ry out !      
purposes ( ?is subsection1 includ+      
guidance-- 7i7 to id5tify ! adm9i/rative

 duties & o!r actions requir$ to be     
p]=m$ by a pool$ plan provid] "u ?is    
subsection1  7ii7 :i* describes !       
proc$ures to be tak5 to t]m9ate a plan  
:i* fails to meet ! requirem5ts to be a 
plan describ$ 9 p>agraph 7#a71 includ+ !
 actions ne$$ to be tak5 by any employ] 
9 ! plan & ! prop] treatm5t ( su*       
employ]s & ! assets & liabilities ( !   
plan attributable to employees ( su*    
employ]s 7or b5efici>ies ( su*          
employees71 &  7iii7 id5tify+           
appropriate cases to :i* ! rules (      
p>agraph 7#b77;,a7 w apply to employ]s 9
 ! plan fail+ to take ! actions describ$
 9 p>agraph 7#a74  ,! ,secret>y %all    
take into acc\nt "u clause 7iii7 :e!r ! 
failure ( an employ] or pool$ plan      
provid] to provide any disclosures or   
o!r in=mation1 or to take any o!r       
action1 necess>y to adm9i/] a plan or to
 all[ a plan to meet requirem5ts        
applicable to ! plan "u section #dja7;a7
 or #djh1 :i*ev] is applicable1 has     
cont9u$ ov] a p]iod ( "t t demon/rates a

 lack ( commitm5t to compliance4  7,b7  
,good fai? compliance ) law be=e        
guidance ,an employ] or pool$ plan      
provid] %all n be treat$ z fail+ to meet
 any requirem5t ( ?is subsection if1    
be=e ! issuance ( ! guidance "u         
subp>agraph 7,a71 ! employ] or pool$    
plan provid] has compli$ 9 good fai? ) a
 reasonable int]pretation ( ! provisions
 ( ?is subsection to :i* su* guidance   
relates4  7#e7 ,model plan ,! ,secret>y1
 9 consultation ) ! ,secret>y ( ,labor1 
%all publi% model plan language :i*     
meets ! requirem5ts ( ?is subsection & (
 p>agraphs 7#dc7 & 7#dd7 ( section #c ( 
! ,employee ,retirem5t ,income ,security
 ,act ( #aigd & :i* may be adopt$ 9 ord]
 = a plan to be treat$ z a plan describ$
 9 p>agraph 7#a77;,b74  4  7#b7 ,con=m+ 
am5dm5t ,section #dac7;c77#b7 ( su*     
,code is am5d$ by /rik+ section #dja7;a7
 & ins]t+ sections #dja7;a7 & #djh7;c74 
7#c7 ,te*nical am5dm5ts  7,a7 ,section  
#de;,e7d77#c77;,a7 ( su* ,code is am5d$ 
by /rik+ effective & ins]t+ effective ) 

respect to ! eligible employ]4  7,b7    
,section #djh7;c7 ( su* ,code is am5d$  
by ins]t+ aft] p>agraph 7#b7 ! foll[+   
new p>agraph3  7#c7 ,!re is a sep>ate   
acc\nt+ = any int]e/ ( an employee or   
memb] 7or sp\se ( an employee or memb]7 
9 a ,ro? ,,ira4  4  7b7 ,no common      
int]e/ requir$ = pool$ employ] plans    
,section #c7b7 ( ! ,employee ,retirem5t 
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajjb7b77 is am5d$ by add+ at 
! end ! foll[+3  7,c7 ,a pool$ employ]  
plan %all be treat$ z--  7i7 a s+le     
employee p5sion b5efit plan or s+le     
p5sion plan2 &  7ii7 a plan to :i*      
section #baj7;a7 applies4  4  7c7 ,pool$
 employ] plan & provid] def9$  7#a7 ,9  
g5]al ,section #c ( ! ,employee         
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajjb7 is am5d$ by 
add+ at ! end ! foll[+3  7#dc7 ,pool$   
employ] plan  7,a7 ,9 g5]al ,! t]m pool$
 employ] plan means a plan--  7i7 :i* is
 an individual acc\nt plan e/abli%$ or  
ma9ta9$ = ! purpose ( provid+ b5efits to

 ! employees ( two or m employ]s2  7ii7 
:i* is a plan describ$ 9 section        
#dja7;a7 ( ! ,int]nal ,rev5ue ,code (   
#aihf :i* includes a tru/ exempt f tax  
"u section #eja7;a7 ( su* ,code or a    
plan t consi/s ( individual retirem5t   
acc\nts describ$ 9 section #djh ( su*   
,code 7includ+ by reason ( subsection   
7c7 !re(72 &  7iii7 ! t]ms ( :i* meet ! 
requirem5ts ( subp>agraph 7,b74  ,su*   
t]m %all n include a plan ma9ta9$ by    
employ]s :i* h a common int]e/ o!r ?an  
hav+ adopt$ ! plan4  7,b7 ,requirem5ts =
 plan t]ms ,! requirem5ts ( ?is         
subp>agraph are met ) respect to any    
plan if ! t]ms ( ! plan--  7i7 designate
 a pool$ plan provid] & provide t !     
pool$ plan provid] is a nam$ fiduci>y ( 
! plan2  7ii7 designate "o or m tru/ees 
meet+ ! requirem5ts ( section           
#djh7;a77#b7 ( ! ,int]nal ,rev5ue ,code 
( #aihf 7o!r ?an an employ] 9 ! plan7 to
 be responsible = collect+ contributions
 to1 & hold+ ! assets (1 ! plan &       
require su* tru/ees to implem5t writt5  

contribution collection proc$ures t are 
reasonable1 dilig5t1 & sy/ematic2  7iii7
 provide t ea* employ] 9 ! plan reta9s  
fiduci>y responsibility =-- 7,i7 !      
selection & monitor+ 9 accordance )     
section #djd7;a7 ( ! p]son designat$ z !
 pool$ plan provid] & any o!r p]son :o1 
9 addition to ! pool$ plan provid]1 is  
designat$ z a nam$ fiduci>y ( ! plan2 & 
7,,ii7 to ! ext5t n o!rwise delegat$ to 
ano!r fiduci>y by ! pool$ plan provid] &
 subject to ! provisions ( section      
#djd7;c71 ! inve/m5t & managem5t ( !    
portion ( ! plan's assets attributable  
to ! employees ( ! employ] 7or          
b5efici>ies ( su* employees72  7iv7     
provide t employ]s 9 ! plan1 &          
p>ticipants & b5efici>ies1 are n subject
 to unreasonable re/rictions1 fees1 or  
p5alties ) reg>d to ceas+ p>ticipation1 
receipt ( di/ributions1 or o!rwise      
transf]r+ assets ( ! plan 9 accordance )
 section #bjh or p>agraph               
7#dd77;,c77i77,,ii72  7v7 require-- 7,i7
 ! pool$ plan provid] to provide to     

employ]s 9 ! plan any disclosures or o!r
 in=mation :i* ! ,secret>y may require1 
includ+ any disclosures or o!r in=mation
 to facilitate ! selection or any       
monitor+ ( ! pool$ plan provid] by      
employ]s 9 ! plan2 &  7,,ii7 ea* employ]
 9 ! plan to take su* actions z !       
,secret>y or ! pool$ plan provid]       
det]m9es are necess>y to adm9i/] ! plan 
or = ! plan to meet any requirem5t      
applicable "u ?is ,act or ! ,int]nal    
,rev5ue ,code ( #aihf to a plan describ$
 9 section #dja7;a7 ( su* ,code or to a 
plan t consi/s ( individual retirem5t   
acc\nts describ$ 9 section #djh ( su*   
,code 7includ+ by reason ( subsection   
7c7 !re(71 :i*ev] is applicable1 includ+
 provid+ any disclosures or o!r         
in=mation :i* ! ,secret>y may require or
 :i* ! pool$ plan provid] o!rwise       
det]m9es are necess>y to adm9i/] ! plan 
or to all[ ! plan to meet su*           
requirem5ts2 &  7vi7 provide t any      
disclosure or o!r in=mation requir$ to  
be provid$ "u clause 7v7 may be provid$ 

9 electronic =m & w be design$ to ensure
 only reasonable co/s are impos$ on     
pool$ plan provid]s & employ]s 9 ! plan4
  7,c7 ,exceptions ,! t]m pool$ employ] 
plan does n include-- 7i7 a multiemploy]
 plan2 or  7ii7 a plan e/abli%$ be=e !  
date ( ! enactm5t ( ! ,retirem5t        
,enhancem5t & ,sav+s ,act ( #bjai unless
 ! plan adm9i/rator elects t ! plan w be
 treat$ z a pool$ employ] plan & ! plan 
meets ! requirem5ts ( ?is title         
applicable to a pool$ employ] plan      
e/abli%$ on or aft] su* date4  7,d7     
,treatm5t ( employ]s z plan sponsors    
,except ) respect to ! adm9i/rative     
duties ( ! pool$ plan provid] describ$ 9
 p>agraph 7#dd77;,a77i71 & except to !  
ext5t t employ]s 9 ! plan are treat$ z a
 s+le employ] "u section #baj1 ea*      
employ] 9 a pool$ employ] plan %all be  
treat$ z ! plan sponsor ) respect to !  
portion ( ! plan attributable to        
employees ( su* employ] 7or b5efici>ies 
( su* employees74  7#dd7 ,pool$ plan    
provid]  7,a7 ,9 g5]al ,! t]m pool$ plan

 provid] means a p]son :o-- 7i7 is      
designat$ by ! t]ms ( a pool$ employ]   
plan z a nam$ fiduci>y1 z ! plan        
adm9i/rator1 & z ! p]son responsible = !
 p]=mance ( all adm9i/rative duties     
7includ+ conduct+ prop] te/+ ) respect  
to ! plan & ! employees ( ea* employ] 9 
! plan7 :i* are reasonably necess>y to  
ensure t--  7,i7 ! plan meets any       
requirem5t applicable "u ?is ,act or !  
,int]nal ,rev5ue ,code ( #aihf to a plan
 describ$ 9 section #dja7;a7 ( su* ,code
 or to a plan t consi/s ( individual    
retirem5t acc\nts describ$ 9 section    
#djh ( su* ,code 7includ+ by reason (   
subsection 7c7 !re(71 :i*ev] is         
applicable2 &  7,,ii7 ea* employ] 9 !   
plan takes su* actions z ! ,secret>y or 
pool$ plan provid] det]m9es are necess>y
 = ! plan to meet ! requirem5ts describ$
 9 subclause 7,i71 includ+ provid+ !    
disclosures & in=mation describ$ 9      
p>agraph 7#dc77;,b77v77,,ii72  7ii7     
regi/]s z a pool$ plan provid] ) !      
,secret>y1 & provides to ! ,secret>y su*

 o!r in=mation z ! ,secret>y may        
require1 be=e beg9n+ op]ations z a pool$
 plan provid]2  7iii7 ackn[l$ges 9 writ+
 t su* p]son is a nam$ fiduci>y1 & !    
plan adm9i/rator1 ) respect to ! pool$  
employ] plan2 &  7iv7 is responsible =  
ensur+ t all p]sons :o h&le assets (1 or
 :o are fiduci>ies (1 ! pool$ employ]   
plan are bond$ 9 accordance ) section   
#dab4  7,b7 ,audits1 exam9ations &      
inve/igations ,! ,secret>y may p]=m     
audits1 exam9ations1 & inve/igations (  
pool$ plan provid]s z may be necess>y to
 en=ce & c>ry out ! purposes ( ?is      
p>agraph & p>agraph 7#dc74  7,c7        
,guidance  7i7 ,9 g5]al ,! ,secret>y    
%all issue su* guidance z ! ,secret>y   
det]m9es appropriate to c>ry out !      
purposes ( ?is p>agraph & p>agraph      
7#dc71 includ+ guidance-- 7,i7 to       
id5tify ! adm9i/rative duties & o!r     
actions requir$ to be p]=m$ by a pool$  
plan provid] "u ei!r su* p>agraph2 &    
7,,ii7 :i* requires 9 appropriate cases 
t if an employ] 9 ! plan fails to take !

 actions requir$ "u subp>agraph         
7,a77i77,,ii7-- 7aa7 ! assets ( ! plan  
attributable to employees ( su* employ] 
7or b5efici>ies ( su* employees7 are    
transf]r$ to a plan ma9ta9$ only by su* 
employ] 7or its successor71 to an       
eligible retirem5t plan z def9$ 9       
section #djb7;c77#h77;,b7 ( ! ,int]nal  
,rev5ue ,code ( #aihf = ea* individual  
^: acc\nt is transf]r$1 or to any o!r   
arrangem5t t ! ,secret>y det]m9es is    
appropriate 9 su* guidance2 &  7bb7 su* 
employ] 7& n ! plan ) respect to :i* !  
failure occurr$ or any o!r employ] 9 su*
 plan7 %all1 except to ! ext5t provid$ 9
 su* guidance1 be liable = any          
liabilities ) respect to su* plan       
attributable to employees ( su* employ] 
7or b5efici>ies ( su* employees74  ,!   
,secret>y %all take into acc\nt "u      
subclause 7,,ii7 :e!r ! failure ( an    
employ] or pool$ plan provid] to provide
 any disclosures or o!r in=mation1 or to
 take any o!r action1 necess>y to       
adm9i/] a plan or to all[ a plan to meet

 requirem5ts describ$ 9 subp>agraph     
7,a77i77,,ii7 has cont9u$ ov] a p]iod ( 
"t t demon/rates a lack ( commitm5t to  
compliance4 ,! ,secret>y may waive !    
requirem5ts ( subclause 7,,ii77aa7 9    
appropriate circum/ances if ! ,secret>y 
det]m9es x is 9 ! be/ int]e/s ( !       
employees ( ! employ] ref]r$ to 9 su*   
subclause 7& ! b5efici>ies ( su*        
employees7 to reta9 ! assets 9 ! plan ) 
respect to :i* ! employ]'s failure      
occurr$4  7ii7 ,good fai? compliance )  
law be=e guidance ,an employ] or pool$  
plan provid] %all n be treat$ z fail+ to
 meet any requirem5t ( ?is p>agraph or  
p>agraph 7#dc7 if1 be=e ! issuance ( !  
guidance "u clause 7i71 ! employ] or    
pool$ plan provid] has compli$ 9 good   
fai? ) a reasonable int]pretation ( !   
provisions ( ! p>agraph to :i* su*      
guidance relates4  7,d7 ,aggregation    
rules ,= purposes ( ?is p>agraph1 9     
det]m9+ :e!r a p]son meets ! requirem5ts
 ( ?is p>agraph to be a pool$ plan      
provid] ) respect to any plan1 all      

p]sons :o p]=m s]vices = ! plan & :o are
 treat$ z a s+le employ] "u subsection  
7b71 7c71 7m71 or 7o7 ( section #dad ( !
 ,int]nal ,rev5ue ,code ( #aihf %all be 
treat$ z "o p]son4  4  7#b7 ,bond+      
requirem5ts = pool$ employ] plans ,! la/
 s5t5ce ( section #dab7;a7 ( ! ,employee
 ,retirem5t ,income ,security ,act (    
#aigd 7#bi ,u4,s4,c4 #aaab7;a77 is am5d$
 by ins]t+ or 9 ! case ( a pool$ employ]
 plan 7z def9$ 9 section #c7dc77 aft]   
section #djg7;d77#a774  7#c7 ,con=m+ &  
te*nical am5dm5ts ,section #c ( !       
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #ajjb7 is   
am5d$-- 7,a7 9 p>agraph 7#af77;,b7--    
7i7 by /rik+ or at ! end ( clause 7ii72 
&  7ii7 by /rik+ ! p]iod at ! end &     
ins]t+ 1 or 7iv7 9 ! case ( a pool$     
employ] plan1 ! pool$ plan provid]42 &  
7,b7 by /rik+ ! second p>agraph 7#da74  
7d7 ,effective date  7#a7 ,9 g5]al ,!   
am5dm5ts made by ?is section %all apply 
to plan ye>s beg9n+ aft] ,decemb] #ca1  
#bjbb4  7#b7 ,rule ( con/ruction ,no?+ 9

 ! am5dm5ts made by subsection 7a7 %all 
be con/ru$ z limit+ ! au?ority ( !      
,secret>y ( ! ,treasury or ! ,secret>y's
 delegate 7det]m9$ )\t reg>d to su*     
am5dm5ts7 to provide = ! prop] treatm5t 
( a failure to meet any requirem5t      
applicable "u ! ,int]nal ,rev5ue ,code (
 #aihf ) respect to "o employ] 7& its   
employees7 9 a multiple employ] plan4   
#ajb4 ,pool$ employ] & multiple employ] 
plan report+  7a7 ,additional in=mation 
,section #ajc ( ! ,employee ,retirem5t  
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajbc7 is am5d$--  7#a7 9     
subsection 7a77#a77;,b71 by /rik+       
applicable subsections 7d71 7e71 & 7f7 &
 ins]t+ applicable subsections 7d71 7e71
 7f71 & 7g72 &  7#b7 by am5d+ subsection
 7g7 to read z foll[s3  7g7 ,additional 
in=mation ) respect to pool$ employ] &  
multiple employ] plans ,an annual report
 "u ?is section = a plan ye> %all       
include-- 7#a7 ) respect to any plan to 
:i* section #baj7;a7 applies 7includ+ a 
pool$ employ] plan71 a li/ ( employ]s 9 

! plan1 a good fai? e/imate ( ! p]c5tage
 ( total contributions made by su*      
employ]s dur+ ! plan ye>1 & ! aggregate 
acc\nt balances attributable to ea*     
employ] 9 ! plan 7det]m9$ z ! sum ( !   
acc\nt balances ( ! employees ( su*     
employ] 7& ! b5efici>ies ( su*          
employees772 &  7#b7 ) respect to a     
pool$ employ] plan1 ! id5tify+ in=mation
 = ! p]son designat$ "u ! t]ms ( ! plan 
z ! pool$ plan provid]4  4  7b7         
,simplifi$ annual reports ,section      
#ajd7;a7 ( ! ,employee ,retirem5t       
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajbd7;a77 is am5d$ by /rik+  
p>agraph 7#b77;,a7 & ins]t+ ! foll[+3   
7#b7  7,a7 ,) respect to annual reports 
requir$ to be fil$ ) ! ,secret>y "u ?is 
"p1 ! ,secret>y may by regulation       
prescribe simplifi$ annual reports = any
 p5sion plan t-- 7i7 cov]s few] ?an #ajj
 p>ticipants2 or  7ii7 is a plan        
describ$ 9 section #baj7;a7 t cov]s few]
 ?an #a1jjj p>ticipants1 b only if no   
s+le employ] 9 ! plan has #ajj or m     

p>ticipants cov]$ by ! plan4  4  7c7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to annual reports =  
plan ye>s beg9n+ aft] ,decemb] #ca1     
#bjbb4  #ajc4 ,removal ( #aj-p]c5t cap f
 automatic enrollm5t safe h>bor aft]    
fir/ plan ye>  7a7 ,9 g5]al ,clause     
7iii7 ( section #dja7k77#ac77;,c7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ 1 does n exce$ #aj p]c5t1 & is 
at lea/ & ins]t+ & is4  7b7 ,con=m+     
am5dm5ts  7#a7 ,subclause 7,i7 ( section
 #dja7k77#ac77;,c77iii7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
#c p]c5t & ins]t+ at lea/ #c p]c5t1 b n 
great] ?an #aj p]c5t14  7#b7 ,subclause 
7,,ii7 ( section #dja7k77#ac77;,c77iii7 
( su* ,code is am5d$ by /rik+ #d p]c5t &
 ins]t+ at lea/ #d p]c5t4  7#c7         
,subclause 7,,iii7 ( section            
#dja7k77#ac77;,c77iii7 ( su* ,code is   
am5d$ by /rik+ #e p]c5t & ins]t+ at lea/
 #e p]c5t4  7#d7 ,subclause 7,,iv7 (    
section #dja7k77#ac77;,c77iii7 ( su*    
,code is am5d$ by /rik+ #f p]c5t &      

ins]t+ at lea/ #f p]c5t4  7c7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply to plan ye>s beg9n+ aft]     
,decemb] #ca1 #bjai4  #ajd4 ,rules      
relat+ to election ( safe h>bor #dja7k7 
/atus  7a7 ,limitation ( annual safe    
h>bor notice to mat*+ contribution plans
  7#a7 ,9 g5]al ,subp>agraph 7,a7 (     
section #dja7k77#ab7 ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
if su* arrangem5t & all t foll[s &      
ins]t+ 8if su* arrangem5t--  7i7 meets !
 contribution requirem5ts ( subp>agraph 
7,b7 & ! notice requirem5ts (           
subp>agraph 7,d71 or  7ii7 meets !      
contribution requirem5ts ( subp>agraph  
7,c74  4  7#b7 ,automatic contribution  
arrangem5ts ,subp>agraph 7,b7 ( section 
#dja7k77#ac7 ( su* ,code is am5d$ by    
/rik+ means & all t foll[s & ins]t+     
8means a ca% or def]r$ arrangem5t--  7i7
 :i* is describ$ 9 subp>agraph          
7,d77i77,i7 & meets ! applicable        
requirem5ts ( subp>agraphs 7,c7 ?r\gh   
7,e71 or  7ii7 :i* is describ$ 9        

subp>agraph 7,d77i77,,ii7 & meets !     
applicable requirem5ts ( subp>agraphs   
7,c7 & 7,d74  4  7b7 ,nonelective       
contributions ,section #dja7k77#ab7 ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by r$esignat+ subp>agraph 7,f7 z        
subp>agraph 7,g71 & by ins]t+ aft]      
subp>agraph 7,e7 ! foll[+ new           
subp>agraph3  7,f7 ,tim+ ( plan am5dm5t 
= employ] mak+ nonelective contributions
  7i7 ,9 g5]al ,except z provid$ 9      
clause 7ii71 a plan may be am5d$ aft] ! 
beg9n+ ( a plan ye> to provide t !      
requirem5ts ( subp>agraph 7,c7 %all     
apply to ! arrangem5t = ! plan ye>1 b   
only if ! am5dm5t is adopt$--  7,i7 at  
any "t be=e ! #cj? day be=e ! close ( ! 
plan ye>1 or  7,,ii7 at any "t be=e !   
la/ day "u p>agraph 7#h77;,a7 =         
di/ribut+ excess contributions = ! plan 
ye>4  7ii7 ,exception :]e plan provid$ =
 mat*+ contributions ,clause 7i7 %all n 
apply to any plan ye> if ! plan provid$ 
at any "t dur+ ! plan ye> t !           
requirem5ts ( subp>agraph 7,b7 or       

p>agraph 7#ac77;,d77i77,i7 appli$ to !  
plan ye>4  7iii7 #d-p]c5t contribution  
requirem5t ,clause 7i77,,ii7 %all n     
apply to an arrangem5t unless ! am\nt ( 
! contributions describ$ 9 subp>agraph  
7,c7 :i* ! employ] is requir$ to make "u
 ! arrangem5t = ! plan ye> ) respect to 
any employee is an am\nt equal to at    
lea/ #d p]c5t ( ! employee's            
comp5sation4  4  7c7 ,automatic         
contribution arrangem5ts ,section       
#dja7k77#ac7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+3  7,f7 ,tim+ ( plan am5dm5t =    
employ] mak+ nonelective contributions  
7i7 ,9 g5]al ,except z provid$ 9 clause 
7ii71 a plan may be am5d$ aft] ! beg9n+ 
( a plan ye> to provide t ! requirem5ts 
( subp>agraph 7,d77i77,,ii7 %all apply  
to ! arrangem5t = ! plan ye>1 b only if 
! am5dm5t is adopt$--  7,i7 at any "t   
be=e ! #cj? day be=e ! close ( ! plan   
ye>1 or  7,,ii7 at any "t be=e ! la/ day
 "u p>agraph 7#h77;,a7 = di/ribut+      
excess contributions = ! plan ye>4  7ii7

 ,exception :]e plan provid$ = mat*+    
contributions ,clause 7i7 %all n apply  
to any plan ye> if ! plan provid$ at any
 "t dur+ ! plan ye> t ! requirem5ts (   
subp>agraph 7,d77i77,i7 or p>agraph     
7#ab77;,b7 appli$ to ! plan ye>4  7iii7 
#d-p]c5t contribution requirem5t ,clause
 7i77,,ii7 %all n apply to an arrangem5t
 unless ! am\nt ( ! contributions       
describ$ 9 subp>agraph 7,d77i77,,ii7 :i*
 ! employ] is requir$ to make "u !      
arrangem5t = ! plan ye> ) respect to any
 employee is an am\nt equal to at lea/  
#d p]c5t ( ! employee's comp5sation4  4 
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to plan ye>s     
beg9n+ aft] ,decemb] #ca1 #bjai4  #aje4 
,increase 9 cr$it limitation = small    
employ] p5sion plan />tup co/s  7a7 ,9  
g5]al ,p>agraph 7#a7 ( section #de;,e7b7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ to read z foll[s3  7#a7 = ! fir/  
cr$it ye> & ea* ( ! #b taxable ye>s     
imm$iately foll[+ ! fir/ cr$it ye>1 !   
great] (-- 7,a7 #ejj1 or  7,b7 ! less]  

(-- 7i7 #bej = ea* employee ( ! eligible
 employ] :o is n a highly comp5sat$     
employee 7z def9$ 9 section #dad7q77 &  
:o is eligible to p>ticipate 9 !        
eligible employ] plan ma9ta9$ by !      
eligible employ]1 or  7ii7 #e1jjj1 &  4 
7b7 ,effective date ,! am5dm5t made by  
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjai4  #ajf4 
,small employ] automatic enrollm5t cr$it
  7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv (   
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new section3  #de,t4  
,auto-enrollm5t option = retirem5t sav+s
 options provid$ by small employ]s  7a7 
,9 g5]al ,= purposes ( section #ch1 9 ! 
case ( an eligible employ]1 ! retirem5t 
auto-enrollm5t cr$it det]m9$ "u ?is     
section = any taxable ye> is an am\nt   
equal to--  7#a7 #ejj = any taxable ye> 
occurr+ dur+ ! cr$it p]iod1 &  7#b7 z]o 
= any o!r taxable ye>4  7b7 ,cr$it p]iod
 ,= purposes ( subsection 7a7-- 7#a7 ,9 
g5]al ,! cr$it p]iod ) respect to any   

eligible employ] is ! #c-taxable-ye>    
p]iod beg9n+ ) ! fir/ taxable ye> = :i* 
! employ] includes an eligible automatic
 contribution arrangem5t 7z def9$ 9     
section #dad7w77#c77 9 a qualifi$       
employ] plan 7z def9$ 9 section         
#digb7;d77 sponsor$ by ! employ]4  7#b7 
,ma9t5ance ( arrangem5t ,no taxable ye> 
) respect to an employ] %all be treat$ z
 occurr+ )9 ! cr$it p]iod unless !      
arrangem5t describ$ 9 p>agraph 7#a7 is  
includ$ 9 ! plan = su* ye>4  7c7        
,eligible employ] ,= purposes ( ?is     
section1 ! t]m eligible employ] has !   
mean+ giv5 su* t]m 9 section            
#djh7p77#b77;,c77i74  4  7b7 ,cr$it ,to 
be "p ( g5]al bus9ess cr$it ,subsection 
7b7 ( section #ch ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by /rik+ plus at 
! end ( p>agraph 7#ca71 by /rik+ ! p]iod
 at ! end ( p>agraph 7#cb7 & ins]t+ 1   
plus1 & by add+ at ! end ! foll[+ new   
p>agraph3  7#cc7 9 ! case ( an eligible 
employ] 7z def9$ 9 section #de,t7c771 ! 
retirem5t auto-enrollm5t cr$it det]m9$  

"u section #de,t7a74  4  7c7 ,cl]ical   
am5dm5t ,! table ( sections = subp>t ,d 
( "p ,,iv ( sub*apt] ,a ( *apt] #a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#de,s ! foll[+ new item3  ,sec4 #de,t4  
,auto-enrollm5t option = retirem5t sav+s
 options provid$ by small employ]s4  4  
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjai4  #ajg4 
,c]ta9 taxable non-tuition fell[%ip &   
/ip5d paym5ts treat$ z comp5sation =    
,,ira purposes  7a7 ,9 g5]al ,p>agraph  
7#a7 ( section #bai7;f7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+3 ,! t]m comp5sation   
%all include any am\nt paid to an       
individual to aid ! individual 9 !      
pursuit ( graduate or po/doctoral /udy1 
if su* am\nt is includ$ 9 ! gross income
 ( ! individual = ! taxable ye>44  7b7  
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjai4  #ajh4 

,repeal ( maximum age = traditional     
,,ira contributions  7a7 ,9 g5]al       
,p>agraph 7#a7 ( section #bai7;d7 ( !   
,int]nal ,rev5ue ,code ( #aihf is       
repeal$4  7b7 ,con=m+ am5dm5t           
,subsection 7c7 ( section #djh;,a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ p>agraph 7#d7 & by r$esignat+  
p>agraphs 7#e71 7#f71 & 7#g7 z p>agraphs
 7#d71 7#e71 & 7#f71 respectively4  7c7 
,effective date ,! am5dm5ts made by ?is 
section %all apply to contributions made
 = taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjai4  #aji4 ,expansion ( ,,ira   
own]%ip ( ,s corporation bank /ock  7a7 
,9 ,g5]al ,section                      
#acfa7;c77#b77;,a77vi7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
1 b only to ! ext5t ( ! /ock held by su*
 tru/ 9 su* bank or company z ( ! date (
 ! enactm5t ( ?is clause4  7b7 ,sale (  
,/ock 9 ,,ira ,relat+ to ,s ,corporation
 ,election ,exempt ,f ,prohibit$        
,transaction ,rules ,section            
#dige7;d77#af7 ( ! ,int]nal ,rev5ue     

,code ( #aihf is am5d$ by /rik+         
subp>agraph 7,b7 & by r$esignat+        
subp>agraphs 7,c71 7,d71 7,e71 & 7,f7 z 
subp>agraphs 7,b71 7,c71 7,d7 & 7,e71   
respectively4  7c7 ,effective ,date ,!  
am5dm5ts made by ?is section %all take  
effect on ,janu>y #a1 #bjbj4  #aaj4     
,qualifi$ employ] plans prohibit$ f mak+
 loans ?r\gh cr$it c>ds & o!r simil>    
arrangem5ts  7a7 ,9 g5]al ,p>agraph 7#b7
 ( section #gb7p7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by r$esignat+    
subp>agraph 7,d7 z subp>agraph 7,e7 & by
 ins]t+ aft] subp>agraph 7,c7 ! foll[+  
new subp>agraph3  7,d7 ,prohibition (   
loans ?r\gh cr$it c>ds & o!r simil>     
arrangem5ts  7i7 ,9 g5]al ,except z     
provid$ 9 clause 7ii71 subp>agraph 7,a7 
%all n apply to any loan :i* is made    
?r\gh ! use ( any cr$it c>d or any o!r  
simil> arrangem5t4  7ii7 ,exception =   
exi/+ cr$it c>d sy/ems ,clause 7i7 %all 
n apply to any loan to ! ext5t su* loan 
is provid$ ?r\gh an electronic c>d sy/em
 :i*1 z ( ,septemb] #ba1 #bjaf1 0       

available = use to provide loans "u     
qualifi$ employ] plans4  7iii7 ,disall[$
 transactions ,if any c>d ?r\gh :i* a   
loan is provid$ "u ! exception ( clause 
7ii7 is us$ = any transaction--  7,i7 9 
an am\nt equal to or less ?an #a1jjj1 or
  7,,ii7 ) or on ! premises ( any       
e/abli%m5t describ$ 9 clause 7i71 7ii71 
or 7iii7 ( section #djh7;a77#ab77;,a7 ( 
! ,social ,security ,act1  ! am\nt ( su*
 transaction %all be treat$ z hav+ be5  
receiv$ by ! individual z a di/ribution 
9 accordance ) subp>agraph 7,a7 (       
p>agraph 7#a74  7iv7 ,co/-(-liv+        
adju/m5t ,9 ! case ( any loan made dur+ 
a plan ye> beg9n+ aft] ,decemb] #ca1    
#bjbj1 ! #a1jjj am\nt "u clause         
7iii77,i7 %all be increas$ by an am\nt  
equal to-- 7,i7 su* doll> am\nt1        
multipli$ by  7,,ii7 ! co/-(-liv+       
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! plan ye> beg9s1   
det]m9$ by sub/itut+ cal5d> ye> #bjai = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4 ,any increase det]m9$ "u ! prec$+ 

s5t5ce %all be r\nd$ to ! next l[e/     
multiple ( #ej4  4  7b7 ,effective date 
,! am5dm5ts made by subsection 7a7 %all 
apply to plan ye>s beg9n+ aft] ,decemb] 
#ca1 #bjai4  7c7 ,/udy ,! ,comptroll]   
,g5]al ( ! ,unit$ ,/ates %all1 n lat]   
?an ! date :i* is #a ye> aft] ! date ( !
 enactm5t ( ?is ,act-- 7#a7 /udy !      
impact ( loans f qualifi$ employ] plans 
7z def9$ 9 section #gb7p77#d77;,a7 ( !  
,int]nal ,rev5ue ,code ( #aihf7 provid$ 
?r\gh cr$it c>ds & simil> arrangem5ts on
 ! use ( retirem5t sav+s = purposes o!r 
?an fund+ retirem5t2 &  7#b7 report !   
results ( su* /udy to ! ,committee on   
,f9ance ( ! ,s5ate & ! ,committee on !  
,ways & ,means ( ! ,h\se (              
,repres5tatives4  ,if ! /udy "u p>agraph
 7#a7 det]m9es t su* loans1 aft]        
implem5tation ( ! re/rictions impos$ by 
! am5dm5ts made by subsection 7a71      
result 9 great] usage ( retirem5t sav+s 
= purposes o!r ?an fund+ retirem5t ?an  
loans made by o!r means1 ! report "u    
p>agraph 7#b7 %all include              

recomm5dations to r$uce su* result4     
#aaa4 ,portability ( lifetime income    
options  7a7 ,9 g5]al ,subsection 7a7 ( 
section #dja ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by ins]t+ aft] p>agraph
 7#cg7 ! foll[+ new p>agraph3  7#ch7    
,portability ( lifetime income  7,a7 ,9 
g5]al ,except z may be o!rwise provid$  
by regulations1 a tru/ =m+ "p ( a def9$ 
contribution plan %all n be treat$ z    
fail+ to con/itute a qualifi$ tru/ "u   
?is section solely by reason ( all[+--  
7i7 qualifi$ di/ributions ( a lifetime  
income inve/m5t1 or  7ii7 di/ributions (
 a lifetime income inve/m5t 9 ! =m ( a  
qualifi$ plan di/ribution annuity       
contract1  on or aft] ! date t is #ij   
days prior to ! date on :i* su* lifetime
 income inve/m5t is no long] au?oriz$ to
 be held z an inve/m5t option "u ! plan4
  7,b7 ,def9itions ,= purposes ( ?is    
subsection--  7i7 ! t]m qualifi$        
di/ribution means a direct              
tru/ee-to-tru/ee transf] describ$ 9     
p>agraph 7#ca77;,a7 to an eligible      

retirem5t plan 7z def9$ 9 section       
#djb7;c77#h77;,b771  7ii7 ! t]m lifetime
 income inve/m5t means an inve/m5t      
option :i* is design$ to provide an     
employee ) election rights--  7,i7 :i*  
are n uni=mly available ) respect to o!r
 inve/m5t options "u ! plan1 &  7,,ii7  
:i* are to a lifetime income feature    
available ?r\gh a contract or o!r       
arrangem5t (f]$ "u ! plan 7or "u ano!r  
eligible retirem5t plan 7z s def9$71 if 
paid by means ( a direct                
tru/ee-to-tru/ee transf] describ$ 9     
p>agraph 7#ca77;,a7 to su* o!r eligible 
retirem5t plan71  7iii7 ! t]m lifetime  
income feature means-- 7,i7 a feature   
:i* gu>antees a m9imum level ( income   
annually 7or m frequ5tly7 = at lea/ !   
rema9d] ( ! life ( ! employee or ! jo9t 
lives ( ! employee & ! employee's       
designat$ b5efici>y1 or  7,,ii7 an      
annuity payable on behalf ( ! employee  
"u :i* paym5ts are made 9 sub/antially  
equal p]iodic paym5ts 7n less frequ5tly 
?an annually7 ov] ! life ( ! employee or

 ! jo9t lives ( ! employee & !          
employee's designat$ b5efici>y1 &  7iv7 
! t]m qualifi$ plan di/ribution annuity 
contract means an annuity contract      
pur*as$ = a p>ticipant & di/ribut$ to ! 
p>ticipant by a plan or contract        
describ$ 9 subp>agraph 7,b7 ( section   
#djb7;c77#h7 7)\t reg>d to clauses 7i7 &
 7ii7 !re(74  4  7b7 ,ca% or def]r$     
arrangem5t  7#a7 ,9 g5]al ,clause 7i7 ( 
section #dja7k77#b77;,b7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
or at ! end ( subclause 7,,iv71 by /rik+
 & at ! end ( subclause 7,v7 & ins]t+   
or1 & by add+ at ! end ! foll[+ new     
subclause3  7,,vi7 except z may be      
o!rwise provid$ by regulations1 )       
respect to am\nts inve/$ 9 a lifetime   
income inve/m5t 7z def9$ 9 subsection   
7a77#ch77;,b77ii771 ! date t is #ij days
 prior to ! date t su* lifetime income  
inve/m5t may no long] be held z an      
inve/m5t option "u ! arrangem5t1 &  4   
7#b7 ,di/ribution requirem5t            
,subp>agraph 7,b7 ( section #dja7k77#b7 

( su* ,code1 z am5d$ by p>agraph 7#a71  
is am5d$ by /rik+ & at ! end ( clause   
7i71 by /rik+ ! semicolon at ! end (    
clause 7ii7 & ins]t+ 1 &1 & by add+ at !
 end ! foll[+ new clause3  7iii7 except 
z may be o!rwise provid$ by regulations1
 9 ! case ( am\nts describ$ 9 clause    
7i77,,vi71 w be di/ribut$ only 9 ! =m ( 
a qualifi$ di/ribution 7z def9$ 9       
subsection 7a77#ch77;,b77i77 or a       
qualifi$ plan di/ribution annuity       
contract 7z def9$ 9 subsection          
7a77#ch77;,b77iv771  4  7c7 ,section    
#djc7;b7 plans  7#a7 ,annuity contracts 
,p>agraph 7#aa7 ( section #djc7;b7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ or at ! end ( subp>agraph 7,b71
 by /rik+ ! p]iod at ! end ( subp>agraph
 7,c7 & ins]t+ 1 or1 & by ins]t+ aft]   
subp>agraph 7,c7 ! foll[+ new           
subp>agraph3  7,d7 except z may be      
o!rwise provid$ by regulations1 )       
respect to am\nts inve/$ 9 a lifetime   
income inve/m5t 7z def9$ 9 section      
#dja7;a77#ch77;,b77ii77--  7i7 on or    

aft] ! date t is #ij days prior to !    
date t su* lifetime income inve/m5t may 
no long] be held z an inve/m5t option "u
 ! contract1 &  7ii7 9 ! =m ( a qualifi$
 di/ribution 7z def9$ 9 section         
#dja7;a77#ch77;,b77i77 or a qualifi$    
plan di/ribution annuity contract 7z    
def9$ 9 section #dja7;a77#ch77;,b77iv774
  4  7#b7 ,cu/odial acc\nts ,subp>agraph
 7,a7 ( section #djc7;b77#g7 ( su* ,code
 is am5d$ by /rik+ if-- & all t foll[s &
 ins]t+ 8if ! am\nts are to be inve/$ 9 
regulat$ inve/m5t company /ock to be    
held 9 t cu/odial acc\nt1 & "u !        
cu/odial acc\nt--  7i7 no su* am\nts may
 be paid or made available to any       
di/ributee 7unless su* am\nt is a       
di/ribution to :i* section              
#gb7t77#b77;,g7 applies7 be=e--  7,i7 ! 
employee dies1  7,,ii7 ! employee atta9s
 age #ei1  7,,iii7 ! employee has a     
sev]ance f employm5t1  7,,iv7 ! employee
 becomes disabl$ 7)9 ! mean+ ( section  
#gb7m77#g771  7,v7 9 ! case (           
contributions made pursuant to a sal>y  

r$uction agreem5t 7)9 ! mean+ ( section 
#caba7;a77#e77;,d771 ! employee enc\nt]s
 f9ancial h>d%ip1 or  7,,vi7 except z   
may be o!rwise provid$ by regulations1 )
 respect to am\nts inve/$ 9 a lifetime  
income inve/m5t 7z def9$ 9 section      
#dja7;a77#ch77;,b77ii771 ! date t is #ij
 days prior to ! date t su* lifetime    
income inve/m5t may no long] be held z  
an inve/m5t option "u ! contract1 &     
7ii7 9 ! case ( am\nts describ$ 9 clause
 7i77,,vi71 su* am\nts w be di/ribut$   
only 9 ! =m ( a qualifi$ di/ribution 7z 
def9$ 9 section #dja7;a77#ch77;,b77i77  
or a qualifi$ plan di/ribution annuity  
contract 7z def9$ 9 section             
#dja7;a77#ch77;,b77iv774  4  7d7        
,eligible def]r$ comp5sation plans  7#a7
 ,9 g5]al ,subp>agraph 7,a7 ( section   
#deg7;d77#a7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by /rik+ or at ! end ( 
clause 7ii71 by ins]t+ or at ! end (    
clause 7iii71 & by add+ aft] clause     
7iii7 ! foll[+3  7iv7 except z may be   
o!rwise provid$ by regulations1 9 ! case

 ( a plan ma9ta9$ by an employ] describ$
 9 subsection 7e77#a77;,a71 ) respect to
 am\nts inve/$ 9 a lifetime income      
inve/m5t 7z def9$ 9 section             
#dja7;a77#ch77;,b77ii771 ! date t is #ij
 days prior to ! date t su* lifetime    
income inve/m5t may no long] be held z  
an inve/m5t option "u ! plan1  4  7#b7  
,di/ribution requirem5t ,p>agraph 7#a7 (
 section #deg7;d7 ( su* ,code is am5d$  
by /rik+ & at ! end ( subp>agraph 7,b71 
by /rik+ ! p]iod at ! end ( subp>agraph 
7,c7 & ins]t+ 1 &1 & by ins]t+ aft]     
subp>agraph 7,c7 ! foll[+ new           
subp>agraph3  7,d7 except z may be      
o!rwise provid$ by regulations1 9 ! case
 ( am\nts describ$ 9 subp>agraph        
7,a77iv71 su* am\nts w be di/ribut$ only
 9 ! =m ( a qualifi$ di/ribution 7z     
def9$ 9 section #dja7;a77#ch77;,b77i77  
or a qualifi$ plan di/ribution annuity  
contract 7z def9$ 9 section             
#dja7;a77#ch77;,b77iv774  4  7e7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to plan ye>s beg9n+  

aft] ,decemb] #ca1 #bjai4  #aab4        
,treatm5t ( cu/odial acc\nts on         
t]m9ation ( section #djc7;b7 plan ,n    
lat] ?an #f mon?s aft] ! date ( !       
enactm5t ( ?is ,act1 ! ,secret>y ( !    
,treasury 7or ! ,secret>y's delegate7   
%all issue guidance to provide t1 if an 
employ] t]m9ates ! plan "u :i* am\nts   
are contribut$ to a cu/odial acc\nt "u  
subp>agraph 7,a7 ( section #djc7;b77#g7 
( ! ,int]nal ,rev5ue ,code ( #aihf1 !   
plan adm9i/rator or cu/odian may        
di/ribute an individual cu/odial acc\nt 
9 k9d to a p>ticipant or b5efici>y ( !  
plan & ! di/ribut$ cu/odial acc\nt %all 
be ma9ta9$ by ! cu/odian on a tax-def]r$
 basis z a cu/odial acc\nt "u su*       
section #djc7;b77#g71 simil> to !       
treatm5t ( fully-paid individual annuity
 contracts "u ,rev5ue ,rul+ #bjaa-g1    
until am\nts are actually paid to !     
p>ticipant or b5efici>y4 ,! guidance    
%all provide fur!r t-- 7#a7 except z    
o!rwise specifically provid$ 9 su*      
guidance1 ! di/ribut$ cu/odial acc\nt   

%all cont9ue to be treat$ 9 ! same mann]
 z a cu/odial acc\nt "u section         
#djc7;b77#g7 ( su* ,code if !           
requirem5ts ( section #djc7;b7 ( su*    
,code 7z 9 effect at ! "t ( !           
di/ribution ( ! acc\nt7 cont9ue to be   
met ) respect to su* di/ribut$ acc\nt2 &
  7#b7 a cu/odial acc\nt w n be consid]$
 di/ribut$ to ! p>ticipant or b5efici>y 
if ! employ] has any mat]ial reta9$     
rights "u ! acc\nt 7b ! employ] w\ld n  
be treat$ z reta9+ mat]ial rights simply
 because ! cu/odial acc\nt 0 orig9ally  
op5$ "u a gr\p contract74  #aac4        
,cl>ification ( retirem5t income acc\nt 
rules relat+ to *ur*-controll$          
organizations  7a7 ,9 g5]al ,subp>agraph
 7,b7 ( section #djc7;b77#i7 ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ 7includ+ an employee describ$ 
9 section #dad7;e77#c77;,b77 aft]       
employee describ$ 9 p>agraph 7#a74  7b7 
,effective date ,! am5dm5t made by ?is  
section %all apply to ye>s beg9n+ be=e1 
on1 or aft] ! date ( ! enactm5t ( ?is   

,act4  ,,ii ,adm9i/rative ,improvem5ts  
#bja4 ,plan adopt$ by fil+ due date =   
ye> may be treat$ z 9 effect z ( close (
 ye>  7a7 ,9 g5]al ,subsection 7b7 (    
section #dja ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$--  7#a7 by /rik+       
retroactive *anges 9 plan4--,a /ock     
bonus & ins]t+ 8plan am5dm5ts4--  7#a7  
,c]ta9 retroactive *anges 9 plan ,a /ock
 bonus  1 &  7#b7 by add+ at ! end !    
foll[+ new p>agraph3  7#b7 ,adoption (  
plan ,if an employ] adopts a /ock bonus1
 p5sion1 pr(it-%>+1 or annuity plan aft]
 ! close ( a taxable ye> b be=e ! "t    
prescrib$ by law = fil+ ! return ( !    
employ] = ! taxable ye> 7includ+        
ext5sions !re(71 ! employ] may elect to 
treat ! plan z hav+ be5 adopt$ z ( ! la/
 day ( ! taxable ye>4  4  7b7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply to plans adopt$ = taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjai4   
#bjb4 ,comb9$ annual report = gr\p (    
plans  7a7 ,9 g5]al ,! ,secret>y ( !    
,treasury & ! ,secret>y ( ,labor 7or su*

 ,secret>ies' delegates7 %all1 9        
coop]ation1 modify ! returns requir$ "u 
section #fjeh ( ! ,int]nal ,rev5ue ,code
 ( #aihf & ! reports requir$ by section 
#ajd ( ! ,employee ,retirem5t ,income   
,security ,act ( #aigd 7#bi ,u4,s4,c4   
#ajbd7 s t all memb]s ( a gr\p ( plans  
describ$ 9 subsection 7c7 may file a    
s+le aggregat$ annual return or report  
satisfy+ ! requirem5ts ( bo? su*        
sections4  7b7 ,adm9i/rative requirem5ts
 ,9 develop+ ! consolidat$ return or    
report "u subsection 7a71 ! ,secret>y ( 
! ,treasury & ! ,secret>y ( ,labor 7or  
su* ,secret>ies' delegates7 may require 
su* return or report to include any     
in=mation reg>d+ ea* plan 9 ! gr\p z su*
 ,secret>ies 7or delegates7 det]m9e is  
necess>y or appropriate = ! en=cem5t &  
adm9i/ration ( ! ,int]nal ,rev5ue ,code 
( #aihf & ! ,employee ,retirem5t ,income
 ,security ,act ( #aigd4  7c7 ,plans    
describ$ ,a gr\p ( plans is describ$ 9  
?is subsection if all plans 9 ! gr\p--  
7#a7 are individual acc\nt plans or     

def9$ contribution plans 7z def9$ 9     
section #c7cd7 ( ! ,employee ,retirem5t 
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajjb7cd77 or 9 section       
#dad7;i7 ( ! ,int]nal ,rev5ue ,code (   
#aihf72  7#b7 h--  7,a7 ! same tru/ee 7z
 describ$ 9 section #djc7;a7 ( su* ,act 
7#bi ,u4,s4,c4 #aajc7;a7772  7,b7 ! same
 "o or m nam$ fiduci>ies 7z describ$ 9  
section #djb7;a7 ( su* ,act 7#bi        
,u4,s4,c4 #aajb7;a7772  7,c7 ! same     
adm9i/rator 7z def9$ 9 section          
#c7af77;,a7 ( su* ,act 7#bi ,u4,s4,c4   
#ajjb7af77;,a777 & plan adm9i/rator 7z  
def9$ 9 section #dad7;g7 ( ! ,int]nal   
,rev5ue ,code ( #aihf72 &  7,d7 plan    
ye>s beg9n+ on ! same date2 &  7#c7     
provide ! same inve/m5ts or inve/m5t    
options to p>ticipants & b5efici>ies4   
,a plan n subject to title ,i ( !       
,employee ,retirem5t ,income ,security  
,act ( #aigd %all be treat$ z meet+ !   
requirem5ts ( p>agraph 7#b7 z "p ( a    
gr\p ( plans if ! same p]son t p]=ms ea*
 ( ! functions describ$ 9 su* p>agraph1 

z applicable1 = all o!r plans 9 su* gr\p
 p]=ms ea* ( su* functions = su* plan4  
7d7 ,cl>ification relat+ to electronic  
fil+ ( returns = def]r$ comp5sation     
plans  7#a7 ,9 g5]al ,section #fjaa7;e7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by add+ at ! end ! foll[+ new     
p>agraph3  7#f7 ,application ( num]ical 
limitation to returns relat+ to def]r$  
comp5sation plans ,= purposes ( apply+ !
 num]ical limitation "u p>agraph        
7#b77;,a7 to any return requir$ "u      
section #fjeh1 in=mation reg>d+ ea* plan
 = :i* in=mation is provid$ on su*      
return %all be treat$ z a sep>ate       
return4  4  7#b7 ,effective date ,!     
am5dm5t made by p>agraph 7#a7 %all apply
 to returns requir$ to be fil$ ) respect
 to plan ye>s beg9n+ aft] ,decemb] #ca1 
#bjai4  7e7 ,effective date ,!          
modification requir$ by subsection 7a7  
%all be implem5t$ n lat] ?an ,janu>y #a1
 #bjbb1 & %all apply to returns &       
reports = plan ye>s beg9n+ aft] ,decemb]
 #ca1 #bjba4  #bjc4 ,disclosure reg>d+  

lifetime income  7a7 ,9 g5]al           
,subp>agraph 7,b7 ( section #aje7;a77#b7
 ( ! ,employee ,retirem5t ,income       
,security ,act ( #aigd 7#bi ,u4,s4,c4   
#ajbe7;a77#b77 is am5d$--  7#a7 9 clause
 7i71 by /rik+ & at ! end2  7#b7 9      
clause 7ii71 by /rik+ div]sification4 & 
ins]t+ div]sification1 &2 &  7#c7 by    
ins]t+ at ! end ! foll[+3  7iii7 !      
lifetime income disclosure describ$ 9   
subp>agraph 7,d77i74  ,9 ! case ( p5sion
 b5efit /atem5ts describ$ 9 clause 7i7 (
 p>agraph 7#a77;,a71 a lifetime income  
disclosure "u clause 7iii7 ( ?is        
subp>agraph %all be requir$ to be       
includ$ 9 only "o p5sion b5efit /atem5t 
dur+ any "o #ab-mon? p]iod4 4  7b7      
,lifetime income ,p>agraph 7#b7 (       
section #aje7;a7 ( ! ,employee          
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajbe7;a77 is am5d$
 by add+ at ! end ! foll[+ new          
subp>agraph3  7,d7 ,lifetime income     
disclosure  7i7 ,9 g5]al  7,i7          
,disclosure ,a lifetime income          

disclosure %all set =? ! lifetime income
 /ream equival5t ( ! total b5efits      
accru$ ) respect to ! p>ticipant or     
b5efici>y4  7,,ii7 ,lifetime income     
/ream equival5t ( ! total b5efits accru$
 ,= purposes ( ?is subp>agraph1 ! t]m   
lifetime income /ream equival5t ( !     
total b5efits accru$ means ! am\nt (    
mon?ly paym5ts ! p>ticipant or b5efici>y
 w\ld receive if ! total accru$ b5efits 
( su* p>ticipant or b5efici>y 7 us$ to  
provide lifetime income /reams describ$ 
9 subclause 7,,iii71 bas$ on assumptions
 specifi$ 9 rules prescrib$ by !        
,secret>y4  7,,iii7 ,lifetime income    
/reams ,! lifetime income /reams        
describ$ 9 ?is subclause are a qualifi$ 
jo9t & survivor annuity 7z def9$ 9      
section #bje7;d771 bas$ on assumptions  
specifi$ 9 rules prescrib$ by !         
,secret>y1 includ+ ! assumption t !     
p>ticipant or b5efici>y has a sp\se (   
equal age1 & a s+le life annuity4 ,su*  
lifetime income /reams may h a t]m c]ta9
 or o!r features to ! ext5t p]mitt$ "u  

rules prescrib$ by ! ,secret>y4  7ii7   
,model disclosure ,n lat] ?an #a ye>    
aft] ! date ( ! enactm5t ( ! ,retirem5t 
,enhancem5t & ,sav+s ,act ( #bjai1 !    
,secret>y %all issue a model lifetime   
income disclosure1 writt5 9 a mann] s z 
to be und]/ood by ! av]age plan         
p>ticipant1 :i*-- 7,i7 expla9s t !      
lifetime income /ream equival5t is only 
provid$ z an illu/ration2  7,,ii7       
expla9s t ! actual paym5ts "u ! lifetime
 income /ream describ$ 9 clause         
7i77,,iii7 :i* may be pur*as$ ) ! total 
b5efits accru$ w dep5d on num]\s factors
 & may v>y sub/antially f ! lifetime    
income /ream equival5t 9 ! disclosures2 
7,,iii7 expla9s ! assumptions ^u :i* !  
lifetime income /ream equival5t 0       
det]m9$2 &  7,,iv7 provides su* o!r     
simil> explanations z ! ,secret>y       
consid]s appropriate4  7iii7            
,assumptions & rules ,n lat] ?an #a ye> 
aft] ! date ( ! enactm5t ( ! ,retirem5t 
,enhancem5t & ,sav+s ,act ( #bjai1 !    
,secret>y %all--  7,i7 prescribe        

assumptions :i* adm9i/rators (          
individual acc\nt plans may use 9       
conv]t+ total accru$ b5efits into       
lifetime income /ream equival5ts =      
purposes ( ?is subp>agraph2 &  7,,ii7   
issue int]im f9al rules "u clause 7i74  
,9 prescrib+ assumptions "u subclause   
7,i71 ! ,secret>y may prescribe a s+le  
set ( specific assumptions 79 :i* case !
 ,secret>y may issue tables or factors  
:i* facilitate su* conv]sions71 or      
ranges ( p]missible assumptions4 ,to !  
ext5t t an accru$ b5efit is or may be   
inve/$ 9 a lifetime income /ream        
describ$ 9 clause 7i77,,iii71 !         
assumptions prescrib$ "u subclause 7,i7 
%all1 to ! ext5t appropriate1 p]mit     
adm9i/rators ( individual acc\nt plans  
to use ! am\nts payable "u su* lifetime 
income /ream z a lifetime income /ream  
equival5t4  7iv7 ,limitation on         
liability ,no plan fiduci>y1 plan       
sponsor1 or o!r p]son %all h any        
liability "u ?is title solely by reason 
( ! provision ( lifetime income /ream   

equival5ts :i* are d]iv$ 9 accordance ) 
! assumptions & rules describ$ 9 clause 
7iii7 & :i* include ! explanations      
conta9$ 9 ! model lifetime income       
disclosure describ$ 9 clause 7ii74 ,?is 
clause %all apply )\t reg>d to :e!r !   
provision ( su* lifetime income /ream   
equival5t is requir$ by subp>agraph     
7,b77iii74  7v7 ,effective date ,!      
requirem5t 9 subp>agraph 7,b77iii7 %all 
apply to p5sion b5efit /atem5ts furni%$ 
m ?an #ab mon?s aft] ! late/ ( !        
issuance by ! ,secret>y (--  7,i7 int]im
 f9al rules "u clause 7i72  7,,ii7 !    
model disclosure "u clause 7ii72 or     
7,,iii7 ! assumptions "u clause 7iii74  
4  #bjd4 ,fiduci>y safe h>bor =         
selection ( lifetime income provid]     
,section #djd ( ! ,employee ,retirem5t  
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #aajd7 is am5d$ by add+ at !  
end ! foll[+3  7e7 ,safe h>bor = annuity
 selection  7#a7 ,9 g5]al ,) respect to 
! selection ( an insur] = a gu>ante$    
retirem5t income contract1 ! requirem5ts

 ( subsection 7a77#a77;,b7 w be deem$ to
 be satisfi$ if a fiduci>y-- 7,a7       
engages 9 an objective1 ?or\gh1 &       
analytical se>* = ! purpose ( id5tify+  
insur]s f :i* to pur*ase su* contracts2 
7,b7 ) respect to ea* insur] id5tifi$ "u
 subp>agraph 7,a7-- 7i7 consid]s !      
f9ancial capability ( su* insur] to     
satisfy its obligations "u ! gu>ante$   
retirem5t income contract2 &  7ii7      
consid]s ! co/ 7includ+ fees &          
commissions7 ( ! gu>ante$ retirem5t     
income contract (f]$ by ! insur] 9      
relation to ! b5efits & product features
 ( ! contract & adm9i/rative s]vices to 
be provid$ "u su* contract2 &  7,c7 on !
 basis ( su* consid]ation1 concludes t--
  7i7 at ! "t ( ! selection1 ! insur] is
 f9ancially capable ( satisfy+ its      
obligations "u ! gu>ante$ retirem5t     
income contract2 &  7ii7 ! relative co/ 
( ! select$ gu>ante$ retirem5t income   
contract z describ$ 9 subp>agraph       
7,b77ii7 is reasonable4  7#b7 ,f9ancial 
capability ( ! insur] ,a fiduci>y w be  

deem$ to satisfy ! requirem5ts (        
p>agraphs 7#a77;,b77i7 & 7#a77;,c77i7   
if-- 7,a7 ! fiduci>y obta9s writt5      
repres5tations f ! insur] t--  7i7 !    
insur] is lic5s$ to (f] gu>ante$        
retirem5t income contracts2  7ii7 !     
insur]1 at ! "t ( selection & = ea* ( ! 
imm$iately prec$+ #g plan ye>s--  7,i7  
op]ates "u a c]tificate ( au?ority f !  
insurance commission] ( its domicili>y  
,/ate :i* has n be5 revok$ or susp5d$2  
7,,ii7 has fil$ audit$ f9ancial /atem5ts
 9 accordance ) ! laws ( its domicili>y 
,/ate "u applicable /atutory acc\nt+    
pr9ciples2  7,,iii7 ma9ta9s 7& has      
ma9ta9$7 res]ves :i* satisfies all !    
/atutory requirem5ts ( all ,/ates :]e ! 
insur] does bus9ess2 &  7,,iv7 is n     
op]at+ "u an ord] ( sup]vision1         
rehabilitation1 or liquidation2  7iii7 !
 insur] und]goes1 at lea/ e #e ye>s1 a  
f9ancial exam9ation 7)9 ! mean+ ( ! law 
( its domicili>y ,/ate7 by ! insurance  
commission] ( ! domicili>y ,/ate 7or    
repres5tative1 designee1 or o!r p>ty    

approv$ by su* commission]72 &  7iv7 !  
insur] w notify ! fiduci>y ( any *ange 9
 circum/ances occurr+ aft] ! provision (
 ! repres5tations 9 clauses 7i71 7ii71 &
 7iii7 :i* w\ld preclude ! insur] f mak+
 su* repres5tations at ! "t ( issuance (
 ! gu>ante$ retirem5t income contract2 &
  7,b7 aft] receiv+ su* repres5tations &
 z ( ! "t ( selection1 ! fiduci>y has n 
receiv$ any notice describ$ 9           
subp>agraph 7,a77iv7 & is 9 possession (
 no o!r in=mation :i* w\ld cause !      
fiduci>y to "q ! repres5tations provid$4
  7#c7 ,no requirem5t to select l[e/ co/
 ,no?+ 9 ?is subsection %all be con/ru$ 
to require a fiduci>y to select ! l[e/  
co/ contract4 ,a fiduci>y may consid] ! 
value ( a contract1 includ+ features &  
b5efits ( ! contract & attributes ( !   
insur] 7includ+1 )\t limitation1 !      
insur]'s f9ancial /r5g?7 9 conjunction )
 ! co/ ( ! contract4  7#d7 ,"t (        
selection  7,a7 ,9 g5]al ,= purposes (  
?is subsection1 ! "t ( selection is--   
7i7 ! "t t ! insur] & ! contract are    

select$ = di/ribution ( b5efits to a    
specific p>ticipant or b5efici>y2 or    
7ii7 if ! fiduci>y p]iodically reviews !
 cont9u+ appropriat5ess ( ! conclusion  
describ$ 9 p>agraph 7#a77;,c7 ) respect 
to a select$ insur]1 tak+ into acc\nt ! 
consid]ations describ$ 9 su* p>agraph1 !
 "t t ! insur] & ! contract are select$ 
to provide b5efits at future dates to   
p>ticipants or b5efici>ies "u ! plan4   
,no?+ 9 ! prec$+ s5t5ce %all be con/ru$ 
to require ! fiduci>y to review !       
appropriat5ess ( a selection aft] !     
pur*ase ( a contract = a p>ticipant or  
b5efici>y4  7,b7 ,p]iodic review ,a     
fiduci>y w be deem$ to h conduct$ !     
p]iodic review describ$ 9 subp>agraph   
7,a77ii7 if ! fiduci>y obta9s ! writt5  
repres5tations describ$ 9 clauses 7i71  
7ii71 & 7iii7 ( p>agraph 7#b77;,a7 f !  
insur] on an annual basis1 unless !     
fiduci>y receives any notice describ$ 9 
p>agraph 7#b77;,a77iv7 or o!rwise       
becomes aw>e ( facts t w\ld cause !     
fiduci>y to "q su* repres5tations4  7#e7

 ,limit$ liability ,a fiduci>y :i*      
satisfies ! requirem5ts ( ?is subsection
 %all n be liable foll[+ ! di/ribution (
 any b5efit1 or ! inve/m5t by or on     
behalf ( a p>ticipant or b5efici>y      
pursuant to ! select$ gu>ante$ retirem5t
 income contract1 = any losses t may    
result to ! p>ticipant or b5efici>y due 
to an insur]'s inability to satisfy its 
f9ancial obligations "u ! t]ms ( su*    
contract4  7#f7 ,def9itions ,= purposes 
( ?is subsection--  7,a7 ,insur] ,! t]m 
insur] means an insurance company1      
insurance s]vice1 or insurance          
organization1 includ+ affiliates ( su*  
companies4  7,b7 ,gu>ante$ retirem5t    
income contract ,! t]m gu>ante$         
retirem5t income contract means an      
annuity contract = a fix$ t]m or a      
contract 7or provision or feature !re(7 
:i* provides gu>ante$ b5efits annually  
7or m frequ5tly7 = at lea/ ! rema9d] ( !
 life ( ! p>ticipant or ! jo9t lives ( !
 p>ticipant & ! p>ticipant's designat$  
b5efici>y z "p ( an individual acc\nt   

plan4  4  #bje4 ,modification (         
nondiscrim9ation rules to protect old]1 
long] s]vice p>ticipants  7a7 ,9 g5]al  
,section #dja ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$-- 7#a7 by r$esignat+  
subsection 7o7 z subsection 7p71 &  7#b7
 by ins]t+ aft] subsection 7n7 ! foll[+ 
new subsection3  7o7 ,special rules =   
apply+ nondiscrim9ation rules ,to       
protect old]1 long] s]vice & gr&fa!r$   
p>ticipants  7#a7 ,te/+ ( def9$ b5efit  
plans ) clos$ classes ( p>ticipants     
7,a7 ,b5efits1 rights1 or features      
provid$ to clos$ classes ,a def9$ b5efit
 plan :i* provides b5efits1 rights1 or  
features to a clos$ class ( p>ticipants 
%all n fail to satisfy ! requirem5ts (  
subsection 7a77#d7 by reason ( !        
composition ( su* clos$ class or !      
b5efits1 rights1 or features provid$ to 
su* clos$ class1 if--  7i7 = ! plan ye> 
z ( :i* ! class closes & ! #b succe$+   
plan ye>s1 su* b5efits1 rights1 &       
features satisfy ! requirem5ts (        
subsection 7a77#d7 7)\t reg>d to ?is    

subp>agraph b tak+ into acc\nt ! rules (
 subp>agraph 7,i771  7ii7 aft] ! date z 
( :i* ! class 0 clos$1 any plan am5dm5t 
:i* modifies ! clos$ class or ! b5efits1
 rights1 & features provid$ to su* clos$
 class does n discrim9ate significantly 
9 favor ( highly comp5sat$ employees1 & 
7iii7 ! class 0 clos$ be=e ,septemb]    
#ba1 #bjaf1 or ! plan is describ$ 9     
subp>agraph 7,c74  7,b7 ,aggregate te/+ 
) def9$ contribution plans p]mitt$ on a 
b5efits basis  7i7 ,9 g5]al ,= purposes 
( det]m9+ compliance ) subsection       
7a77#d7 & section #daj7;b71 a def9$     
b5efit plan describ$ 9 clause 7iii7 may 
be aggregat$ & te/$ on a b5efits basis )
 "o or m def9$ contribution plans1      
includ+ ) ! portion ( "o or m def9$     
contribution plans :i*--  7,i7 provides 
mat*+ contributions 7z def9$ 9          
subsection 7m77#d77;,a771  7,,ii7       
provides annuity contracts describ$ 9   
section #djc7;b7 :i* are pur*as$ ) mat*+
 contributions or nonelective           
contributions1 or  7,,iii7 consi/s ( an 

employee /ock own]%ip plan 7)9 ! mean+ (
 section #dige7;e77#g77 or a tax cr$it  
employee /ock own]%ip plan 7)9 ! mean+ (
 section #dji7;a774  7ii7 ,special rules
 = mat*+ contributions ,= purposes (    
clause 7i71 if a def9$ b5efit plan is   
aggregat$ ) a portion ( a def9$         
contribution plan provid+ mat*+         
contributions--  7,i7 su* def9$ b5efit  
plan mu/ also be aggregat$ ) any portion
 ( su* def9$ contribution plan :i*      
provides elective def]rals describ$ 9   
subp>agraph 7,a7 or 7,c7 ( section      
#djb7;g77#c71 &  7,,ii7 su* mat*+       
contributions %all be treat$ 9 ! same   
mann] z nonelective contributions1      
includ+ = purposes ( apply+ ! rules (   
subsection 7l74  7iii7 ,plans describ$  
,a def9$ b5efit plan is describ$ 9 ?is  
clause if-- 7,i7 ! plan provides b5efits
 to a clos$ class ( p>ticipants1  7,,ii7
 = ! plan ye> z ( :i* ! class closes & !
 #b succe$+ plan ye>s1 ! plan satisfies 
! requirem5ts ( section #daj7;b7 &      
subsection 7a77#d7 7)\t reg>d to ?is    

subp>agraph b tak+ into acc\nt ! rules (
 subp>agraph 7,i771  7,,iii7 aft] ! date
 z ( :i* ! class 0 clos$1 any plan      
am5dm5t :i* modifies ! clos$ class or ! 
b5efits provid$ to su* clos$ class does 
n discrim9ate significantly 9 favor (   
highly comp5sat$ employees1 &  7,,iv7 ! 
class 0 clos$ be=e ,septemb] #ba1 #bjaf1
 or ! plan is describ$ 9 subp>agraph    
7,c74  7,c7 ,plans describ$ ,a plan is  
describ$ 9 ?is subp>agraph if1 tak+ into
 acc\nt any pr$ecessor plan--  7i7 su*  
plan has be5 9 effect = at lea/ #e ye>s 
z ( ! date ! class is clos$1 &  7ii7    
dur+ ! #e-ye> p]iod prec$+ ! date !     
class is clos$1 !re has n be5 a         
sub/antial increase 9 ! cov]age or value
 ( ! b5efits1 rights1 or features       
describ$ 9 subp>agraph 7,a7 or 9 !      
cov]age or b5efits "u ! plan describ$ 9 
subp>agraph 7,b77iii7 7:i*ev] is        
applicable74  7,d7 ,det]m9ation (       
sub/antial increase = b5efits1 rights1 &
 features ,9 apply+ subp>agraph 7,c77ii7
 = purposes ( subp>agraph 7,a77iii71 a  

plan %all be treat$ z hav+ _h a         
sub/antial increase 9 cov]age or value (
 ! b5efits1 rights1 or features describ$
 9 subp>agraph 7,a7 dur+ ! applicable   
#e-ye> p]iod only if1 dur+ su* p]iod--  
7i7 ! numb] ( p>ticipants cov]$ by su*  
b5efits1 rights1 or features on ! date  
su* p]iod ends is m ?an #ej p]c5t great]
 ?an ! numb] ( su* p>ticipants on ! fir/
 day ( ! plan ye> 9 :i* su* p]iod began1
 or  7ii7 su* b5efits1 rights1 &        
features h be5 modifi$ by "o or m plan  
am5dm5ts 9 su* a way t1 z ( ! date !    
class is clos$1 ! value ( su* b5efits1  
rights1 & features to ! clos$ class z a 
:ole is sub/antially great] ?an ! value 
z ( ! fir/ day ( su* #e-ye> p]iod1      
solely z a result ( su* am5dm5ts4  7,e7 
,det]m9ation ( sub/antial increase =    
aggregate te/+ on b5efits basis ,9      
apply+ subp>agraph 7,c77ii7 = purposes (
 subp>agraph 7,b77iii77,,iv71 a plan    
%all be treat$ z hav+ _h a sub/antial   
increase 9 cov]age or b5efits dur+ !    
applicable #e-ye> p]iod only if1 dur+   

su* p]iod--  7i7 ! numb] ( p>ticipants  
b5efit+ "u ! plan on ! date su* p]iod   
ends is m ?an #ej p]c5t great] ?an !    
numb] ( su* p>ticipants on ! fir/ day ( 
! plan ye> 9 :i* su* p]iod began1 or    
7ii7 ! av]age b5efit provid$ to su*     
p>ticipants on ! date su* p]iod ends is 
m ?an #ej p]c5t great] ?an ! av]age     
b5efit provid$ on ! fir/ day ( ! plan   
ye> 9 :i* su* p]iod began4  7,f7 ,c]ta9 
employees disreg>d$ ,= purposes (       
subp>agraphs 7,d7 & 7,e71 any increase 9
 cov]age or value or 9 cov]age or       
b5efits1 :i*ev] is applicable1 :i* is   
attributable to su* cov]age & value or  
cov]age & b5efits provid$ to employees--
 7i7 :o became p>ticipants z a result ( 
a m]g]1 acquisition1 or simil> ev5t :i* 
occurr$ dur+ ! #g-ye> p]iod prec$+ !    
date ! class is clos$1 or  7ii7 :o      
became p>ticipants by reason ( a m]g] ( 
! plan ) ano!r plan :i* _h be5 9 effect 
= at lea/ #e ye>s z ( ! date ( ! m]g]1  
%all be disreg>d$1 except t clause 7ii7 
%all apply = purposes ( subp>agraph 7,d7

 only if1 "u ! m]g]1 ! b5efits1 rights1 
or features "u #a plan are con=m$ to !  
b5efits1 rights1 or features ( ! o!r    
plan prospectively4  7,g7 ,rules relat+ 
to av]age b5efit ,= purposes (          
subp>agraph 7,e7--  7i7 ! av]age b5efit 
provid$ to p>ticipants "u ! plan w be   
treat$ z hav+ rema9$ ! same betwe5 ! #b 
dates describ$ 9 subp>agraph 7,e77ii7 if
 ! b5efit =mula applicable to su*       
p>ticipants has n *ang$ betwe5 su*      
dates1 &  7ii7 if ! b5efit =mula        
applicable to "o or m p>ticipants "u !  
plan has *ang$ betwe5 su* #b dates1 !n !
 av]age b5efit "u ! plan %all be        
consid]$ to h increas$ by m ?an #ej     
p]c5t only if--  7,i7 ! total am\nt     
det]m9$ "u section #dcj7;b77#a77;,a77i7 
= all p>ticipants b5efit+ "u ! plan = ! 
plan ye> 9 :i* ! #e-ye> p]iod describ$ 9
 subp>agraph 7,e7 ends1 exce$s  7,,ii7 !
 total am\nt det]m9$ "u section         
#dcj7;b77#a77;,a77i7 = all su*          
p>ticipants = su* plan ye>1 by us+ !    
b5efit =mula 9 effect = ea* su*         

p>ticipant = ! fir/ plan ye> 9 su*      
#e-ye> p]iod1  by m ?an #ej p]c5t4 ,9 ! 
case ( a ,,csec plan 7z def9$ 9 section 
#dad7y771 ! normal co/ ( ! plan 7z      
det]m9$ "u section #dcc7;j77#a77;,b77   
%all be us$ 9 lieu ( ! am\nt det]m9$ "u 
section #dcj7;b77#a77;,a77i74  7,h7     
,treatm5t z s+le plan ,= purposes (     
subp>agraphs 7,e7 & 7,g71 a plan        
describ$ 9 section #dac7;c7 %all be     
treat$ z a s+le plan r ?an z sep>ate    
plans ma9ta9$ by ea* employ] 9 ! plan4  
7,i7 ,special rules ,= purposes (       
subp>agraphs 7,a77i7 & 7,b77iii77,,ii71 
! foll[+ rules %all apply3  7i7 ,9      
apply+ section #daj7;b77#f77;,c71 !     
clos+ ( ! class ( p>ticipants %all n be 
treat$ z a significant *ange 9 cov]age  
"u section #daj7;b77#f77;,c77i77,,ii74  
7ii7 ,two or m plans %all n fail to be  
eligible to be aggregat$ & treat$ z a   
s+le plan solely by reason ( hav+       
diff]5t plan ye>s4  7iii7 ,*anges 9 !   
employee population %all be disreg>d$ to
 ! ext5t attributable to individuals :o 

become employees or cease to be         
employees1 aft] ! date ! class is clos$1
 by reason ( a m]g]1 acquisition1       
dive/iture1 or simil> ev5t4  7iv7       
,aggregation & all o!r te/+ me?odologies
 o!rwise applicable "u subsection       
7a77#d7 & section #daj7;b7 may be tak5  
into acc\nt4  ,! rule ( clause 7ii7 %all
 also apply = purposes ( det]m9+ :e!r   
plans to :i* subp>agraph 7,b77i7 applies
 may be aggregat$ & treat$ z #a plan =  
purposes ( det]m9+ :e!r su* plans meet !
 requirem5ts ( subsection 7a77#d7 &     
section #daj7;b74  7,j7 ,spun-(f plans  
,= purposes ( ?is p>agraph1 if a portion
 ( a def9$ b5efit plan describ$ 9       
subp>agraph 7,a7 or 7,b77iii7 is spun (f
 to ano!r employ] & ! spun-(f plan      
cont9ues to satisfy ! requirem5ts (--   
7i7 subp>agraph 7,a77i7 or              
7,b77iii77,,ii71 :i*ev] is applicable1  
if ! orig9al plan 0 /ill )9 ! #c-ye>    
p]iod describ$ 9 su* subp>agraph at ! "t
 ( ! sp9 (f1 &  7ii7 subp>agraph        
7,a77ii7 or 7,b77iii77,,iii71 :i*ev] is 

applicable1  ! treatm5t "u subp>agraph  
7,a7 or 7,b7 ( ! spun-(f plan %all      
cont9ue ) respect to su* o!r employ]4   
7#b7 ,te/+ ( def9$ contribution plans   
7,a7 ,te/+ on a b5efits basis ,a def9$  
contribution plan %all be p]mitt$ to be 
te/$ on a b5efits basis if--  7i7 su*   
def9$ contribution plan provides        
make-:ole contributions to a clos$ class
 ( p>ticipants ^: accruals "u a def9$   
b5efit plan h be5 r$uc$ or elim9at$1    
7ii7 = ! plan ye> ( ! def9$ contribution
 plan z ( :i* ! class eligible to       
receive su* make-:ole contributions     
closes & ! #b succe$+ plan ye>s1 su*    
clos$ class ( p>ticipants satisfies !   
requirem5ts ( section                   
#daj7;b77#b77;,a77i7 7det]m9$ by apply+ 
! rules ( p>agraph 7#a77;,i771  7iii7   
aft] ! date z ( :i* ! class 0 clos$1 any
 plan am5dm5t to ! def9$ contribution   
plan :i* modifies ! clos$ class or !    
allocations1 b5efits1 rights1 & features
 provid$ to su* clos$ class does n      
discrim9ate significantly 9 favor (     

highly comp5sat$ employees1 &  7iv7 !   
class 0 clos$ be=e ,septemb] #ba1 #bjaf1
 or ! def9$ b5efit plan "u clause 7i7 is
 describ$ 9 p>agraph 7#a77;,c7 7z appli$
 = purposes ( p>agraph                  
7#a77;,b77iii77,,iv774  7,b7            
,aggregation ) plans includ+ mat*+      
contributions  7i7 ,9 g5]al ,) respect  
to "o or m def9$ contribution plans     
describ$ 9 subp>agraph 7,a71 = purposes 
( det]m9+ compliance ) subsection       
7a77#d7 & section #daj7;b71 ! portion ( 
su* plans :i* provides make-:ole        
contributions or o!r nonelective        
contributions may be aggregat$ & te/$ on
 a b5efits basis ) ! portion ( "o or m  
o!r def9$ contribution plans :i*-- 7,i7 
provides mat*+ contributions 7z def9$ 9 
subsection 7m77#d77;,a771  7,,ii7       
provides annuity contracts describ$ 9   
section #djc7;b7 :i* are pur*as$ ) mat*+
 contributions or nonelective           
contributions1 or  7,,iii7 consi/s ( an 
employee /ock own]%ip plan 7)9 ! mean+ (
 section #dige7;e77#g77 or a tax cr$it  

employee /ock own]%ip plan 7)9 ! mean+ (
 section #dji7;a774  7ii7 ,special rules
 = mat*+ contributions ,rules simil> to 
! rules ( p>agraph 7#a77;,b77ii7 %all   
apply = purposes ( clause 7i74  7,c7    
,special rules = te/+ def9$ contribution
 plan features provid+ mat*+            
contributions to c]ta9 old]1 long]      
s]vice p>ticipants ,9 ! case ( a def9$  
contribution plan :i* provides b5efits1 
rights1 or features to a clos$ class (  
p>ticipants ^: accruals "u a def9$      
b5efit plan h be5 r$uc$ or elim9at$1 !  
plan %all n fail to satisfy !           
requirem5ts ( subsection 7a77#d7 solely 
by reason ( ! composition ( ! clos$     
class or ! b5efits1 rights1 or features 
provid$ to su* clos$ class if ! def9$   
contribution plan & def9$ b5efit plan   
o!rwise meet ! requirem5ts ( subp>agraph
 7,a7 b = ! fact t ! make-:ole          
contributions "u ! def9$ contribution   
plan are made 9 :ole or 9 "p ?r\gh mat*+
 contributions4  7,d7 ,spun-(f plans ,= 
purposes ( ?is p>agraph1 if a portion ( 

a def9$ contribution plan describ$ 9    
subp>agraph 7,a7 or 7,c7 is spun (f to  
ano!r employ]1 ! treatm5t "u subp>agraph
 7,a7 or 7,c7 ( ! spun-(f plan %all     
cont9ue ) respect to ! o!r employ] if   
su* plan cont9ues to comply ) !         
requirem5ts ( clauses 7ii7 7if ! orig9al
 plan 0 /ill )9 ! #c-ye> p]iod describ$ 
9 su* clause at ! "t ( ! sp9 (f7 & 7iii7
 ( subp>agraph 7,a71 z det]m9$ =        
purposes ( subp>agraph 7,a7 or 7,c71    
:i*ev] is applicable4  7#c7 ,def9itions 
,= purposes ( ?is subsection--  7,a7    
,make-:ole contributions ,except z      
o!rwise provid$ 9 p>agraph 7#b77;,c71 ! 
t]m make-:ole contributions means       
nonelective allocations = ea* employee 9
 ! class :i* are reasonably calculat$1 9
 a consi/5t mann]1 to replace "s or all 
( ! retirem5t b5efits :i* ! employee    
w\ld h receiv$ "u ! def9$ b5efit plan & 
any o!r plan or qualifi$ ca% or def]r$  
arrangem5t "u subsection 7k77#b7 if no  
*ange _h be5 made to su* def9$ b5efit   
plan & su* o!r plan or arrangem5t4 ,=   

purposes ( ! prec$+ s5t5ce1 consi/5cy   
%all n be requir$ ) respect to employees
 :o 7 subject to diff]5t b5efit =mulas  
"u ! def9$ b5efit plan4  7,b7 ,ref]5ces 
to clos$ class ( p>ticipants ,ref]5ces  
to a clos$ class ( p>ticipants & simil> 
ref]5ces to a clos$ class %all include  
arrangem5ts "u :i* "o or m classes (    
p>ticipants are clos$1 except t "o or m 
classes ( p>ticipants clos$ on diff]5t  
dates %all n be aggregat$ = purposes (  
det]m9+ ! date any su* class 0 clos$4   
7,c7 ,highly comp5sat$ employee ,! t]m  
highly comp5sat$ employee has ! mean+   
giv5 su* t]m 9 section #dad7q74  4  7b7 
,p>ticipation requirem5ts ,p>agraph     
7#bf7 ( section #dja7;a7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,i7
 ,protect$ p>ticipants  7i7 ,9 g5]al ,a 
plan %all be deem$ to satisfy !         
requirem5ts ( subp>agraph 7,a7 if-- 7,i7
 ! plan is am5d$--  7aa7 to cease all   
b5efit accruals1 or  7bb7 to provide    
future b5efit accruals only to a clos$  

class ( p>ticipants1  7,,ii7 ! plan     
satisfies subp>agraph 7,a7 7)\t reg>d to
 ?is subp>agraph7 z ( ! effective date (
 ! am5dm5t1 &  7,,iii7 ! am5dm5t 0      
adopt$ be=e ,septemb] #ba1 #bjaf1 or !  
plan is describ$ 9 clause 7ii74  7ii7   
,plans describ$ ,a plan is describ$ 9   
?is clause if ! plan w\ld be describ$ 9 
subsection 7o77#a77;,c71 z appli$ =     
purposes ( subsection                   
7o77#a77;,b77iii77,,iv7 & by treat+ !   
effective date ( ! am5dm5t z ! date !   
class 0 clos$ = purposes ( subsection   
7o77#a77;,c74  7iii7 ,special rules ,=  
purposes ( clause 7i77,,ii71 9 apply+   
section #daj7;b77#f77;,c71 ! am5dm5ts   
describ$ 9 clause 7i7 %all n be treat$ z
 a significant *ange 9 cov]age "u       
section #daj7;b77#f77;,c77i77,,ii74     
7iv7 ,spun-(f plans ,= purposes ( ?is   
subp>agraph1 if a portion ( a plan      
describ$ 9 clause 7i7 is spun (f to     
ano!r employ]1 ! treatm5t "u clause 7i7 
( ! spun-(f plan %all cont9ue ) respect 
to ! o!r employ]4  4  7c7 ,effective    

date  7#a7 ,9 g5]al ,except z provid$ 9 
p>agraph 7#b71 ! am5dm5ts made by ?is   
section %all take effect on ! date ( !  
enactm5t ( ?is ,act1 )\t reg>d to :e!r  
any plan modifications ref]r$ to 9 su*  
am5dm5ts are adopt$ or effective be=e1  
on1 or aft] su* date ( enactm5t4  7#b7  
,special rules  7,a7 ,election ( e>li]  
application ,at ! election ( ! plan     
sponsor1 ! am5dm5ts made by ?is section 
%all apply to plan ye>s beg9n+ aft]     
,decemb] #ca1 #bjac4  7,b7 ,clos$       
classes ( p>ticipants ,= purposes (     
p>agraphs 7#a77;,a77iii71               
7#a77;,b77iii77,,iv71 & 7#b77;,a77iv7 ( 
section #dja7o7 ( ! ,int]nal ,rev5ue    
,code ( #aihf 7z add$ by ?is section71 a
 clos$ class ( p>ticipants %all be      
treat$ z be+ clos$ be=e ,septemb] #ba1  
#bjaf1 if ! plan sponsor's int5tion to  
create su* clos$ class is reflect$ 9    
=mal writt5 docum5ts & communicat$ to   
p>ticipants be=e su* date4  7,c7 ,c]ta9 
po/-enactm5t plan am5dm5ts ,a plan %all 
n be treat$ z fail+ to be eligible = !  

application ( section #dja7o77#a77;,a71 
#dja7o77#a77;,b77iii71 or #dja7;a77#bf7 
( su* ,code 7z add$ by ?is section7 to  
su* plan solely because 9 ! case (-- 7i7
 su* section #dja7o77#a77;,a71 ! plan 0 
am5d$ be=e ! date ( ! enactm5t ( ?is    
,act to elim9ate "o or m b5efits1       
rights1 or features1 & is fur!r am5d$   
aft] su* date ( enactm5t to provide su* 
previ\sly elim9at$ b5efits1 rights1 or  
features to a clos$ class ( p>ticipants1
 or  7ii7 su* section                   
#dja7o77#a77;,b77iii7 or section        
#dja7;a77#bf71 ! plan 0 am5d$ be=e !    
date ( ! enactm5t ( ?is ,act to cease   
all b5efit accruals1 & is fur!r am5d$   
aft] su* date ( enactm5t to provide     
b5efit accruals to a clos$ class (      
p>ticipants4  ,any su* section %all only
 apply if ! plan o!rwise meets !        
requirem5ts ( su* section & 9 apply+ su*
 section1 ! date ! class ( p>ticipants  
is clos$ %all be ! effective date ( !   
lat] am5dm5t4  #bjf4 ,modification (    
,,pbgc premiums = ,,csec plans  7a7     

,flat rate premium ,subp>agraph 7,a7 (  
section #djjf7;a77#c7 ( ! ,employee     
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77 is  
am5d$--  7#a7 9 clause 7i71 by /rik+    
plan1 & ins]t+ plan o!r ?an a ,,csec    
plan 7z def9$ 9 section #baj7;f77#a772  
7#b7 9 clause 7v71 by /rik+ or at ! end2
  7#c7 9 clause 7vi71 by /rik+ ! p]iod  
at ! end & ins]t+ 1 or2 &  7#d7 by add+ 
at ! end ! foll[+ new clause3  7vii7 9 !
 case ( a ,,csec plan 7z def9$ 9 section
 #baj7;f77#a771 = plan ye>s beg9n+ aft] 
,decemb] #ca1 #bjah1 = ea* individual :o
 is a p>ticipant 9 su* plan dur+ ! plan 
ye> an am\nt equal to ! sum (-- 7,i7 !  
additional premium 7if any7 det]m9$ "u  
subp>agraph 7,e71 &  7,,ii7 #ai4  4  7b7
 ,v>iable rate premium  7#a7 ,unfund$   
ve/$ b5efits  7,a7 ,9 g5]al ,subp>agraph
 7,e7 ( section #djjf7;a77#c7 ( !       
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4             
#acjf7;a77#c77 is am5d$ by add+ at ! end
 ! foll[+ new clause3  7v7 ,= purposes (

 clause 7ii71 9 ! case ( a ,,csec plan  
7z def9$ 9 section #baj7;f77#a771 ! t]m 
unfund$ ve/$ b5efits means1 = plan ye>s 
beg9n+ aft] ,decemb] #ca1 #bjah1 !      
excess 7if any7 (-- 7,i7 ! fund+        
liability ( ! plan z det]m9$ "u section 
#cjf7;j77#e77;,c7 = ! plan ye> by only  
tak+ into acc\nt ve/$ b5efits1 ov]      
7,,ii7 ! fair m>ket value ( plan assets 
= ! plan ye> :i* are held by ! plan on !
 valuation date4  4  7,b7 ,con=m+       
am5dm5t ,clause 7iii7 ( section         
#djjf7;a77#c77;,e7 ( su* ,act 7#bi      
,u4,s4,c4 #acjf7;a77#c77;,e77 is am5d$  
by /rik+ ,= purposes & ins]t+ ,except z 
provid$ 9 clause 7v71 = purposes4  7#b7 
,applicable doll> am\nt  7,a7 ,9 g5]al  
,p>agraph 7#h7 ( section #djjf7;a7 ( su*
 ,act 7#bi ,u4,s4,c4 #acjf7;a77 is am5d$
 by add+ at ! end ! foll[+ new          
subp>agraph3  7,e7 ,,csec plans ,9 !    
case ( a ,,csec plan 7z def9$ 9 section 
#baj7;f77#a771 ! applicable doll> am\nt 
%all be #i4  4  7,b7 ,con=m+ am5dm5t    
,subp>agraph 7,a7 ( section             

#djjf7;a77#h7 ( su* ,act 7#bi ,u4,s4,c4 
#acjf7;a77#h77 is am5d$ by /rik+ 7,b7 & 
7,c7 & ins]t+ 7,b71 7,c71 & 7,e74  ,,iii
 ,b5efits ,relat+ to ,unit$ ,/ates ,tax 
,c\rt  #cja4 ,?rift ,sav+s ,plan        
contributions = judges 9 ! ,f$]al       
,employees ,retirem5t ,sy/em  7a7 ,9    
g5]al ,subsection 7j77#c77;,b7 ( section
 #gddg ( ! ,int]nal ,rev5ue ,code (     
#aihf is am5d$ to read z foll[s3  7,b7  
,contributions = b5efit ( judge ,no     
contributions "u section #hdcb7;c7 (    
title #e1 ,unit$ ,/ates ,code1 %all be  
made = ! b5efit ( a judge :o has fil$ an
 election to receive retir$ pay "u      
subsection 7e74  4  7b7 ,(fset ,p>agraph
 7#c7 ( section #gddg7;j7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,f7
 ,(fset ,9 ! case ( a judge :o receives 
a di/ribution f ! ,?rift ,sav+s ,plan & 
:o lat] receives retir$ pay "u          
subsection 7d71 ! retir$ pay %all be    
(fset by an am\nt equal to ! am\nt ( !  
di/ribution :i* repres5ts ! ,gov]nm5t's 

contribution to ! individual's ,?rift   
,sav+s ,acc\nt dur+ ye>s ( s]vice z a   
full-"t judicial (fic] "u ! ,f$]al      
,employees ,retirem5t ,sy/em1 )\t reg>d 
to e>n+s attributable to su* am\nt4 ,:]e
 su* an (fset w\ld exce$ #ej p]c5t ( !  
retir$ pay to be receiv$ 9 ! fir/ ye>1 !
 (fset may be divid$ equally ov] ! fir/ 
#b ye>s 9 :i* ! individual receives !   
annuity4  4  7c7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to basic pay e>n$ :ile s]v+ z a judge ( 
! ,unit$ ,/ates ,tax ,c\rt on or aft] ! 
date ( ! enactm5t ( ?is ,act4  #cjb4    
,*ange 9 ve/+ p]iod = survivor annuities
 & waiv] ( ve/+ p]iod 9 ! ev5t (        
assass9ation  7a7 ,eligibility 9 case ( 
dea? by assass9ation ,subsection 7h7 (  
section #gddh ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ to read z foll[s3  7h7
 ,entitlem5t to annuity  7#a7 ,9 g5]al  
7,a7 ,annuity to surviv+ sp\se ,if a    
judge or magi/rate judge ( ! ,tax ,c\rt 
describ$ 9 p>agraph 7#b7 is surviv$ by a
 surviv+ sp\se b n by a dep5d5t *ild1   

!re %all be paid to su* surviv+ sp\se an
 annuity beg9n+ ) ! day ( ! dea? ( !    
judge or magi/rate judge ( ! ,tax ,c\rt 
or foll[+ ! surviv+ sp\se's atta9m5t (  
age #ej1 :i*ev] is ! lat]1 9 an am\nt   
comput$ z provid$ 9 subsection 7m74     
7,b7 ,annuity to surviv+ sp\se & *ild   
,if a judge or magi/rate judge ( ! ,tax 
,c\rt describ$ 9 p>agraph 7#b7 is       
surviv$ by a surviv+ sp\se & dep5d5t    
*ild or *ildr51 !re %all be paid to su* 
surviv+ sp\se an annuity1 beg9n+ on !   
day ( ! dea? ( ! judge or magi/rate     
judge ( ! ,tax ,c\rt1 9 an am\nt comput$
 z provid$ 9 subsection 7m71 & !re %all 
also be paid to or on behalf ( ea* su*  
*ild an imm$iate annuity equal to !     
less] (-- 7i7 #aj p]c5t ( ! av]age      
annual sal>y ( su* judge or magi/rate   
judge ( ! ,tax ,c\rt 7det]m9$ 9         
accordance ) subsection 7m771 or  7ii7  
#bj p]c5t ( su* av]age annual sal>y1    
divid$ by ! numb] ( su* *ildr54  7,c7   
,annuity to surviv+ dep5d5t *ildr5 ,if a
 judge or magi/rate judge ( ! ,tax ,c\rt

 describ$ 9 p>agraph 7#b7 leaves no     
surviv+ sp\se b leaves a surviv+ dep5d5t
 *ild or *ildr51 !re %all be paid to or 
on behalf ( ea* su* *ild an imm$iate    
annuity equal to ! less] (--  7i7 #bj   
p]c5t ( ! av]age annual sal>y ( su*     
judge or magi/rate judge ( ! ,tax ,c\rt 
7det]m9$ 9 accordance ) subsection 7m771
 or  7ii7 #dj p]c5t ( su* av]age annual 
sal>y divid$ by ! numb] ( su* *ildr54   
7#b7 ,cov]$ judges ,p>agraph 7#a7       
applies to any judge or magi/rate judge 
( ! ,tax ,c\rt elect+ "u subsection     
7b7-- 7,a7 :o dies :ile a judge or      
magi/rate judge ( ! ,tax ,c\rt aft] hav+
 r5d]$ at lea/ #ah mon?s ( civilian     
s]vice comput$ z prescrib$ 9 subsection 
7n71 = ! la/ #ah mon?s ( :i* ! sal>y    
d$uctions provid$ = by subsection       
7c77#a7 or ! deposits requir$ by        
subsection 7d7 h actually be5 made or ! 
sal>y d$uctions requir$ by ! civil      
s]vice retirem5t laws h actually be5    
made1 or  7,b7 :o dies by assass9ation  
aft] hav+ r5d]$ less ?an #ah mon?s (    

civilian s]vice comput$ z prescrib$ 9   
subsection 7n7 if1 = ! p]iod ( su*      
s]vice1 ! sal>y d$uctions provid$ = by  
subsection 7c77#a7 or ! deposits requir$
 by subsection 7d7 h actually be5 made4 
7#c7 ,t]m9ation ( annuity  7,a7 ,surviv+
 sp\se ,! annuity payable to a surviv+  
sp\se "u ?is subsection %all be t]m9able
 ^u su* surviv+ sp\se's dea? or su*     
surviv+ sp\se's rem>riage be=e atta9+   
age #ee4  7,b7 ,surviv+ *ild ,any       
annuity payable to a *ild "u ?is        
subsection %all be t]m9able ^u ! e>lie/ 
(-- 7i7 ! *ild atta9m5t ( age #ah1  7ii7
 ! *ild's m>riage1 or  7iii7 ! *ild's   
dea?1  except t if su* *ild is incapable
 ( self-support by reason ( m5tal or    
physical disability ! *ild's annuity    
%all be t]m9able only ^u dea?1 m>riage1 
or recov]y f su* disability4  7,c7      
,dep5d5t *ild aft] dea? ( surviv+ sp\se 
,9 case ( ! dea? ( a surviv+ sp\se ( a  
judge or magi/rate judge ( ! ,tax ,c\rt 
leav+ a dep5d5t *ild or *ildr5 ( ! judge
 or magi/rate judge ( ! ,tax ,c\rt      

surviv+ su* sp\se1 ! annuity ( su* *ild 
or *ildr5 %all be recomput$ & paid z    
provid$ 9 p>agraph 7#a77;,c74  7,d7     
,recomputation ) respect to o!r dep5d5t 
*ildr5 ,9 any case 9 :i* ! annuity ( a  
dep5d5t *ild is t]m9at$ "u ?is          
subsection1 ! annuities ( any rema9+    
dep5d5t *ild or *ildr5 bas$ ^u ! s]vice 
( ! same judge or magi/rate judge ( !   
,tax ,c\rt %all be recomput$ & paid z   
?\gh ! *ild ^: annuity 0 s t]m9at$ _h n 
surviv$ su* judge4  7,e7 ,special rule =
 assass9at$ judges ,9 ! case ( a        
survivor ( a judge or magi/rate judge ( 
! ,tax ,c\rt describ$ 9 p>agraph        
7#b77;,b71 !re %all be d$uct$ f !       
annuities o!rwise payable "u ?is section
 an am\nt equal to ! am\nt ( sal>y      
d$uctions t w\ld h be5 made if su*      
d$uctions _h be5 made = #ah mon?s prior 
to ! dea? ( ! judge or magi/rate judge (
 ! ,tax ,c\rt4  4  7b7 ,def9ition (     
assass9ation ,section #gddh7;a7 ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 

7#aj7 ,! t]ms assass9at$ & assass9ation 
mean ! kill+ ( a judge or magi/rate     
judge ( ! ,tax ,c\rt t is motivat$ by ! 
p]=mance by ! judge or magi/rate judge (
 ! ,tax ,c\rt ( 8 or h] (ficial duties4 
4  7c7 ,det]m9ation ( assass9ation      
,subsection 7i7 ( section #gddh ( !     
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7#a7 by /rik+ ( dep5d5cy &     
disability4--,que/ions & ins]t+ 8by *ief
 judge4--  7#a7 ,dep5d5cy & disability  
,que/ions  1 &  7#b7 by add+ at ! end ! 
foll[+ new p>agraph3  7#b7 ,assass9ation
 ,! *ief judge %all det]m9e :e!r ! kill+
 ( a judge or magi/rate judge ( ! ,tax  
,c\rt 0 an assass9ation1 subject to     
review only by ! ,tax ,c\rt4 ,! head (  
any ,f$]al ag5cy t inve/igates ! kill+ (
 a judge or magi/rate judge ( ! ,tax    
,c\rt %all provide to ! *ief judge any  
in=mation t w\ld assi/ ! *ief judge 9   
mak+ su* a det]m9ation4  4  7d7         
,computation ( annuities ,subsection 7m7
 ( section #gddh ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$-- 7#a7 by /rik+  

annuities4--,! annuity & ins]t+         
8annuities4--  7#a7 ,9 g5]al ,! annuity 
1  7#b7 by /rik+ ! sum ( 7#a7 #a4e p]c5t
 & ins]t+ 8! sum (--  7,a7 #a4e p]c5t  1
  7#c7 by /rik+ & 7#b7 ?ree-f\r?s ( #a  
p]c5t & ins]t+ 8&  7,b7 ?ree-f\r?s ( #a 
p]c5t  1  7#d7 by /rik+ prior all[able  
s]vice1 except t & ins]t+ 8prior        
all[able s]vice1  except t 1 &  7#e7 by 
add+ at ! end ! foll[+ new p>agraph3    
7#b7 ,assass9at$ judges & magi/rate     
judges ( ! tax c\rt ,9 ! case ( a judge 
or magi/rate judge ( ! ,tax ,c\rt :o is 
assass9at$ & :o has s]v$ less ?an #ah   
mon?s1 ! annuity ( ! surviv+ sp\se ( su*
 judge or magi/rate judge ( ! ,tax ,c\rt
 %all be bas$ ^u ! av]age annual sal>y  
receiv$ by su* judge or magi/rate judge 
( ! ,tax ,c\rt = judicial s]vice4  4    
7e7 ,o!r b5efits ,section #gddh ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7u7 ,o!r b5efits 9 case (  
assass9ation ,9 ! case ( a judge or     
magi/rate judge ( ! ,tax ,c\rt :o is    

assass9at$1 an annuity %all be paid "u  
?is section not)/&+ a survivor's        
eligibility = or receipt ( b5efits "u   
*apt] #ha ( title #e1 ,unit$ ,/ates     
,code1 except t ! annuity = :i* a       
surviv+ sp\se is eligible "u ?is section
 %all be r$uc$ to ! ext5t t ! total     
b5efits paid "u ?is section & *apt] #ha 
( t title = any ye> w\ld exce$ ! curr5t 
sal>y = t ye> ( ! (fice ( ! judge or    
magi/rate judge ( ! ,tax ,c\rt4  4      
#cjc4 ,coord9ation ( retirem5t &        
survivor annuity ) ! ,f$]al ,employees  
,retirem5t ,sy/em  7a7 ,retirem5t       
,section #gddg ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$-- 7#a7 by /rik+  
section #hcca7h7 9 subsection           
7g77#b77;,c7 & ins]t+ sections #hcca7h7 
& #hdja7ai71 &  7#b7 by /rik+ ,civil    
,s]vice ,commission bo? places x appe>s 
9 subsection 7i77#b7 & ins]t+ ,(fice (  
,p]sonnel ,managem5t4  7b7 ,annuities to
 surviv+ sp\ses & dep5d5t *ildr5        
,section #gddh ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$--  7#a7 by /rik+ 

section #hccb 9 subsection 7d7 & ins]t+ 
sections #hccb & #hdaa1 &  7#b7 by /rik+
 section #hccb 9 subsection 7n7 & ins]t+
 sections #hccb & #hdaa4  #cjd4 ,limit  
on tea*+ comp5sation ( retir$ judges    
7a7 ,9 g5]al ,section #gddg ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by add+ 
at ! end ! foll[+ new subsection3  7k7  
,tea*+ comp5sation ( retir$ judges ,=   
purposes ( ! limitation "u section      
#eja7;a7 ( ! ,e?ics 9 ,gov]nm5t ,act (  
#aigh 7#e ,u4,s4,c4 ,app471 any         
comp5sation = tea*+ approv$ "u section  
#ejb7;a77#e7 ( su* ,act %all n be treat$
 z outside e>n$ income :5 receiv$ by a  
judge ( ! ,unit$ ,/ates ,tax ,c\rt :o   
has retir$ "u subsection 7b7 = tea*+    
p]=m$ dur+ any cal5d> ye> = :i* su* a   
judge has met ! requirem5ts ( subsection
 7c71 z c]tifi$ by ! *ief judge4  4  7b7
 ,effective date ,! am5dm5t made by ?is 
section %all apply to any individual    
s]v+ z a retir$ judge ( ! ,unit$ ,/ates 
,tax ,c\rt on or aft] ! date ( !        
enactm5t ( ?is ,act4  #cje4 ,g5]al      

provisions relat+ to magi/rate judges ( 
! ,tax ,c\rt  7a7 ,title ( special trial
 judge *ang$ to magi/rate judge ( ! ,tax
 ,c\rt ,! head+ ( section #gddc;,a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ 8,special trial judges0 &      
ins]t+ ,magi/rate judges ( ! ,tax ,c\rt4
  7b7 ,appo9tm5t1 t5ure1 & removal      
,subsection 7a7 ( section #gddc;,a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7a7 ,appo9tm5t1      
t5ure1 & removal  7#a7 ,appo9tm5t ,!    
*ief judge may1 f "t to "t1 appo9t &    
reappo9t magi/rate judges ( ! ,tax ,c\rt
 = a t]m ( #h ye>s4 ,! magi/rate judges 
( ! ,tax ,c\rt %all proce$ "u su* rules 
z may be promulgat$ by ! ,tax ,c\rt4    
7#b7 ,removal  7,a7 ,9 g5]al ,except z  
provid$ 9 subp>agraph 7,b71 removal ( a 
magi/rate judge ( ! ,tax ,c\rt dur+ !   
t]m = :i* su* magi/rate judge is appo9t$
 %all be only = incompet5cy1 misconduct1
 neglect ( duty1 or physical or m5tal   
disability4 ,removal %all n occur unless
 a majority ( all ! judges ( ! ,tax     

,c\rt concur 9 ! ord] ( removal4 ,be=e  
any ord] ( removal %all be ent]$1 a full
 specification ( ! *>ges %all be furni%$
 to ! magi/rate judge ( ! ,tax ,c\rt1 & 
su* magi/rate judge %all be accord$ by !
 judges ( ! ,tax ,c\rt an opportunity to
 be he>d on ! *>ges4  7,b7 ,t]m9ation ( 
(fice ,! (fice ( a magi/rate judge ( !  
,tax ,c\rt %all be t]m9at$ if ! judges (
 ! ,tax ,c\rt det]m9e t ! s]vices p]=m$ 
by su* magi/rate judge ( ! ,tax ,c\rt   
are no long] ne$$4  4  7c7 ,sal>y       
,subsection 7d7 ( section #gddc;,a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7d7 ,sal>y ,ea*      
magi/rate judge ( ! ,tax ,c\rt %all     
receive sal>y--  7#a7 at a rate equal to
 #ib p]c5t ( ! rate = judges ( ! ,tax   
,c\rt1 &  7#b7 9 ! same in/allm5ts z su*
 judges4  4  7d7 ,exemption f ,f$]al    
leave provisions ,section #gddc;,a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7f7 ,exemption f ,f$]al    
leave provisions  7#a7 ,9 g5]al ,a      

magi/rate judge ( ! ,tax ,c\rt %all be  
exempt f ! provisions ( sub*apt] ,i (   
*apt] #fc ( title #e1 ,unit$ ,/ates     
,code4  7#b7 ,treatm5t ( unus$ leave    
7,a7 ,aft] s]vice z magi/rate judge ( ! 
,tax ,c\rt ,if an individual :o is      
exempt$ "u p>agraph 7#a7 f ! sub*apt]   
ref]r$ to 9 su* p>agraph 0 previ\sly    
subject to su* sub*apt] &1 )\t a break 9
 s]vice1 aga9 becomes subject to su*    
sub*apt] on completion ( ! individual's 
s]vice z a magi/rate judge ( ! ,tax     
,c\rt1 ! unus$ annual leave & sick leave
 /&+ to ! individual's cr$it at ! "t su*
 individual became a magi/rate judge ( !
 ,tax ,c\rt is deem$ to h rema9$ to !   
individual's cr$it4  7,b7 ,computation (
 annuity ,9 comput+ an annuity "u       
section #hcci or #hdae ( title #e1      
,unit$ ,/ates ,code1 ! total s]vice ( an
 individual specifi$ 9 subp>agraph 7,a7 
:o retires on an imm$iate annuity or    
dies leav+ a survivor or survivors      
entitl$ to an annuity includes1 )\t     
reg>d to ! limitations impos$ by        

subsection 7f7 ( section #hcci ( su*    
title #e1 ! days ( unus$ sick leave /&+ 
to ! individual's cr$it at ! "t su*     
individual became a magi/rate judge ( ! 
,tax ,c\rt1 except t su* days w n be    
c\nt$ 9 det]m9+ av]age pay or annuity   
eligibility4  7,c7 ,lump sum paym5t ,any
 accumulat$ & curr5t accru$ annual leave
 or vacation balances cr$it$ to a       
magi/rate judge ( ! ,tax ,c\rt z ( !    
date ( ! enactm5t ( ?is subsection %all 
be paid 9 a lump sum at ! "t ( sep>ation
 f s]vice pursuant to ! provisions &    
re/rictions set =? 9 section #eeea ( su*
 title #e & relat$ provisions ref]r$ to 
9 su* section4  4  7e7 ,contempt        
au?ority ,section #gddc;,a ( ! ,int]nal 
,rev5ue ,code ( #aihf1 z am5d$ by ?is   
section1 is am5d$ by add+ at ! end !    
foll[+ new subsection3  7g7 ,incid5tal  
p[]s ,a magi/rate judge ( ! ,tax ,c\rt  
appo9t$ "u ?is section %all h ! p[] to  
puni% = contempt ( ! au?ority ( ! ,tax  
,c\rt z provid$ 9 section #gdef7;c71    
except ! s5t5ce impos$ by su* a         

magi/rate judge ( ! ,tax ,c\rt = any    
contempt %all n exce$ ! p5alties = a    
,class ,c misdemeanor z set =? 9        
sections #cega7;b77#f7 & #ceha7;b77#h7 (
 title #ah1 ,unit$ ,/ates ,code4 ,?is   
subsection %all n be con/ru$ to limit ! 
au?ority ( a magi/rate judge ( ! ,tax   
,c\rt to ord] sanctions "u any o!r      
/atute or any rule ( ! ,tax ,c\rt       
prescrib$ pursuant to section #gdec4  4 
7f7 ,con=m+ am5dm5ts  7#a7 ,! head+ (   
subsection 7b7 ( section #gddc;,a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ ,special trial judges & ins]t+ 
,magi/rate judges ( ! ,tax ,c\rt4  7#b7 
,subsection 7b7 ( section #gddc;,a ( su*
 ,code is am5d$ by /rik+ special trial  
judges ( ! c\rt & ins]t+ magi/rate      
judges ( ! ,tax ,c\rt4  7#c7 ,subsection
 7c7 ( section #gddc;,a ( su* ,code is  
am5d$ by /rik+ special trial judge &    
ins]t+ magi/rate judge ( ! ,tax ,c\rt4  
7#d7 ,subsection 7e7 ( section #gddc;,a 
( su* ,code is am5d$ by /rik+ special   
trial judges & ins]t+ magi/rate judges (

 ! ,tax ,c\rt4  7#e7 ,! item relat+ to  
section #gddc;,a 9 ! table ( sections = 
"p ,i ( sub*apt] ,c ( *apt] #gf ( su*   
,code is am5d$ to read z foll[s3  ,sec4 
#gddc;,a4 ,magi/rate judges ( ! ,tax    
,c\rt4  4  7#f7 ,! head+ ( section #gddh
 ( su* ,code is am5d$ by /rik+ ,special 
trial judges& ins]t+ ,magi/rate judges (
 ! ,tax ,c\rt4  7#g7 ,section #gddh (   
su* ,code is am5d$--  7,a7 by /rik+     
special trial judge's ea* place x appe>s
 9 subsections 7a77#f71 7c77#a71 7d71 & 
7m77#a7 & ins]t+ magi/rate judge ( !    
,tax ,c\rt's1 &  7,b7 by /rik+ special  
trial judge ea* place x appe>s o!r ?an 9
 subsection 7n7 & ins]t+ magi/rate judge
 ( ! ,tax ,c\rt4  7#h7 ,subsection 7n7 (
 section #gddh ( su* ,code is am5d$ to  
read z foll[s3  7n7 ,includible s]vice  
,subject to ! provisions ( subsection   
7d71 ! ye>s ( s]vice ( a judge or       
magi/rate judge ( ! ,tax ,c\rt :i* are  
all[able z ! basis = calculat+ ! am\nt (
 ! annuity ( su* judge or magi/rate     
judge's surviv+ sp\se %all include !    

judge or magi/rate judge's ye>s (       
s]vice--  7#a7 z a judge or magi/rate   
judge ( ! ,tax ,c\rt1 a special trial   
judge ( ! ,tax ,c\rt1 or a judge ( !    
,tax ,c\rt ( ! ,unit$ ,/ates1  7#b7     
pursuant to any appo9tm5t "u section    
#gddc;,a1  7#c7 z a ,s5ator1            
,repres5tative1 ,delegate1 or ,resid5t  
,commission] 9 ,congress1  7#d7 z a     
memb] ( ! ,arm$ ,=ces ( ! ,unit$ ,/ates 
7n includ+ any s]vice = :i* cr$it is    
all[$ = purposes ( retirem5t or retir$  
pay "u any o!r provision ( law71 &  7#e7
 9 any o!r civilian s]vice )9 ! purview 
( section #hccb ( title #e1 ,unit$      
,/ates ,code4  ,= purposes ( p>agraph   
7#d71 n m ?an #e ye>s ( s]vice %all be  
tak5 into acc\nt4  4  7#i7 ,! item      
relat+ to section #gddh 9 ! table (     
sections = "p ,i ( sub*apt] ,c ( *apt]  
#gf ( su* ,code is am5d$ to read z      
foll[s3  ,sec4 #gddh4 ,annuities to     
surviv+ sp\ses & dep5d5t *ildr5 ( judges
 & magi/rate judges ( ! ,tax ,c\rt4  4  
7#aj7 ,subsection 7a7 ( section #gdef ( 

su* ,code is am5d$-- 7,a7 by /rik+      
special trial judge ea* place x appe>s &
 ins]t+ magi/rate judge1 &  7,b7 by     
/rik+ 7or by ! cl]k & ins]t+ ( ! ,tax   
,c\rt 7or by ! cl]k4  7#aa7 ,subsection 
7a7 ( section #gdff ( su* ,code is am5d$
 by /rik+ special trial judge & ins]t+  
magi/rate judge4  7#ab7 ,section        
#gdgj;,a ( su* ,code is am5d$ by /rik+  
special trial judges bo? places x appe>s
 9 subsections 7a7 & 7b7 & ins]t+       
magi/rate judges4  7#ac7 ,subp>agraph   
7,a7 ( section #gdga7;a77#b7 ( su* ,code
 is am5d$ by /rik+ special trial judges 
& ins]t+ magi/rate judges4  7#ad7       
,subsection 7c7 ( section #gdga ( su*   
,code is am5d$-- 7,a7 by /rik+ ,special 
trial judges 9 ! head+ & ins]t+         
,magi/rate judges ( ! ,tax ,c\rt1 &     
7,b7 by /rik+ special trial judges &    
ins]t+ magi/rate judges4  7g7 ,effective
 date  7#a7 ,9 g5]al ,! am5dm5ts made by
 ?is section %all apply to individuals  
s]v+ z special trial judges ( ! ,unit$  
,/ates ,tax ,c\rt on or aft] ! day be=e 

! date ( enactm5t ( ?is ,act4  7#b7     
,appo9tm5t sav+s provision ,any         
individual s]v+ z a special trial judge 
( ! ,unit$ ,/ates ,tax ,c\rt z ( ! day  
be=e ! date ( ! enactm5t ( ?is ,act %all
 be consid]$ to h be5 appo9t$ z a       
magi/rate judge ( ! ,tax ,c\rt "u       
section #gddc;,a ( ! ,int]nal ,rev5ue   
,code ( #aihf on su* date ( enactm5t1 & 
s]vice z a special trial judge ( ! ,tax 
,c\rt be=e su* date ( enactm5t %all be  
consid]$ to be s]vice z a magi/rate     
judge ( ! ,tax ,c\rt = purposes ( any   
provision ( law relat+ to l5g? ( s]vice4
  #cjf4 ,life insurance = magi/rate     
judges ( ! tax c\rt age #fe or old]     
,section #gdgb ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by /rik+ its     
judges 9 ! second s5t5ce & ins]t+ !     
judges & magi/rate judges ( ! ,tax      
,c\rt4  #cjg4 ,retirem5t & annuity      
program  7a7 ,retirem5t & annuity       
program ,"p ,i ( sub*apt] ,c ( *apt] #gf
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by ins]t+ aft] section #gddc;,a ! 

foll[+ new section3  #gddc;,b4          
,retirem5t = magi/rate judges ( ! ,tax  
,c\rt  7a7 ,retirem5t  7#a7 ,9 g5]al    
,ea* magi/rate judge ( ! ,tax ,c\rt :o  
makes an election "u ?is section %all   
receive an annuity at ! same rate & 9 ! 
same mann] z magi/rate judges ( !       
di/rict c\rts ( ! ,unit$ ,/ates pursuant
 to section #cgg ( title #bh1 ,unit$    
,/ates ,code4  7#b7 ,rules ( application
 ,= purposes ( subsection 7a71 section  
#cgg ( title #bh1 ,unit$ ,/ates ,code1  
%all be appli$ ) ! foll[+ modifications3
 7,a7 ,by sub/itut+--  7i7 magi/rate    
judge ( ! ,tax ,c\rt = judicial (ficial1
 judicial (fic]1 & magi/rate judge ea*  
place su* t]ms appe>1  7ii7 magi/rate   
judge ( ! ,tax ,c\rt's = magi/rate      
judge's ea* place x appe>s1  7iii7 *ief 
judge ( ! ,tax ,c\rt = ,adm9i/rative    
,(fice ( ! ,unit$ ,/ates ,c\rts1        
,director ( ! ,adm9i/rative ,(fice ( !  
,unit$ ,/ates ,c\rts1 ,director1 & *ief 
judge ( ! di/rict c\rt ea* place su*    
t]ms appe>1  7iv7 ,tax ,c\rt ,judicial  

,(fic]s' ,retirem5t ,fund = ,judicial   
,(fic]s' ,retirem5t ,fund ea* place x   
appe>s1  7v7 "u section #gddc;,a ( !    
,int]nal ,rev5ue ,code ( #aihf = "u     
section #fca ( ?is title 9 subsection   
7h77#b71  7vi7 "u section #gddc;,c ( !  
,int]nal ,rev5ue ,code ( #aihf = "u     
section #aee7;b71 #cge1 or #fcf7;h7 (   
?is title ea* place x appe>s 9 p>agraphs
 7#b7 & 7#c7 ( subsection 7m71 &  7vii7 
f ! date ( appo9tm5t1 = ^? individuals  
appo9t$ pursuant to section #gddc;,a ( !
 ,int]nal ,rev5ue ,code ( #aihf prior   
to1 & 9 active s]vice on1 ! date (      
enactm5t ( ! ,retirem5t ,enhancem5t &   
,sav+s ,act ( #bjai = on or aft] ,octob]
 #a1 #aigi 9 subsection 7h74  7,b7 ,by  
disreg>d+ subsection 7m77#b7 &          
subsection 7o74  7b7 #a-,ye> =feiture = 
failure ,to p]=m judicial duties        
,subject to subp>agraph 7,b7 ( section  
#cgg7m77#a7 ( title #bh1 ,unit$ ,/ates  
,code1 any magi/rate judge ( ! ,tax     
,c\rt :o retires "u ?is section & :o    
fails to p]=m judicial duties requir$ ( 

su* individual by section #gddc;,c %all 
=feit all rights to an annuity "u ?is   
section = a #a-ye> p]iod :i* beg9s on ! 
fir/ day on :i* su* individual fails to 
p]=m su* duties4  7c7 ,tax ,c\rt        
,judicial ,(fic]s' ,retirem5t ,fund     
7#a7 ,e/abli%m5t ,!re is e/abli%$ 9 !   
,treasury ( ! ,unit$ ,/ates a fund :i*  
%all be kn[n z ! ,tax ,c\rt ,judicial   
,(fic]s' ,retirem5t ,fund4 ,! ,fund is  
appropriat$ = ! paym5t ( annuities1     
refunds1 & o!r paym5ts "u ?is section4  
7#b7 ,inve/m5t ( ,fund ,! ,secret>y %all
 inve/1 9 int]e/-be>+ securities ( !    
,unit$ ,/ates1 su* curr5tly available   
portions ( ! ,tax ,c\rt ,judicial       
,(fic]s' ,retirem5t ,fund z are n       
imm$iately requir$ = paym5ts f ! ,fund4 
,! income d]iv$ f ^! inve/m5ts          
con/itutes a "p ( ! ,fund4  7#c7        
,unfund$ liability  7,a7 ,9 g5]al ,n    
lat] ?an ! close ( ea* fiscal ye>1 !re  
%all be deposit$ 9 ! ,tax ,c\rt         
,judicial ,(fic]s' ,retirem5t ,fund     
am\nts requir$ to r$uce to z]o ! unfund$

 liability1 if any1 ( su* ,fund4  7,b7  
,unfund$ liability ,= purposes (        
subp>agraph 7,a71 ! t]m unfund$         
liability means ! am\nt e/imat$ by !    
,secret>y to be equal to ! excess 7z ( !
 close ( ! fiscal ye> involv$7 (-- 7i7 !
 pres5t value ( all b5efits payable f ! 
,tax ,c\rt ,judicial ,(fic]s' ,retirem5t
 ,fund1 ov]  7ii7 ! sum (-- 7,i7 !      
pres5t value ( future d$uctions to be   
)held "u ?is section f ! basic pay (    
magi/rate judges ( ! ,tax ,c\rt1 plus   
7,,ii7 ! balance 9 su* ,fund z ( ! close
 ( su* fiscal ye>4  7d7 ,p>ticipation 9 
,?rift ,sav+s ,plan  7#a7 ,election to  
contribute ,a magi/rate judge ( ! ,tax  
,c\rt may elect to contribute out ( su* 
individual's basic pay to ! ,?rift      
,sav+s ,fund e/abli%$ by section #hdcg (
 title #e1 ,unit$ ,/ates ,code4  7#b7   
,applicability ( title #e provisions    
,except z o!rwise provid$ 9 ?is         
subsection1 ! provisions ( sub*apt]s    
,,iii & ,,vii ( *apt] #hd ( su* title #e
 %all apply ) respect to a magi/rate    

judge ( ! ,tax ,c\rt :o makes an        
election "u p>agraph 7#a74  7#c7        
,special rules  7,a7 ,am\nt contribut$  
,! am\nt contribut$ by a magi/rate judge
 ( ! ,tax ,c\rt to ! ,?rift ,sav+s ,plan
 9 any pay p]iod %all n exce$ ! maximum 
p]c5tage ( su* magi/rate judge's basic  
pay = su* p]iod z all[able "u section   
#hddj;f ( su* title #e4  7,b7           
,contributions = b5efit ( magi/rate     
judge ( ! ,tax ,c\rt ,no contributions  
"u section #hdcb7;c7 ( su* title #e %all
 be made = ! b5efit ( a magi/rate judge 
( ! ,tax ,c\rt :o has fil$ an election  
to receive an annuity "u ?is section4   
7,c7 ,applicability ( rules relat+ to   
annuity ( a *ild ,section #hdcc7;b7 (   
su* title #e applies ) respect to a     
magi/rate judge ( ! ,tax ,c\rt :o makes 
an election "u p>agraph 7#a7 & :o--  7i7
 retires entitl$ to an imm$iate annuity 
"u ?is section 7includ+ a disability    
annuity "u ?is section71  7ii7 retires  
be=e atta9+ age #fe b is entitl$1 ^u    
atta9+ age #fe1 to an annuity "u ?is    

section1 or  7iii7 retires be=e becom+  
entitl$ to an imm$iate annuity1 or an   
annuity ^u atta9+ age #fe1 "u ?is       
section4  7,d7 ,retirem5t z sep>ation f 
s]vice ,) respect to a magi/rate judge (
 ! ,tax ,c\rt to :om ?is subsection     
applies1 retirem5t "u ?is section is a  
sep>ation f s]vice = purposes (         
sub*apt]s ,,iii & ,,vii ( *apt] #hd (   
su* title #e4  7#d7 ,def9itions ,=      
purposes ( ?is subsection1 ! t]ms       
retirem5t & retire include removal f    
(fice "u section #gddc;,a7a77#b7 on !   
sole gr\nd ( m5tal or physical          
disability4  7#e7 ,(fset ,9 ! case ( a  
magi/rate judge ( ! ,tax ,c\rt :o       
receives a di/ribution f ! ,?rift ,sav+s
 ,plan & :o lat] receives an annuity "u 
?is section1 ! annuity %all be (fset by 
an am\nt equal to ! am\nt :i* repres5ts 
! ,gov]nm5t's contribution to !         
individual's ,?rift ,sav+s ,acc\nt dur+ 
ye>s ( s]vice z a full-"t judicial (fic]
 "u ! ,f$]al ,employees ,retirem5t      
,sy/em1 )\t reg>d to e>n+s attributable 

to su* am\nt4 ,:]e su* an (fset w\ld    
exce$ #ej p]c5t ( ! annuity to be       
receiv$ 9 ! fir/ ye>1 ! (fset may be    
divid$ equally ov] ! fir/ #b ye>s 9 :i* 
! individual receives ! annuity4  7#f7  
,exception ,not)/&+ clauses 7i7 & 7ii7 (
 p>agraph 7#c77;,c71 if any magi/rate   
judge ( ! ,tax ,c\rt retires "u         
circum/ances mak+ su* magi/rate judge ( 
! ,tax ,c\rt eligible to make an        
election "u subsection 7b7 ( section    
#hdcc ( su* title #e1 & ! non=feitable  
acc\nt balance ( su* magi/rate judge ( !
 ,tax ,c\rt is less ?an an am\nt :i* !  
,executive ,director ( ! ,(fice (       
,p]sonnel ,managem5t prescribes by      
regulation1 ! ,executive ,director %all 
pay ! non=feitable acc\nt balance to !  
p>ticipant 9 a s+le paym5t4  7e7        
,coord9ation ) title #e ,a magi/rate    
judge ( ! ,tax ,c\rt :o elects to       
receive an annuity "u ?is section--     
7#a7 %all n be subject to d$uctions &   
contributions o!rwise requir$ by section
 #hccd7;a7 ( title #e ,unit$ ,/ates     

,code1  7#b7 %all be exclud$ f !        
application ( *apt] #hd 7o!r ?an        
sub*apt]s ,,iii & ,,vii7 ( su* title #e1
 &  7#c7 is entitl$ to a lump-sum cr$it 
"u section #hcdb7;a7 or #hdbd ( su*     
title #e1 z ! case may be4  4  7b7      
,con=m+ am5dm5ts  7#a7 ,section         
#caba7;b77#e77;,e7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by ins]t+ or     
magi/rate judge be=e ( ! ,unit$ ,/ates  
,tax ,c\rt4  7#b7 ,section              
#baj7;a77#e77;,e7 ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #daj7;a77#e77;,e77  
is am5d$ by ins]t+ or a magi/rate judge 
( ! ,tax ,c\rt :o files an election "u  
section #gddc;,b7a7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf aft] ( ! ,unit$ ,/ates   
,tax ,c\rt4  7#c7 ,section #gddh7;b77#b7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ to read z foll[s3  7#b7 ,magi/rate
 judges ( ! ,tax ,c\rt ,any magi/rate   
judge ( ! ,tax ,c\rt may by writt5      
election fil$ ) ! *ief judge br+ himself
 or h]self )9 ! purview ( ?is section4  
,su* election %all be fil$ :ile su*     

individual is a magi/rate judge ( ! ,tax
 ,c\rt4  4  7c7 ,cl]ical am5dm5t ,!     
table ( sections = "p ,i ( sub*apt] ,c (
 *apt] #gf ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ by ins]t+ aft] ! item    
relat+ to section #gddc;,a ! foll[+ new 
item3  ,sec4 #gddc;,b4 ,retirem5t =     
magi/rate judges ( ! ,tax ,c\rt4  4  7d7
 ,effective date ,! am5dm5ts made by ?is
 section %all take effect on ! date ( ! 
enactm5t ( ?is ,act4  #cjh4 ,provisions 
= recall  7a7 ,9 g5]al ,"p ,i ( sub*apt]
 ,c ( *apt] #gf ( ! ,int]nal ,rev5ue    
,code ( #aihf1 z am5d$ by section #cjg1 
is am5d$ by ins]t+ aft] section #gddc;,b
 ! foll[+ new section3  #gddc;,c4       
,recall ( magi/rate judges ( ! ,tax     
,c\rt  7a7 ,recall+ ( retir$ magi/rate  
judges ( ! ,tax ,c\rt ,any individual :o
 has retir$ pursuant to section #gddc;,b
 or ! applicable provisions ( title #e  
or #bh1 ,unit$ ,/ates ,code1 ^u rea*+ ! 
age & s]vice requirem5ts e/abli%$ "u su*
 titles #e & #bh1 may be call$ ^u by !  
*ief judge to p]=m su* judicial duties )

 ! ,tax ,c\rt z may be reque/$ ( su*    
individual = a p]iod or p]iods specifi$ 
by ! *ief judge1 except t 9 ! case ( any
 su* individual-- 7#a7 ! aggregate ( su*
 p]iods 9 any #a cal5d> ye> %all n 7)\t 
! cons5t ( su* individual7 exce$ #ij    
cal5d> days1 &  7#b7 su* individual %all
 be reliev$ ( p]=m+ su* duties dur+ any 
p]iod 9 :i* illness or disability       
precludes ! p]=mance ( su* duties4  ,any
 act1 or failure to act1 by an          
individual p]=m+ judicial duties        
pursuant to ?is subsection %all h ! same
 =ce & effect z if x 7 ! act 7or failure
 to act7 ( a magi/rate judge ( ! ,tax   
,c\rt4  7b7 ,comp5sation ,= ! ye> 9 :i* 
a p]iod ( recall occurs1 ! magi/rate    
judge ( ! ,tax ,c\rt %all receive1 9    
addition to ! annuity provid$ "u !      
provisions ( section #gddc;,b1 an am\nt 
equal to ! diff]5ce betwe5 t annuity & !
 curr5t sal>y ( ! (fice to :i* !        
magi/rate judge ( ! ,tax ,c\rt is       
recall$ 7& all[ances = travel & o!r     
exp5ses ( ! magi/rate judge ( ! ,tax    

,c\rt74 ,! annuity = ye>s aft] ! ye> 9  
:i* a p]iod ( recall occurs ( !         
magi/rate judge ( ! ,tax ,c\rt :o       
completes su* a p]iod ( s]vice1 :o is n 
recall$ 9 a subsequ5t ye>1 & :o retir$  
"u section #gddc;,b1 %all be equal to ! 
sal>y 9 effect at ! end ( ! ye> 9 :i* ! 
p]iod ( recall occurr$ = ! (fice f :i*  
su* magi/rate judge ( ! ,tax ,c\rt      
retir$4  7c7 ,rulemak+ au?ority ,!      
provisions ( ?is section %all be        
implem5t$ "u su* rules & regulations z  
may be promulgat$ by ! ,tax ,c\rt4  4   
7b7 ,cl]ical am5dm5t ,! table ( sections
 = "p ,i ( sub*apt] ,c ( *apt] #gf ( !  
,int]nal ,rev5ue ,code ( #aihf1 z am5d$ 
by section #cjg1 is am5d$ by ins]t+ aft]
 ! item relat+ to section #gddc;,b !    
foll[+ new item3  ,sec4 #gddc;,c4       
,recall ( magi/rate judges ( ! ,tax     
,c\rt4  4  ,,iv ,o!r ,b5efits  #dja4    
,b5efits provid$ to volunte] firefight]s
 & em]g5cy m$ical respond]s  7a7        
,increase 9 doll> limitation on qualifi$
 paym5ts ,subp>agraph 7,b7 ( section    

#aci;,b7c77#b7 ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by /rik+ #cj &   
ins]t+ #ej4  7b7 ,ext5sion ,subsection  
7d7 ( section #aci;,b ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
beg9n+ aft] ,decemb] #ca1 #bjaj4 &      
ins]t+ 8beg9n+--  7#a7 aft] ,decemb]    
#ca1 #bjaj1 & be=e ,janu>y #a1 #bjbj1 or
  7#b7 aft] ,decemb] #ca1 #bjbj4  4  7c7
 ,te*nical correction ,section          
#aci;,b7b77#a7 ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by ins]t+ section
 be=e #afd4  7d7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjai4  ,v ,rev5ue ,provisions     
#eja4 ,modifications ( requir$          
di/ribution rules = def9$ contribution  
acc\nts & plans  7a7 ,modification (    
rules :]e employee dies be=e entire     
di/ribution  7#a7 ,9 g5]al ,section     
#dja7;a77#i7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+ new subp>agraph3  7,h7 ,special  
rules = c]ta9 def9$ contribution plans  

7i7 ,9 g5]al ,9 ! case ( di/ributions f 
a def9$ contribution plan1 a tru/ =m+ "p
 ( su* plan %all n con/itute a qualifi$ 
tru/ "u ?is section unless ! plan       
provides t1 if an employee dies be=e !  
di/ribution ( ! employee's int]e/ 7:e!r 
or n su* di/ribution has begun 9        
accordance ) subp>agraph 7,a771 s mu* ( 
! entire int]e/ ( any designat$         
b5efici>y ( ! employee z exce$s #djj1jjj
 7z ( ! date ( ! dea? ( ! employee7 w be
 di/ribut$ )9 #e ye>s aft] ! dea? ( su* 
employee4  7ii7 ,annual allocation (    
limitation ,if a p]son is a designat$   
b5efici>y "u m ?an #a def9$ contribution
 plan dur+ any cal5d> ye>1 ! limitation 
"u clause 7i7-- 7,i7 %all only apply )  
respect to int]e/s acquir$ by su*       
b5efici>y dur+ ! cal5d> ye> by reason ( 
! dea? ( ano!r individual1  7,,ii7 %all 
be appli$ by aggregat+ ea* su* int]e/ z 
( ! date ( ! dea? ( ! individual :o     
designat$ su* b5efici>y1 &  7,,iii7 %all
 be allocat$ among ea* su* int]e/ on a  
pro rata basis det]m9$ by ! relative    

size ( ea* su* plan or acc\nt1 or z     
o!rwise provid$ 9 regulations prescrib$ 
by ! ,secret>y4  7iii7 ,treatm5t (      
rema9+ am\nt ,! me?od ( di/ribution &   
p]iod ( "t ov] :i* any portion ( !      
int]e/ ( ! designat$ b5efici>y to :i*   
clause 7i7 does n apply is di/ribut$    
%all be det]m9$ )\t reg>d to ! portion (
 ! designat$ b5efici>y's int]e/         
di/ribut$ "u clause 7i74  7iv7          
,exception = eligible designat$         
b5efici>ies ,if--  7,i7 any portion ( ! 
employee's int]e/ is payable to 7or = ! 
b5efit (7 an eligible designat$         
b5efici>y1  7,,ii7 su* portion w be     
di/ribut$ 79 accordance ) regulations7  
ov] ! life ( su* eligible designat$     
b5efici>y 7or ov] a p]iod n ext5d+      
beyond ! life expectancy ( su*          
b5efici>y71 &  7,,iii7 su* di/ributions 
beg9 n lat] ?an #a ye> aft] ! date ( !  
employee's dea? or su* lat] date z !    
,secret>y may by regulations prescribe1 
= purposes ( clause 7i71 ! portion      
ref]r$ to 9 subclause 7,i7 %all be      

treat$ z di/ribut$ on ! date on :i* su* 
di/ributions beg94  7v7 ,special rule = 
surviv+ sp\se ( employee ,if ! eligible 
designat$ b5efici>y is ! surviv+ sp\se (
 ! employee--  7,i7 ! date on :i* !     
di/ributions are requir$ to beg9 "u     
clause 7iv77,,iii7 %all n be e>li] ?an !
 date on :i* ! employee w\ld h atta9$   
age #gj1 &  7,,ii7 if ! surviv+ sp\se   
dies be=e ! di/ributions to su* sp\se   
beg91 ?is subp>agraph %all be appli$ z  
if ! surviv+ sp\se 7 ! employee4  7vi7  
,rules ^u dea? ( eligible designat$     
b5efici>y ,if an eligible designat$     
b5efici>y dies be=e ! portion ( !       
employee's int]e/ to :i* clause 7i7     
applies :i* is payable to 7or = ! b5efit
 (7 su* eligible designat$ b5efici>y is 
entirely di/ribut$1 ! exception "u      
clause 7iv7 %all n apply to any         
b5efici>y ( su* eligible designat$      
b5efici>y & ! rema9d] ( su* portion %all
 be di/ribut$ )9 #e ye>s aft] ! dea? (  
su* eligible designat$ b5efici>y4  7vii7
 ,safe h>bor = plan adm9i/rator reliance

 on designat$ b5efici>y c]tification ,a 
def9$ contribution plan %all n be treat$
 z fail+ to meet ! requirem5ts ( ?is    
p>agraph 9 ! case ( any failure to make 
a requir$ m9imum di/ribution = a cal5d> 
ye> if--  7,i7 ! aggregate value ( a    
designat$ b5efici>y's entire int]e/     
acquir$ by su* b5efici>y dur+ ! cal5d>  
ye> "u all su* plans ( ! employ] by     
reason ( ! dea? ( ! employee does n     
exce$ ! doll> am\nt 9 effect = su* ye>  
"u clause 7i71 &  7,,ii7 ! designat$    
b5efici>y c]tifies1 )9 #a ye> aft] !    
dea? ( ! employee f :om ! b5efici>y     
acquir$ ! int]e/1 t ! aggregate value ( 
! designat$ b5efici>y's entire int]e/   
acquir$ by su* b5efici>y dur+ ! cal5d>  
ye> "u all def9$ contribution plans by  
reason ( ! dea? ( ano!r individual does 
n exce$ ! doll> am\nt 9 effect = su* ye>
 "u clause 7i74  ,= purposes ( ?is      
clause1 ! value ( any int]e/ %all be    
det]m9$ z ( ! date ( ! dea? ( !         
individual f :om ! b5efici>y acquir$ su*
 int]e/1 & all employ]s treat$ z a s+le 

employ] "u subsection 7b71 7c71 7m71 or 
7o7 ( section #dad %all be treat$ z a   
s+le employ]4  7viii7 ,application to   
eligible retirem5t plans ,= purposes (  
apply+ ! provisions ( ?is subp>agraph & 
subsections 7a77#f7 & 7b77#c7 ( section 
#djh1 all eligible retirem5t plans 7z   
def9$ 9 section #djb7;c77#h77;,b77 o!r  
?an def9$ b5efit plans %all be treat$ z 
def9$ contribution plans 9 det]m9+ !    
aggregate acc\nt balances to ! cr$it ( !
 designat$ b5efici>y "u all def9$       
contribution plans & ! am\nt requir$ to 
be di/ribut$ to ea* b5efici>y "u su*    
provisions4  7ix7 ,adju/m5t = inflation 
,9 ! case ( any taxable ye> beg9n+ aft] 
#bjbj1 ! #djj1jjj am\nt 9 clause 7i7    
%all be increas$ by an am\nt equal to-- 
7,i7 su* doll> am\nt1 multipli$ by      
7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u 
section #a7;f77#c7 = ! cal5d> ye> 9 :i* 
! taxable ye> beg9s1 det]m9$ by         
sub/itut+ cal5d> ye> #bjai = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  ,if 
any am\nt z adju/$ "u ! prec$+ s5t5ce is

 n a multiple ( #ejj1 su* am\nt %all be 
r\nd$ to ! next l[e/ multiple ( #ejj4  4
  7#b7 ,def9ition ( eligible designat$  
b5efici>y ,section #dja7;a77#i77;,e7 (  
su* ,code is am5d$ to read z foll[s3    
7,e7 ,def9itions & rules relat+ to      
designat$ b5efici>y ,= purposes ( ?is   
p>agraph--  7i7 ,designat$ b5efici>y ,! 
t]m designat$ b5efici>y means any       
individual designat$ z a b5efici>y by ! 
employee4  7ii7 ,eligible designat$     
b5efici>y ,! t]m eligible designat$     
b5efici>y means1 ) respect to any       
employee1 any designat$ b5efici>y :o    
is--  7,i7 ! surviv+ sp\se ( ! employee1
  7,,ii7 subject to clause 7iii71 a *ild
 ( ! employee :o has n rea*$ majority   
7)9 ! mean+ ( subp>agraph 7,f771        
7,,iii7 disabl$ 7)9 ! mean+ ( section   
#gb7m77#g771  7,,iv7 a *ronically ill   
individual 7)9 ! mean+ ( section        
#ggjb;,b7c77#b71 except t ! requirem5ts 
( subp>agraph 7,a77i7 !re( %all only be 
treat$ z met if !re is a c]tification t1
 z ( su* date1 ! p]iod ( inability      

describ$ 9 su* subp>agraph ) respect to 
! individual is an indef9ite "o :i* is  
reasonably expect$ to be l5g?y 9        
nature71 or  7,v7 an individual n       
describ$ 9 any ( ! prec$+ subclauses :o 
is n m ?an #aj ye>s y\ng] ?an !         
employee4  7iii7 ,special rule = *ildr5 
,subject to subp>agraph 7,f71 an        
individual describ$ 9 clause 7ii77,,ii7 
%all cease to be an eligible designat$  
b5efici>y z ( ! date ! individual rea*es
 majority & any rema9d] ( ! portion ( ! 
int]e/ describ$ 9 subp>agraph 7,h77iv7  
:i* exce$s ! am\nt 9 effect "u          
subp>agraph 7,h77i7 z ( su* date %all be
 di/ribut$ )9 #e ye>s aft] su* date4    
7iv7 ,"t = det]m9ation ( eligible       
designat$ b5efici>y ,! det]m9ation (    
:e!r a designat$ b5efici>y is an        
eligible designat$ b5efici>y %all be    
made z ( ! date ( dea? ( ! employee4  4 
7#c7 ,con=m+ am5dm5ts  7,a7 ,clause 7ii7
 ( section #dja7;a77#i77;,b7 ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ ,a tru/ & ins]t+ ,except z     

provid$ 9 subp>agraph 7,h71 a tru/4     
7,b7 ,section #djb7;c77#aa77;,a77iii7 ( 
su* ,code is am5d$ by /rik+ section     
#dja7;a77#i77;,b7 7o!r ?an clause 7iv7  
!re(7 & ins]t+ subp>agraphs 7,b7 7o!r   
?an clause 7iv7 !re(7 & 7,h7 7o!r ?an   
clause 7v7 !re(7 ( section #dja7;a77#i74
  7#d7 ,effective dates  7,a7 ,9 g5]al  
,except z provid$ 9 ?is p>agraph &      
p>agraphs 7#e7 & 7#f71 ! am5dm5ts made  
by ?is subsection %all apply to         
di/ributions ) respect to employees :o  
die aft] ,decemb] #ca1 #bjai4  7,b7     
,collective b>ga9+ exception ,9 ! case (
 a plan ma9ta9$ pursuant to "o or m     
collective b>ga9+ agreem5ts betwe5      
employee repres5tatives & "o or m       
employ]s ratifi$ be=e ! date ( !        
enactm5t ( ?is ,act1 ! am5dm5ts made by 
?is subsection %all apply to            
di/ributions ) respect to employees :o  
die 9 cal5d> ye>s beg9n+ aft] ! e>li]   
(-- 7i7 ! lat] (--  7,i7 ! date on :i* !
 la/ ( su* collective b>ga9+ agreem5ts  
t]m9ates 7det]m9$ )\t reg>d to any      

ext5sion !re( agre$ to on or aft] ! date
 ( ! enactm5t ( ?is ,act71 or  7,,ii7   
,decemb] #ca1 #bjai1 or  7ii7 ,decemb]  
#ca1 #bjba4  ,= purposes ( clause       
7i77,i71 any plan am5dm5t made pursuant 
to a collective b>ga9+ agreem5t relat+  
to ! plan :i* am5ds ! plan solely to    
con=m to any requirem5t add$ by ?is     
section %all n be treat$ z a t]m9ation (
 su* collective b>ga9+ agreem5t4  7,c7  
,gov]nm5tal plans ,9 ! case ( a         
gov]nm5tal plan 7z def9$ 9 section      
#dad7;d7 ( ! ,int]nal ,rev5ue ,code (   
#aihf71 subp>agraph 7,a7 %all be appli$ 
by sub/itut+ ,decemb] #ca1 #bjba =      
,decemb] #ca1 #bjai4  7#e7 ,exception = 
c]ta9 exi/+ annuity contracts  7,a7 ,9  
g5]al ,! am5dm5ts made by ?is subsection
 %all n apply to a qualifi$ annuity :i* 
is a b9d+ annuity contract 9 effect on !
 date ( enactm5t ( ?is ,act & at all    
times !reaft]4  7,b7 ,qualifi$ annuity  
,= purposes ( ?is p>agraph1 ! t]m       
qualifi$ annuity means1 ) respect to an 
employee1 an annuity--  7i7 :i* is a    

comm]cial annuity 7z def9$ 9 section    
#cdje7;e77#f7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf71  7ii7 "u :i* ! annuity       
paym5ts are made ov] ! life ( ! employee
 or ov] ! jo9t lives ( su* employee & a 
designat$ b5efici>y 7or ov] a p]iod n   
ext5d+ beyond ! life expectancy ( su*   
employee or ! jo9t life expectancy ( su*
 employee & a designat$ b5efici>y7 9    
accordance ) ! regulations describ$ 9   
section #dja7;a77#i77;,a77ii7 ( su*     
,code 7z 9 effect be=e su* am5dm5ts7 &  
:i* meets ! o!r requirem5ts ( section   
#dja7;a77#i7 ( su* ,code 7z s 9 effect7 
) respect to su* paym5ts1 &  7iii7 )    
respect to :i*-- 7,i7 annuity paym5ts to
 ! employee h begun be=e ! date ( !     
enactm5t ( ?is ,act1 & ! employee has   
made an irrevocable election be=e su*   
date z to ! me?od & am\nt ( ! annuity   
paym5ts to ! employee or any designat$  
b5efici>ies1 or  7,,ii7 if subclause    
7,i7 does n apply1 ! employee has made  
an irrevocable election be=e ! date ( ! 
enactm5t ( ?is ,act z to ! me?od & am\nt

 ( ! annuity paym5ts to ! employee or   
any designat$ b5efici>ies4  7#f7        
,exception = c]ta9 b5efici>ies  7,a7 ,9 
g5]al ,if an employee dies be=e !       
effective date1 !n1 9 apply+ ! am5dm5ts 
made by ?is subsection to su* employee's
 designat$ b5efici>y :o dies aft] su*   
date--  7i7 su* am5dm5ts %all apply to  
any b5efici>y ( su* designat$ b5efici>y1
 &  7ii7 ! designat$ b5efici>y %all be  
treat$ z an eligible designat$ b5efici>y
 = purposes ( apply+ section            
#dja7;a77#i77;,h77iv7 ( ! ,int]nal      
,rev5ue ,code ( #aihf 7z 9 effect aft]  
su* am5dm5ts74  7,b7 ,effective date ,= 
purposes ( ?is p>agraph1 ! t]m effective
 date means ! fir/ day ( ! fir/ cal5d>  
ye> to :i* ! am5dm5ts made by ?is       
subsection apply to a plan ) respect to 
employees dy+ on or aft] su* date4  7b7 
,provisions relat+ to plan am5dm5ts     
7#a7 ,9 g5]al ,if ?is subsection applies
 to any plan am5dm5t--  7,a7 su* plan   
%all be treat$ z be+ op]at$ 9 accordance
 ) ! t]ms ( ! plan dur+ ! p]iod describ$

 9 p>agraph 7#b77;,b77i71 &  7,b7 except
 z provid$ by ! ,secret>y ( ! ,treasury 
7or su* ,secret>y's delegate71 su* plan 
%all n fail to meet ! requirem5ts (     
section #daa7;d77#f7 ( ! ,int]nal       
,rev5ue ,code ( #aihf & section #bjd7;g7
 ( ! ,employee ,retirem5t ,income       
,security ,act ( #aigd by reason ( su*  
am5dm5t4  7#b7 ,am5dm5ts to :i*         
subsection applies  7,a7 ,9 g5]al ,?is  
subsection %all apply to any am5dm5t to 
any plan :i* is made-- 7i7 pursuant to  
any am5dm5t made by ?is section or      
pursuant to any regulation issu$ by !   
,secret>y ( ! ,treasury 7or delegate7 "u
 ?is section or su* am5dm5ts1 &  7ii7 on
 or be=e ! la/ day ( ! fir/ plan ye>    
beg9n+ aft] ,decemb] #ca1 #bjba1 or su* 
lat] date z ! ,secret>y ( ! ,treasury   
7or delegate7 may prescribe4  ,9 ! case 
( a gov]nm5tal or collectively b>ga9$   
plan to :i* subp>agraph 7,b7 or 7,c7 (  
subsection 7a77#d7 applies1 clause 7ii7 
%all be appli$ by sub/itut+ ! date :i*  
is #b ye>s aft] ! date o!rwise appli$ "u

 su* clause4  7,b7 ,conditions ,?is     
subsection %all n apply to any am5dm5t  
unless--  7i7 dur+ ! p]iod-- 7,i7 beg9n+
 on ! date ! legislative or regulatory  
am5dm5t describ$ 9 subp>agraph 7,a77i7  
takes effect 7or 9 ! case ( a plan      
am5dm5t n requir$ by su* legislative or 
regulatory am5dm5t1 ! effective date    
specifi$ by ! plan71 &  7,,ii7 end+ on !
 date describ$ 9 subp>agraph 7,a77ii7   
7or1 if e>li]1 ! date ! plan am5dm5t is 
adopt$71  ! plan is op]at$ z if su* plan
 am5dm5t 7 9 effect2 &  7ii7 su* plan   
am5dm5t applies retroactively = su*     
p]iod4  7c7 ,plan adm9i/rator report+   
7#a7 ,9 g5]al ,section #fjdg ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by r$esignat+ subsection 7h7 z          
subsection 7i7 & by ins]t+ aft]         
subsection 7g7 ! foll[+ new subsection3 
7h7 ,acc\nt balance = designat$         
b5efici>ies ( deceas$ p>ticipants  7#a7 
,9 g5]al ,n lat] ?an ,janu>y #ca ( ea*  
ye>1 ! plan adm9i/rator 7z def9$ 9      
section #dad7;g77 ( ea* eligible        

retirem5t plan 7z def9$ 9 section       
#djb7;c77#h77;,b77 o!r ?an a def9$      
b5efit plan %all make a return to !     
,secret>y ) respect to ea* designat$    
b5efici>y ( a deceas$ p>ticipant ( su*  
plan4 ,su* return %all /ate ! foll[+3   
7,a7 ! "n & plan numb] ( ! plan1  7,b7 !
 "n & address ( ! plan adm9i/rator1     
7,c7 ! "n1 address1 & taxpay]           
id5tification numb] ( ! designat$       
b5efici>y1  7,d7 ! acc\nt balance 7or   
portion ( ! int]e/ !re97 ( su* designat$
 b5efici>y z ( ! end ( su* prec$+ cal5d>
 ye> 7& 9 ! case su* prec$+ ye> is ! ye>
 ( ! dea? ( ! p>ticipant1 z ( ! date (  
su* dea?71 &  7,e7 ! am\nt ( ! acc\nt   
balance 7or portion ( ! int]e/ !re97    
describ$ 9 subp>agraph 7,d7 :i* is      
attributable to ! portion ( ! acc\nt    
balance :i* did n exce$ ! am\nt 9 effect
 "u section #dja7;a77#i77;,h77i7 z ( !  
date ( su* dea?1 & ! am\nt ( su* acc\nt 
balance 7or portion ( ! int]e/ !re971 if
 any1 :i* is attributable to ! portion (
 ! acc\nt balance :i* exce$$ su* am\nt z

 ( ! date ( su* dea?4  7#b7 ,/atem5t    
furni%$ to designat$ b5efici>y ,e p]son 
requir$ to make a return "u p>agraph    
7#a7 ) respect to a designat$ b5efici>y 
%all furni% a copy ( su* return to su*  
designat$ b5efici>y4  7#c7 ,application 
to individual retirem5t plans &         
annuities ,9 ! case ( an eligible       
retirem5t plan describ$ 9 clause 7i7 or 
7ii7 ( section #djb7;c77#h77;,b7-- 7,a7 
any ref]5ce 9 ?is subsection to ! plan  
adm9i/rator %all be treat$ z a ref]5ce  
to ! tru/ee or issu]1 z ! case may be1 &
  7,b7 any ref]5ce 9 ?is subsection to !
 p>ticipant %all be treat$ z a ref]5ce  
to ! individual = :om su* acc\nt or     
annuity is ma9ta9$4  4  7#b7 ,effective 
date ,! am5dm5ts made by ?is subsection 
%all apply to cal5d> ye>s beg9n+ aft]   
,decemb] #ca1 #bjbj1 ) respect to       
designat$ b5efici>ies ( p>ticipants ^:  
date ( dea? is aft] ,decemb] #ca1 #bjai4
  #ejb4 ,increase 9 p5alty = failure to 
file  7a7 ,9 g5]al ,! second s5t5ce (   
subsection 7a7 ( section #ffea ( !      

,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ #bje & ins]t+ #djj4  7b7       
,adju/m5t = inflation ,p>agraph 7#a7 (  
section #ffea7;j7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$--  7#a7 by /rik+ 
#bje & ins]t+ #djj1  7#b7 by /rik+ #bjad
 & ins]t+ #bjbj1 &  7#c7 by /rik+ cal5d>
 ye> #bjac & ins]t+ cal5d> ye> #bjai4   
7c7 ,effective date ,! am5dm5t made by  
?is section %all apply to returns ! due 
date = :i* 7includ+ ext5sions7 is aft]  
,decemb] #ca1 #bjai4  #ejc4 ,increas$   
p5alties = failure to file retirem5t    
plan returns  7a7 ,9 g5]al ,subsection  
7e7 ( section #ffeb ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$-- 7#a7 by /rik+ 
#be & ins]t+ #ajj1 &  7#b7 by /rik+     
#ae1jjj & ins]t+ #ej1jjj4  7b7 ,annual  
regi/ration /atem5t & notification (    
*anges ,subsection 7d7 ( section #ffeb (
 ! ,int]nal ,rev5ue ,code ( #aihf is    
am5d$--  7#a7 by /rik+ #a bo? places x  
appe>s 9 p>agraphs 7#a7 & 7#b7 & ins]t+ 
#b1  7#b7 by /rik+ #e1jjj 9 p>agraph    
7#a7 & ins]t+ #aj1jjj1 &  7#c7 by /rik+ 

#a1jjj 9 p>agraph 7#b7 & ins]t+ #e1jjj4 
7c7 ,failure ,to provide notice         
,subsection 7h7 ( section #ffeb ( !     
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7#a7 by /rik+ #aj & ins]t+     
#ajj1 &  7#b7 by /rik+ #e1jjj & ins]t+  
#ej1jjj4  7d7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
to returns1 /atem5ts1 & notifications   
requir$ to be fil$1 & notices requir$ to
 be provid$1 aft] ,decemb] #ca1 #bjai4  
#ejd4 ,increase in=mation %>+ to adm9i/]
 excise taxes  7a7 ,9 g5]al ,section    
#fajc7o7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#c7 ,taxes impos$ by   
section #ddha ,returns & return         
in=mation ) respect to taxes impos$ by  
section #ddha %all be op5 to inspection 
by or disclosure to (fic]s & employees (
 ,unit$ ,/ates ,cu/oms & ,bord]         
,protection ( ! ,dep>tm5t ( ,homel&     
,security ^: (ficial duties require su* 
inspection or disclosure = purposes (   
adm9i/]+ su* section4  4  7b7 ,con=m+   

am5dm5ts ,p>agraph 7#d7 ( section       
#fajc7p7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by /rik+ or 7o77#a77;,a7 
ea* place x appe>s & ins]t+ 1           
7o77#a77;,a71 or 7o77#c74