,,ii  #aag? ,,congress  #b;d ,session   
,s4 #ciee  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,m>* #cj1 #bjbb,mr4    
,b>rasso 7= himself & ,mr4 ,c>p]7       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide = />t] 
#dja7k7s = employ]s ) no retirem5t      
plans1 & = o!r purposes4  #a4 ,%ort     
title ,?is ,act may be cit$ z ! ,/>t]-,k
 ,act ( #bjbb4  #b4 ,/>t] #dja7k7 plans 
= employ]s ) no retirem5t plan  7a7 ,9  
g5]al ,section #dja7k7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new p>agraph3  7#af7  
,/>t] #dja7k7 def]ral-only plans =      
employ]s ) no retirem5t plan  7,a7 ,9   
g5]al ,a />t] #dja7k7 def]ral-only      
arrangem5t ma9ta9$ by an eligible       
employ] %all be treat$ z meet+ !        
requirem5ts ( p>agraph 7#c77;,a77ii74   
7,b7 ,/>t] #dja7k7 def]ral-only         
arrangem5t ,= purposes ( ?is p>agraph1 !
 t]m />t] #dja7k7 def]ral-only          

arrangem5t means any ca% or def]r$      
arrangem5t :i* meets-- 7i7 ! automatic  
def]ral requirem5ts ( subp>agraph 7,c71 
7ii7 ! contribution limitations (       
subp>agraph 7,d71 &  7iii7 ! requirem5ts
 ( subp>agraph 7,e7 ( p>agraph 7#ac74   
7,c7 ,automatic def]ral  7i7 ,9 g5]al ,!
 requirem5ts ( ?is subp>agraph are met  
if1 "u ! arrangem5t1 ea* employee       
eligible to p>ticipate 9 ! arrangem5t is
 treat$ z hav+ elect$ to h ! employ]    
make elective contributions 9 an am\nt  
equal to a qualifi$ p]c5tage (          
comp5sation4  7ii7 ,election out ,!     
election treat$ z hav+ be5 made "u      
clause 7i7 %all cease to apply ) respect
 to any employee if su* employee makes  
an affirmative election-- 7,i7 to n h   
su* contributions made1 or  7,,ii7 to   
make elective contributions at a level  
specifi$ 9 su* affirmative election4    
7iii7 ,qualifi$ p]c5tage ,= purposes (  
?is subp>agraph1 ! t]m qualifi$ p]c5tage
 means1 ) respect to any employee1 any  
p]c5tage det]m9$ "u ! arrangem5t if su* 

p]c5tage is appli$ uni=mly & is n less  
?an #c or m ?an #ae p]c5t4  7,d7        
,contribution limitations  7i7 ,9 g5]al 
,! requirem5ts ( ?is subp>agraph are met
 if1 "u ! arrangem5t-- 7,i7 ! only      
contributions :i* may be made are       
elective contributions ( employees      
describ$ 9 subp>agraph 7,c71 &  7,,ii7 !
 aggregate am\nt ( su* elective         
contributions :i* may be made ) respect 
to any employee = any cal5d> ye> %all n 
exce$ #f1jjj4  7ii7 ,co/-(-liv+ adju/m5t
 ,9 ! case ( any cal5d> ye> beg9n+ aft] 
,decemb] #ca1 #bjbc1 ! #f1jjj am\nt "u  
clause 7i7 %all be adju/$ 9 ! same mann]
 z "u section #djb7;g77#d71 except t    
#bjbb %all be sub/itut$ = #bjje4  7iii7 
,cross ref]5ce ,= cat*-up contributions 
= individuals age #ej or ov]1 see       
section #dad7v77#b77;,b77ii74  7,e7     
,eligible employ] ,= purposes ( ?is     
p>agraph-- 7i7 ,9 g5]al ,! t]m eligible 
employ] means any employ] :i*1 dur+ !   
fir/ plan ye> ( ! ca% or def]r$         
arrangem5t describ$ 9 subp>agraph 7,b71 

does n ma9ta9 any o!r qualifi$ plan4 ,an
 employ] treat$ z an eligible employ] "u
 ! prec$+ s5t5ce %all be treat$ z an    
eligible employ] ) respect to !         
arrangem5t = any subsequ5t plan ye> )\t 
reg>d to :e!r x ma9ta9s ano!r qualifi$  
plan4  7ii7 ,qualifi$ plan ,! t]m       
qualifi$ plan means a plan1 contract1   
p5sion1 acc\nt1 or tru/ describ$ 9      
subp>agraph 7,a7 or 7,b7 ( p>agraph 7#e7
 ( section #bai7;g7 7det]m9$ )\t reg>d  
to ! la/ s5t5ce ( su* p>agraph 7#e774  4
  7b7 ,c]ta9 annuity contracts          
,subsection 7b7 ( section #djc ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#ae7 ,safe h>bor def]ral-only plans =  
employ]s ) no retirem5t plan  7,a7 ,9   
g5]al ,a safe h>bor def]ral-only plan   
ma9ta9$ by an eligible employ] %all be  
treat$ z meet+ ! requirem5ts ( p>agraph 
7#ab74  7,b7 ,safe h>bor def]ral-only   
plan ,= purposes ( ?is p>agraph1 ! t]m  
safe h>bor def]ral-only plan means any  
plan :i* meets-- 7i7 ! automatic def]ral

 requirem5ts ( subp>agraph 7,c71  7ii7 !
 contribution limitations ( subp>agraph 
7,d71 &  7iii7 ! requirem5ts (          
subp>agraph 7,e7 ( section #dja7k77#ac74
  7,c7 ,automatic def]ral  7i7 ,9 g5]al 
,! requirem5ts ( ?is subp>agraph are met
 if1 "u ! plan1 ea* eligible employee is
 treat$ z hav+ elect$ to h ! employ]    
make elective contributions 9 an am\nt  
equal to a qualifi$ p]c5tage (          
comp5sation4  7ii7 ,election out ,!     
election treat$ z hav+ be5 made "u      
clause 7i7 %all cease to apply ) respect
 to any eligible employee if su*        
eligible employee makes an affirmative  
election-- 7,i7 to n h su* contributions
 made1 or  7,,ii7 to make elective      
contributions at a level specifi$ 9 su* 
affirmative election4  7iii7 ,qualifi$  
p]c5tage ,= purposes ( ?is subp>agraph1 
! t]m qualifi$ p]c5tage means1 ) respect
 to any employee1 any p]c5tage det]m9$  
"u ! plan if su* p]c5tage is appli$     
uni=mly & is n less ?an #c or m ?an #ae 
p]c5t4  7,d7 ,contribution limitations  

7i7 ,9 g5]al ,! requirem5ts ( ?is       
subp>agraph are met if1 "u ! plan-- 7,i7
 ! only contributions :i* may be made   
are elective contributions ( eligible   
employees1 &  7,,ii7 ! aggregate am\nt (
 su* elective contributions :i* may be  
made ) respect to any employee = any    
cal5d> ye> %all n exce$ #f1jjj4  7ii7   
,co/-(-liv+ adju/m5t ,9 ! case ( any    
cal5d> ye> beg9n+ aft] ,decemb] #ca1    
#bjbc1 ! #f1jjj am\nt "u clause 7i7 %all
 be adju/$ 9 ! same mann] z "u section  
#djb7;g77#d71 except t #bjbb %all be    
sub/itut$ = #bjje4  7iii7 ,cross ref]5ce
 ,= cat*-up contributions = individuals 
age #ej or ov]1 see section             
#dad7v77#b77;,b77ii74  7,e7 ,eligible   
employ] ,= purposes ( ?is p>agraph-- 7i7
 ,9 g5]al ,! t]m eligible employ] means 
any employ] :i*1 dur+ ! fir/ plan ye> ( 
! plan describ$ 9 subp>agraph 7,b71 does
 n ma9ta9 any o!r qualifi$ plan4 ,an    
employ] treat$ z an eligible employ] "u 
! prec$+ s5t5ce %all be treat$ z an     
eligible employ] ) respect to ! plan =  

any subsequ5t plan ye> )\t reg>d to :e!r
 x ma9ta9s ano!r qualifi$ plan4  7ii7   
,qualifi$ plan ,! t]m qualifi$ plan     
means a plan1 contract1 p5sion1 acc\nt1 
or tru/ describ$ 9 subp>agraph 7,a7 or  
7,b7 ( p>agraph 7#e7 ( section #bai7;g7 
7det]m9$ )\t reg>d to ! la/ s5t5ce ( su*
 p>agraph 7#e774  7,f7 ,eligible        
employee ,= purposes ( ?is p>agraph1 !  
t]m eligible employee means any employee
 ( ! employ] o!r ?an an employee :o is  
p]mitt$ to be exclud$ "u p>agraph       
7#ab77;,a74  4  7c7 ,cat*-,up           
contributions = individuals age #ej &   
ov]  7#a7 ,section #dad7v77#b77;,b7 ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ 1 #dja7k77#af71 #djc7;b77#ae71
 aft] #dja7k77#aa7 ea* place x appe>s4  
7#b7 ,section #dad7v77#c77;,b7 ( su*    
,code is am5d$-- 7,a7 by ins]t+ 1       
#dja7k77#af7 aft] #dja7k77#aa71 &  7,b7 
by ins]t+ 1 #djc7;b77#ae7 aft]          
#djc7;b77#ab74  7d7 ,simplifi$ report+  
,section #ajd7;a77#b77;,a7 ( ! ,employee
 ,retirem5t ,income ,security ,act (    

#aigd 7#bi ,u4,s4,c4 #ajbd7;a77#b77 is  
am5d$ by /rik+ or at ! end ( clause 7i71
 by r$esignat+ clause 7ii7 z clause     
7iii71 & by ins]t+ aft] clause 7i7 !    
foll[+ new clause3  7ii7 is a />t]      
#dja7k7 def]ral-only arrangem5t describ$
 9 section #dja7k77#af77;,b7 ( !        
,int]nal ,rev5ue ,code ( #aihf or a safe
 h>bor def]ral-only plan describ$ 9     
section #djc7;b77#ae7 ( su* ,code2 or  4
  7e7 ,/>t] & safe h>bor plans n treat$ 
z top-,heavy plans ,subp>agraph 7,h7 (  
section #daf7;g77#d7 ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 /rik+ arrangem5ts 9 ! head+ & ins]t+   
arrangem5ts or plans1  7#b7 by /rik+ 1 &
 at ! end ( clause 7i7 & ins]t+ & mat*+ 
contributions ) respect to :i* !        
requirem5ts ( section #dja7m77#aa7 or   
#dja7m77#ab7 are met1 or1 &  7#c7 by    
/rik+ clause 7ii7 & ins]t+ aft] clause  
7i7 ! foll[+ new clause3  7ii7 a />t]   
#dja7k7 def]ral-only arrangem5t describ$
 9 section #dja7k77#af77;,b7 or a safe  
h>bor def]ral-only plan describ$ 9      

section #djc7;b77#ae74  4  7f7 ,plans n 
subject to ,employee ,retirem5t ,income 
,security ,act ( #aigd ,applicable to   
plan ye>s beg9n+ aft] ,decemb] #ca1     
#bjbb1 ! ,secret>y ( ,labor %all update 
,field ,assi/ance ,bullet9 ,no4 #bjaj-ja
 to specify t ! hir+ ( a new plan       
adm9i/rator or ?ird-p>ty adm9i/rator by 
a plan :i* is n previ\sly subject to    
title ,i ( ! ,employee ,retirem5t       
,income ,security ,act ( #aigd %all n   
cause su* plan to be subject to su*     
title4  7g7 ,effective date ,! am5dm5ts 
made by ?is section %all apply to plan  
ye>s beg9n+ aft] ,decemb] #ca1 #bjbb4