,,ii  #aagth ,,congress  #b;d ,session  
,s4 #ciee  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,march #cj1    
#bjbb,mr4 ,barrasso 7for himself and    
,mr4 ,carper7 introduced the following  
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to amend the ,internal ,revenue ,code
 of #aihf to provide for starter        
#dja7k7s for employers with no          
retirement plans1 and for other         
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,starter-,k ,act of 
#bjbb4  #b4 ,starter #dja7k7 plans for  
employers with no retirement plan  7a7  
,in general ,section #dja7k7 of the     
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new paragraph3  7#af7 ,starter
 #dja7k7 deferral-only plans for        
employers with no retirement plan  7,a7 
,in general ,a starter #dja7k7          
deferral-only arrangement maintained by 
an eligible employer shall be treated as
 meeting the requirements of paragraph  

7#c77;,a77ii74  7,b7 ,starter #dja7k7   
deferral-only arrangement ,for purposes 
of this paragraph1 the term starter     
#dja7k7 deferral-only arrangement means 
any cash or deferred arrangement which  
meets-- 7i7 the automatic deferral      
requirements of subparagraph 7,c71  7ii7
 the contribution limitations of        
subparagraph 7,d71 and  7iii7 the       
requirements of subparagraph 7,e7 of    
paragraph 7#ac74  7,c7 ,automatic       
deferral  7i7 ,in general ,the          
requirements of this subparagraph are   
met if1 under the arrangement1 each     
employee eligible to participate in the 
arrangement is treated as having elected
 to have the employer make elective     
contributions in an amount equal to a   
qualified percentage of compensation4   
7ii7 ,election out ,the election treated
 as having been made under clause 7i7   
shall cease to apply with respect to any
 employee if such employee makes an     
affirmative election-- 7,i7 to not have 
such contributions made1 or  7,,ii7 to  

make elective contributions at a level  
specified in such affirmative election4 
7iii7 ,qualified percentage ,for        
purposes of this subparagraph1 the term 
qualified percentage means1 with respect
 to any employee1 any percentage        
determined under the arrangement if such
 percentage is applied uniformly and is 
not less than #c or more than #ae       
percent4  7,d7 ,contribution limitations
  7i7 ,in general ,the requirements of  
this subparagraph are met if1 under the 
arrangement-- 7,i7 the only             
contributions which may be made are     
elective contributions of employees     
described in subparagraph 7,c71 and     
7,,ii7 the aggregate amount of such     
elective contributions which may be made
 with respect to any employee for any   
calendar year shall not exceed #f1jjj4  
7ii7 ,cost-of-living adjustment ,in the 
case of any calendar year beginning     
after ,december #ca1 #bjbc1 the #f1jjj  
amount under clause 7i7 shall be        
adjusted in the same manner as under    

section #djb7;g77#d71 except that #bjbb 
shall be substituted for #bjje4  7iii7  
,cross reference ,for catch-up          
contributions for individuals age #ej or
 over1 see section #dad7v77#b77;,b77ii74
  7,e7 ,eligible employer ,for purposes 
of this paragraph-- 7i7 ,in general ,the
 term eligible employer means any       
employer which1 during the first plan   
year of the cash or deferred arrangement
 described in subparagraph 7,b71 does   
not maintain any other qualified plan4  
,an employer treated as an eligible     
employer under the preceding sentence   
shall be treated as an eligible employer
 with respect to the arrangement for any
 subsequent plan year without regard to 
whether it maintains another qualified  
plan4  7ii7 ,qualified plan ,the term   
qualified plan means a plan1 contract1  
pension1 account1 or trust described in 
subparagraph 7,a7 or 7,b7 of paragraph  
7#e7 of section #bai7;g7 7determined    
without regard to the last sentence of  
such paragraph 7#e774  4  7b7 ,certain  

annuity contracts ,subsection 7b7 of    
section #djc of the ,internal ,revenue  
,code of #aihf is amended by adding at  
the end the following new paragraph3    
7#ae7 ,safe harbor deferral-only plans  
for employers with no retirement plan   
7,a7 ,in general ,a safe harbor         
deferral-only plan maintained by an     
eligible employer shall be treated as   
meeting the requirements of paragraph   
7#ab74  7,b7 ,safe harbor deferral-only 
plan ,for purposes of this paragraph1   
the term safe harbor deferral-only plan 
means any plan which meets-- 7i7 the    
automatic deferral requirements of      
subparagraph 7,c71  7ii7 the            
contribution limitations of subparagraph
 7,d71 and  7iii7 the requirements of   
subparagraph 7,e7 of section            
#dja7k77#ac74  7,c7 ,automatic deferral 
7i7 ,in general ,the requirements of    
this subparagraph are met if1 under the 
plan1 each eligible employee is treated 
as having elected to have the employer  
make elective contributions in an amount

 equal to a qualified percentage of     
compensation4  7ii7 ,election out ,the  
election treated as having been made    
under clause 7i7 shall cease to apply   
with respect to any eligible employee if
 such eligible employee makes an        
affirmative election-- 7,i7 to not have 
such contributions made1 or  7,,ii7 to  
make elective contributions at a level  
specified in such affirmative election4 
7iii7 ,qualified percentage ,for        
purposes of this subparagraph1 the term 
qualified percentage means1 with respect
 to any employee1 any percentage        
determined under the plan if such       
percentage is applied uniformly and is  
not less than #c or more than #ae       
percent4  7,d7 ,contribution limitations
  7i7 ,in general ,the requirements of  
this subparagraph are met if1 under the 
plan-- 7,i7 the only contributions which
 may be made are elective contributions 
of eligible employees1 and  7,,ii7 the  
aggregate amount of such elective       
contributions which may be made with    

respect to any employee for any calendar
 year shall not exceed #f1jjj4  7ii7    
,cost-of-living adjustment ,in the case 
of any calendar year beginning after    
,december #ca1 #bjbc1 the #f1jjj amount 
under clause 7i7 shall be adjusted in   
the same manner as under section        
#djb7;g77#d71 except that #bjbb shall be
 substituted for #bjje4  7iii7 ,cross   
reference ,for catch-up contributions   
for individuals age #ej or over1 see    
section #dad7v77#b77;,b77ii74  7,e7     
,eligible employer ,for purposes of this
 paragraph-- 7i7 ,in general ,the term  
eligible employer means any employer    
which1 during the first plan year of the
 plan described in subparagraph 7,b71   
does not maintain any other qualified   
plan4 ,an employer treated as an        
eligible employer under the preceding   
sentence shall be treated as an eligible
 employer with respect to the plan for  
any subsequent plan year without regard 
to whether it maintains another         
qualified plan4  7ii7 ,qualified plan   

,the term qualified plan means a plan1  
contract1 pension1 account1 or trust    
described in subparagraph 7,a7 or 7,b7  
of paragraph 7#e7 of section #bai7;g7   
7determined without regard to the last  
sentence of such paragraph 7#e774  7,f7 
,eligible employee ,for purposes of this
 paragraph1 the term eligible employee  
means any employee of the employer other
 than an employee who is permitted to be
 excluded under paragraph 7#ab77;,a74  4
  7c7 ,catch-,up contributions for      
individuals age #ej and over  7#a7      
,section #dad7v77#b77;,b7 of the        
,internal ,revenue ,code of #aihf is    
amended by inserting 1 #dja7k77#af71    
#djc7;b77#ae71 after #dja7k77#aa7 each  
place it appears4  7#b7 ,section        
#dad7v77#c77;,b7 of such ,code is       
amended-- 7,a7 by inserting 1           
#dja7k77#af7 after #dja7k77#aa71 and    
7,b7 by inserting 1 #djc7;b77#ae7 after 
#djc7;b77#ab74  7d7 ,simplified         
reporting ,section #ajd7;a77#b77;,a7 of 
the ,employee ,retirement ,income       

,security ,act of #aigd 7#bi ,u4,s4,c4  
#ajbd7;a77#b77 is amended by striking or
 at the end of clause 7i71 by           
redesignating clause 7ii7 as clause     
7iii71 and by inserting after clause 7i7
 the following new clause3  7ii7 is a   
starter #dja7k7 deferral-only           
arrangement described in section        
#dja7k77#af77;,b7 of the ,internal      
,revenue ,code of #aihf or a safe harbor
 deferral-only plan described in section
 #djc7;b77#ae7 of such ,code2 or  4  7e7
 ,starter and safe harbor plans not     
treated as top-,heavy plans             
,subparagraph 7,h7 of section           
#daf7;g77#d7 of the ,internal ,revenue  
,code of #aihf is amended-- 7#a7 by     
striking arrangements in the heading and
 inserting arrangements or plans1  7#b7 
by striking 1 and at the end of clause  
7i7 and inserting and matching          
contributions with respect to which the 
requirements of section #dja7m77#aa7 or 
#dja7m77#ab7 are met1 or1 and  7#c7 by  
striking clause 7ii7 and inserting after

 clause 7i7 the following new clause3   
7ii7 a starter #dja7k7 deferral-only    
arrangement described in section        
#dja7k77#af77;,b7 or a safe harbor      
deferral-only plan described in section 
#djc7;b77#ae74  4  7f7 ,plans not       
subject to ,employee ,retirement ,income
 ,security ,act of #aigd ,applicable to 
plan years beginning after ,december    
#ca1 #bjbb1 the ,secretary of ,labor    
shall update ,field ,assistance         
,bulletin ,no4 #bjaj-ja to specify that 
the hiring of a new plan administrator  
or third-party administrator by a plan  
which is not previously subject to title
 ,i of the ,employee ,retirement ,income
 ,security ,act of #aigd shall not cause
 such plan to be subject to such title4 
7g7 ,effective date ,the amendments made
 by this section shall apply to plan    
years beginning after ,december #ca1    
#bjbb4