,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #biac  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #cj1 #bjba,ms4 
,*u 7= h]self1 ,mr4 ,panetta1 & ,ms4    
,sewell7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to provide mat*+ paym5ts 
= retirem5t sav+s contributions by c]ta9
 individuals4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,enc\rag+ ,am]icans to 
,save ,act4  #b4 ,mat*+ paym5ts =       
elective def]ral & ,,ira contributions  
by c]ta9 individuals  7a7 ,9 g5]al      
,sub*apt] ,b ( *apt] #fe ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new section3  #fdcc4  
,sav]'s mat*  7a7 ,9 g5]al  7#a7        
,all[ance ( cr$it ,any eligible         
individual :o makes qualifi$ retirem5t  
sav+s contributions = ! taxable ye> %all
 be all[$ a cr$it = su* taxable ye> 9 an
 am\nt equal to ! applicable p]c5tage ( 
s mu* ( ! qualifi$ retirem5t sav+s      
contributions made by su* eligible      

individual = ! taxable ye> z does n     
exce$ #c1jjj4  7#b7 ,paym5t ( cr$it ,!  
cr$it "u ?is section %all be paid by !  
,secret>y z a contribution 7z soon z    
practicable aft] ! eligible individual  
has fil$ a tax return = ! taxable ye>7  
to ! applicable retirem5t sav+s vehicle 
( an eligible individual4  7b7          
,applicable p]c5tage ,= purposes ( ?is  
section-- 7#a7 ,9 g5]al ,except z       
provid$ 9 p>agraph 7#b71 ! applicable   
p]c5tage is #ej p]c5t4  7#b7 ,phase\t ,!
 p]c5tage "u p>agraph 7#a7 %all be r$uc$
 7b n bel[ z]o7 by ! numb] ( p]c5tage   
po9ts :i* be>s ! same ratio to #ej      
p]c5tage po9ts z-- 7,a7 ! excess (-- 7i7
 ! taxpay]'s modifi$ adju/$ gross income
 = su* taxable ye>1 ov]  7ii7 !         
applicable doll> am\nt1 be>s to  7,b7 ! 
phase\t range4  ,if any r$uction det]m9$
 "u ?is p>agraph is n a :ole p]c5tage   
po9t1 su* r$uction %all be r\nd$ to !   
next l[e/ :ole p]c5tage po9t4  7#c7     
,applicable doll> am\nt2 phase\t range  
7,a7 ,jo9t returns ,except z provid$ 9  

subp>agraph 7,b7-- 7i7 ! applicable     
doll> am\nt is #hj1jjj1 &  7ii7 !       
phase\t range is #bj1jjj4  7,b7 ,o!r    
returns ,9 ! case (-- 7i7 a head ( a    
h\sehold 7z def9$ 9 section #b7;b771 !  
applicable doll> am\nt & ! phase\t range
 %all be #c_/d ( ! am\nts applicable "u 
subp>agraph 7,a7 7z adju/$ "u subsection
 7g771 &  7ii7 any taxpay] :o is n fil+ 
a jo9t return & :o is n a head ( a      
h\sehold 7z s def9$71 ! applicable doll>
 am\nt & ! phase\t range %all be  ( !   
am\nts applicable "u subp>agraph 7,a7 7z
 s adju/$74  7#d7 ,limitation on phase\t
 ,! r$uction provid$ "u p>agraph 7#b7   
%all n apply to ! ext5t t su* r$uction  
w\ld result 9 ! am\nt ( ! cr$it all[$ "u
 subsection 7a7 to be less ?an #ajj4    
7c7 ,eligible individual ,= purposes (  
?is section-- 7#a7 ,9 g5]al ,! t]m      
eligible individual means any individual
 if su* individual has atta9$ ! age (   
#ah z ( ! close ( ! taxable ye>4  7#b7  
,dep5d5ts & full-"t /ud5ts n eligible ,!
 t]m eligible individual %all n         

include-- 7,a7 any individual ) respect 
to :om a d$uction "u section #aea is    
all[$ to ano!r taxpay] = a taxable ye>  
beg9n+ 9 ! cal5d> ye> 9 :i* su*         
individual's taxable ye> beg9s1 &  7,b7 
any individual :o is a /ud5t 7z def9$ 9 
section #aeb7;f77#b774  7d7 ,qualifi$   
retirem5t sav+s contributions ,=        
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! t]m qualifi$ retirem5t sav+s         
contributions means1 ) respect to any   
taxable ye>1 ! sum (-- 7,a7 ! am\nt ( ! 
qualifi$ retirem5t contributions 7z     
def9$ 9 section #bai7;e77 made by !     
eligible individual1  7,b7 ! am\nt (--  
7i7 any elective def]rals 7z def9$ 9    
section #djb7;g77#c77 ( su* individual1 
&  7ii7 any elective def]ral (          
comp5sation by su* individual "u an     
eligible def]r$ comp5sation plan 7z     
def9$ 9 section #deg7;b77 ( an eligible 
employ] describ$ 9 section              
#deg7;e77#a77;,a71 &  7,c7 ! am\nt (    
volunt>y employee contributions by su*  
individual to any qualifi$ retirem5t    

plan 7z def9$ 9 section #digd7;c774     
,su* t]m %all n include any am\nt       
attributable to a paym5t "u subsection  
7a74  7#b7 ,r$uction = c]ta9            
di/ributions  7,a7 ,9 g5]al ,! qualifi$ 
retirem5t sav+s contributions det]m9$ "u
 p>agraph 7#a7 = a taxable ye> %all be  
r$uc$ 7b n bel[ z]o7 by ! aggregate     
di/ributions receiv$ by ! individual    
dur+ ! te/+ p]iod f any entity ( a type 
to :i* contributions "u p>agraph 7#a7   
may be made4  7,b7 ,te/+ p]iod ,=       
purposes ( subp>agraph 7,a71 ! te/+     
p]iod1 ) respect to a taxable ye>1 is ! 
p]iod :i* includes-- 7i7 su* taxable    
ye>1  7ii7 ! #b prec$+ taxable ye>s1 &  
7iii7 ! p]iod aft] su* taxable ye> &    
be=e ! due date 7includ+ ext5sions7 =   
fil+ ! return ( tax = su* taxable ye>4  
7,c7 ,except$ di/ributions ,!re %all n  
be tak5 into acc\nt "u subp>agraph      
7,a7-- 7i7 any di/ribution ref]r$ to 9  
section #gb7p71 #dja7k77#h71            
#dja7m77#f71 #djb7;g77#b71 #djd7k71 or  
#djh7;d77#d71  7ii7 any di/ribution to  

:i* section #djh7;d77#c7 or             
#djh;,a7d77#c7 applies1 &  7iii7 any    
portion ( a di/ribution if su* portion  
is transf]r$ or paid 9 a rollov]        
contribution 7z def9$ 9 section         
#djb7;c71 #djc7;a77#d71 #djc7;b77#h71   
#djh;,a7e71 or #deg7;e77#af77 to an     
acc\nt or plan to :i* qualifi$ retirem5t
 contributions c be made4  7,d7         
,treatm5t ( di/ributions receiv$ by     
sp\se ( individual ,= purposes ( det]m9+
 di/ributions receiv$ by an individual  
"u subp>agraph 7,a7 = any taxable ye>1  
any di/ribution receiv$ by ! sp\se ( su*
 individual %all be treat$ z receiv$ by 
su* individual if su* individual & sp\se
 file a jo9t return = su* taxable ye> & 
= ! taxable ye> dur+ :i* ! sp\se        
receives ! di/ribution4  7e7 ,applicable
 retirem5t sav+s vehicle  7#a7 ,9 g5]al 
,! t]m applicable retirem5t sav+s       
vehicle means-- 7,a7 an acc\nt or plan  
elect$ by ! eligible individual "u      
p>agraph 7#b71 or  7,b7 if no su*       
election is made or ! ,secret>y is n    

able to make a contribution into !      
acc\nt or plan select$ by ! eligible    
individual1 a ,my,r,a e/abli%$ = !      
b5efit ( ! eligible individual4  ,=     
purposes ( subp>agraph 7,b71 if no      
,my,r,a has previ\sly be5 e/abli%$ = !  
b5efit ( ! individual1 ! ,secret>y %all 
e/abli% su* an acc\nt = su* individual =
 purposes ( contributions "u ?is        
section4  7#b7 ,o!r retirem5t vehicles  
,an eligible individual may elect to h !
 am\nt det]m9$ "u subsection 7a7        
contribut$ to an acc\nt or plan :i*--   
7,a7 is a ,ro? ,,ira or a designat$ ,ro?
 acc\nt 7)9 ! mean+ ( section #djb;,a7 (
 an applicable retirem5t plan 7z def9$ 9
 section #djb;,a7e77#a771  7,b7 is = !  
b5efit ( ! eligible individual1  7,c7   
accepts contributions made "u ?is       
section1 &  7,d7 is designat$ by su*    
individual 79 su* =m & mann] z !        
,secret>y may provide7 on ! return ( tax
 = ! taxable ye>4  7#c7 ,my,r,a ,=      
purposes ( p>agraph 7#a71 ! t]m ,my,r,a 
means a ,ro? ,,ira :i* is e/abli%$--    

7,a7 "u ! ,my,r,a program e/abli%$ "u   
section #c ( ! ,enc\rag+ ,am]icans to   
,save ,act1 &  7,b7 by ! individual = ^:
 b5efit ! ,ro? ,,ira 0 creat$ or by !   
,secret>y on behalf ( su* individual4   
7f7 ,o!r def9itions & special rules     
7#a7 ,modifi$ adju/$ gross income ,=    
purposes ( ?is section1 ! t]m modifi$   
adju/$ gross income means adju/$ gross  
income-- 7,a7 det]m9$ )\t reg>d to      
sections #iaa1 #ica1 & #icc1 &  7,b7    
det]m9$ )\t reg>d to any exclusion or   
d$uction all[$ = any qualifi$ retirem5t 
sav+s contribution made dur+ ! taxable  
ye>4  7#b7 ,treatm5t ( contributions ,9 
! case ( any contribution "u subsection 
7a77#b7-- 7,a7 except z o!rwise provid$ 
9 ?is section or by ! ,secret>y "u      
regulations1 su* contribution %all be   
treat$ 9 ! same mann] z a contribution  
made by ! individual on ^: behalf su*   
contribution 0 made1  7,b7 su*          
contribution %all n be treat$ z income  
to ! taxpay]1 &  7,c7 su* contribution  
%all n be tak5 into acc\nt ) respect to 

any applicable limitation "u sections   
#djb7;g77#a71 #djc7;b71 #djh7;a77#a71   
#djh7;b77#b77;,b71 #djh;,a7c77#b71      
#dad7v77#b71 #dae7;c71 or #deg7;b77#b74 
7#c7 ,treatm5t ( qualifi$ plans1 etc ,a 
plan or arrangem5t to :i* a contribution
 is made "u ?is section %all n be treat$
 z violat+ any requirem5t "u section    
#dja1 #djc1 #djh1 or #deg solely by     
reason ( accept+ su* contribution4  7#d7
 ,errone\s cr$its ,if any contribution  
is errone\sly paid "u subsection        
7a77#b71 ! am\nt ( su* errone\s paym5t  
%all be treat$ z an und]paym5t ( tax4   
7g7 ,inflation adju/m5ts  7#a7 ,9 g5]al 
,9 ! case ( any taxable ye> beg9n+ 9 a  
cal5d> ye> aft] #bjbb1 ea* ( ! doll>    
am\nts 9 subsections 7a77#b7 &          
7b77#c77;,a77i7 %all be increas$ by an  
am\nt equal to-- 7,a7 su* doll> am\nt1  
multipli$ by  7,b7 ! 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> #bjba = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 

!re(4  7#b7 ,r\nd+ ,any increase det]m9$
 "u p>agraph 7#a7 %all be r\nd$ to !    
ne>e/ multiple (-- 7,a7 #ajj 9 ! case ( 
an adju/m5t ( ! am\nt 9 subsection      
7a77#b71 &  7,b7 #a1jjj 9 ! case ( an   
adju/m5t ( ! am\nt 9 subsection         
7b77#c77;,a77i74  4  7b7 ,paym5t        
au?ority ,section #acbd7;b77#b7 ( title 
#ca1 ,unit$ ,/ates ,code1 is am5d$ by   
/rik+ #fdca & ins]t+ #fdcc4  7c7        
,defici5cies ,section #fbaa7;b77#d7 ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ & #fdbh & ins]t+ #fdbh1 &      
#fdcc4  7d7 ,con=m+ am5dm5ts  7#a7      
,section #be;,b ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$ to read z foll[s3
  #be;,b4 ,sav]'s cr$it ,= paym5t (     
cr$it relat$ to qualifi$ retirem5t sav+s
 contributions1 see section #fdcc4  4   
7#b7 ,! table ( sections = sub*apt] ,b (
 *apt] #fe ( su* ,code is am5d$ by add+ 
aft] ! item relat+ to section #fdcj !   
foll[+ new item3  ,sec4 #fdcc4 ,sav]'s  
mat*4  4  7#c7 ,! table ( sections =    
subp>t ,a ( "p ,,iv ( sub*apt] ,a (     

*apt] #a ( su* ,code is am5d$ by /rik+ !
 item relat+ to section #be;,b & ins]t+ 
! foll[+ new item3 ,sec4 #be;,b4 ,sav]'s
 cr$it4  7e7 ,effective date ,! am5dm5ts
 made by ?is section %all apply to      
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjba4  #c4 ,e/abli%m5t ( ,my,r,a       
,program  7a7 ,9 g5]al ,! ,secret>y ( ! 
,treasury 7or ! ,secret>y's delegate7   
%all1 n lat] ?an ,decemb] #ca1 #bjba1   
e/abli% a p]man5t program1 to be kn[n z 
! ,my,r,a ,program1 :i* meets !         
requirem5ts ( ?is section to e/abli% &  
ma9ta9 a ,ro? ,,ira on behalf (         
individuals4  7b7 ,program              
specifications  7#a7 ,9 g5]al  7,a7 ,ro?
 ,i,r,as ,! ,my,r,a ,program e/abli%$ "u
 ?is section %all-- 7i7 p]mit an        
individual to e/abli% a ,ro? ,,ira :i*  
satisfies ! requirem5ts ( section       
#djh;,a ( ! ,int]nal ,rev5ue ,code (    
#aihf on behalf ( ! individual2  7ii7   
p]mit an employ] to e/abli% su* a ,ro?  
,,ira on behalf ( #a or m employees (   
su* employ]2  7iii7 require ! assets (  

ea* ,ro? ,,ira e/abli%$ "u ! program to 
be held by ! designat$ ,ro? ,,ira       
cu/odian2  7iv7 p]mit contributions to  
be made p]iodically to su* ,ro? ,i,r,as 
by direct deposit or o!r electronic     
means & by me?ods t provide access = !  
unbank$2  7v7 p]mit di/ributions &      
rollov]s f su* ,ro? ,i,r,as ^u reque/ ( 
! acc\nt own]2  7vi7 include proc$ures  
to consolidate multiple acc\nts e/abli%$
 = ! same individual2 &  7vii7 ensure t 
su* ,ro? ,i,r,as are inve/$ solely 9    
retirem5t sav+s bonds issu$ by !        
,dep>tm5t ( ! ,treasury = ! purpose ( ! 
,my,r,a ,program4  7,b7 ,regulations1   
etc ,! ,secret>y ( ! ,treasury %all h   
au?ority to promulgate su* regulations1 
rules1 & o!r guidance z are necess>y to 
implem5t ! ,my,r,a program1 & are       
consi/5t ) ?is section1 z well z        
coord9ation rules p]mitt+ ,ro? ,i,r,as  
to be e/abli%$ "u ! ,my,r,a program 9   
connection ) ,/ate & local laws t enroll
 resid5ts 9 ,ro? ,i,r,as4  7#b7 ,no fees
 ,no fees %all be assess$ on p>ticipants

 9 ! ,my,r,a ,program4  7#c7            
,limitations  7,a7 ,contribution m9imum 
,! ,secret>y ( ! ,treasury may e/abli%  
m9imum am\nts = initial & additional    
contributions to a ,ro? ,,ira "u !      
,my,r,a ,program1 n to exce$ #e4  7,b7  
,rollov] contributions n p]mitt$ ,no    
rollov] contribution %all be accept$ to 
a ,ro? ,,ira "u ! ,my,r,a program4  7,c7
 ,acc\nt maximum ,no contributions %all 
be cr$it$ to a ,ro? ,,ira "u ! ,my,r,a  
,program aft] ! acc\nt balance ( su*    
,ro? ,,ira rea*es #ae1jjj4  7,d7        
,limitation on p>ticipation ,)9 a       
reasonable am\nt ( "t aft] ! e>li] (--  
7i7 ! date ! acc\nt balance ( a ,ro?    
,,ira "u ! ,my,r,a ,program rea*es      
#ae1jjj2 or  7ii7 ! e>li] (-- 7,i7 !    
date t ! p>ticipant has be5 a p>ticipant
 9 ! ,my,r,a ,program = #cj ye>s2 or    
7,,ii7 ! date t ! p>ticipant rea*es age 
#eia_/b2  ! designat$ ,ro? ,,ira        
cu/odian %all provide notice to !       
p>ticipant t no fur!r contributions w be
 accept$ & t ! p>ticipant may elect to h

 ! acc\nt balance roll$ ov] to ano!r    
,ro? ,,ira accord+ to ! rules relat+ to 
rollov]s & conv]sions ( ,ro? ,i,r,as "u 
! ,int]nal ,rev5ue ,code ( #aihf4  7,e7 
,adju/m5t = inflation  7i7 ,9 g5]al ,9 !
 case ( any cal5d> ye> aft] #bjbb1 !    
#ae1jjj am\nt 9 subp>agraphs 7,c7 & 7,d7
 & subsection 7c77#c77;,b7 %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 ( ! ,int]nal ,rev5ue ,code ( 
#aihf = ! cal5d> ye>1 det]m9$ by        
sub/itut+ cal5d> ye> #bjba = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7ii7
 ,r\nd+ ,if any increase det]m9$ "u     
clause 7i7 is n a multiple ( #ej1 su*   
increase %all be r\nd$ to ! next l[e/   
multiple ( #ej4  7#d7 ,designat$ ,ro?   
,,ira cu/odian ,= purposes ( ?is        
section1 ! designat$ ,ro? ,,ira cu/odian
 is ! p]son designat$ by ! ,secret>y ( !
 ,treasury to act z cu/odian ( ! ,ro?   
,i,r,as e/abli%$ on behalf ( p>ticipants
 9 ! retirem5t sav+s program ( su*      

,dep>tm5t4  7c7 ,retirem5t sav+s bonds  
,= purposes ( ?is section-- 7#a7 ,9     
g5]al ,! t]m retirem5t sav+s bond means 
an int]e/-be>+ electronic ,unit$ ,/ates 
sav+s bond issu$ to ! designat$ ,ro?    
,,ira cu/odian :i* is available only to 
p>ticipants 9 ! ,my,r,a ,program4  7#b7 
,int]e/ rate ,bonds issu$ "u ! ,my,r,a  
program %all e>n int]e/ at a rate equal 
to ! great] ( 7det]m9$ on ! issue       
date7-- 7,a7 ! rate e>n$ by ! ,gov]nm5t 
,securities ,inve/m5t ,fund e/abli%$ "u 
section #hdch7;b77#a7 ( title #e1 ,unit$
 ,/ates ,code2 or  7,b7 a ,s]ies ,i     
,unit$ ,/ates sav+s bond4  7#c7 ,bonds  
to be cr$it$ to s+le acc\nt ,ea*        
retirem5t sav+s bond issu$ to !         
designat$ ,ro? ,,ira cu/odian %all be   
cr$it$ to a s+le ,ro? ,,ira e/abli%$    
?r\gh ! ,my,r,a ,program on behalf ( a  
p>ticipant4  7#d7 ,reissue 9 case (     
*ange 9 cu/odian ,if a successor        
designat$ ,ro? ,,ira cu/odian is        
designat$ "u subsection 7b77#d71 !      
retirem5t sav+s bonds issu$ to !        

pr$ecessor designat$ ,ro? ,,ira cu/odian
 %all be reissu$ to su* successor4  7d7 
,ro? ,,ira ,= purposes ( ?is section1 ! 
t]m ,ro? ,,ira has ! mean+ giv5 su* t]m 
by section #djh;,a7b7 ( ! ,int]nal      
,rev5ue ,code ( #aihf4  7e7 ,secret>y ,=
 purposes ( ?is section1 ! t]m ,secret>y
 means ! ,secret>y ( ! ,treasury 7or !  
,secret>y's delegate74  #d4 ,promotion &
 guidance  7a7 ,promotion  7#a7 ,9 g5]al
 ,! ,secret>y %all take su* /eps z !    
,secret>y det]m9es are necess>y &       
appropriate to increase public aw>5ess (
 ! b5efits provid$ "u section #fdcc ( ! 
,int]nal ,rev5ue ,code ( #aihf & !      
,my,r,a ,program e/abli%$ "u section #c 
( ?is ,act4  7#b7 ,report to ,congress  
7,a7 ,9 g5]al ,n lat] ?an #ij days aft] 
! date ( ! enactm5t ( ?is ,act1 !       
,secret>y %all provide a report to      
,congress to summ>ize ! anticipat$      
promotion ef=ts ( ! ,treasury ) respect 
to p>agraph 7#a74  7,b7 ,cont5ts ,!     
report "u subp>agraph 7,a7 %all         
include-- 7i7 a description ( plans =-- 

7,i7 ! developm5t & di/ribution (       
digital & pr9t mat]ials1 includ+ !      
di/ribution ( su* mat]ials to ,/ates =  
p>ticipants 9 ,/ate-sponsor$ retirem5t  
sav+s plans1 &  7,,ii7 ! translation (  
su* mat]ials into ! t5 mo/ commonly     
spok5 languages 9 ! ,unit$ ,/ates aft]  
,engli% 7z det]m9$ by ,am]ican          
,community ,survey data71 &  7ii7 su*   
o!r in=mation z ! ,secret>y det]m9es    
necess>y4  7b7 ,guidance ,n lat] ?an    
,decemb] #ca1 #bjba1 ! ,secret>y %all   
issue guidance on ! implem5tation &     
adm9i/ration ( ! am5dm5ts made by       
section #b ( ?is ,act4  7c7 ,secret>y ,=
 purposes ( ?is section1 ! t]m ,secret>y
 means ! ,secret>y ( ! ,treasury 7or !  
,secret>y's delegate74