,,ii  #aag? ,,congress  #a/ ,session    
,s4 #bhgj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #bh1         
#bjba,mr4 ,w>n] introduc$ ! foll[+ bill2
 :i* 0 read twice & ref]r$ to !         
,committee on ,f9ance  ,a ,,bill  ,to   
create portable retirem5t & inve/m5t    
acc\nts = all ,am]icans1 & = o!r        
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,portable ,retirem5t &     
,inve/m5t ,acc\nt ,act ( #bjba or !     
,,pria ,act ( #bjba4  #b4 ,portable     
,retirem5t & ,inve/m5t ,bo>d  7a7       
,e/abli%m5t ,!re is e/abli%$ a ,portable
 ,retirem5t & ,inve/m5t ,bo>d 7ref]r$ to
 9 ?is ,act z ! ,bo>d7 to be head$ by a 
,director 7ref]r$ to 9 ?is ,act z !     
,director74  7b7 ,memb]%ip  7#a7 ,9     
g5]al ,! ,bo>d %all consi/ (-- 7,a7 #c  
memb]s appo9t$ by ! ,secret>y ( !       
,treasury2  7,b7 #c memb]s appo9t$ by ! 
,secret>y ( ,labor2  7,c7 #b memb]s     
appo9t$ by ! ,p5sion ,b5efit ,gu>anty   
,corporation2 &  7,d7 #a memb] appo9t$  
by ! ,director ( ! ,bureau ( ,consum]   

,f9ancial ,protection4  7#b7 ,deadl9e = 
appo9tm5t ,! appo9tm5ts describ$ "u     
p>agraph 7#a7 %all be made n lat] ?an #a
 ye> aft] ! date ( ! enactm5t ( ?is     
,act4  7#c7 ,limitation ,9 mak+         
appo9tm5ts "u p>agraph 7#a71 ! (ficials 
mak+ su* appo9tm5ts %all coord9ate to   
ensure t n m ?an #e memb]s ( ! same     
political p>ty may s]ve on ! ,bo>d at ! 
same "t4  7#d7 ,t]ms ( (fice ,ea* memb] 
( ! ,bo>d %all hold (fice = a t]m ( #e  
ye>s & %all cont9ue 9 (fice until su*   
memb]'s successor is appo9t$ 9 ! same   
mann] z ! orig9al appo9tm5t 0 made4 ,!  
t]ms ( (fice ( ! memb]s ( ! ,bo>d fir/  
tak+ (fice aft] ! date ( ! enactm5t (   
?is ,act %all expire z foll[s3 #a at !  
end ( #a ye>1 #b at ! end ( #b ye>s1 #b 
at ! end ( #c ye>s1 #b at ! end ( #d    
ye>s1 & #b at ! end ( #e ye>s4  7#e7    
,vacancies ,ea* memb] ( ! ,bo>d %all    
cont9ue 9 (fice until a successor is    
appo9t$ 9 ! same mann] z ! orig9al      
appo9tm5t 0 made4 ,any vacancy on !     
,bo>d %all be fill$ 9 ! same mann] z !  

initial appo9tm5t 0 made1 & memb]s ( !  
,bo>d appo9t$ to fill vacancies %all be 
appo9t$ = ! rema9d] ( su* t]m4  7c7     
,director  7#a7 ,9 g5]al ,! ,director   
%all be select$ by ! ,presid5t f among !
 memb]s ( ! ,bo>d4  7#b7 ,au?ority to   
issue regulations ,! ,director is       
au?oriz$ to issue su* regulations or o!r
 guidance z ! ,director det]m9es are    
necess>y to c>ry out ! purposes ( ?is   
,act4  #c4 ,contracts to provide        
portable retirem5t & inve/m5t acc\nts   
7a7 ,9 g5]al ,n lat] ?an #a ye> aft] !  
date ( ! enactm5t ( ?is ,act1 !         
,director %all e/abli% a program "u     
:i*-- 7#a7 ! ,director %all inve/ !     
assets 9 ea* ,,pria ,basic ,acc\nt      
e/abli%$ "u section #d 9 a lifecycle    
fund describ$ 9 subsection 7c72 &  7#b7 
! ,director %all gr\p ,,pria ,basic     
,acc\nts s e/abli%$ into classes bas$ on
 ! ye> ! b5efici>y ( ea* su* acc\nt w   
atta9 age #fe4  ,once a class ( ,,pria  
,basic ,acc\nts conta9s1 9 ! aggregate1 
en\gh assets s t ! e/abli%m5t ( a       

d$icat$ t>get date fund = su* class w\ld
 be co/ effective1 ! ,director %all aw>d
 7on a rotat+ basis7 to an entity       
c]tifi$ "u subsection 7b7 a contract to 
act z tru/ee ( all su* acc\nts & to     
inve/ su* acc\nts 9 a lifecycle fund    
provid$ by ! tru/ee z describ$ 9        
subsection 7c74  7b7 ,c]tification (    
tru/ees ,! ,director may n aw>d a       
contract to an entity "u subsection 7a7 
unless ! ,director has c]tifi$ su*      
entity "u ?is subsection4 ,! ,director  
%all e/abli% c]tification crit]ia :i*   
%all include ! foll[+3 7#a7 ,exp]tise1  
includ+ ! pr(essional qualifications1   
bus9ess model1 exp]i5ce1 & tra9+ ( !    
tru/ee & any s]vice provid]s t ! tru/ee 
int5ds to use4  7#b7 ,regi/ration1      
lic5s+1 & f9ancial s\ndness demon/rat+ t
 p>ticipant funds w\ld be h&l$ by a     
regulat$ f9ancial entity4  7#c7         
,reputation & cu/om] s]vice1 includ+    
records ( comm5ts or compla9ts f        
employ]s & p>ticipants1 timely          
consid]ation & resolution ( compla9ts   

fil$1 & indep5d5t rat+ or accr$itations4
  7c7 ,lifecycle fund ,a lifecycle fund 
describ$ 9 ?is subsection is a fund t-- 
7#a7 is compris$ ( an appropriate mix ( 
index funds2  7#b7 is automatically     
adju/$ ov] "t dur+ ! "t horizon ( !     
fund2  7#c7 /rikes a balance betwe5     
expect$ risk & return ov] ! "t horizon (
 ! fund2 &  7#d7 has an initial t>get   
retirem5t date t is consi/5t ) retirem5t
 at age #fe4  7d7 ,fiduci>y             
responsibility ,a tru/ee ( a portable   
retirem5t & inve/m5t acc\nt %all act z a
 fiduci>y to ! acc\nt hold] & %all      
dis*>ge 8 duties ) respect to ! acc\nt 9
 ! sole int]e/ ( ! acc\nt hold] "u rules
 simil> to ^? applicable to an ,,erisa  
fiduci>y "u section #djd ( ! ,employee  
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #aajd74  7e7       
,contracts  7#a7 ,numb] ( contracts     
aw>d$1 etc ,! ,director %all ent] into  
contracts ) #aj entities at any giv5 "t 
to provide s]vices "u subsection 7a71 & 
%all n aw>d a contract to any entity :i*

 has an exi/+ contract "u su*           
subsection4 ,ea* su* contract %all h a  
duration ( #e ye>s4  7#b7 ,consid]ation 
,9 aw>d+ contracts to entities "u       
subsection 7a71 ! ,director %all        
consid]-- 7,a7 ! specific composition ( 
! lifecycle funds provid$ by su* tru/ee2
  7,b7 ! s]vices to acc\nt hold]s (f]$  
by su* tru/ee1 includ+ available        
inve/m5t advice2  7,c7 ! fees *>g$ by   
su* tru/ee2 &  7,d7 ! importance (      
ma9ta9+ a div]sity ( tru/ees4  #d4      
,e/abli%m5t2 contributions  7a7         
,e/abli%m5t  7#a7 ,portable ,retirem5t &
 ,inve/m5t ,acc\nt ,fund ,!re is        
e/abli%$ 9 ! ,treasury ! ,portable      
,retirem5t & ,inve/m5t ,acc\nt ,fund 79 
?is ,act ref]r$ to z ! ,fund74 ,! ,bo>d 
%all1 to ! greate/ ext5t practicable &  
consi/5t ) ! requirem5ts ( ?is ,act1    
manage ! ,fund 9 ! same mann] z ! ,?rift
 ,sav+s ,fund e/abli%$ "u section #hdcg 
( title #e1 ,unit$ ,/ates ,code4  7#b7  
,acc\nts ,= ea* individual = :om a      
notification is made "u clause 7iv7 (   

section #bje7;c77#b77;,b7 ( ! ,social   
,security ,act 7#db ,u4,s4,c4           
#dje7;c77#b77;,b771 z add$ by p>agraph  
7#c71 or ^: "n is includ$ on ! li/      
submitt$ "u p>agraph 7#d71 n lat] ?an   
#ij days aft] su* notification or       
submission1 ! ,director %all e/abli%1 ) 
su* individual z ! sole b5efici>y1 a    
portable retirem5t & inve/m5t acc\nt 79 
?is ,act ref]r$ to z a ,,pria ,basic    
,acc\nt7 )9 ! ,fund4  7#c7 ,notification
 ( issuance ( social security acc\nt    
numb]  7,a7 ,9 g5]al ,section           
#bje7;c77#b77;,b7 ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #dje7;c77#b77;,b77  
is am5d$ by add+ at ! end ! foll[+3     
7iv7 ,n lat] ?an #fj days aft] assign+ a
 social security acc\nt numb] to an     
individual1 ! ,commission] ( ,social    
,security %all notify ! ,director ( !   
,portable ,retirem5t & ,inve/m5t ,acc\nt
 ,bo>d ( su* assignm5t4  4  7,b7        
,effective date ,! am5dm5t made by      
subp>agraph 7,a7 %all apply ) respect to
 social security acc\nt numb]s assign$  

aft] a c]ta9 date1 to be designat$ by ! 
,director1 occurr+ n lat] ?an #c ye>s   
aft] ! date ( ! enactm5t ( ?is ,act4    
7#d7 ,transition ,n lat] ?an ! date     
designat$ pursuant to p>agraph          
7#c77;,b71 occurr+ n lat] ?an #c ye>s   
aft] ! date ( ! enactm5t ( ?is ,act1 !  
,commission] ( ,social ,security %all   
submit to ! ,director a li/ ( ! "n ( ea*
 liv+ individual :o has be5 assign$ a   
social security acc\nt numb]4  7b7      
,f$]al contributions  7#a7 ,9 g5]al ,9 !
 case ( an individual = :om a           
notification is made "u clause 7iv7 (   
section #bje7;c77#b77;,b7 ( ! ,social   
,security ,act 7#db ,u4,s4,c4           
#dje7;c77#b77;,b771 z add$ by subsection
 7a77#c71 :o is a *ild ( a taxpay] :o   
receiv$ a cr$it aga9/ tax "u section #cb
 ( ! ,int]nal ,rev5ue ,code ( #aihf = ! 
mo/ rec5t taxable ye> end+ be=e ! date (
 ! notification "u su* subsection1 !    
,director %all deposit into ! portable  
retirem5t & inve/m5t acc\nt 7)\t reg>d  
to :e!r su* acc\nt is a ,,pria ,basic   

,acc\nt or a ,,pria ,*oice ,acc\nt      
describ$ 9 subsection 7f77 ( !          
individual an am\nt det]m9$ "u p>agraph 
7#b74  7#b7 ,am\nt ,subject to p>agraph 
7#c71 ! am\nt det]m9$ "u ?is p>agraph   
is-- 7,a7 9 ! case ( a taxpay] eligible 
= ! maximum cr$it applicable to su*     
individual "u section #cb ( ! ,int]nal  
,rev5ue ,code ( #aihf1 ! applicable     
contribution am\nt2 &  7,b7 9 any o!r   
case1 a l[] am\nt to be det]m9$ "u      
regulations issu$ by ! ,secret>y ( !    
,treasury to reflect a proportional     
r$uction ( su* am\nt z ! cr$it "u su*   
section decreases4  7#c7 ,applicable    
contribution am\nt  7,a7 ,9 g5]al ,=    
purposes ( ?is subsection1 ! t]m        
applicable contribution am\nt means     
#ejj4  7,b7 ,inflation adju/m5t ,9 !    
case ( any taxable ye> beg9n+ 9 a cal5d>
 ye> aft] #bjba1 ! doll> am\nt 9        
subp>agraph 7,a7 %all be increas$ by an 
am\nt equal to-- 7i7 su* doll> am\nt1   
multipli$ by  7ii7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 ( !      

,int]nal ,rev5ue ,code ( #aihf = !      
cal5d> ye> 9 :i* ! taxable ye> beg9s1 by
 sub/itut+ cal5d> ye> #bjbj = cal5d> ye>
 #bjaf 9 subp>agraph 7,a77ii7 !re(4     
,any increase det]m9$ "u ! prec$+ s5t5ce
 %all be r\nd$ to ! ne>e/ multiple (    
#aj4  7#d7 ,contribution = transf] ,if a
 b5efici>y ( a ,,pria ,basic ,acc\nt    
7or1 9 ! case ( a b5efici>y :o is "u #ah
 ye>s ( age1 ! p>5t or gu>dian ( !      
b5efici>y7 makes ! election "u          
subsection 7f71 ! ,director %all provide
 = a #ej deposit if ! b5efici>y         
completes a f9ancial lit]acy tra9+1 z   
det]m9$ appropriate by ! ,director4  7c7
 ,p]sonal contributions  7#a7 ,9 g5]al  
,except 9 ! case ( an individual :o is  
an active p>ticipant 7z def9$ 9 section 
#bai7;g77#e7 ( ! ,int]nal ,rev5ue ,code 
( #aihf7 = any "p ( a plan ye> end+ ) or
 )9 ! cal5d> ye>1 ! b5efici>y ( a ,,pria
 ,basic or ,,pria ,*oice ,acc\nt may    
contribute additional funds = deposit   
into su* acc\nt dur+ ! cal5d> ye>4  7#b7
 ,direct deposit ,any employ] :o p]mits 

wages to be paid to an employee describ$
 9 p>agraph 7#e7 by electronic funds    
transf] %all p]mit su* employee to elect
 to deposit1 by means ( electronic funds
 transf]1 a portion ( su* wages specifi$
 by ! employee into ! employee's        
portable retirem5t & inve/m5t acc\nt4   
7#c7 ,automatic contribution arrangem5t 
,any employ] may provide t an employee  
describ$ 9 p>agraph 7#e7 is treat$ z    
hav+ elect$ to h ! employ] make         
contributions 9 an am\nt equal to a     
uni=m p]c5tage ( comp5sation disclos$ 9 
advance to ! employee until ! employee  
specifically elects n to h su*          
contributions made 7or specifically     
elects to h su* contributions made at a 
diff]5t p]c5tage74 ,su* uni=m p]c5tage (
 comp5sation may automatically increase 
accord+ to a s*$ule provid$ by !        
employ]4  7#d7 ,sup]s$ure ,p>agraph 7#c7
 %all sup]s$e any law ( any ,/ate 7)9 ! 
mean+ ( section #ead7;c77#a7 ( title    
#bi7 :i* w\ld directly or indirectly    
prohibit an employ] f adopt+ an         

arrangem5t describ$ 9 p>agraph 7#c74 ,! 
,director may prescribe regulations :i* 
w\ld e/abli% m9imum /&>ds t su* an      
arrangem5t w\ld be requir$ to satisfy 9 
ord] = ?is p>agraph to apply 9 ! case ( 
su* arrangem5t4  7#e7 ,employee describ$
 ,an employee describ$ 9 ?is p>agraph is
 an individual-- 7,a7 ^: employ] does n 
ma9ta9 a qualifi$ retirem5t plan 7z     
def9$ 9 section #digd7;c7 ( ! ,int]nal  
,rev5ue ,code ( #aihf72  7,b7 ^:        
employm5t consi/s ( "w 7:e!r or n z an  
employee7 ?r\gh mobile plat=ms2 or  7,c7
 :o is n eligible to p>ticipate 9 !     
qualifi$ retirem5t plan 7z s def9$7 ( ! 
employee's employ]4  7#f7 ,contribution 
limit ,! aggregate am\nt ( contributions
 "u ?is subsection = any taxable ye> to 
! individual's ,,pria ,basis or ,,pria  
,*oice ,acc\nt %all n exce$ ! am\nt     
all[able "u section #bai7;b7 ( !        
,int]nal ,rev5ue ,code ( #aihf ) respect
 to ! individual = ! taxable ye>4  7d7  
,employ] & mobile plat=m duties &       
responsibilities  7#a7 ,contributions ,!

 employ] ( a b5efici>y ( a ,,pria ,basic
 or ,,pria ,*oice ,acc\nt may at any "t 
contribute additional funds = deposit   
into su* acc\nt1 to ! ext5t ! total (   
su* contributions "u ?is subsection &   
subsection 7c7 does n exce$ ! limitation
 9 effect ) respect to ! individual "u  
subsection 7c77#f7 = ! taxable ye>4     
7#b7 ,ma9t5ance ( direct deposit        
me*anism ,any employ] t does n ma9ta9 a 
qualifi$ retirem5t plan 7z def9$ 9      
section #digd7;c7 ( ! ,int]nal ,rev5ue  
,code ( #aihf7 or ma9ta9s su* a plan    
eligibility = :i* is re/rict$ to only   
c]ta9 employees %all provide a me*anism 
= ! direct deposit ( funds z describ$ 9 
subsection 7c77#b7 = ea* employee ( !   
employ]4  7#c7 ,mobile plat=ms ,any     
mobile plat=m ?r\gh :i* individuals p]=m
 "w & receive comp5sation 7:e!r or n z  
an employee7 %all provide a me*anism = !
 direct deposit ( funds1 by means (     
electronic funds transf]1 id5tifi$ by ! 
individual into ! individual's portable 
retirem5t & inve/m5t acc\nt4  7e7       

,report+ requirem5ts = employ]s mak+    
contributions ,9 ! case ( any employ] t 
makes contributions to a ,,pria ,basic  
or ,,pria ,*oice ,acc\nt on behalf ( !  
employ]'s employees1 rules simil> to !  
rules applicable to simple retirem5t    
acc\nts "u section #b7;h7 ( ! ,employee 
,retirem5t & ,income ,security ,act (   
#aigd 7#bi ,u4,s4,c4 #ajja7;h77 %all    
apply4  7f7 ,transf] option  7#a7 ,9    
g5]al ,a b5efici>y ( a ,,pria ,basic    
,acc\nt 7or1 9 ! case ( a b5efici>y :o  
is "u #ah ye>s ( age1 ! p>5t or gu>dian 
( ! b5efici>y7 may elect at any "t to   
transf] ! entire am\nt 9 su* portable   
retirem5t & inve/m5t acc\nt to any      
,,pria ,*oice ,acc\nt 7z def9$ 9 section
 #bbc;,a ( ! ,int]nal ,rev5ue ,code (   
#aihf7 ) su* b5efici>y z ! sole         
b5efici>y4 ,su* acc\nt %all be held by a
 cu/odial entity su* z a bank1 cr$it    
union1 tru/ company or an entity t is   
lic5s$ & regulat$ by ! ,secret>y        
pursuant to requirem5ts consi/5t )      
section #a4djh-b;e ( title #bf1 ,code ( 

,f$]al ,regulations4 ,inve/m5ts 9 su*   
acc\nts are n subject to ! limitation to
 lifecycle funds describ$ 9 section #c4 
7#b7 ,notifications  7,a7 ,/atem5ts ,!  
,director %all ensure t acc\nt /atem5ts 
are deliv]$ to ! b5efici>y ( a portable 
retirem5t & inve/m5t acc\nt by          
electronic deliv]y to ! ext5t           
practicable4  7,b7 ,notice ( transf]    
option ,:5 ! am\nt 9 a portable         
retirem5t & inve/m5t acc\nt fir/ exce$s 
#ae1jjj & :5 ! b5efici>y ( ! acc\nt     
atta9s ! age ( #ah1 ! ,director %all    
notify ! b5efici>y ( ! acc\nt ( ! option
 "u p>agraph 7#c7 to transf] ! entire   
am\nt 9 su* acc\nt to an individual     
retirem5t acc\nt4  7#c7 ,,ira rollov] ,a
 b5efici>y ( a ,,pria ,basic or a ,,pria
 ,*oice ,acc\nt 7or1 9 ! case ( a       
b5efici>y :o is "u #ah ye>s ( age1 !    
p>5t or gu>dian ( ! b5efici>y7 may elect
 at any "t to transf] ! entire am\nt 9  
su* acc\nt to an individual retirem5t   
acc\nt 7z def9$ 9 section #djh ( !      
,int]nal ,rev5ue ,code ( #aihf7 ) su*   

b5efici>y z ! sole b5efici>y4 ,=        
purposes ( su* ,code1 su* a rollov] %all
 be treat$ z describ$ 9 section         
#djh7;d77#c7 ( su* ,code4  #e4 ,optional
 treatm5t ( contributions z ,ro?        
contributions  7a7 ,9 g5]al ,! ,fund 7or
 cu/odial entity 9 ! case ( a ,,pria    
,*oice ,acc\nt7 %all all[ an individual 
to designate all or a portion ( any     
contributions o!rwise all[$ to be made  
to a ,,pria ,basic or ,,pria ,*oice     
,acc\nt z ,ro? contributions4 ,any      
contribution s designat$ %all be treat$ 
z a contribution to a ,,pria ,basic or  
,,pria ,*oice ,acc\nt1 z ! case may be1 
= purposes ( ?is ,act & ! ,int]nal      
,rev5ue ,code ( #aihf1 except t no      
d$uction %all be all[$ ) respect to any 
su* contribution4  7b7 ,sep>ate acc\nt+ 
,! ,fund 7or su* cu/odial entity7 %all  
provide = sep>ate acc\nts = am\nts      
designat$ z ,ro? contributions "u       
subsection 7a7 & e>n+s attributable     
!reto4  7c7 ,designation limit ,! am\nt 
( contributions :i* an individual may   

designate "u subsection 7a7 %all n exce$
 ! excess 7if any7 (-- 7#a7 ! maximum   
am\nt ( contributions all[$ = su*       
individual = ! taxable ye> "u section   
#d7;c77#f72 ov]  7#b7 ! aggregate am\nt 
( contributions ( ! individual = !      
taxable ye> :i* ! individual does n     
designate "u subsection 7a74  7d7 ,ro?  
,,ira rules applicable ,except to !     
ext5t o!rwise provid$ 9 ?is section1    
rules simil> to ! rules ( section       
#djh;,a ( ! ,int]nal ,rev5ue ,code (    
#aihf %all apply ) respect to am\nts    
designat$ "u subsection 7a7 7& ! e>n+s  
attributable !reto74  #f4 ,data portal  
7a7 ,9 g5]al ,! ,director %all e/abli% a
 /&>diz$ portal = ! ,fund 7or ea*       
cu/odial entity 9 ! case ( ,,pria ,*oice
 ,acc\nt71 & any plan adm9i/rator 7z    
def9$ 9 section #dad7;g7 ( ! ,int]nal   
,rev5ue ,code ( #aihf7 ( a plan to :i*  
section #fjeh ( ! ,int]nal ,rev5ue ,code
 ( #aihf applies1 to submit ! reports   
requir$ "u subsection 7b71 ! back end ( 
:i* is develop$ & /&>diz$ to ensure ease

 ( data upload by plan sponsors4  7b7   
,reports requir$ ,ea* su* plan          
adm9i/rator1 & ! ,fund or ea* su*       
cu/odial entity 9 ! case ( a ,,pria     
,basic or ,,pria ,*oice ,acc\nt1 %all   
report on a qu>t]ly basis to !          
,director1 by upload+ su* report to !   
portal e/abli%$ "u subsection 7a74 ,ea* 
su* report %all include-- 7#a7 in=mation
 on ! assets held by su* acc\nt z (     
m>ket close ! day be=e ! la/ day ( !    
qu>t]2  7#b7 ! balance ( ! acc\nt on !  
fir/ & la/ day ( ! qu>t]2  7#c7 ! gross 
( contributions1 )drawals1 transf]s1 &  
realiz$ & unrealiz$ ga9s & losses       
7report$ sep>ately by fund7 ) respect to
 ! acc\nt2  7#d7 exp5se ratios1 report$ 
sep>ately by fund2  7#e7 ! rate ( return
 = ! prec$+ #ab mon?s1 report$ bo?      
ov]all & sep>ately by fund2 &  7#f7 !   
lifetime income /ream equival5t ( !     
total b5efits accru$ 7z def9$ 9 section 
#aje7;a77#b77;,d77i77,,ii7 ( ! ,employee
 ,retirem5t ,income ,security ,act (    
#aigd 7#bi ,u4,s4,c4                    

#ajbe7;a77#b77;,d77i77,,ii777 9 ! acc\nt
 z ( ! la/ day ( ! qu>t]4  7c7 ,failure 
,to provide report ,any failure to      
provide ! report pursuant to subsection 
7b7 %all be treat$ by ! ,secret>y ( !   
,treasury z a failure to file a return  
or /atem5t requir$ "u section #fjeh ( ! 
,int]nal ,rev5ue ,code ( #aihf4  7d7    
,regulations ,! ,director may prescribe 
su* regulations z may be necess>y or    
appropriate to c>ry out ! purposes ( ?is
 section4  7e7 ,appropriations ,!re is  
appropriat$ to ! ,director1 out ( any   
funds 9 ! ,treasury n o!rwise           
appropriat$1 su* funds z are necess>y to
 c>ry out ! requirem5ts ( ?is section1  
includ+ = ! developm5t & ongo+ ho/+ co/s
 ( ! portal e/abli%$ "u subsection 7a74 
7f7 ,rule ( con/ruction ,compliance ) ! 
provisions ( ?is section requir+ plan   
sponsors to disclose or %>e in=mation   
%all n con/itute a violation ( !        
provisions ( ,gramm-,lea*-,bliley ,act  
or ! ,employee ,retirem5t ,income       
,security ,act ( #aigd4  #g4 ,tax       

treatm5t ( portable retirem5t & inve/m5t
 acc\nts  7a7 ,9 g5]al ,section #ggja ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by r$esignat+ subsection 7p7 z    
subsection 7q7 & by ins]t+ aft]         
subsection 7o7 ! foll[+ new subsection3 
7p7 ,tax treatm5t ( portable retirem5t &
 inve/m5t acc\nts ,= purposes ( ?is     
title-- 7#a7 ,9 g5]al ,any portable     
retirem5t & inve/m5t acc\nt %all be     
treat$ z an individual retirem5t plan1  
&1 except to ! ext5t provid$ 9 section  
#bbc;,a or ! ,portable ,retirem5t &     
,inve/m5t ,acc\nt ,act ( #bjba1 any     
contribution to1 or di/ribution f1 su* a
 portable retirem5t & inve/m5t acc\nt   
%all be treat$ 9 ! same mann] z         
contributions to1 or di/ributions f1 su*
 a plan4  7#b7 ,treatm5t ( ,ro?         
contributions ,any portable retirem5t & 
inve/m5t acc\nt to :i* ,ro?             
contributions are made pursuant to      
section #e ( su* ,act %all be treat$ z a
 ,ro? ,,ira ) respect to su*            
contributions "u rules simil> to ! rules

 ( p>agraph 7#a74  7#c7 ,portable       
retirem5t & inve/m5t acc\nt ,! t]m      
portable retirem5t & inve/m5t acc\nt    
means-- 7,a7 a ,,pria ,basic ,acc\nt    
e/abli%$ "u section #d ( ! ,portable    
,retirem5t & ,inve/m5t ,acc\nt ,act (   
#bjba1 &  7,b7 a ,,pria ,*oice ,acc\nt  
7z def9$ 9 section #bbc;,a7c774  4  7b7 
,o!r rules relat+ to ,,pria ,*oice      
,acc\nts ,"p ,,vii ( sub*apt] ,b ( *apt]
 #a ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by ins]t+ aft] section #bbc !  
foll[+ new section3  #bbc;,a4 ,,pria    
,*oice ,acc\nts  7a7 ,d$uction all[$    
7#a7 ,9 g5]al ,!re %all be all[$ z a    
d$uction = ! taxable ye> an am\nt equal 
to ! aggregate am\nt paid 9 ca% dur+ su*
 taxable ye> to a ,,pria ,*oice ,acc\nt 
by ! acc\nt b5efici>y4  7#b7 ,c]ta9     
rules to apply ,rules simil> to section 
#bai7;d77#b7 7relat+ to no d$uction =   
rollov]s7 %all apply = purposes ( ?is   
section4  7b7 ,maximum am\nt ( d$uction 
,! am\nt all[able z a d$uction "u       
subsection 7a7 to any individual = any  

taxable ye> %all n exce$ ! am\nt        
all[able "u section #bai7;b7 ( !        
,int]nal ,rev5ue ,code ( #aihf ) respect
 to ! individual = ! taxable ye>4  7c7  
,,pria ,*oice ,acc\nt  7#a7 ,9 g5]al ,= 
purposes ( ?is title1 ! t]m ,,pria      
,*oice ,acc\nt means a tru/ creat$ or   
organiz$ 9 ! ,unit$ ,/ates = ! exclusive
 b5efit ( an individual1 b only if !    
writt5 gov]n+ in/rum5t creat+ ! tru/    
meets ! foll[+ requirem5ts3 7,a7 ,!     
tru/ee is a bank 7z def9$ 9 section     
#djh7n7 ( ! ,int]nal ,rev5ue ,code (    
#aihf7 or su* o!r p]son :o demon/rates  
to ! satisfaction ( ! ,secret>y t !     
mann] 9 :i* su* o!r p]son w adm9i/] !   
tru/ w be consi/5t ) ! requirem5ts ( ?is
 section4  7,b7 ,! am\nts 9 ! tru/ may  
consi/ only (-- 7i7 deposits "u section 
#d7;b7 ( ! ,portable ,retirem5t &       
,inve/m5t ,acc\nt ,act ( #bjba1  7ii7   
am\nts describ$ 9 subsection 7a77#a71   
7iii7 am\nts deposit$ by an employ] ( ! 
acc\nt b5efici>y1  7iv7 int]e/ on am\nts
 9 su* tru/1 &  7v7 proce$s f inve/m5t (

 am\nts 9 su* tru/4  7,c7 ,except 9 !   
case ( a rollov] contribution describ$ 9
 subsection 7d77#d71 no contribution w  
be accept$ unless x is 9 ca%4  7,d7 ,no 
contributions 9 excess ( ! am\nt t is   
twice ! doll> am\nt 9 effect "u         
subsection 7b77#a77;,a7 w be accept$    
dur+ a cal5d> ye>4  7,e7 ,am\nts 9 !    
tru/ w be inve/$ 9 n m ?an #ae total    
funds1 & w be inve/$ 9 at lea/ #e total 
broad m>ket1 l[-fee funds1 bonds1 or    
lifecycle funds4 ,! rema9+ funds may    
include n m ?an #e ni*e funds & n m ?an 
#e annuity funds1 b all inve/m5ts mu/ be
 made 9 div]sifi$ funds :i* repres5t a  
prud5t inve/m5t4  7,f7 ,no di/ribution t
 w\ld br+ ! acc\nt balance bel[ ! am\nt 
deposit$ 9 su* tru/ "u section          
#d7;b77#a7 ( ! ,portable ,retirem5t &   
,inve/m5t ,acc\nt ,act ( #bjba is all[$ 
to an acc\nt b5efici>y :o has n atta9$ !
 age #ei4  7#b7 ,,pria ,*oice ,annuities
 ,rules simil> to ! rules ( section     
#djh7;b7 %all apply ) respect to ,,pria 
,*oice ,acc\nts 9 ! case ( a taxpay]    

pur*as+ an annuity contract or an       
end[m5t contract f a life insurance     
company4  7d7 ,tax treatm5t ( acc\nts   
7#a7 ,9 g5]al ,a ,,pria ,*oice ,acc\nt  
is exempt f taxation "u ?is subtitle    
unless su* acc\nt has ceas$ to be a     
,,pria ,*oice ,acc\nt4 ,not)/&+ ! prec$+
 s5t5ce1 any su* acc\nt is subject to ! 
taxes impos$ by section #eaa 7relat+ to 
imposition ( tax on unrelat$ bus9ess    
income ( *>itable1 etc41 organizations74
  7#b7 ,acc\nt t]m9ations ,rules simil> 
to ! rules ( p>agraphs 7#b7 & 7#d7 (    
section #djh7;e7 %all apply to ,,pria   
,*oice ,acc\nts1 & subsection 7e77#b7   
%all n apply to any am\nt treat$ z      
di/ribut$ "u su* rules4  7e7 ,tax       
treatm5t ( di/ributions ,= rules relat+ 
to di/ributions1 see section #ggja7p74  
7f7 ,loans treat$ z di/ributions ,=     
purposes ( ?is section-- 7#a7 ,9 g5]al  
,if dur+ any taxable ye> a p>ticipant or
 b5efici>y receives 7directly or        
indirectly7 any am\nt z a loan f a      
,,pria ,*oice ,acc\nt1 su* am\nt %all be

 treat$ z hav+ be5 receiv$ by su*       
individual z a di/ribution f su* acc\nt4
  7#b7 ,exception = c]ta9 loans  7,a7   
,g5]al rule ,p>agraph 7#a7 %all n apply 
to any loan to ! ext5t t su* loan 7:5   
add$ to ! out/&+ balance ( all o!r loans
 f su* acc\nt71 does n exce$ ! less] (--
 7i7 #ej1jjj1 r$uc$ by ! excess 7if any7
 (-- 7,i7 ! highe/ out/&+ balance (     
loans f ! acc\nt dur+ ! #a-ye> p]iod    
end+ on ! day be=e ! date on :i* su*    
loan 0 made1 ov]  7,,ii7 ! out/&+       
balance ( loans f ! plan on ! date on   
:i* su* loan 0 made1 or  7ii7 ! great]  
(-- 7,i7 "o-half ( ! am\nt 9 ! acc\nt1  
or  7,,ii7 #aj1jjj4  7,b7 ,requirem5t t 
loan be repayable )9 #e ye>s  7i7 ,9    
g5]al ,subp>agraph 7,a7 %all n apply to 
any loan unless su* loan1 by its t]ms1  
is requir$ to be repaid )9 #e ye>s4     
7ii7 ,exception = home loans ,clause 7i7
 %all n apply to any loan us$ to acquire
 any dwell+ unit :i* )9 a reasonable "t 
is to be us$ 7det]m9$ at ! "t ! loan is 
made7 z ! pr9cipal resid5ce ( !         

p>ticipant4  7,c7 ,requirem5t ( level   
amortization ,except z provid$ 9        
regulations1 ?is p>agraph %all n apply  
to any loan unless sub/antially level   
amortization ( su* loan 7) paym5ts n    
less frequ5tly ?an qu>t]ly7 is requir$  
ov] ! t]m ( ! loan4  7g7 ,employ]       
d$uctions  7#a7 ,9 g5]al ,= d$uctions   
relat$ to employ] contributions1 see    
section #afb4  7#b7 ,nondiscrim9ation   
,"u regulations prescrib$ by !          
,secret>y1 not)/&+ section #afb1 no     
d$uction %all be all[$ = employ]        
contributions to a ,,pria ,*oice ,acc\nt
 on behalf ( an employee :o is a highly 
comp5sat$ employee 7z def9$ 9 section   
#dad7q77 if ! employ] contributions made
 on behalf ( all employees discrim9ate 9
 favor ( su* employees :o are highly    
comp5sat$ employees4  7#c7 ,c]ta9       
controll$ gr\ps ,all employees :o are   
treat$ z employ$ by a s+le employ] "u   
subsections 7b71 7c71 & 7m7 ( section   
#dad %all be treat$ z employ$ by a s+le 
employ] = purposes ( ?is subsection4    

7h7 ,inflation adju/m5t  7#a7 ,9 g5]al  
,9 ! case ( any taxable ye> beg9n+ 9 a  
cal5d> ye> aft] #bjba1 ! doll> am\nts "u
 subsection 7b7 & subsection 7c77#d7    
%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> #bjbj = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7#b7
 ,r\nd+ rules ,if any am\nt aft]        
adju/m5t "u p>agraph 7#a7 is n a        
multiple ( #ejj1 su* am\nt %all be r\nd$
 to ! next l[] multiple ( #ejj4  7i7    
,portable ,retirem5t & ,inve/m5t ,bo>d  
,! ,portable ,retirem5t & ,inve/m5t     
,bo>d e/abli%$ "u section #b ( !        
,portable ,retirem5t & ,inve/m5t ,acc\nt
 ,act ( #bjba %all deposit any          
contribution to ! ,,pria ,basic ,acc\nt 
( an individual :o has made ! election  
"u section #d7;f77#a7 ( su* ,act into ! 
,,pria ,*oice ,acc\nt ( ! individual4   
,su* contribution %all be treat$ z if   

made directly to su* ,,pria ,*oice      
,acc\nt4  4  7c7 ,cl]ical am5dm5ts ,!   
table ( sections = *apt] #a is am5d$ by 
ins]t+ aft] ! item relat$ to section    
#bbc ! foll[+ new item3  ,sec4 #bbc;,a4 
,,pria ,*oice ,acc\nts4  4  #h4 ,option 
to roll ov]  7a7 ,9 g5]al ,any          
individual :o holds an acc\nt describ$ 9
 subsection 7c7 may elect to roll ov] ! 
entire am\nt 9 su* acc\nt into a ,,pria 
,*oice ,acc\nt 7z def9$ 9 section       
#bbc;,a ( ! ,int]nal ,rev5ue ,code (    
#aihf74 ,su* rollov] %all be treat$ z a 
rollov] describ$ 9 section              
#bbc;,a7e77#d7 ( ! ,int]nal ,rev5ue     
,code ( #aihf4  7b7 ,orphan$ acc\nts ,! 
tru/ee ( any acc\nt describ$ 9          
subsection 7c7 ! b5efici>y ( :i* _c be  
locat$ or has ceas$ to ex]cise control  
ov] ! assets ( ! acc\nt may transf] su* 
acc\nt to a ,,pria ,basic or ,,pria     
,*oice ,acc\nt 9 ! "n ( ! b5efici>y 9   
accordance ) regulations issu$ by !     
,secret>y ( ! ,treasury4 ,su* a transf] 
%all be treat$ z a rollov] describ$ 9   

section #bbc;,a7e77#d7 ( ! ,int]nal     
,rev5ue ,code ( #aihf4  7c7 ,acc\nts    
describ$ ,?is subsection %all apply to  
acc\nts op5$ or annuity contracts       
pur*as$ pursuant to ! foll[+ sections ( 
! ,int]nal ,rev5ue ,code ( #aihf3 7#a7  
,section #dja7k74  7#b7 ,section        
#djc7;b74  7#c7 ,section #deg4  7#d7    
,section #dji;,a4  7#e7 ,section #djh4  
#i4 ,regulations ,n lat] ?an #ahj days  
aft] ! date ( ! enactm5t ( ?is ,act1 !  
,secret>y ( ! ,treasury1 9 coord9ation )
 ! ,commission] ( ,social ,security1 z  
det]m9$ necess>y by ! ,secret>y1 %all   
issue regulations to c>ry out ?is ,act4