,,ii ,cal5d> ,no4 #dhj #aag? ,,congress #b;d ,session ,s4 #dhjh ,report ,no4 #aag-adb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,septemb] #h1 #bjbb,mr4 ,wyd51 f ! ,committee on ,f9ance1 report$ ! foll[+ orig9al bill2 :i* 0 read twice & plac$ on ! cal5d> ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to re=m retirem5t provisions1 & = o!r purposes4 #a4 ,%ort title1 etc 7a7 ,%ort title ,?is ,act may be cit$ z ! ,enhanc+ ,am]ican ,retirem5t ,n[ ,act or ! ,,e>n ,act4 7b7 ,am5dm5t ( #aihf ,code ,except z o!rwise expressly provid$1 :5ev] 9 ?is ,act an am5dm5t or repeal is express$ 9 t]ms ( an am5dm5t to1 or repeal (1 a section or o!r provision1 ! ref]5ce %all be consid]$ to be made to a section or o!r provision ( ! ,int]nal ,rev5ue ,code ( #aihf4 7c7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title1 etc4,,title ,i--,individual retirement,sec4 #aja4 ,secure def]ral arrangem5ts4,sec4 #ajb4 ,mat*+ paym5ts = elective def]ral & ,,ira contributions by c]ta9 individuals4,sec4 #ajc4 ,modification ( p>ticipation requirem5ts = long-t]m1 "p-"t work]s4,sec4 #ajd4 ,treatm5t ( /ud5t loan paym5ts z elective def]rals = purposes ( mat*+ contributions4,sec4 #aje4 ,)drawals = c]ta9 em]g5cy exp5ses4,sec4 #ajf4 ,all[ additional nonelective contributions to simple plans4,sec4 #ajg4 ,small imm$iate f9ancial inc5tives = contribut+ to a plan4,sec4 #ajh4 ,index+ ,,ira cat*-up limit4,sec4 #aji4 ,high] cat*-up limit to apply at age #fj1 #fa1 #fb1 & #fc4,sec4 #aaj4 ,elim9ate ! fir/ day ( ! mon? requirem5t = gov]nm5tal section #deg7;b7 plans4,sec4 #aaa4 ,tax treatm5t ( c]ta9 nontrade or bus9ess ,,sep contributions4,sec4 #aab4 ,elim9ation ( additional tax on corrective di/ributions ( excess contributions4,sec4 #aac4 ,employ] may rely on employee c]tify+ t deem$ h>d%ip di/ribution conditions are met4,sec4 #aad4 ,p5alty-free )drawals f retirem5t plans = individuals 9 case ( dome/ic abuse4,sec4 #aae4 ,am5dm5ts to increase b5efit accruals "u plan = previ\s plan ye> all[$ until employ] tax return due date4,sec4 #aaf4 ,retroactive fir/ ye> elective def]rals = sole proprietors4,sec4 #aag4 ,treasury guidance on rollov]s4,sec4 #aah4 ,exemption = automatic portability transactions4,sec4 #aai4 ,application ( section #dae limit = c]ta9 employees ( rural electric coop]atives4,sec4 #abj4 ,insurance-d$icat$ ex*ange-trad$ funds4,sec4 #aba4 ,modification ( age requirem5t = qualifi$ ,,able programs4,sec4 #abb4 ,assi/ sav]s 9 recov]+ unclaim$ sav+s bonds4,,title ,,ii--,retirees,sec4 #bja4 ,increase 9 age = requir$ beg9n+ date = m&atory di/ributions4,sec4 #bjb4 ,qualify+ longevity annuity contracts4,sec4 #bjc4 ,remove requir$ m9imum di/ribution b>ri]s = life annuities4,sec4 #bjd4 ,elim9at+ a p5alty on p>tial annuitization4,sec4 #bje4 ,r$uction 9 excise tax on c]ta9 accumulations 9 qualifi$ retirem5t plans4,sec4 #bjf4 ,cl>ification ( sub/antially equal p]iodic paym5t rule4,sec4 #bjg4 ,recov]y ( retirem5t plan ov]paym5ts4,sec4 #bjh4 ,retirem5t ,sav+s ,lo/ & ,f\nd4,sec4 #bji4 ,ro? plan di/ribution rules4,sec4 #baj4 ,"o-"t election = qualifi$ *>itable di/ribution to split-int]e/ entity2 increase 9 qualifi$ *>itable di/ribution limitation4,sec4 #baa4 ,exception to p5alty on e>ly di/ributions f qualifi$ plans = individuals ) a t]m9al illness4,sec4 #bab4 ,surviv+ sp\se election to be treat$ z employee4,sec4 #bac4 ,long-t]m c>e contracts pur*as$ ) retirem5t plan di/ributions4,,title ,,iii--,public safety (fic]s & military,sec4 #cja4 ,milit>y sp\se retirem5t plan eligibility cr$it = small employ]s4,sec4 #cjb4 ,di/ributions to firefight]s4,sec4 #cjc4 ,exclusion ( c]ta9 disability-relat$ fir/ respond] retirem5t paym5ts4,sec4 #cjd4 ,repeal ( direct paym5t requirem5t on exclusion f gross income ( di/ributions f gov]nm5tal plans = heal? & long-t]m c>e insurance4,sec4 #cje4 ,modification ( eligible age = exemption f e>ly )drawal p5alty4,sec4 #cjf4 ,exemption f e>ly )drawal p5alty = c]ta9 ,/ate & local gov]nm5t corrections employees4,,title ,,iv--,nonpr(its & educators,sec4 #dja4 ,enhancem5t ( #djc7;b7 plans4,sec4 #djb4 ,h>d%ip )drawal rules = #djc7;b7 plans4,sec4 #djc4 ,multiple employ] #djc7;b7 plans4,,title ,v--,disa/] relief,sec4 #eja4 ,special rules = use ( retirem5t funds 9 connection ) qualifi$ f$]ally decl>$ disa/]s4,,title ,,vi--,employ] plans,sec4 #fja4 ,cr$it = employ]s ) respect to modifi$ safe h>bor requirem5ts4,sec4 #fjb4 ,application ( top heavy rules to def9$ contribution plans cov]+ excludable employees4,sec4 #fjc4 ,increase 9 cr$it limitation = small employ] p5sion plan />tup co/s ( c]ta9 employ]s4,sec4 #fjd4 ,expansion ( ,employee ,plans ,compliance ,resolution ,sy/em4,sec4 #fje4 ,application ( cr$it = small employ] p5sion plan />tup co/s to employ]s :i* jo9 an exi/+ plan4,sec4 #fjf4 ,safe h>bor = corrections ( employee elective def]ral failures4,sec4 #fjg4 ,re=m ( family attribution rule4,sec4 #fjh4 ,contribution limit = simple ,i,r,as4,sec4 #fji4 ,employ]s all[$ to replace simple retirem5t acc\nts ) safe h>bor #dja7k7 plans dur+ a ye>4,sec4 #faj4 ,/>t] #dja7k7 plans = employ]s ) no retirem5t plan4,sec4 #faa4 ,cr$it = small employ]s t adapt an automatic portability arrangem5t4,sec4 #fab4 ,re-enrollm5t cr$it4,sec4 #fac4 ,corrections ( mortality tables4,sec4 #fad4 ,enhanc+ retiree heal? b5efits 9 p5sion plans4,sec4 #fae4 ,def]ral ( tax = c]ta9 sales ( employ] /ock to employee /ock own]%ip plan sponsor$ by ,s corporation4,,title ,,vii--,notices,sec4 #gja4 ,review & report to ,congress relat+ to report+ & disclosure requirem5ts4,sec4 #gjb4 ,report to ,congress on section #djb7;f7 notices4,sec4 #gjc4 ,elim9at+ unnecess>y plan requirem5ts relat$ to un5roll$ p>ticipants4,,title ,,viii--,te*nical modifications,sec4 #hja4 ,repaym5t ( qualifi$ bir? or adoption di/ribution limit$ to #c ye>s4,sec4 #hjb4 ,am5dm5ts relat+ to ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai4,sec4 #hjc4 ,modification ( requir$ m9imum di/ribution rules = special ne$s tru/s4,,title ,,ix--,plan amendments,sec4 #ija4 ,provisions relat+ to plan am5dm5ts4,,title ,x--,tax ,c\rt retirem5t provisions,sec4 #ajja4 ,provisions relat+ to judges ( ! ,tax ,c\rt4,sec4 #ajjb4 ,provisions relat+ to special trial judges ( ! ,tax ,c\rt4,,title ,,xi--,rev5ue provisions,sec4 #aaja4 ,simple & ,,sep ,ro? ,i,r,as4,sec4 #aajb4 ,elective def]rals g5]ally limit$ to regul> contribution limit4,sec4 #aajc4 ,optional treatm5t ( employ] mat*+ or nonelective contributions z ,ro? contributions4,sec4 #aajd4 ,*>itable cons]vation easem5ts4 ,i ,individual retirem5t #aja4 ,secure def]ral arrangem5ts 7a7 ,9 g5]al ,subsection 7k7 ( section #dja is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#af7 ,alt]native me?od = secure def]ral arrangem5ts to meet nondiscrim9ation requirem5ts 7,a7 ,9 g5]al ,a secure def]ral arrangem5t %all be treat$ z meet+ ! requirem5ts ( p>agraph 7#c77;,a77ii74 7,b7 ,secure def]ral arrangem5t ,= purposes ( ?is p>agraph1 ! t]m secure def]ral arrangem5t means any ca% or def]r$ arrangem5t :i* meets ! requirem5ts ( subp>agraphs 7,c71 7,d71 & 7,e7 ( p>agraph 7#ac71 except z modifi$ by ?is p>agraph4 7,c7 ,qualifi$ p]c5tage ,= purposes ( ?is p>agraph1 9 apply+ p>agraph 7#ac77;,c7 ) respect to any employee1 ! t]m qualifi$ p]c5tage means1 9 lieu ( ! mean+ giv5 su* t]m 9 p>agraph 7#ac77;,c77iii71 any p]c5tage det]m9$ "u ! arrangem5t if su* p]c5tage is appli$ uni=mly & is-- 7i7 at lea/ #f p]c5t1 b n great] ?an #aj p]c5t1 dur+ ! p]iod end+ on ! la/ day ( ! fir/ plan ye> :i* beg9s aft] ! date on :i* ! fir/ elective contribution describ$ 9 p>agraph 7#ac77;,c77i7 is made ) respect to su* employee1 7ii7 at lea/ #g p]c5t dur+ ! fir/ plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 7iii7 at lea/ #h p]c5t dur+ ! second plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 7iv7 at lea/ #i p]c5t dur+ ! ?ird plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 & 7v7 at lea/ #aj p]c5t dur+ any subsequ5t plan ye>4 7,d7 ,mat*+ contributions 7i7 ,9 g5]al ,= purposes ( ?is p>agraph1 an arrangem5t %all be treat$ z hav+ met ! requirem5ts ( p>agraph 7#ac77;,d77i7 if & only if ! employ] makes mat*+ contributions on behalf ( ea* employee :o is n a highly comp5sat$ employee 9 an am\nt equal to ! sum (-- 7,i7 #ajj p]c5t ( ! elective contributions ( ! employee to ! ext5t su* contributions d n exce$ #b p]c5t ( comp5sation1 7,,ii7 #ej p]c5t ( s mu* ( su* contributions z exce$ #b p]c5t b d n exce$ #f p]c5t ( comp5sation1 plus 7,,iii7 #bj p]c5t ( s mu* ( su* contributions z exce$ #f p]c5t b d n exce$ #aj p]c5t ( comp5sation4 7ii7 ,rules = mat*+ contributions 7,i7 ,9 g5]al ,! rate ( mat*+ contributions ) respect to ea* increm5t ( employee contributions may be high] ?an ! rate specifi$ 9 clause 7i7 s long z su* rate does n increase z an employee's rate ( elective contributions increases4 7,,ii7 ,rules relat+ to alt]native plan designs ,! rules ( p>agraph 7#ab77;,b77iii7 %all n apply = purposes ( clause 7i74 4 7b7 ,mat*+ contributions ,subsection 7m7 ( section #dja is am5d$ by r$esignat+ p>agraph 7#ac7 z p>agraph 7#ad7 & by ins]t+ aft] p>agraph 7#ab7 ! foll[+ new p>agraph3 7#ac7 ,alt]native me?od = secure def]ral arrangem5ts ,a def9$ contribution plan %all be treat$ z meet+ ! requirem5ts ( p>agraph 7#b7 ) respect to mat*+ contributions if ! plan-- 7,a7 is a secure def]ral arrangem5t 7z def9$ 9 subsection 7k77#af771 7,b7 meets ! requirem5ts ( clauses 7ii7 & 7iii7 ( p>agraph 7#aa77;,b71 & 7,c7 provides t mat*+ contributions on behalf ( any employee may n be made ) respect to an employee's contributions or elective def]rals 9 excess ( #aj p]c5t ( ! employee's comp5sation4 4 7c7 ,con=m+ am5dm5ts 7#a7 ,clause 7ii7 ( section #dja7k77#ab77;,f7 is am5d$ by /rik+ or p>agraph 7#ac77;,d77i77,i7 & ins]t+ 1 p>agraph 7#ac77;,d77i77,i71 or p>agraph 7#af77;,d74 7#b7 ,subclause 7,,ii7 ( section #dja7k77#ae77;,b77i7 is am5d$ by /rik+ subsection 7a77#d71 p>agraphs 7#c71 7#ab71 & 7#ac7 & ins]t+ p>agraphs 7#c71 7#ab71 7#ac71 & 7#af71 subsection 7a77#d74 7#c7 ,subp>agraph 7,h7 ( section #daf7;g77#d7 is am5d$-- 7,a7 9 clause 7i71 by /rik+ section #dja7k77#ab7 or #dja7k77#ac7 & ins]t+ p>agraph 7#ab71 7#ac71 or 7#af7 ( section #dja7k71 & 7,b7 9 clause 7ii71 by /rik+ section #dja7m77#aa7 or #dja7m77#ab7 & ins]t+ p>agraph 7#aa71 7#ab71 or 7#ac7 ( section #dja7m74 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #ajb4 ,mat*+ paym5ts = elective def]ral & ,,ira contributions by c]ta9 individuals 7a7 ,9 g5]al ,sub*apt] ,b ( *apt] #fe is am5d$ by add+ at ! end ! foll[+ new section3 #fdcc4 ,mat*+ paym5ts = elective def]ral & ,,ira contributions by c]ta9 individuals 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$ #b1jjj4 7#b7 ,paym5t ( cr$it 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,a71 ! cr$it "u ?is section %all be-- 7i7 treat$ z all[$ by subp>t ,c ( "p ,,iv ( sub*apt] ,a ( *apt] #a1 & 7ii7 paid by ! ,secret>y z a contribution 7z soon z practicable aft] ! eligible individual has fil$ a tax return mak+ a claim = su* cr$it = ! taxable ye>7 to ! applicable retirem5t sav+s vehicle ( an eligible individual4 7,b7 ,exception ,9 ! case ( an eligible individual ) respect to :om ! cr$it det]m9$ "u p>agraph 7#a7 is great] ?an z]o b less ?an #ajj = ! taxable ye>1 ! eligible individual may elect to h subp>agraph 7,a7 n apply4 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 & surviv+ sp\ses ,except z provid$ 9 subp>agraph 7,b7-- 7i7 ! applicable doll> am\nt is #da1jjj1 & 7ii7 ! phase\t range is #cj1jjj4 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 7h771 & 7ii7 any taxpay] :o is n fil+ a jo9t return1 :o is n a head ( a h\sehold 7z s def9$71 & :o is n a surviv+ sp\se 7z def9$ 9 section #b7;a771 ! applicable doll> am\nt & ! phase\t range %all be ( ! am\nts applicable "u subp>agraph 7,a7 7z s adju/$74 7c7 ,eligible individual ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m eligible individual means any individual if su* individual has atta9$ ! 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 7#c7 ,nonresid5t ali5s n eligible ,! t]m eligible individual %all n include any individual :o is a nonresid5t ali5 individual = any portion ( ! taxable ye> unless su* individual is treat$ = su* taxable ye> z a resid5t ( ! ,unit$ ,/ates = purposes ( *apt] #a by reason ( an election "u subsection 7g7 or 7h7 ( section #fjac4 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 7a77#b74 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 sav+s 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 an acc\nt or plan elect$ by ! eligible individual "u p>agraph 7#b74 7#b7 ,election ,any su* election to h contribut$ ! am\nt det]m9$ "u subsection 7a7 %all be to an acc\nt or plan :i*-- 7,a7 is-- 7i7 ! portion ( a plan describ$ 9 clause 7iii71 7iv71 7v71 or 7vi7 ( section #djb7;c77#h77;,b7 :i* does n consi/ ( a qualifi$ ,ro? contribution program 7z def9$ 9 section #djb;,a7b771 or 7ii7 an individual retirem5t plan :i* is n a ,ro? ,,ira1 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 provide74 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$ z-- 7i7 an elective def]ral made by ! individual1 if contribut$ to an applicable retirem5t sav+s vehicle describ$ 9 subsection 7e77#b77;,a77i71 or 7ii7 z an individual retirem5t plan contribution made by su* individual1 if contribut$ to su* a plan1 & 7,b7 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#b71 & %all be disreg>d$ = purposes ( sections #dja7;a77#d71 #dja7k77#c71 #dja7k77#aa77;,b77i77,,iii71 & #daf4 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$its 7,a7 ,9 g5]al ,if any contribution is errone\sly paid "u subsection 7a77#b71 includ+ a paym5t t is n made to an applicable retirem5t sav+s vehicle1 ! am\nt ( su* errone\s paym5t %all be treat$ z an und]paym5t ( tax 7o!r ?an = purposes ( "p ,,ii ( sub*apt] ,a ( *apt] #fh7 = ! taxable ye> 9 :i* ! ,secret>y det]m9es ! paym5t is errone\s4 7,b7 ,di/ribution ( errone\s cr$its ,9 ! case ( a contribution to :i* subp>agraph 7,a7 applies-- 7i7 section #djb7;a71 #djc7;a77#a71 #djc7;b77#a71 #djh7;d77#a71 or #deg7;a77#a71 :i*ev] is applicable1 %all n apply to any di/ribution ( su* contribution1 & section #gb7t7 %all n apply to ! di/ribution ( su* contribution or any income attributable !reto1 if su* di/ribution is receiv$ n lat] ?an ! day prescrib$ by law 7includ+ ext5sions ( "t7 = fil+ ! individual's return = su* taxable ye>1 & 7ii7 any plan or arrangem5t f :i* su* a di/ribution is made "u ?is subp>agraph %all n be treat$ z violat+ any requirem5t "u section #dja1 #djc1 or #deg solely by reason ( mak+ su* di/ribution4 7#e7 ,exception f r$uction or (fset ,any paym5t made to any individual "u ?is section %all n be-- 7,a7 subject to r$uction or (fset pursuant to subsection 7c71 7d71 7e71 or 7f7 ( section #fdjb or any simil> au?ority p]mitt+ (fset1 or 7,b7 r$uc$ or (fset by o!r assess$ ,f$]al taxes t w\ld o!rwise be subject to levy or collection4 7g7 ,provision by ,secret>y ( in=mation relat+ to contributions ,9 ! case ( an am\nt elect$ by an eligible individual to be contribut$ to an acc\nt or plan "u subsection 7e77#b71 ! ,secret>y %all provide g5]al guidance applicable to ! cu/odian ( ! acc\nt or ! plan sponsor1 z ! case may be1 detail+ ! treatm5t ( su* contribution "u subsection 7f77#b7 & ! report+ requirem5ts ) respect to su* contribution "u section #fjeh1 p>ticul>ly z su* requirem5ts are modifi$ pursuant to section #ajb7;c77#b7 ( ! ,enhanc+ ,am]ican ,retirem5t ,n[ ,act4 7h7 ,inflation adju/m5ts 7#a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjbg1 ! #da1jjj am\nt 9 subsection 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> #bjbf = 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 ( #a1jjj4 4 7b7 ,treatm5t ( ,c]ta9 ,possessions 7#a7 ,paym5ts to possessions ) mirror code tax sy/ems ,! ,secret>y ( ! ,treasury %all pay to ea* possession ( ! ,unit$ ,/ates :i* has a mirror code tax sy/em am\nts equal to ! loss 7if any7 to t possession by reason ( ! am5dm5ts made by ?is section4 ,su* am\nts %all be det]m9$ by ! ,secret>y ( ! ,treasury bas$ on in=mation provid$ by ! gov]nm5t ( ! respective possession4 7#b7 ,paym5ts to o!r possessions ,! ,secret>y ( ! ,treasury %all pay to ea* possession ( ! ,unit$ ,/ates :i* does n h a mirror code tax sy/em am\nts e/imat$ by ! ,secret>y ( ! ,treasury z be+ equal to ! aggregate b5efits 7if any7 t w\ld h be5 provid$ to resid5ts ( su* possession by reason ( ! am5dm5ts made by ?is section if a mirror code tax sy/em _h be5 9 effect 9 su* possession4 ,! prec$+ s5t5ce %all n apply unless ! respective possession has a plan1 :i* has be5 approv$ by ! ,secret>y ( ! ,treasury1 "u :i* su* possession w promptly di/ribute su* paym5ts to its resid5ts4 7#c7 ,coord9ation ) cr$it all[$ aga9/ ,unit$ ,/ates income taxes ,no cr$it %all be all[$ aga9/ ,unit$ ,/ates income taxes "u section #fdcc ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is section7 to any p]son-- 7,a7 to :om a cr$it is all[$ aga9/ taxes impos$ by ! possession by reason ( ! am5dm5ts made by ?is section1 or 7,b7 :o is eligible = a paym5t "u a plan describ$ 9 p>agraph 7#b74 7#d7 ,mirror code tax sy/em ,= purposes ( ?is subsection1 ! t]m mirror code tax sy/em means1 ) respect to any possession ( ! ,unit$ ,/ates1 ! income tax sy/em ( su* possession if ! income tax liability ( ! resid5ts ( su* possession "u su* sy/em is det]m9$ by ref]5ce to ! income tax laws ( ! ,unit$ ,/ates z if su* possession 7 ! ,unit$ ,/ates4 7#e7 ,treatm5t ( paym5ts ,= purposes ( section #acbd ( title #ca1 ,unit$ ,/ates ,code1 ! paym5ts "u ?is subsection %all be treat$ 9 ! same mann] z a refund due f a cr$it provision ref]r$ to 9 subsection 7b77#b7 ( su* section4 7c7 ,adm9i/rative provisions 7#a7 ,defici5cies ,section #fbaa7;b77#d7 is am5d$ by /rik+ & #gebg;,a & ins]t+ #gebg;,a1 & #fdcc4 7#b7 ,report+ ,! ,secret>y ( ! ,treasury %all am5d ! =ms relat+ to reports requir$ "u section #fjeh ( ! ,int]nal ,rev5ue ,code ( #aihf to require-- 7,a7 sep>ate report+ ( ! aggregate am\nt ( contributions receiv$ by ! plan dur+ ! ye> "u section #fdcc ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is section71 & 7,b7 simil> report+ ) respect to individual retirem5t acc\nts 7z def9$ 9 section #djh ( su* ,code7 & individual retirem5t annuities 7z def9$ 9 section #djh7;b7 ( su* ,code74 7d7 ,paym5t au?ority ,section #acbd7;b77#b7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by /rik+ or #gebg;,a & ins]t+ #gebg;,a1 or #fdcc4 7e7 ,con=m+ am5dm5ts 7#a7 ,p>agraph 7#a7 ( section #be;,b7d7 is am5d$ by /rik+ ! sum (-- & all t foll[s ?r\gh ! am\nt ( contributions made be=e ,janu>y #a1 #bjbf & ins]t+ ! am\nt ( contributions made be=e ,janu>y #a1 #bjbf4 7#b7 ,! table ( sections = sub*apt] ,b ( *apt] #fe is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #fdcc4 ,mat*+ paym5ts = elective def]ral & ,,ira contributions by c]ta9 individuals4 4 7f7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbf4 #ajc4 ,modification ( p>ticipation requirem5ts = long-t]m1 "p-"t work]s 7a7 ,p>ticipation requirem5t ,clause 7ii7 ( section #dja7k77#b77;,d7 is am5d$ by /rik+ #c consecutive & ins]t+ #b consecutive4 7b7 ,pre-#bjba s]vice ,section #aab7;b7 ( ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai 7#bf ,u4,s4,c4 #dja note7 is am5d$ by /rik+ section #dja7k77#b77;,d77ii7 & ins]t+ p>agraphs 7#b77;,d77ii7 & 7#ae77;,b77iii7 ( section #dja7k74 7c7 ,coord9ation ) rules = top-heavy plans ,subp>agraph 7,h7 ( section #daf7;g77#d71 z am5d$ by ?is ,act1 is fur!r am5d$ by ins]t+ be=e ,if1 b ! foll[+3 ,su* t]m %all n include a plan solely because su* plan does n provide mat*+ contributions to employees describ$ 9 section #dja7k77#ae77;,b77i744 7d7 ,effective dates 7#a7 ,9 g5]al ,! am5dm5t made by subsection 7a7 %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbb4 7#b7 ,pre-#bjba s]vice & top-heavy rules ,! am5dm5ts made by subsections 7b7 & 7c7 %all take effect z if includ$ 9 ! enactm5t ( section #aab ( ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai4 #ajd4 ,treatm5t ( /ud5t loan paym5ts z elective def]rals = purposes ( mat*+ contributions 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dja7m77#d7 is am5d$ by /rik+ & at ! end ( clause 7i71 by /rik+ ! p]iod at ! end ( clause 7ii7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new clause3 7iii7 subject to ! requirem5ts ( p>agraph 7#ad71 any employ] contribution made to a def9$ contribution plan on behalf ( an employee on acc\nt ( a qualifi$ /ud5t loan paym5t4 4 7b7 ,qualifi$ /ud5t loan paym5t ,p>agraph 7#d7 ( section #dja7m7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,d7 ,qualifi$ /ud5t loan paym5t ,! t]m qualifi$ /ud5t loan paym5t means a paym5t made by an employee 9 repaym5t ( a qualifi$ education loan 7z def9$ 9 section #bba7;d77#a77 incurr$ by ! employee to pay qualifi$ high] education exp5ses1 b only-- 7i7 to ! ext5t su* paym5ts 9 ! aggregate = ! ye> d n exce$ an am\nt equal to-- 7,i7 ! limitation applicable "u section #djb7;g7 = ! ye> 7or1 if less]1 ! employee's comp5sation 7z def9$ 9 section #dae7;c77#c77 = ! ye>71 r$uc$ by 7,,ii7 ! elective def]rals made by ! employee = su* ye>1 & 7ii7 if ! employee c]tifies annually to ! employ] mak+ ! mat*+ contribution "u ?is p>agraph t su* paym5t has be5 made on su* loan4 ,= purposes ( ?is subp>agraph1 ! t]m qualifi$ high] education exp5ses means ! co/ ( att5dance 7z def9$ 9 section #dgb ( ! ,high] ,education ,act ( #aife1 z 9 effect on ! day be=e ! date ( ! enactm5t ( ! ,taxpay] ,relief ,act ( #aiig7 at an eligible educational in/itution 7z def9$ 9 section #bba7;d77#b774 4 7c7 ,mat*+ contributions = qualifi$ /ud5t loan paym5ts ,subsection 7m7 ( section #dja1 z am5d$ by ?is ,act1 is fur!r am5d$ by r$esignat+ p>agraph 7#ad7 z p>agraph 7#ae71 & by ins]t+ aft] p>agraph 7#ac7 ! foll[+ new p>agraph3 7#ad7 ,mat*+ contributions = qualifi$ /ud5t loan paym5ts 7,a7 ,9 g5]al ,= purposes ( p>agraph 7#d77;,a77iii71 an employ] contribution made to a def9$ contribution plan on acc\nt ( a qualifi$ /ud5t loan paym5t %all be treat$ z a mat*+ contribution = purposes ( ?is title if-- 7i7 ! plan provides mat*+ contributions on acc\nt ( elective def]rals at ! same rate z contributions on acc\nt ( qualifi$ /ud5t loan paym5ts1 7ii7 ! plan provides mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts only on behalf ( employees o!rwise eligible to receive mat*+ contributions on acc\nt ( elective def]rals1 7iii7 "u ! plan1 all employees eligible to receive mat*+ contributions on acc\nt ( elective def]rals are eligible to receive mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts1 & 7iv7 ! plan provides t mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts ve/ 9 ! same mann] z mat*+ contributions on acc\nt ( elective def]rals4 7,b7 ,treatm5t = purposes ( nondiscrim9ation rules1 etc 7i7 ,nondiscrim9ation rules ,= purposes ( subp>agraph 7,a77iii71 subsection 7a77#d71 & section #daj7;b71 mat*+ contributions describ$ 9 p>agraph 7#d77;,a77iii7 %all n fail to be treat$ z available to an employee solely because su* employee does n h debt incurr$ "u a qualifi$ education loan 7z def9$ 9 section #bba7;d77#a774 7ii7 ,/ud5t loan paym5ts n treat$ z plan contribution ,except z provid$ 9 clause 7iii71 a qualifi$ /ud5t loan paym5t %all n be treat$ z a contribution to a plan "u ?is title4 7iii7 ,mat*+ contribution rules ,solely = purposes ( meet+ ! requirem5ts ( p>agraph 7#aa77;,b71 7#ab71 or 7#ac7 ( ?is subsection1 or p>agraph 7#aa77;,b77i77,,ii71 7#ab77;,b71 7#ac77;,d71 or 7#af77;,d7 ( subsection 7k71 a plan may treat a qualifi$ /ud5t loan paym5t z an elective def]ral or an elective contribution1 :i*ev] is applicable4 7iv7 ,actual def]ral p]c5tage te/+ ,9 det]m9+ :e!r a plan meets ! requirem5ts ( subsection 7k77#c77;,a77ii7 = a plan ye>1 ! plan may apply ! requirem5ts ( su* subsection sep>ately ) respect to all employees :o receive mat*+ contributions describ$ 9 p>agraph 7#d77;,a77iii7 = ! plan ye>4 7,c7 ,employ] may rely on employee c]tification ,! employ] may rely on an employee c]tification ( paym5t "u p>agraph 7#d77;,d77ii74 4 7d7 ,simple retirem5t acc\nts ,p>agraph 7#b7 ( section #djh7p7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,f7 ,mat*+ contributions = qualifi$ /ud5t loan paym5ts 7i7 ,9 g5]al ,subject to ! rules ( clause 7iii71 an arrangem5t %all n fail to be treat$ z meet+ ! requirem5ts ( subp>agraph 7,a77iii7 solely because "u ! arrangem5t1 solely = purposes ( su* subp>agraph1 qualifi$ /ud5t loan paym5ts are treat$ z am\nts elect$ by ! employee "u subp>agraph 7,a77i77,i7 to ! ext5t su* paym5ts d n exce$-- 7,i7 ! applicable doll> am\nt "u subp>agraph 7,e7 7aft] application ( section #dad7v77 = ! ye> 7or1 if less]1 ! employee's comp5sation 7z def9$ 9 section #dae7;c77#c77 = ! ye>71 r$uc$ by 7,,ii7 any o!r am\nts elect$ by ! employee "u subp>agraph 7,a77i77,i7 = ! ye>4 7ii7 ,qualifi$ /ud5t loan paym5t ,= purposes ( ?is subp>agraph-- 7,i7 ,9 g5]al ,! t]m qualifi$ /ud5t loan paym5t means a paym5t made by an employee 9 repaym5t ( a qualifi$ education loan 7z def9$ 9 section #bba7;d77#a77 incurr$ by ! employee to pay qualifi$ high] education exp5ses1 b only if ! employee c]tifies to ! employ] mak+ ! mat*+ contribution t su* paym5t has be5 made on su* a loan4 7,,ii7 ,qualifi$ high] education exp5ses ,! t]m qualifi$ high] education exp5ses has ! same mean+ z :5 us$ 9 section #dja7m77#d77;,d74 7iii7 ,applicable rules ,clause 7i7 %all apply to an arrangem5t only if1 "u ! arrangem5t-- 7,i7 mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts are provid$ only on behalf ( employees o!rwise eligible to elect contributions "u subp>agraph 7,a77i77,i71 & 7,,ii7 all employees o!rwise eligible to p>ticipate 9 ! arrangem5t are eligible to receive mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts4 4 7e7 #djc7;b7 plans ,subp>agraph 7,a7 ( section #djc7;b77#ab7 is am5d$ by add+ at ! end ! foll[+3 ,! fact t ! employ] (f]s mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts z describ$ 9 section #dja7m77#ad7 %all n be tak5 into acc\nt 9 det]m9+ :e!r ! arrangem5t satisfies ! requirem5ts ( clause 7ii7 7& any regulation !reund]744 7f7 #deg7;b7 plans ,subsection 7b7 ( section #deg is am5d$ by add+ at ! end ! foll[+3 ,a plan :i* is e/abli%$ & ma9ta9$ by an employ] :i* is describ$ 9 subsection 7e77#a77;,a7 %all n be treat$ z fail+ to meet ! requirem5ts ( ?is subsection solely because ! plan1 or ano!r plan ma9ta9$ by ! employ] :i* meets ! requirem5ts ( section #dja7;a7 or #djc7;b71 provides = mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts z describ$ 9 section #dja7m77#ad744 7g7 ,regulatory au?ority ,! ,secret>y ( ! ,treasury 7or su* ,secret>y's delegate7 %all prescribe regulations = purposes ( implem5t+ ! am5dm5ts made by ?is section1 includ+ regulations-- 7#a7 p]mitt+ a plan to make mat*+ contributions = qualifi$ /ud5t loan paym5ts1 z def9$ 9 sections #dja7m77#d77;,d7 & #djh7p77#b77;,f7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is section1 at a diff]5t frequ5cy ?an mat*+ contributions are o!rwise made "u ! plan1 provid$ t ! frequ5cy is n less ?an annually2 7#b7 p]mitt+ employ]s to e/abli% reasonable proc$ures to claim mat*+ contributions = su* qualifi$ /ud5t loan paym5ts "u ! plan1 includ+ an annual deadl9e 7n e>li] ?an #c mon?s aft] ! close ( ea* plan ye>7 by :i* a claim mu/ be made2 & 7#c7 promulgat+ model am5dm5ts :i* plans may adopt to implem5t mat*+ contributions on su* qualifi$ /ud5t loan paym5ts = purposes ( sections #dja7m71 #djh7p71 #djc7;b71 & #deg7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7h7 ,effective date ,! am5dm5ts made by ?is section %all apply to contributions made = plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #aje4 ,)drawals = c]ta9 em]g5cy exp5ses 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #gb7t7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,i7 ,di/ributions = c]ta9 em]g5cy exp5ses 7i7 ,9 g5]al ,any em]g5cy p]sonal exp5se di/ribution4 7ii7 ,annual limitation ,n m ?an #a di/ribution p] cal5d> ye> may be treat$ z an em]g5cy p]sonal exp5se di/ribution by any individual4 7iii7 ,doll> limitation ,! am\nt :i* may be treat$ z an em]g5cy p]sonal exp5se di/ribution by any individual 9 any cal5d> ye> %all n exce$ ! less] ( #a1jjj or an am\nt equal to ! excess (-- 7,i7 ! individual's total non=feitable accru$ b5efit "u ! plan 7! individual's total int]e/ 9 ! plan 9 ! case ( an individual retirem5t plan71 det]m9$ z ( ! date ( ea* su* di/ribution1 ov] 7,,ii7 #a1jjj4 7iv7 ,em]g5cy p]sonal exp5se di/ribution ,= purposes ( ?is subp>agraph1 ! t]m em]g5cy p]sonal exp5se di/ribution means any di/ribution f an applicable eligible retirem5t plan 7z def9$ 9 subp>agraph 7,h77vi77,i77 to an individual = purposes ( meet+ un=eseeable or imm$iate f9ancial ne$s relat+ to necess>y p]sonal or family em]g5cy exp5ses4 ,! adm9i/rator ( an applicable eligible retirem5t plan may rely on an employee's c]tification t ! employee satisfies ! conditions ( ! prec$+ s5t5ce 9 det]m9+ :e!r any di/ribution is an em]g5cy p]sonal exp5se di/ribution4 ,! ,secret>y may provide by regulations = exceptions to ! rule ( ! prec$+ s5t5ce 9 cases :]e ! plan adm9i/rator has actual k to ! contr>y ( ! employee's c]tification1 & = proc$ures = address+ cases ( employee misrepres5tation4 7v7 ,treatm5t ( plan di/ributions ,if a di/ribution to an individual w\ld 7)\t reg>d to clause 7ii7 or 7iii77 be an em]g5cy p]sonal exp5se di/ribution1 a plan %all n be treat$ z fail+ to meet any requirem5t ( ?is title m]ely because ! plan treats ! di/ribution z an em]g5cy p]sonal exp5se di/ribution1 unless ! numb] or ! aggregate am\nt ( su* di/ributions f all plans ma9ta9$ by ! employ] 7& any memb] ( any controll$ gr\p :i* includes ! employ]1 det]m9$ z provid$ 9 subp>agraph 7,h77iv77,,ii77 to su* individual exce$s ! limitation det]m9$ "u clause 7ii7 or 7iii74 7vi7 ,am\nt di/ribut$ may be repaid 7,i7 ,9 g5]al ,any individual :o receives an em]g5cy p]sonal exp5se di/ribution may1 at any "t dur+ ! #c-ye> p]iod beg9n+ on ! day aft] ! date on :i* su* di/ribution 0 receiv$1 make "o or m contributions 9 an aggregate am\nt n to exce$ ! am\nt ( su* di/ribution to an applicable eligible retirem5t plan ( :i* su* individual is a b5efici>y & to :i* a rollov] contribution ( su* di/ribution c\ld be made "u section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 or #deg7;e77#af71 z ! case may be4 7,,ii7 ,limitation on contributions to applicable eligible retirem5t plans o!r ?an ,i,r,as ,! aggregate am\nt ( contributions made by an individual "u subclause 7,i7 to any applicable eligible retirem5t plan :i* is n an individual retirem5t plan %all n exce$ ! aggregate am\nt ( em]g5cy p]sonal exp5se di/ributions :i* are made f su* plan to su* individual4 ,subclause 7,i7 %all n apply to contributions to any applicable eligible retirem5t plan :i* is n an individual retirem5t plan unless ! individual is eligible to make contributions 7o!r ?an ^? describ$ 9 subclause 7,i77 to su* applicable eligible retirem5t plan4 7,,iii7 ,treatm5t ( repaym5ts ( di/ributions f applicable eligible retirem5t plans o!r ?an ,i,r,as ,if a contribution is made "u subclause 7,i7 ) respect to an em]g5cy p]sonal exp5se di/ribution f an applicable eligible retirem5t plan o!r ?an an individual retirem5t plan1 !n ! taxpay] %all1 to ! ext5t ( ! am\nt ( ! contribution1 be treat$ z hav+ receiv$ su* di/ribution 9 an eligible rollov] di/ribution 7z def9$ 9 section #djb7;c77#d77 & z hav+ transf]r$ ! am\nt to ! applicable eligible retirem5t plan 9 a direct tru/ee to tru/ee transf] )9 #fj days ( ! di/ribution4 7,,iv7 ,treatm5t ( repaym5ts = di/ributions f ,i,r,as ,if a contribution is made "u subclause 7,i7 ) respect to an em]g5cy p]sonal exp5se di/ribution f an individual retirem5t plan1 !n1 to ! ext5t ( ! am\nt ( ! contribution1 su* di/ribution %all be treat$ z a di/ribution describ$ 9 section #djh7;d77#c7 & z hav+ be5 transf]r$ to ! applicable eligible retirem5t plan 9 a direct tru/ee to tru/ee transf] )9 #fj days ( ! di/ribution4 7vii7 ,limitation on subsequ5t di/ributions ,if a di/ribution is treat$ z an em]g5cy p]sonal exp5se di/ribution 9 any cal5d> ye> ) respect to a plan ( ! employee1 no am\nt may be treat$ z su* a di/ribution dur+ ! imm$iately foll[+ #c cal5d> ye>s ) respect to su* plan unless-- 7,i7 su* previ\s di/ribution is fully repaid to su* plan pursuant to clause 7vi71 or 7,,ii7 ! aggregate ( ! elective def]rals & employee contributions to ! plan 7! total am\nts contribut$ to ! plan 9 ! case ( an individual retirem5t plan7 subsequ5t to su* previ\s di/ribution is at lea/ equal to ! am\nt ( su* previ\s di/ribution :i* has n be5 s repaid4 7viii7 ,special rules ,rules simil> to ! rules ( subclauses 7,,ii7 & 7,,iv7 ( subp>agraph 7,h77vi7 %all apply to any em]g5cy p]sonal exp5se di/ribution4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ,decemb] #ca1 #bjbc4 #ajf4 ,all[ additional nonelective contributions to simple plans 7a7 ,9 g5]al 7#a7 ,modification to def9ition ,subp>agraph 7,a7 ( section #djh7p77#b7 is am5d$ by /rik+ & at ! end ( clause 7iii71 by r$esignat+ clause 7iv7 z clause 7v71 & by ins]t+ aft] clause 7iii7 ! foll[+ new clause3 7iv7 ! employ] may make nonelective contributions-- 7,i7 ( a uni=m p]c5tage 7up to #aj p]c5t7 ( comp5sation1 & 7,,ii7 n to exce$ #e1jjj1 = ea* employee :o is eligible to p>ticipate 9 ! arrangem5t & :o has at lea/ #e1jjj ( comp5sation f ! employ] = ! ye>1 & 4 7#b7 ,limitation ,subp>agraph 7,a7 ( section #djh7p77#b7 is am5d$ by add+ at ! end ! foll[+3 ,! comp5sation tak5 into acc\nt "u clause 7iv7 = any ye> %all n exce$ ! limitation 9 effect = su* ye> "u section #dja7;a77#ag744 7#c7 ,ov]all doll> limit on contributions ,p>agraph 7#h7 ( section #djh7p7 is am5d$ to read z foll[s3 7#h7 ,coord9ation ) maximum limitation ,9 ! case ( any simple retirem5t acc\nt-- 7,a7 subsection 7a77#a7 %all be appli$ by sub/itut+ = ! am\nt 9 effect = su* taxable ye> "u section #bai7;b77#a77;,a7 ! foll[+3 ! sum ( ! doll> am\nt 9 effect "u subsection 7p77#b77;,a77ii71 ! employ] contribution requir$ "u subsection 7p77#b77;,a77iii7 or 7p77#b77;,b77i71 :i*ev] is applicable1 & a contribution :i* meets ! requirem5t ( subsection 7p77#b77;,a77iv7 ) respect to ! employee1 & 7,b7 subsection 7b77#b77;,b7 %all be appli$ by sub/itut+ = ! doll> am\nt 9 effect "u section #bai7;b77#a77;,a7 ! foll[+3 ! sum ( ! doll> am\nt 9 effect "u subsection 7p77#b77;,a77ii71 ! employ] contribution requir$ "u subsection 7p77#b77;,a77iii7 or 7p77#b77;,b77i71 :i*ev] is applicable1 & a contribution :i* meets ! requirem5t ( subsection 7p77#b77;,a77iv7 ) respect to ! employee4 4 7#d7 ,adju/m5t = inflation ,p>agraph 7#b7 ( section #djh7p71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,g7 ,adju/m5t = inflation ,9 ! case ( taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbd1 ! #e1jjj am\nt 9 subp>agraph 7,a77iv77,,ii7 %all be increas$ by an am\nt equal to-- 7i7 su* am\nt1 multipli$ by 7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ #bjbc = #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,if any am\nt z adju/$ "u ! prec$+ s5t5ce is n a multiple ( #ajj1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #ajj4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #djh7p77#b77;,a77v71 z r$esignat$ by subsection 7a71 is am5d$ by /rik+ or 7iii7 & ins]t+ 1 7iii71 or 7iv74 7#b7 ,section #dja7k77#aa77;,b77i7 is am5d$ by /rik+ & at ! end ( subclause 7,,ii71 by r$esignat+ subclause 7,,iii7 z subclause 7,,iv71 & by ins]t+ aft] subclause 7,,ii7 ! foll[+ new subclause3 7,,iii7 ! employ] may make nonelective contributions ( a uni=m p]c5tage 7up to #aj p]c5t7 ( comp5sation1 n to exce$ ! am\nt 9 effect "u section #djh7p77#b77;,a77iv77,,ii7 9 any ye>1 = ea* employee :o is eligible to p>ticipate 9 ! arrangem5t & :o has at lea/ #e1jjj ( comp5sation f ! employ] = ! ye>1 & 4 7#c7 ,section #dja7k77#aa77;,b77i77,,iv71 z r$esignat$ by p>agraph 7#b71 is am5d$ by /rik+ or 7,,ii7 & ins]t+ 1 7,,ii71 or 7,,iii74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #ajg4 ,small imm$iate f9ancial inc5tives = contribut+ to a plan 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dja7k77#d7 is am5d$ by ins]t+ 7o!r ?an a de m9imis f9ancial inc5tive provid$ to employees :o elect to h ! employ] make contributions "u ! arrangem5t 9 lieu ( receiv+ ca%7 aft] any o!r b5efit4 7b7 ,section #djc7;b7 plans ,subp>agraph 7,a7 ( section #djc7;b77#ab71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+3 ,a plan %all n fail to satisfy clause 7ii7 solely by reason ( (f]+ a de m9imis f9ancial inc5tive = employees :o elect to h ! employ] make contributions pursuant to a sal>y r$uction agreem5t44 7c7 ,exemption f prohibit$ transaction rules ,subsection 7d7 ( section #dige is am5d$ by /rik+ or at ! end ( p>agraph 7#bb77;,i71 by /rik+ ! p]iod at ! end ( p>agraph 7#bc7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+ new p>agraph3 7#bd7 ! provision ( a de m9imis f9ancial inc5tive describ$ 9 section #dja7k77#d77;,a7 or #djc7;b77#ab77;,a74 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply ) respect to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ajh4 ,index+ ,,ira cat*-up limit 7a7 ,9 g5]al ,subp>agraph 7,c7 ( section #bai7;b77#e7 is am5d$ by add+ at ! end ! foll[+ new clause3 7iii7 ,index+ ( cat*-up limitation ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjbb1 ! #a1jjj am\nt "u subp>agraph 7,b77ii7 %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> #bjba = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,if any am\nt aft] adju/m5t "u ! prec$+ s5t5ce is n a multiple ( #ajj1 su* am\nt %all be r\nd$ to ! next l[] multiple ( #ajj4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #aji4 ,high] cat*-up limit to apply at age #fj1 #fa1 #fb1 & #fc 7a7 ,9 g5]al 7#a7 ,plans o!r ?an simple plans ,section #dad7v77#b77;,b77i7 is am5d$ by ins]t+ ! foll[+ be=e ! p]iod3 7#aj1jjj1 9 ! case ( an eligible p>ticipant :o w\ld atta9 age #fj b w\ld n atta9 age #fd be=e ! close ( ! taxable ye>74 7#b7 ,simple plans ,section #dad7v77#b77;,b77ii7 is am5d$ by ins]t+ ! foll[+ be=e ! p]iod3 7#e1jjj1 9 ! case ( an eligible p>ticipant :o w\ld atta9 age #fj b w\ld n atta9 age #fd be=e ! close ( ! taxable ye>74 7b7 ,co/-(-liv+ adju/m5ts ,subp>agraph 7,c7 ( section #dad7v77#b7 is am5d$ by add+ at ! end ! foll[+3 ,9 ! case ( a ye> beg9n+ aft] ,decemb] #ca1 #bjbe1 ! ,secret>y %all adju/ annually ! #aj1jjj am\nt 9 subp>agraph 7,b77i7 & ! #e1jjj am\nt 9 subp>agraph 7,b77ii7 = increases 9 ! co/-(-liv+ at ! same "t & 9 ! same mann] z adju/m5ts "u ! prec$+ s5t5ce2 except t ! base p]iod tak5 into acc\nt %all be ! cal5d> qu>t] beg9n+ ,july #a1 #bjbd44 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbd4 #aaj4 ,elim9ate ! fir/ day ( ! mon? requirem5t = gov]nm5tal section #deg7;b7 plans 7a7 ,9 g5]al ,section #deg7;b77#d7 is am5d$ to read z foll[s3 7#d7 :i* provides t comp5sation-- 7,a7 9 ! case ( an eligible employ] describ$ 9 subsection 7e77#a77;,a71 w be def]r$ only if an agreem5t provid+ = su* def]ral has be5 ent]$ into be=e ! comp5sation is curr5tly available to ! individual1 & 7,b7 9 any o!r case1 w be def]r$ = any cal5d> mon? only if an agreem5t provid+ = su* def]ral has be5 ent]$ into be=e ! beg9n+ ( su* mon?1 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #aaa4 ,tax treatm5t ( c]ta9 nontrade or bus9ess ,,sep contributions 7a7 ,9 g5]al ,subp>agraph 7,b7 ( section #digb7;c77#f7 is am5d$-- 7#a7 by /rik+ #djh7p77 or & ins]t+ #djh7p7712 & 7#b7 by ins]t+ 1 or a simplifi$ employee p5sion 7)9 ! mean+ ( section #djh7k77 aft] #dja7k77#aa774 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #aab4 ,elim9ation ( additional tax on corrective di/ributions ( excess contributions 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #gb7t77#b7 is am5d$-- 7#a7 by /rik+ or at ! end ( clause 7vii72 7#b7 by /rik+ ! p]iod at ! end ( clause 7viii7 & ins]t+ 1 or2 & 7#c7 by ins]t+ aft] clause 7viii7 ! foll[+ new clause3 7ix7 attributable to )drawal ( net income attributable to a contribution :i* is di/ribut$ pursuant to section #djh7;d77#d74 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to any det]m9ation (1 or affect+1 liability = taxes1 int]e/1 or p5alties :i* is made on or aft] ! date ( ! enactm5t ( ?is ,act1 )\t reg>d to :e!r ! act 7or failure to act7 ^u :i* ! det]m9ation is bas$ occurr$ be=e su* date ( enactm5t4 ,not)/&+ ! prec$+ s5t5ce1 no?+ 9 ! am5dm5ts made by ?is section %all be con/ru$ to create an inf]5ce ) respect to ! law 9 effect prior to ! effective date ( su* am5dm5ts4 #aac4 ,employ] may rely on employee c]tify+ t deem$ h>d%ip di/ribution conditions are met 7a7 ,ca% or def]r$ arrangem5ts ,section #dja7k77#ad7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,c7 ,employee c]tification ,9 det]m9+ :e!r a di/ribution is ^u ! h>d%ip ( an employee1 ! adm9i/rator ( ! plan may rely on a writt5 c]tification by ! employee t ! di/ribution is-- 7i7 on acc\nt ( a f9ancial ne$ ( a type :i* is deem$ 9 regulations prescrib$ by ! ,secret>y to be an imm$iate & heavy f9ancial ne$1 & 7ii7 n 9 excess ( ! am\nt requir$ to satisfy su* f9ancial ne$1 & t ! employee has no alt]native means reasonably available to satisfy su* f9ancial ne$4 ,! ,secret>y may provide by regulations = exceptions to ! rule ( ! prec$+ s5t5ce 9 cases :]e ! plan adm9i/rator has actual k to ! contr>y ( ! employee's c]tification1 & = proc$ures = address+ cases ( employee misrepres5tation4 4 7b7 #djc7;b7 plans 7#a7 ,cu/odial acc\nts ,section #djc7;b77#g7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,d7 ,employee c]tification ,9 det]m9+ :e!r a di/ribution is ^u ! f9ancial h>d%ip ( an employee1 ! adm9i/rator ( ! plan may rely on a writt5 c]tification by ! employee t ! di/ribution is-- 7i7 on acc\nt ( a f9ancial ne$ ( a type :i* is deem$ 9 regulations prescrib$ by ! ,secret>y to be an imm$iate & heavy f9ancial ne$1 & 7ii7 n 9 excess ( ! am\nt requir$ to satisfy su* f9ancial ne$1 & t ! employee has no alt]native means reasonably available to satisfy su* f9ancial ne$4 ,! ,secret>y may provide by regulations = exceptions to ! rule ( ! prec$+ s5t5ce 9 cases :]e ! plan adm9i/rator has actual k to ! contr>y ( ! employee's c]tification1 & = proc$ures = address+ cases ( employee misrepres5tation4 4 7#b7 ,annuity contracts ,section #djc7;b77#aa7 is am5d$ by add+ at ! end ! foll[+3 ,9 det]m9+ :e!r a di/ribution is ^u h>d%ip ( an employee1 ! adm9i/rator ( ! plan may rely on a writt5 c]tification by ! employee t ! di/ribution is on acc\nt ( a f9ancial ne$ ( a type :i* is deem$ 9 regulations prescrib$ by ! ,secret>y to be an imm$iate & heavy f9ancial ne$ & is n 9 excess ( ! am\nt requir$ to satisfy su* f9ancial ne$1 & t ! employee has no alt]native means reasonably available to satisfy su* f9ancial ne$4 ,! ,secret>y may provide by regulations = exceptions to ! rule ( ! prec$+ s5t5ce 9 cases :]e ! plan adm9i/rator has actual k to ! contr>y ( ! employee's c]tification1 & = proc$ures = address+ cases ( employee misrepres5tation44 7c7 #deg7;b7 plan ,section #deg7;d7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,p>ticipant c]tification ,9 det]m9+ :e!r a di/ribution to a p>ticipant is made :5 ! p>ticipant is fac$ ) an un=eseeable em]g5cy1 ! adm9i/rator ( a plan ma9ta9$ by an eligible employ] describ$ 9 subsection 7e77#a77;,a7 may rely on a writt5 c]tification by ! p>ticipant t ! di/ribution is-- 7,a7 made :5 ! p>ticipant is fac$ ) an un=eseeable em]g5cy ( a type :i* is describ$ 9 regulations prescrib$ by ! ,secret>y z an un=eseeable em]g5cy1 & 7,b7 n 9 excess ( ! am\nt requir$ to satisfy ! em]g5cy ne$1 & t ! p>ticipant has no alt]native means reasonably available to satisfy su* em]g5cy ne$4 ,! ,secret>y may provide by regulations = exceptions to ! rule ( ! prec$+ s5t5ce 9 cases :]e ! plan adm9i/rator has actual k to ! contr>y ( ! p>ticipant's c]tification1 & = proc$ures = address+ cases ( p>ticipant misrepres5tation4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #aad4 ,p5alty-free )drawals f retirem5t plans = individuals 9 case ( dome/ic abuse 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #gb7t71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,j7 ,di/ributions f retirem5t plan 9 case ( dome/ic abuse 7i7 ,9 g5]al ,any eligible di/ribution to a dome/ic abuse victim4 7ii7 ,limitation ,! aggregate am\nt :i* may be treat$ z an eligible di/ribution to a dome/ic abuse victim by any individual %all n exce$ an am\nt equal to ! less] (-- 7,i7 #aj1jjj1 or 7,,ii7 #ej p]c5t ( ! pres5t value ( ! non=feitable accru$ b5efit ( ! employee "u ! plan4 7iii7 ,eligible di/ribution to a dome/ic abuse victim ,= purposes ( ?is subp>agraph-- 7,i7 ,9 g5]al ,a di/ribution %all be treat$ z an eligible di/ribution to a dome/ic abuse victim if su* di/ribution is f an applicable eligible retirem5t plan & is made to an individual dur+ ! #a-ye> p]iod beg9n+ on any date on :i* ! individual is a victim ( dome/ic abuse by a sp\se or dome/ic p>tn]4 7,,ii7 ,dome/ic abuse ,! t]m dome/ic abuse means physical1 psy*ological1 sexual1 emotional1 or economic abuse1 includ+ ef=ts to control1 isolate1 humiliate1 or intimidate ! victim1 or to und]m9e ! victim's ability to reason indep5d5tly1 includ+ by means ( abuse ( ! victim's *ild or ano!r family memb] liv+ 9 ! h\sehold4 7iv7 ,treatm5t ( plan di/ributions ,if a di/ribution to an individual w\ld 7)\t reg>d to clause 7ii77 be an eligible di/ribution to a dome/ic abuse victim1 a plan %all n be treat$ z fail+ to meet any requirem5t ( ?is title m]ely because ! plan treats ! di/ribution z an eligible di/ribution to a dome/ic abuse victim1 unless ! aggregate am\nt ( su* di/ributions f all plans ma9ta9$ by ! employ] 7& any memb] ( any controll$ gr\p :i* includes ! employ]1 det]m9$ z provid$ 9 subp>agraph 7,h77iv77,,ii77 to su* individual exce$s ! limitation "u clause 7ii74 7v7 ,am\nt di/ribut$ may be repaid 7,i7 ,9 g5]al ,any individual :o receives a di/ribution describ$ 9 clause 7i7 may1 at any "t dur+ ! #c-ye> p]iod beg9n+ on ! day aft] ! date on :i* su* di/ribution 0 receiv$1 make "o or m contributions 9 an aggregate am\nt n to exce$ ! am\nt ( su* di/ribution to an applicable eligible retirem5t plan ( :i* su* individual is a b5efici>y & to :i* a rollov] contribution ( su* di/ribution c\ld be made "u section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 or #deg7;e77#af71 z ! case may be4 7,,ii7 ,limitation on contributions to applicable eligible retirem5t plans o!r ?an ,i,r,as ,! aggregate am\nt ( contributions made by an individual "u subclause 7,i7 to any applicable eligible retirem5t plan :i* is n an individual retirem5t plan %all n exce$ ! aggregate am\nt ( eligible di/ributions to a dome/ic abuse victim :i* are made f su* plan to su* individual4 ,subclause 7,i7 %all n apply to contributions to any applicable eligible retirem5t plan :i* is n an individual retirem5t plan unless ! individual is eligible to make contributions 7o!r ?an ^? describ$ 9 subclause 7,i77 to su* applicable eligible retirem5t plan4 7,,iii7 ,treatm5t ( repaym5ts ( di/ributions f applicable eligible retirem5t plans o!r ?an ,i,r,as ,if a contribution is made "u subclause 7,i7 ) respect to an eligible di/ribution to a dome/ic abuse victim f an applicable eligible retirem5t plan o!r ?an an individual retirem5t plan1 !n ! taxpay] %all1 to ! ext5t ( ! am\nt ( ! contribution1 be treat$ z hav+ receiv$ su* di/ribution 9 an eligible rollov] di/ribution 7z def9$ 9 section #djb7;c77#d77 & z hav+ transf]r$ ! am\nt to ! applicable eligible retirem5t plan 9 a direct tru/ee to tru/ee transf] )9 #fj days ( ! di/ribution4 7,,iv7 ,treatm5t ( repaym5ts = di/ributions f ,i,r,as ,if a contribution is made "u subclause 7,i7 ) respect to an eligible di/ribution to a dome/ic abuse victim f an individual retirem5t plan1 !n1 to ! ext5t ( ! am\nt ( ! contribution1 su* di/ribution %all be treat$ z a di/ribution describ$ 9 section #djh7;d77#c7 & z hav+ be5 transf]r$ to ! applicable eligible retirem5t plan 9 a direct tru/ee to tru/ee transf] )9 #fj days ( ! di/ribution4 7vi7 ,def9ition & special rules ,= purposes ( ?is subp>agraph3 7,i7 ,applicable eligible retirem5t plan ,! t]m applicable eligible retirem5t plan means an eligible retirem5t plan 7z def9$ 9 section #djb7;c77#h77;,b77 o!r ?an a def9$ b5efit plan or a plan to :i* sections #dja7;a77#aa7 & #dag apply4 7,,ii7 ,exemption ( di/ributions f tru/ee to tru/ee transf] & )hold+ rules ,= purposes ( sections #dja7;a77#ca71 #djb7;f71 & #cdje1 an eligible di/ribution to a dome/ic abuse victim %all n be treat$ z an eligible rollov] di/ribution4 7,,iii7 ,di/ributions treat$ z meet+ plan di/ribution requirem5ts2 self-c]tification ,any di/ribution :i* ! employee or p>ticipant c]tifies z be+ an eligible di/ribution to a dome/ic abuse victim %all be treat$ z meet+ ! requirem5ts ( sections #dja7k77#b77;,b77i71 #djc7;b77#g77;,a77i71 #djc7;b77#aa71 & #deg7;d77#a77;,a74 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ! date ( ! enactm5t ( ?is ,act4 #aae4 ,am5dm5ts to increase b5efit accruals "u plan = previ\s plan ye> all[$ until employ] tax return due date 7a7 ,9 g5]al ,section #dja7;b7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#c7 ,retroactive plan am5dm5ts t increase b5efit accruals ,if-- 7,a7 an employ] am5ds a /ock bonus1 p5sion1 pr(it-%>+1 or annuity plan to increase b5efits accru$ "u ! plan effective z ( any date dur+ ! imm$iately prec$+ plan ye> 7o!r ?an increas+ ! am\nt ( mat*+ contributions 7z def9$ 9 subsection 7m77#d77;,a7771 7,b7 su* am5dm5t w\ld n o!rwise cause ! plan to fail to meet any ( ! requirem5ts ( ?is sub*apt]1 & 7,c7 su* am5dm5t is adopt$ be=e ! "t prescrib$ by law = fil+ ! return ( ! employ] = ! taxable ye> 7includ+ ext5sions !re(7 :i* includes ! date describ$ 9 subp>agraph 7,a71 ! employ] may elect to treat su* am5dm5t z hav+ be5 adopt$ z ( ! la/ day ( ! plan ye> 9 :i* ! am5dm5t is effective4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #aaf4 ,retroactive fir/ ye> elective def]rals = sole proprietors 7a7 ,9 g5]al ,section #dja7;b77#b7 is am5d$ by add+ at ! end ! foll[+3 ,9 ! case ( an individual :o owns ! entire int]e/ 9 an un9corporat$ trade or bus9ess1 & :o is ! only employee ( su* trade or bus9ess1 any elective def]rals 7z def9$ 9 section #djb7;g77#c77 "u a qualifi$ ca% or def]r$ arrangem5t to :i* ! prec$+ s5t5ce applies1 :i* are made by su* individual be=e ! "t = fil+ ! return ( su* individual = ! taxable ye> 7det]m9$ )\t reg>d to any ext5sions7 end+ aft] or ) ! end ( ! plan's fir/ plan ye>1 %all be treat$ z hav+ be5 made be=e ! end ( su* fir/ plan ye>44 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #aag4 ,treasury guidance on rollov]s ,n lat] ?an ,janu>y #a1 #bjbe1 ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate %all1 to simplify1 /&>dize1 & facilitate ! completion ( direct rollov]s f retirem5t plans & tru/ee-to-tru/ee transf]s f individual retirem5t plans 7z def9$ 9 section #ggja7;a77#cg7 ( ! ,int]nal ,rev5ue ,code ( #aihf71 develop & release-- 7#a7 sample =ms = direct rollov]s ( eligible rollov] di/ributions f a retirem5t plan to ano!r retirem5t plan or to an individual retirem5t plan :i*-- 7,a7 are writt5 9 a mann] calculat$ to be und]/ood by ! av]age p]son1 & 7,b7 c be us$ by bo? di/ribut+ retirem5t plans & receiv+ retirem5t plans & individual retirem5t plans1 & 7#b7 sample =ms = tru/ee-to-tru/ee transf]s ( am\nts f an individual retirem5t plan to ano!r individual retirem5t plan or to a retirem5t plan :i*-- 7,a7 are writt5 9 a mann] calculat$ to be und]/ood by ! av]age p]son1 & 7,b7 c be us$ by bo? transf]r+ individual retirem5t plans & receiv+ retirem5t plans & individual retirem5t plans4 #aah4 ,exemption = automatic portability transactions 7a7 ,9 g5]al ,section #dige7;d71 z am5d$ by ?is ,act1 is fur!r am5d$-- 7#a7 by /rik+ or at ! end ( p>agraph 7#bc71 7#b7 by /rik+ ! p]iod at ! end ( p>agraph 7#bd7 & ins]t+ 1 or1 & 7#c7 by add+ at ! end ! foll[+ new p>agraph3 7#be7 ! receipt ( fees & comp5sation by ! automatic portability provid] 9 connection ) an automatic portability transaction4 4 7b7 ,def9itions ,section #dige7;f7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ab7 ,rules relat+ to automatic portability transactions 7,a7 ,9 g5]al ,= purposes ( subsection 7d77#be7-- 7i7 ,automatic portability transaction ,an automatic portability transaction is a transf] ( assets made-- 7,i7 f an individual retirem5t plan :i* is e/abli%$ on behalf ( an individual & to :i* am\nts 7 transf]r$ "u section #dja7;a77#ca77;,b77i71 7,,ii7 to an employ]-sponsor$ retirem5t plan describ$ 9 clause 7iii71 7iv71 7v71 or 7vi7 ( section #djb7;c77#h77;,b7 7o!r ?an a def9$ b5efit plan7 9 :i* su* individual is an active p>ticipant1 & 7,,iii7 aft] su* individual has be5 giv5 advance notice ( ! transf] & has n affirmatively opt$ out ( su* transf]4 7ii7 ,automatic portability provid] ,an automatic portability provid] is a p]son t executes transf]s describ$ 9 clause 7i74 7,b7 ,conditions = automatic portability transactions ,subsection 7d77#be7 %all n apply to an automatic portability transaction unless ! foll[+ requirem5ts are satisfi$3 7i7 ,ackn[l$gm5t ( fiduci>y /atus ,an automatic portability provid] %all ackn[l$ge 9 writ+1 at su* "t & =mat z specifi$ by ! ,secret>y1 t ! provid] is a fiduci>y ) respect to ! individual retirem5t plan describ$ 9 subp>agraph 7,a77i77,i74 7ii7 ,fees ,! fees & comp5sation receiv$ by ! automatic portability provid] 9 connection ) ! automatic portability transaction 7includ+ any increase 9 su* fees or comp5sation7 %all n exce$ reasonable comp5sation & mu/ be fully disclos$ to & approv$ 9 writ+ 9 advance ( ! transaction by a plan fiduci>y ( ! plan describ$ 9 subp>agraph 7,a77i77,,ii7 :i* is indep5d5t ( ! automatic portability provid]4 7iii7 ,data usage ,! automatic portability provid] %all n-- 7,i7 m>ket or sell data relat+ to ! individual retirem5t plan describ$ 9 subp>agraph 7,a77i77,i71 or 7,,ii7 use su* data = any purpose o!r ?an ! adm9i/ration ( automatic portability transactions )\t ! express cons5t ( a plan fiduci>y :i* is indep5d5t ( ! automatic portability provid] aft] full disclosure by su* provid] ( h[ su* data w be us$4 7iv7 ,op5 p>ticipation ,! automatic portability provid] %all (f] automatic portability transactions on ! same t]ms to any plan describ$ 9 subp>agraph 7,a77i77,,ii7 reg>dless ( :e!r ! provid] provides o!r s]vices = su* plan4 7v7 ,pre-transaction notice ,at lea/ #cj days 9 advance ( an automatic portability transaction1 ! automatic portability provid] %all provide notice to ! individual on ^: behalf ! individual retirem5t plan describ$ 9 subp>agraph 7,a77i77,i7 is e/abli%$ :i* includes-- 7,i7 a description ( ! automatic portability transaction & ! fees :i* w be *>g$ 9 connection ) ! transaction1 7,,ii7 a description ( ! individual's "r to affirmatively elect n to p>ticipate 9 ! transaction1 ! proc$ures = su* an election1 & a telephone numb] at :i* ! individual c contact ! automatic portability provid]1 & 7,,iii7 su* o!r disclosures z ! ,secret>y may require by regulation4 7vi7 ,po/-transaction notice ,n lat] ?an #c bus9ess days aft] an automatic portability transaction1 ! automatic portability provid] %all provide notice to ! individual on ^: behalf ! individual retirem5t plan describ$ 9 subp>agraph 7,a77i77,i7 is e/abli%$ (-- 7,i7 ! actions tak5 by ! automatic portability provid] ) respect to ! individual's acc\nt1 7,,ii7 all relevant in=mation reg>d+ ! location & am\nt ( any transf]r$ assets1 7,,iii7 a /atem5t ( fees *>g$ aga9/ ! acc\nt by ! automatic portability provid] or its affiliates 9 connection ) ! transf]1 7,,iv7 a telephone numb] at :i* ! individual c contact ! automatic portability provid]1 & 7,v7 su* o!r disclosures z ! ,secret>y may require by regulation4 7vii7 ,notice requirem5ts ,! notices requir$ "u clauses 7v7 & 7vi7 %all be writt5 9 a mann] calculat$ to be und]/ood by ! av]age int5d$ recipi5t & %all n include mat]ially mislead+ /atem5ts4 7viii7 ,timel9ess ( execution ,aft] liquidat+ ! assets ( an individual retirem5t plan describ$ 9 subp>agraph 7,a77i77,i7 to ca%1 an automatic portability provid] %all transf] ! acc\nt balance ( su* plan z soon z practicable to ! plan describ$ 9 subp>agraph 7,a77i77,,ii74 7ix7 ,record ret5tion & audits 7,i7 ,9 g5]al ,an automatic portability provid] %all1 = #f ye>s1 ma9ta9 ! records suffici5t to demon/rate ! t]ms ( ?is subp>agraph h be5 met4 7,,ii7 ,audits ,an automatic portability provid] %all conduct an annual audit1 9 accordance ) regulations promulgat$ by ! ,secret>y1 ( automatic portability transactions occurr+ dur+ ! cal5d> ye> to demon/rate compliance ) ?is subp>agraph1 & %all submit su* audit annually to ! ,secret>y1 9 su* =m & mann] z specifi$ by ! ,secret>y4 4 7c7 ,regulatory au?ority ,n lat] ?an ,july #a1 #bjbc1 ! ,secret>y ( ! ,treasury 7or su* ,secret>y's delegate7 %all issue su* regulations z may be necess>y to c>ry out ! purposes ( ! am5dm5ts made by ?is section1 includ+ regulations :i*-- 7#a7 require an automatic portability provid] to provide a notice to individuals on ^: behalf ! individual retirem5t plan describ$ 9 p>agraph 7#ab77;,a77i77,i7 ( section #dige7;f7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is section1 is e/abli%$ 9 advance ( ! notices specifi$ 9 p>agraph 7#ab77;,b77v7 ( su* section1 z s add$1 7#b7 re/rict ! receipt ( ?ird p>ty comp5sation 7o!r ?an a direct fee by an employ] sponsor+ a plan :i* is 9 lieu ( a fee impos$ on an individual retirem5t plan own]7 by an automatic portability provid] 9 connection ) an automatic portability transaction1 7#c7 prohibit exculpatory provisions 9 an automatic portability provid]'s contracts or communications ) individuals disclaim+ or limit+ its liability 9 ! ev5t t an automatic portability transaction results 9 an improp] transf]1 7#d7 require an automatic portability provid] to take actions necess>y to reasonably ensure t p>ticipant & b5efici>y data is curr5t & accurate1 & 7#e7 ensure t ! appropriate p>ticipants & b5efici>ies1 9 fact1 receive all ! requir$ notices & disclosures until ! assets are transf]r$ to a new retirem5t plan acc\nt4 ,any t]m us$ 9 ?is subsection :i* is us$ 9 p>agraph 7#ab7 ( section #dige7;f7 ( su* ,code1 z add$ by ?is section1 has ! same mean+ z :5 us$ 9 su* p>agraph4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to transactions occurr+ aft] ,decemb] #ca1 #bjbc4 #aai4 ,application ( section #dae limit = c]ta9 employees ( rural electric coop]atives 7a7 ,9 g5]al ,section #dae7;b7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ab7 ,special rule = c]ta9 employees ( rural electric coop]atives 7,a7 ,9 g5]al ,subp>agraph 7,b7 ( p>agraph 7#a7 %all n apply to a p>ticipant 9 an eligible rural electric coop]ative plan1 except 9 ! case ( a p>ticipant :o 0 a highly comp5sat$ employee 7z def9$ 9 section #dad7q77 ( ! employ] ma9ta9+ su* plan = ! e>li] (-- 7i7 ! plan ye> 9 :i* ! p>ticipant t]m9at$ employm5t ) su* employ]1 or 7ii7 ! plan ye> 9 :i* di/ributions comm5ce "u ! plan ) respect to ! p>ticipant1 or = any ( ! #e plan ye>s imm$iately prec$+ su* e>li] plan ye>4 7,b7 ,eligible rural electric coop]ative plan ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,! t]m eligible rural electric coop]ative plan means a plan ma9ta9$ by m ?an #a employ]1 if at lea/ #he p]c5t ( ! employ]s ma9ta9+ ! plan are rural coop]atives describ$ 9 clause 7i7 or 7ii7 ( section #dja7k77#g77;,b7 or are a national association ( su* a rural coop]ative4 7ii7 ,election ,an employ] ma9ta9+ an eligible rural coop]ative plan may elect n to h subp>agraph 7,a7 apply4 7,c7 ,regulations ,! ,secret>y %all prescribe su* regulations & o!r guidance z are necess>y to limit ! application ( subp>agraph 7,a7 su* t x does n result 9 increas$ b5efits = highly comp5sat$ employees4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to limitation ye>s end+ aft] ! date ( ! enactm5t ( ?is ,act4 #abj4 ,insurance-d$icat$ ex*ange-trad$ funds 7a7 ,9 g5]al ,n lat] ?an ! date :i* is #g ye>s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all am5d ! regulation issu$ by ! ,dep>tm5t ( ! ,treasury relat+ to ,income ,tax2 ,div]sification ,requirem5ts = ,v>iable ,annuity1 ,end[m5t1 & ,life ,insurance ,contracts1 #ed ,f$4 ,reg4 #hgbh 7,m>* #b1 #aihi71 & make any necess>y correspond+ am5dm5ts to o!r regulations1 9 ord] to facilitate ! use ( ex*ange-trad$ funds z inve/m5t options "u v>iable contracts )9 ! mean+ ( section #hag7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 9 accordance ) subsections 7b7 & 7c7 ( ?is section4 7b7 ,designate c]ta9 au?oriz$ p>ticipants & m>ket mak]s z eligible inve/ors ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all am5d ,treas4 ,reg4 section #a4hag-e7;f77#c7 to provide t satisfaction ( ! requirem5ts 9 ,treas4 ,reg4 section #a4hag-e7;f77#b77;i7 ) respect to an ex*ange-trad$ fund %all n be prev5t$ by reason ( b5eficial int]e/s 9 su* a fund be+ held by #a or m au?oriz$ p>ticipants or m>ket mak]s4 7c7 ,def9e relevant t]ms ,9 am5d+ ,treas4 ,reg4 section #a4hag-e7;f77#c7 9 accordance ) subsection 7b71 ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all provide def9itions consi/5t ) ! foll[+3 7#a7 ,ex*ange-trad$ fund ,! t]m ex*ange-trad$ fund means a regulat$ inve/m5t company1 p>tn]%ip1 or tru/-- 7,a7 t is regi/]$ ) ! ,securities & ,ex*ange ,commission z an op5-end inve/m5t company or a unit inve/m5t tru/2 7,b7 ! %>es ( :i* c be pur*as$ or r$eem$ directly f ! fund only by an au?oriz$ p>ticipant2 & 7,c7 ! %>es ( :i* are trad$ ?r\gh\t ! day on a national /ock ex*ange at m>ket prices t may or may n be ! same z ! net asset value ( ! %>es4 7#b7 ,au?oriz$ p>ticipant ,! t]m au?oriz$ p>ticipant means a f9ancial in/itution t is a memb] or p>ticipant ( a cle>+ ag5cy regi/]$ "u section #ag;,a7b7 ( ! ,securities ,ex*ange ,act ( #aicd t ent]s into a contractual relation%ip ) an ex*ange-trad$ fund pursuant to :i* ! f9ancial in/itution is p]mitt$ to pur*ase & r$eem %>es directly f ! fund & to sell su* %>es to ?ird p>ties1 b only if ! contractual arrangem5t or applicable law precludes ! f9ancial in/itution f-- 7,a7 pur*as+ ! %>es = its own inve/m5t purposes r ?an = ! exclusive purpose ( creat+ & r$eem+ su* %>es on behalf ( ?ird p>ties2 & 7,b7 sell+ ! %>es to ?ird p>ties :o are n m>ket mak]s or o!rwise describ$ 9 ,treas4 ,reg4 section #a4hag-e7;f7 7#a7 & 7#c74 7#c7 ,m>ket mak] ,! t]m m>ket mak] means a f9ancial in/itution t is a regi/]$ brok] or deal] "u section #ae7;b7 ( ! ,securities ,ex*ange ,act ( #aicd t ma9ta9s liquidity = an ex*ange-trad$ fund on a national /ock ex*ange by be+ always ready to buy & sell %>es ( su* fund on ! m>ket1 b only if ! f9ancial in/itution is contractually or legally preclud$ f sell+ or buy+ su* %>es to or f p]sons :o are n au?oriz$ p>ticipants or o!rwise describ$ 9 ,treas4 ,reg4 section #a4hag-e7;f7 7#b7 & 7#c74 7d7 ,effective date ,?is section %all apply to segregat$ asset acc\nt inve/m5ts made on or aft] ! date :i* is #g ye>s aft] ! date ( ! enactm5t ( ?is ,act4 #aba4 ,modification ( age requirem5t = qualifi$ ,,able programs 7a7 ,9 g5]al ,section #ebi;,a7e7 is am5d$ by /rik+ age #bf ea* place x appe>s 9 p>agraphs 7#a77;,a7 & 7#b77;,a77i77,,ii7 & ins]t+ age #df4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbe4 #abb4 ,assi/ sav]s 9 recov]+ unclaim$ sav+s bonds ,section #caje ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7f7 7#a7 ,! ,secret>y %all provide ea* ,/ate1 9 digital or o!r electronic =m 7includ+ digital images71 ) all in=mation conc]n+ any applicable sav+s bond :i* is regi/]$ to an own] ) a la/ kn[n address t is )9 su* ,/ate1 includ+ ! s]ial numb] ( ! bond1 ! "n & la/ kn[n address ( su* own]1 & all records ( any transactions involv+ su* bond4 7#b7 7,a7 ,! ,secret>y %all prescribe su* regulations or o!r guidance z may be necess>y to c>ry out ! purposes ( ?is subsection1 includ+ rules to-- 7i7 protect ! privacy ( ! own]s ( applicable sav+s bonds2 & 7ii7 ensure t any in=mation provid$ to a ,/ate "u ?is subsection %all be us$ solely to c>ry out ! purposes ( ?is subsection4 7,b7 ,any regulations or guidance prescrib$ by ! ,secret>y pursuant to subp>agraph 7,a7 %all n h ! effect ( prohibit+1 re/rict+1 or o!rwise prev5t+ a ,/ate f obta9+ all in=mation describ$ 9 p>agraph 7#a74 7#c7 ,n lat] ?an #ab mon?s aft] ! date ( enactm5t ( ?is subsection1 & annually !reaft]1 ! ,secret>y %all submit to ! ,committee on ,appropriations & ! ,committee on ,f9ance ( ! ,s5ate a report assess+ all ef=ts to satisfy ! requirem5t "u p>agraph 7#a74 7#d7 ,any ,/ate t receives in=mation describ$ 9 p>agraph 7#a7 ) respect to an applicable sav+s bond may use su* in=mation to locate ! regi/]$ own] ( su* bond pursuant to ! same /&>ds & requirem5ts z are applicable "u ! ab&on$ prop]ty rules & regulations ( su* ,/ate4 7#e7 ,= purposes ( ?is subsection1 ! t]m applicable sav+s bond means a matur$ sav+s bond1 & all paym5t ( su* bond1 includ+ int]e/1 = :i* su* bond-- 7,a7 0 orig9ally 9 pap]1 pap]less1 or electronic =m2 & 7,b7 has n be5 r$eem$ by ! regi/]$ own]4 4 ,,ii ,retirees #bja4 ,increase 9 age = requir$ beg9n+ date = m&atory di/ributions 7a7 ,increase 9 age = requir$ beg9n+ date 7#a7 ,9 g5]al ,subclause 7,i7 ( section #dja7;a77#i77;,c77i7 is am5d$ to read z foll[s3 7,i7 ! fir/ cal5d> ye> 9 :i* ! employee atta9s ! applicable age = su* cal5d> ye>1 or 4 7#b7 ,special rule = own]s ,subclause 7,i7 ( section #dja7;a77#i77;,c77ii7 is am5d$ by /rik+ 9 :i* ! employee atta9s age #gb & ins]t+ describ$ 9 clause 7i77,i7 ) respect to ! employee4 7b7 ,m&atory di/ribution age ,p>agraph 7#i7 ( section #dja7;a7 is am5d$ by ins]t+ at ! end ! foll[+ new subp>agraph3 7,j7 ,applicable age ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,! applicable age is-- 7,i7 = cal5d> ye>s be=e #bjcb1 age #gb1 & 7,,ii7 = cal5d> ye>s aft] #bjca1 age #ge4 7ii7 ,transition rule ,if1 z ( a cal5d> ye>1 an employee has n atta9$ ! applicable age ) respect to su* ye>1 su* employee %all be treat$ z n hav+ atta9$ ! applicable age "u ?is p>agraph = su* ye> )\t reg>d to :e!r1 9 a previ\s cal5d> ye>1 ! employee _h atta9$ ! applicable age ) respect to su* previ\s cal5d> ye>4 4 7c7 ,sp\se b5efici>ies ,subclause 7,i7 ( section #dja7;a77#i77;,b77iv7 is am5d$ by /rik+ age #gb & ins]t+ ! applicable age4 7d7 ,con=m+ am5dm5t ,subsection 7b7 ( section #djh is am5d$ by /rik+ age #gb & ins]t+ ! applicable age det]m9$ "u section #dja7;a77#i77;,j7 ) respect to su* individual4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to cal5d> ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #bjb4 ,qualify+ longevity annuity contracts 7a7 ,9 g5]al ,n lat] ?an ! date :i* is #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all am5d ! regulation issu$ by ! ,dep>tm5t ( ! ,treasury relat+ to ,longevity ,annuity ,contracts 7#gi ,f$4 ,reg4 #cgfcc 7,july #b1 #bjad771 z foll[s3 7#a7 ,repeal #be-p]c5t premium limit ,! ,secret>y 7or delegate7 %all am5d ,q,a-#ag7;b77#c7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f & ,q,a-#ab7;b77#c7 ( ,treas4 ,reg4 section #a4djh-h to elim9ate ! requirem5t t premiums = qualify+ longevity annuity contracts be limit$ to #be p]c5t ( an individual's acc\nt balance1 & to make su* correspond+ *anges to ! regulations & relat$ =ms z are necess>y to reflect ! elim9ation ( ?is requirem5t4 7#b7 ,increase doll> limitation 7,a7 ,9 g5]al ,! ,secret>y 7or delegate7 %all am5d ,q,a-#ag7;b77#b77;i7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f & ,q,a-#ab7;b77#b77;i7 ( ,treas4 ,reg4 section #a4djh-h to increase ! doll> limitation on premiums = qualify+ longevity annuity contracts f #abe1jjj to #bjj1jjj1 & to make su* correspond+ *anges to ! regulations & relat$ =ms z are necess>y to reflect ?is increase 9 ! doll> limitation4 7,b7 ,adju/m5ts = inflation ,! ,secret>y 7or delegate7 %all am5d ,q,a-#ag7;d77#b77;i7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f to provide t1 9 ! case ( cal5d> ye>s beg9n+ on or aft] ,janu>y #a ( ! second ye> foll[+ ! ye> ( enactm5t ( ?is ,act1 ! #bjj1jjj doll> limitation 7z increas$ by subp>agraph 7,a77 w be adju/$ at ! same "t & 9 ! same mann] z ! limits are adju/$ "u section #dae7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 except t ! base p]iod %all be ! cal5d> qu>t] beg9n+ ,july #a ( ! ye> ( enactm5t ( ?is ,act1 & any increase to su* doll> limitation :i* is n a multiple ( #aj1jjj w be r\nd$ to ! next l[e/ multiple ( #aj1jjj4 7#c7 ,facilitate jo9t & survivor b5efits ,! ,secret>y 7or delegate7 %all am5d ,q,a-#ag7;c7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f1 & make su* correspond+ *anges to ! regulations & relat$ =ms z are necess>y1 to provide t1 9 ! case ( a qualify+ longevity annuity contract :i* 0 pur*as$ ) jo9t & survivor annuity b5efits = ! individual & ! individual's sp\se :i* 7 p]missible "u ! regulations at ! "t ! contract 0 orig9ally pur*as$1 a divorce occurr+ aft] ! orig9al pur*ase & be=e ! annuity paym5ts comm5ce "u ! contract w n affect ! p]missibility ( ! jo9t & survivor annuity b5efits or o!r b5efits "u ! contract1 or require any adju/m5t to ! am\nt or duration ( b5efits payable "u ! contract1 provid$ t any qualifi$ dome/ic relations ord] 7)9 ! mean+ ( section #dad7p7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 or1 9 ! case ( an arrangem5t n subject to section #dad7p7 ( su* ,code or section #bjf7;d7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 any divorce or sep>ation in/rum5t 7z def9$ 9 subsection 7b77-- 7,a7 provides t ! =m] sp\se is entitl$ to ! survivor b5efits "u ! contract2 7,b7 does n modify ! treatm5t ( ! =m] sp\se z ! b5efici>y "u ! contract :o is entitl$ to ! survivor b5efits2 or 7,c7 does n modify ! treatm5t ( ! =m] sp\se z ! measur+ life = ! survivor b5efits "u ! contract4 7#d7 ,p]mit %ort free look p]iod ,! ,secret>y 7or delegate7 %all am5d ,q,a-#ag7;a77#d7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f to ensure t su* ,q,a does n preclude a contract f includ+ a provision "u :i* an employee may resc9d ! pur*ase ( ! contract )9 a p]iod n exce$+ #ij days f ! date ( pur*ase4 7b7 ,divorce or sep>ation in/rum5t ,= purposes ( subsection 7a77#b71 ! t]m divorce or sep>ation in/rum5t means-- 7#a7 a decree ( divorce or sep>ate ma9t5ance or a writt5 in/rum5t incid5t to su* a decree2 7#b7 a writt5 sep>ation agreem5t2 or 7#c7 a decree 7n describ$ 9 p>agraph 7#a77 requir+ a sp\se to make paym5ts = ! support or ma9t5ance ( ! o!r sp\se4 7c7 ,effective dates1 en=cem5t1 & int]pretations 7#a7 ,effective dates 7,a7 ,p>agraphs 7#a7 & 7#b7 ( subsection 7a7 %all be effective ) respect to contracts pur*as$ or receiv$ 9 an ex*ange on or aft] ! date ( ! enactm5t ( ?is ,act4 7,b7 ,p>agraphs 7#c7 & 7#d7 ( subsection 7a7 %all be effective ) respect to contracts pur*as$ or receiv$ 9 an ex*ange on or aft] ,july #b1 #bjad4 7#b7 ,en=cem5t & int]pretations ,prior to ! date on :i* ! ,secret>y ( ! ,treasury issues f9al regulations pursuant to subsection 7a7-- 7,a7 ! ,secret>y 7or delegate7 %all adm9i/] & en=ce ! law 9 accordance ) subsection 7a7 & ! effective dates 9 p>agraph 7#a7 ( ?is subsection2 & 7,b7 taxpay]s may rely ^u _! reasonable good fai? int]pretations ( subsection 7a74 7d7 ,regulatory successor provision ,any ref]5ce to a regulation "u ?is section %all be treat$ z includ+ a ref]5ce to any successor regulation !reto4 #bjc4 ,remove requir$ m9imum di/ribution b>ri]s = life annuities 7a7 ,9 g5]al ,section #dja7;a77#i71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,k7 ,c]ta9 increases 9 paym5ts "u a comm]cial annuity ,no?+ 9 ?is section %all prohibit a comm]cial annuity 7)9 ! mean+ ( section #cdje7;e77#f77 t is issu$ 9 connection ) any eligible retirem5t plan 7)9 ! mean+ ( section #djb7;c77#h77;,b71 o!r ?an a def9$ b5efit plan7 f provid+ "o or m ( ! foll[+ types ( paym5ts on or aft] ! annuity />t+ date3 7i7 annuity paym5ts t increase by a con/ant p]c5tage1 appli$ n less frequ5tly ?an annually1 at a rate t is less ?an #e p]c5t p] ye>1 7ii7 a lump sum paym5t t-- 7,i7 results 9 a %ort5+ ( ! paym5t p]iod ) respect to an annuity or a full or p>tial commutation ( ! future annuity paym5ts1 provid$ t su* lump sum is det]m9$ us+ reasonable actu>ial me?ods & assumptions1 z det]m9$ 9 good fai? by ! issu] ( ! contract1 or 7,,ii7 accel]ates ! receipt ( annuity paym5ts t are s*$ul$ to be receiv$ )9 ! ensu+ #ab mon?s1 reg>dless ( :e!r su* accel]ation %ort5s ! paym5t p]iod ) respect to ! annuity1 r$uces ! doll> am\nt ( b5efits to be paid "u ! contract1 or results 9 a susp5sion ( annuity paym5ts dur+ ! p]iod be+ accel]at$1 7iii7 an am\nt :i* is 9 ! nature ( a divid5d or simil> di/ribution1 provid$ t ! issu] ( ! contract det]m9es su* am\nt bas$ on a reasonable comp>ison ( ! actu>ial factors assum$ :5 calculat+ ! initial annuity paym5ts & ! issu]'s exp]i5ce ) respect to ^? factors1 or 7iv7 a f9al paym5t ^u dea? t does n exce$ ! excess ( ! total am\nt ( ! consid]ation paid = ! annuity paym5ts1 less ! aggregate am\nt ( prior di/ributions or paym5ts f or "u ! contract4 4 7b7 ,effective date ,?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 #bjd4 ,elim9at+ a p5alty on p>tial annuitization 7a7 ,elim9at+ a p5alty on p>tial annuitization ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all am5d ! regulations "u section #dja7;a77#i7 ( ! ,int]nal ,rev5ue ,code ( #aihf to provide t if an employee's b5efit is 9 ! =m ( an individual acc\nt "u a def9$ contribution plan1 ! plan may all[ ! employee to elect to h ! am\nt requir$ to be di/ribut$ f su* acc\nt "u su* section = a ye> to be calculat$ z ! excess ( ! total requir$ am\nt = su* ye> ov] ! annuity am\nt = su* ye>4 7b7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,total requir$ am\nt ,! t]m total requir$ am\nt1 ) respect to a ye>1 means ! am\nt :i* w\ld be requir$ to be di/ribut$ "u ,treas4 ,reg4 section #a4dja7;a77#i7-e 7or any successor regulation7 = ! ye>1 det]m9$ by treat+ ! acc\nt balance z ( ! la/ valuation date 9 ! imm$iately prec$+ cal5d> ye> z includ+ ! value on t date ( all annuity contracts :i* 7 pur*as$ ) a portion ( ! acc\nt & f :i* paym5ts are made 9 accordance ) ,treas4 ,reg4 section #a4dja7;a77#i7-f4 7#b7 ,annuity am\nt ,! t]m annuity am\nt1 ) respect to a ye>1 is ! total am\nt di/ribut$ 9 ! ye> f all annuity contracts describ$ 9 p>agraph 7#a74 7c7 ,con=m+ regulatory am5dm5ts ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all am5d ! regulations "u sections #djc7;b77#aj71 #djh7;a77#f71 #djh7;b77#c71 & #deg7;d77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf to con=m to ! am5dm5ts describ$ 9 subsection 7a74 ,su* con=m+ am5dm5ts %all treat all individual retirem5t plans 7z def9$ 9 section #ggja7;a77#cg7 ( su* ,code7 :i* an individual holds z ! own]1 or :i* an individual holds z a b5efici>y ( ! same dec$5t1 z "o su* plan = purposes ( ! am5dm5ts describ$ 9 subsection 7a74 ,su* con=m+ am5dm5ts %all also treat all contracts describ$ 9 section #djc7;b7 ( su* ,code :i* an individual holds z an employee1 or :i* an individual holds z a b5efici>y ( ! same dec$5t1 z "o su* contract = su* purposes4 7d7 ,effective date ,! modifications & am5dm5ts requir$ "u subsections 7a7 & 7c7 %all be deem$ to h be5 made z ( ! date ( ! enactm5t ( ?is ,act1 & z ( su* date-- 7#a7 all applicable laws %all be appli$ 9 all respects z ?\gh ! actions :i* ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 is requir$ to take "u su* subsections _h be5 tak51 & 7#b7 until su* "t z su* actions are tak51 taxpay]s may rely ^u _! reasonable good fai? int]pretations ( ?is section4 #bje4 ,r$uction 9 excise tax on c]ta9 accumulations 9 qualifi$ retirem5t plans 7a7 ,9 g5]al ,section #digd7;a7 is am5d$ by /rik+ #ej p]c5t & ins]t+ #be p]c5t4 7b7 ,r$uction 9 excise tax on failures to take requir$ m9imum di/ributions ,section #digd is am5d$ by add+ at ! end ! foll[+ new subsection3 7e7 ,r$uction ( tax 9 c]ta9 cases 7#a7 ,r$uction ,9 ! case ( a taxpay] :o-- 7,a7 receives a di/ribution1 dur+ ! correction w9d[1 ( ! am\nt :i* result$ 9 imposition ( a tax "u subsection 7a7 f ! same plan to :i* su* tax relates1 & 7,b7 submits a return1 dur+ ! correction w9d[1 reflect+ su* tax 7z modifi$ by ?is subsection71 ! fir/ s5t5ce ( subsection 7a7 %all be appli$ by sub/itut+ #aj p]c5t = #be p]c5t4 7#b7 ,correction w9d[ ,= purposes ( ?is subsection1 ! t]m correction w9d[ means ! p]iod ( "t beg9n+ on ! date on :i* ! tax "u subsection 7a7 is impos$ ) respect to a %ortfall ( di/ributions f a plan describ$ 9 subsection 7a71 & end+ on ! e>lie/ (-- 7,a7 ! date ( mail+ a notice ( defici5cy ) respect to ! tax impos$ by subsection 7a7 "u section #fbab1 7,b7 ! date on :i* ! tax impos$ by subsection 7a7 is assess$1 or 7,c7 ! la/ day ( ! second taxable ye> t beg9s aft] ! end ( ! taxable ye> 9 :i* ! tax "u subsection 7a7 is impos$4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #bjf4 ,cl>ification ( sub/antially equal p]iodic paym5t rule 7a7 ,9 g5]al ,p>agraph 7#d7 ( section #gb7t7 is am5d$ by ins]t+ at ! end ! foll[+ new subp>agraph3 7,c7 ,rollov]s to subsequ5t plan ,if-- 7i7 paym5ts describ$ 9 p>agraph 7#b77;,a77iv7 are be+ made f a qualifi$ retirem5t plan1 7ii7 a transf] or a rollov] f su* qualifi$ retirem5t plan ( all or a portion ( ! taxpay]'s b5efit "u ! plan is made to ano!r qualifi$ retirem5t plan1 & 7iii7 di/ributions f ! transf]or & transf]ee plans w\ld 9 comb9ation cont9ue to satisfy ! requirem5ts ( p>agraph 7#b77;,a77iv7 if !y _h be5 made only f ! transf]or plan1 su* transf] or rollov] %all n be treat$ z a modification "u subp>agraph 7,a77ii71 & compliance ) p>agraph 7#b77;,a77iv7 %all be det]m9$ on ! basis ( ! comb9$ di/ributions describ$ 9 clause 7iii74 4 7b7 ,nonqualifi$ annuity contracts ,p>agraph 7#c7 ( section #gb7q7 is am5d$-- 7#a7 by r$esignat+ clauses 7i7 & 7ii7 ( subp>agraph 7,b7 z subclauses 7,i7 & 7,,ii71 & by mov+ su* subclauses #b ems to ! "r2 7#b7 by r$esignat+ subp>agraphs 7,a7 & 7,b7 z clauses 7i7 & 7ii71 by mov+ su* clauses #b ems to ! "r1 & by adju/+ ! flu% language at ! end accord+ly2 7#c7 by /rik+ paym5ts4--,if & ins]t+ 8paym5ts4-- 7,a7 ,9 g5]al ,if-- 2 & 7#d7 by add+ at ! end ! foll[+ new subp>agraph3 7,b7 ,ex*anges to subsequ5t contracts ,if-- 7i7 paym5ts describ$ 9 p>agraph 7#b77;,d7 are be+ made f an annuity contract1 7ii7 an ex*ange ( all or a portion ( su* contract = ano!r contract is made "u section #ajce1 & 7iii7 ! aggregate di/ributions f ! contracts involv$ 9 ! ex*ange cont9ue to satisfy ! requirem5ts ( p>agraph 7#b77;,d7 z if ! ex*ange _h n tak5 place1 su* ex*ange %all n be treat$ z a modification "u subp>agraph 7,a77ii71 & compliance ) p>agraph 7#b77;,d7 %all be det]m9$ on ! basis ( ! comb9$ di/ributions describ$ 9 clause 7iii74 4 7c7 ,in=mation report+ ,section #fgbd is am5d$ by ins]t+ at ! end ! foll[+ new subsection3 7g7 ,special rule = report+ c]ta9 additional taxes ,no p5alty %all be impos$ "u section #fgba or #fgbb if-- 7#a7 a p]son makes a return or report "u section #fjdg7;d7 or #djh7;i7 ) respect to any di/ribution1 7#b7 su* di/ribution is made foll[+ a rollov]1 transf]1 or ex*ange describ$ 9 section #gb7t77#d77;,c7 or section #gb7q77#c77;,c71 7#c7 9 mak+ su* return or report ! p]son relies ^u a c]tification provid$ by ! taxpay] t ! di/ributions satisfy ! requirem5ts ( section #gb7t77#d77;,c77iii7 or section #gb7q77#c77;,b77iii71 z applicable1 & 7#d7 su* p]son does n h actual k t ! di/ributions d n satisfy su* requirem5ts4 4 7d7 ,safe h>bor = annuity paym5ts 7#a7 ,qualifi$ retirem5t plans ,subp>agraph 7,a7 ( section #gb7t77#b7 is am5d$ by add+ at ! end ! foll[+ flu% s5t5ce3 ,= purposes ( clause 7iv71 p]iodic paym5ts %all n fail to be treat$ z sub/antially equal m]ely because !y are am\nts receiv$ z an annuity1 & su* p]iodic paym5ts %all be deem$ to be sub/antially equal if !y are payable ov] a p]iod describ$ 9 clause 7iv7 & satisfy ! requirem5ts applicable to annuity paym5ts "u section #dja7;a77#i74 4 7#b7 ,o!r annuity contracts ,p>agraph 7#b7 ( section #gb7q7 is am5d$ by add+ at ! end ! foll[+ flu% s5t5ce3 ,= purposes ( subp>agraph 7,d71 p]iodic paym5ts %all n fail to be treat$ z sub/antially equal m]ely because !y are am\nts receiv$ z an annuity1 & su* p]iodic paym5ts %all be deem$ to be sub/antially equal if !y are payable ov] a p]iod describ$ 9 subp>agraph 7,d7 & w\ld satisfy ! requirem5ts applicable to annuity paym5ts "u section #dja7;a77#i7 if su* requirem5ts appli$4 4 7e7 ,effective dates 7#a7 ,9 g5]al ,! am5dm5ts made by subsections 7a71 7b71 & 7c7 %all apply to transf]s1 rollov]s1 & ex*anges occurr+ on or aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,annuity paym5ts ,! am5dm5t made by subsection 7d7 %all apply to di/ributions comm5c+ on or aft] ! date ( ! enactm5t ( ?is ,act4 7#c7 ,no inf]5ce ,no?+ 9 ! am5dm5ts made by ?is section %all be con/ru$ to create an inf]5ce ) respect to ! law 9 effect prior to ! effective date ( su* am5dm5ts4 #bjg4 ,recov]y ( retirem5t plan ov]paym5ts 7a7 ,qualification requirem5ts ,section #dad is am5d$ by add+ at ! end ! foll[+ new subsection3 7aa7 ,special rules applicable to b5efit ov]paym5ts 7#a7 ,9 g5]al ,a plan %all n fail to be treat$ z describ$ 9 clause 7i71 7ii71 7iii71 or 7iv7 ( section #bai7;g77#e77;,a7 7& %all n fail to be treat$ z satisfy+ ! requirem5ts ( section #dja7;a7 or #djc7 m]ely because-- 7,a7 ! plan fails to obta9 paym5t f any p>ticipant1 b5efici>y1 employ]1 plan sponsor1 fiduci>y1 or o!r p>ty on acc\nt ( any inadv]t5t b5efit ov]paym5t made by ! plan1 or 7,b7 ! plan sponsor am5ds ! plan to increase pa/ or future b5efit paym5ts to affect$ p>ticipants & b5efici>ies 9 ord] to adju/ = prior inadv]t5t b5efit ov]paym5ts4 7#b7 ,r$uction 9 future b5efit paym5ts & recov]y f responsible p>ty ,p>agraph 7#a7 %all n fail to apply to a plan m]ely because1 aft] discov]+ a b5efit ov]paym5t1 su* plan-- 7,a7 r$uces future b5efit paym5ts to ! correct am\nt provid$ = "u ! t]ms ( ! plan1 or 7,b7 seeks recov]y f ! p]son or p]sons responsible = su* ov]paym5t4 7#c7 ,employ] fund+ obligations ,no?+ 9 ?is subsection %all relieve an employ] ( any obligation impos$ on x to make contributions to a plan to satisfy ! m9imum fund+ /&>ds "u sections #dab & #dcj or to prev5t or re/ore an imp]missible =feiture 9 accordance ) section #daa4 7#d7 ,obs]vance ( b5efit limitations ,not)/&+ p>agraph 7#a71 a plan to :i* p>agraph 7#a7 applies %all obs]ve any limitations impos$ on x by section #dja7;a77#ag7 or #dae4 ,! plan may en=ce su* limitations us+ any me?od approv$ by ! ,secret>y = rec\p+ b5efits previ\sly paid or allocations previ\sly made 9 excess ( su* limitations4 7#e7 ,coord9ation ) o!r qualification requirem5ts ,! ,secret>y may issue regulations or o!r guidance ( g5]al applicability specify+ h[ b5efit ov]paym5ts & _! rec\pm5t or non-rec\pm5t f a p>ticipant or b5efici>y %all be tak5 into acc\nt = purposes ( satisfy+ any requirem5t applicable to a plan to :i* p>agraph 7#a7 applies4 4 7b7 ,rollov]s ,section #djb7;c7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ab7 ,9 ! case ( an inadv]t5t b5efit ov]paym5t f a plan to :i* section #dad7;aa77#a7 applies :i* is transf]r$ to an eligible retirem5t plan by or on behalf ( a p>ticipant or b5efici>y-- 7,a7 ! portion ( su* ov]paym5t ) respect to :i* rec\pm5t is n s\ght on behalf ( ! plan %all be treat$ z hav+ be5 paid 9 an eligible rollov] di/ribution if ! paym5t w\ld h be5 an eligible rollov] di/ribution b = be+ an ov]paym5t1 & 7,b7 ! portion ( su* ov]paym5t ) respect to :i* rec\pm5t is s\ght on behalf ( ! plan %all be p]mitt$ to be return$ to su* plan & 9 su* case %all be treat$ z an eligible rollov] di/ribution transf]r$ to su* plan by ! p>ticipant or b5efici>y :o receiv$ su* ov]paym5t 7& ! plans mak+ & receiv+ su* transf] %all be treat$ z p]mitt+ su* transf]74 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 7d7 ,c]ta9 actions be=e effective date ,plans1 fiduci>ies1 employ]s1 & plan sponsors are entitl$ to rely on a reasonable good fai? int]pretation ( !n exi/+ adm9i/rative guidance = inadv]t5t b5efit ov]paym5t rec\pm5ts & recov]ies t comm5c$ be=e ! fir/ day ( ! fir/ plan ye> beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #bjh4 ,retirem5t ,sav+s ,lo/ & ,f\nd 7a7 ,retirem5t ,sav+s ,lo/ & ,f\nd 7#a7 ,e/abli%m5t 7,a7 ,9 g5]al ,n lat] ?an #c ye>s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,labor1 ! ,secret>y ( ,comm]ce1 & ! ,director ( ! ,p5sion ,b5efit ,gu>anty ,corporation1 %all e/abli% an onl9e se>*able database 7to be manag$ by ! ,secret>y ( ! ,treasury 9 accordance ) section #gija ( ! ,int]nal ,rev5ue ,code ( #aihf7 to be kn[n z ! ,retirem5t ,sav+s ,lo/ & ,f\nd4 ,! ,retirem5t ,sav+s ,lo/ & ,f\nd %all-- 7i7 all[ an individual to se>* = in=mation t enables ! individual to locate ! plan adm9i/rator ( any plans ) respect to :i* ! individual is or 0 a p>ticipant or b5efici>y1 & to provide contact in=mation = ! plan adm9i/rator ( any plan describ$ 9 subp>agraph 7,b72 7ii7 all[ ! ,secret>y ( ! ,treasury to assi/ su* an individual 9 locat+ any plan ( ! individual2 & 7iii7 all[ ! ,secret>y ( ! ,treasury to make any necess>y *anges to contact in=mation on record = ! plan adm9i/rator bas$ on any *anges to ! plan due to m]g] or consolidation ( ! plan ) any o!r plan1 division ( ! plan into two or m plans1 bankruptcy1 t]m9ation1 *ange 9 "n ( ! plan1 *ange 9 "n or address ( ! plan adm9i/rator1 or o!r causes4 ,! ,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ "u ?is p>agraph %all include in=mation report$ "u section #gija ( su* ,code & o!r relevant in=mation obta9$ by ! ,secret>y ( ! ,treasury4 7,b7 ,plans describ$ ,a plan describ$ 9 ?is subp>agraph is a plan to :i* ! ve/+ /&>ds ( section #daa ( ! ,int]nal ,rev5ue ,code ( #aihf apply4 7#b7 ,adm9i/ration ,! ,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ "u p>agraph 7#a7 %all provide individuals describ$ 9 p>agraph 7#a77;,a7 only ) ! ability to view contact in=mation = ! plan adm9i/rator ( any plan ) respect to :i* ! individual is or 0 a p>ticipant or b5efici>y1 suffici5t to all[ ! individual to locate ! individual's plan 9 ord] to recov] any b5efit ow+ to ! individual "u ! plan4 7#c7 ,safegu>d+ p>ticipant privacy & security 7,a7 ,9 g5]al ,9 e/abli%+ ! ,retirem5t ,sav+s ,lo/ & ,f\nd "u p>agraph 7#a71 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,labor1 ! ,secret>y ( ,comm]ce1 & ! ,director ( ! ,p5sion ,b5efit ,gu>anty ,corporation1 %all take all necess>y & prop] precautions to ensure t individuals' plan in=mation ma9ta9$ by ! ,retirem5t ,sav+s ,lo/ & ,f\nd is protect$ & t p]sons o!r ?an ! individual _c fraudul5tly claim ! b5efits to :i* any individual is entitl$1 & to all[ any individual to opt out ( inclusion 9 ! ,retirem5t ,sav+s ,lo/ & ,f\nd at ! election ( ! individual4 7,b7 ,disclosure ,! ,secret>y ( ! ,treasury may1 ?r\gh regulations or o!r guidance-- 7i7 au?orize disclosure to ! ag5cies jo9tly adm9i/]+ ! ,retirem5t ,sav+s ,lo/ & ,f\nd ( su* return in=mation z is necess>y to adm9i/] ! ,retirem5t ,sav+s ,lo/ & ,f\nd database1 b only to su* employees ^: (ficial duties ) respect to ! database require su* disclosure1 & 7ii7 au?orize disclosure to plan p>ticipants & b5efici>ies ( ! contact in=mation = ! plan adm9i/rator ( any plan ) respect to :i* su* individuals are or 7 a p>ticipant or b5efici>y4 7#d7 ,secret>y ,any ref]5ce 9 ?is subsection to ! ,secret>y ( ! ,treasury includes su* ,secret>y's delegate4 7b7 ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd 7#a7 ,9 g5]al ,subtitle ,f is am5d$ by add+ at ! end ! foll[+ new *apt]3 #ha ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd ,sec4 #gija4 ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd4 #gija4 ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd 7a7 ,e/abli%m5t2 responsibilities ( ,(fice 7#a7 ,9 g5]al ,n lat] ?an #b ye>s aft] ! date ( ! enactm5t ( ?is section1 ! ,secret>y %all e/abli% )9 ! ,dep>tm5t ( ! ,treasury an ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd 79 ?is section ref]r$ to z ! ,(fice74 7#b7 ,responsibilities ( ,(fice ,! ,(fice %all-- 7,a7 c>ry out subsection 7b71 7,b7 ma9ta9 ! ,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ "u section #bjh7;a7 ( ! ,enhanc+ ,am]ican ,retirem5t ,n[ ,act1 & 7,c7 p]=m an annual audit ( plan in=mation conta9$ 9 ! ,retirem5t ,sav+s ,lo/ & ,f\nd & ensure t su* in=mation is curr5t & accurate4 7b7 ,c]ta9 non-,responsive p>ticipants entitl$ to small b5efits 7#a7 ,g5]al rule 7,a7 ,transf] to ! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd ,! adm9i/rator ( a plan :i* is n t]m9at$ & to :i* section #dja7;a77#ca77;,b7 applies %all transf] to ! ,(fice ! am\nt requir$ to be transf]r$ "u section #dja7;a77#ca77;,b77iv7 = a non-responsive p>ticipant4 7,b7 ,in=mation & paym5t to ! ,(fice ,^u mak+ a transf] "u subp>agraph 7,a71 ! plan adm9i/rator %all provide su* in=mation & c]tifications z ! ,(fice %all specify1 includ+ ) respect to ! transf]r$ am\nt & ! non-responsive p>ticipant4 7,c7 ,in=mation requirem5ts aft] transf] ,9 ! ev5t t1 aft] a transf] is made "u subp>agraph 7,a71 ! relevant non-responsive p>ticipant contacts ! plan adm9i/rator or ! plan adm9i/rator discov]s in=mation t may assi/ ! ,(fice 9 locat+ ! non-responsive p>ticipant1 ! plan adm9i/rator %all notify & provide su* in=mation z ! ,(fice %all specify to ! ,(fice4 7,d7 ,se>* & paym5t by ! ,(fice foll[+ transf] ,! ,(fice %all p]iodically1 & ^u receiv+ in=mation describ$ 9 subp>agraph 7,c71 conduct a se>* = ! non-responsive p>ticipant = :om ! ,(fice has receiv$ a transf] "u subp>agraph 7,a74 ,^u location ( a non-responsive p>ticipant :o claims b5efits1 ! ,(fice %all make a s+le paym5t to ! non-responsive p>ticipant 9 an am\nt equal to ! sum (-- 7i7 ! am\nt transf]r$ to ! ,(fice "u subp>agraph 7,a7 = su* p>ticipant1 & 7ii7 any e>n+s on ! am\nt describ$ 9 clause 7i7 7#b7 ,def9ition ,= purposes ( ?is subsection1 ! t]m non-responsive p>ticipant means a p>ticipant or b5efici>y ( a plan describ$ 9 p>agraph 7#a77;,a7-- 7,a7 :o is entitl$ to a b5efit subject to a m&atory transf] "u section #dja7;a77#ca77;,b77iii71 & 7,b7 = :om ! plan has satisfi$ ! conditions 9 section #dja7;a77#ca77;,b77iv74 7#c7 ,regulatory ,au?ority ,! ,secret>y %all prescribe su* regulations z are necess>y to c>ry out ! purposes ( ?is section1 includ+ rules relat+ to ! am\nt payable to ! ,(fice & ! am\nt to be paid by ! ,(fice4 7c7 ,in=mation collection ,)9 su* p]iod aft] ! end ( a plan ye> z ! ,secret>y may by regulations prescribe1 ! adm9i/rator ( a plan to :i* ! ve/+ /&>ds ( section #daa apply %all submit to ! ,(fice 9 su* =m z ! ,secret>y may require-- 7#a7 ! in=mation describ$ 9 p>agraphs 7#a7 ?r\gh 7#d7 ( section #fjeg7;b71 7#b7 ! in=mation describ$ 9 subp>agraphs 7,a71 7,b71 7,e71 & 7,f7 ( section #fjeg7;a77#b71 & 7#c7 su* o!r in=mation z ! ,secret>y may require4 7d7 ,effective date ,! requirem5ts ( subsections 7b7 & 7c7 %all apply ) respect to plan ye>s beg9n+ aft] ! second ,decemb] #ca occurr+ aft] ! date ( ! enactm5t ( ?is section4 7e7 ,e/abli%m5t ( fund 7#a7 ,9 g5]al ,a fund %all be e/abli%$ )9 ! ,treasury = ! paym5t ( b5efits "u subsection 7b77#a77;,d74 ,su* fund %all be cr$it$ ) ! appropriate-- 7,a7 am\nts transf]r$ to ! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd "u subsection 7b77#a77;,a71 & 7,b7 e>n+s on inve/m5ts ( ! fund or on assets cr$it$ to ! fund4 7#b7 ,inve/m5t ( funds ,:5ev] ! ,secret>y det]m9es t ! moneys ( any fund are 9 excess ( curr5t ne$s1 ! ,secret>y may inve/ su* am\nts z ! ,secret>y det]m9es advisable 9 obligations issu$ or gu>ante$ by ! ,unit$ ,/ates4 4 7#b7 ,con=m+ am5dm5t ,! table ( *apt]s = subtitle ,f is am5d$ by add+ at ! end ! foll[+ new item3 ,*apt] #ha--,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd 4 7c7 ,m&atory transf]s ( rollov] di/ributions 7#a7 ,cap ,sections #dja7;a77#ca77;,b77ii7 & #daa7;a77#aa77;,a7 are ea* am5d$ by /rik+ #e1jjj & ins]t+ #f1jjj4 7#b7 ,di/ribution ( l>g] am\nts to individual retirem5t plans only ,section #dja7;a77#ca77;,b77i7 is am5d$ by add+ at ! end ! foll[+3 ,! ,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ by section #bjh ( ! ,enhanc+ ,am]ican ,retirem5t ,n[ ,act %all n be treat$ z a tru/ee or issu] :i* is eligible to receive su* di/ributions44 7#c7 ,less] am\nts ,section #dja7;a77#ca77;,b7 is am5d$ by add+ at ! end ! foll[+ new clauses3 7iii7 ,treatm5t ( less] am\nts ,9 ! case ( a tru/ :i* is "p ( an eligible plan1 su* tru/ %all n be a qualifi$ tru/ "u ?is section unless su* plan provides t1 if a p>ticipant 9 ! plan sep>ates f ! s]vice cov]$ by ! plan & ! non=feitable accru$ b5efit describ$ 9 clause 7ii7 is n 9 excess ( #a1jjj1 ! plan adm9i/rator %all 7ei!r sep>ately or z "p ( ! notice "u section #djb7;f77 notify ! p>ticipant t ! p>ticipant is entitl$ to su* b5efit or attempt to pay ! b5efit directly to ! p>ticipant4 7iv7 ,transf]s to ,retirem5t ,sav+s ,lo/ & ,f\nd ,if1 aft] a plan adm9i/rator takes ! action requir$ "u clause 7iii71 ! p>ticipant does n-- 7,i7 )9 #f mon?s ( ! notification "u su* clause1 make an election "u subp>agraph 7,a7 or elect to receive a di/ribution ( ! b5efit directly1 or 7,,ii7 accept any direct paym5t made "u su* clause )9 #f mon?s ( ! attempt$ paym5t1 ! plan adm9i/rator %all transf] ! am\nt ( su* b5efit to ! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd 9 accordance ) section #gija4 7v7 ,income tax treatm5t ( transf]s to ,retirem5t ,sav+s ,lo/ & ,f\nd ,= purposes ( det]m9+ ! income tax treatm5t ( transf]s to ! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd "u clause 7iv7-- 7,i7 su* a transf] %all be treat$ z a transf] to an individual retirem5t plan "u clause 7i71 & 7,,ii7 ! di/ribution ( su* am\nts by ! ,(fice ( ! ,retirem5t ,sav+s ,lo/ & ,f\nd %all be treat$ z a di/ribution f an individual retirem5t plan4 4 7#d7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to ve/$ b5efits ) respect to p>ticipants :o sep>ate f s]vice connect$ to ! plan 9 plan ye>s beg9n+ aft] ! second ,decemb] #ca occurr+ aft] ! date ( ! enactm5t ( ?is ,act4 7d7 ,bett] report+ = m&atory transf]s 7#a7 ,9 g5]al ,p>agraph 7#b7 ( section #fjeg7;a7 is am5d$-- 7,a7 9 subp>agraph 7,c7-- 7i7 by /rik+ dur+ su* plan ye> 9 clause 7i7 & ins]t+ dur+ ! plan ye> imm$iately prec$+ su* plan ye>2 7ii7 by add+ & at ! end ( clause 7i72 & 7iii7 by /rik+ clause 7iii72 7,b7 by r$esignat+ subp>agraph 7,e7 z subp>agraph 7,g72 7,c7 by /rik+ & at ! end ( subp>agraph 7,d72 & 7,d7 by ins]t+ aft] subp>agraph 7,d7 ! foll[+ new subp>agraphs3 7,e7 ! "n & taxpay] id5tify+ numb] ( ea* p>ticipant or =m] p>ticipant 9 ! plan-- 7i7 :o1 dur+ ! curr5t plan ye> or any previ\s plan ye>1 0 report$ "u subp>agraph 7,c71 & ) respect to :om ! b5efits describ$ 9 subp>agraph 7,c77ii7 7 fully paid dur+ ! plan ye>1 7ii7 ) respect to :om any am\nt 0 di/ribut$ "u section #dja7;a77#ca77;,b7 dur+ ! plan ye>1 or 7iii7 ) respect to :om a def]r$ annuity contract 0 di/ribut$ dur+ ! plan ye>1 7,f7 9 ! case ( a p>ticipant or =m] p>ticipant to :om subp>agraph 7,e7 applies-- 7i7 9 ! case ( a p>ticipant describ$ 9 clause 7ii7 !re(1 ! "n & address ( ! designat$ tru/ee or issu] describ$ 9 section #dja7;a77#ca77;,b77i7 & ! acc\nt numb] ( ! individual retirem5t plan to :i* ! am\nt 0 di/ribut$1 & 7ii7 9 ! case ( a p>ticipant describ$ 9 clause 7iii7 !re(1 ! "n & address ( ! issu] ( su* annuity contract & ! contract or c]tificate numb]1 & 4 7#b7 ,rules relat+ to direct tru/ee-to-tru/ee transf]s 7,a7 ,9 g5]al ,p>agraph 7#f7 ( section #djb7;e7 is am5d$-- 7i7 by /rik+ transf]s4--,any & ins]t+ 8transf]s4-- 7,a7 ,9 g5]al ,any 2 & 7ii7 by add+ at ! end ! foll[+ new subp>agraph3 7,b7 ,notification ( tru/ee ,9 ! case ( a di/ribution "u section #dja7;a77#ca77;,b71 ! plan adm9i/rator %all notify ! designat$ tru/ee or issu] describ$ 9 clause 7i7 !re( t ! transf] is a m&atory di/ribution requir$ by su* section4 4 7,b7 ,p5alty ,subsection 7i7 ( section #ffeb is am5d$-- 7i7 by /rik+ to recipi5ts 9 ! head+ & ins]t+ or notification2 7ii7 by /rik+ #djb7;f71 & ins]t+ #djb7;f7 or a notification z requir$ by section #djb7;e77#f77;,b712 & 7iii7 by /rik+ su* writt5 explanation & ins]t+ su* writt5 explanation or notification4 7,c7 ,reports ,subsection 7i7 ( section #djh is am5d$-- 7i7 by r$esignat+ subp>agraphs 7,a7 & 7,b7 ( p>agraph 7#b7 z clauses 7i7 & 7ii71 respectively1 & by mov+ su* clauses #b ems to ! "r2 7ii7 by r$esignat+ p>agraphs 7#a7 & 7#b7 z subp>agraphs 7,a7 & 7,b71 respectively1 & by mov+ su* subp>agraphs #b ems to ! "r2 & 7iii7 by /rik+ z ! ,secret>y prescribes 9 subp>agraph 7,b77ii71 z s r$esignat$1 & all t foll[s ?r\gh a simple retirem5t acc\nt & ins]t+ 8z ! ,secret>y prescribes4 7#c7 ,simple retirem5t acc\nts ,9 ! case ( a simple retirem5t acc\nt 2 7iv7 by /rik+ ,reports4--,! tru/ee ( & ins]t+ 8,reports4-- 7#a7 ,9 g5]al ,! tru/ee ( 2 7v7 by /rik+ "u p>agraph 7#b7 9 p>agraph 7#c71 z r$esignat$ by clause 7iii71 & ins]t+ "u p>agraph 7#a77;,b72 & 7vi7 by ins]t+ aft] p>agraph 7#a77;,b77ii71 z r$esignat$ by ! prec$+ clauses1 ! foll[+ new p>agraph3 7#b7 ,m&atory di/ributions ,9 ! case ( an acc\nt1 contract1 or annuity to :i* a transf] "u section #dja7;a77#ca77;,b7 is made 7includ+ a transf] f ! individual retirem5t plan to :i* ! orig9al transf] "u su* section 0 made to ano!r individual retirem5t plan71 ! report requir$ by ?is subsection = ! ye> ( ! transf] & any ye> 9 :i* ! in=mation previ\sly report$ 9 subp>agraph 7,b7 *anges %all-- 7,a7 id5tify su* transf] z a m&atory di/ribution requir$ by su* section1 & 7,b7 include ! "n1 address1 & taxpay] id5tify+ numb] ( ! tru/ee or issu] ( ! individual retirem5t plan to :i* ! am\nt is transf]r$4 4 7#c7 ,notification ( p>ticipants ^u sep>ation ,subsection 7e7 ( section #fjeg is am5d$ by ins]t+ 1 &1 ) respect to any b5efit ( ! individual subject to section #dja7;a77#ca77;,b71 a notice ( availability (1 & ! contact in=mation =1 ! ,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ "u section #bjh7;a7 ( ! ,enhanc+ ,am]ican ,retirem5t ,n[ ,act be=e ! p]iod at ! end ( ! second s5t5ce4 7#d7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to di/ributions made 91 & returns & reports relat+ to1 ye>s beg9n+ aft] ! second ,decemb] #ca occurr+ aft] ! date ( ! enactm5t ( ?is ,act4 7e7 ,requirem5t ( electronic fil+ 7#a7 ,9 g5]al ,p>agraph 7#b7 ( section #fjaa7;e7 is am5d$-- 7,a7 by r$esignat+ subp>agraphs 7,a7 & 7,b7 z clauses 7i7 & 7ii71 respectively1 & by mov+ su* clauses #b ems to ! "r2 7,b7 by /rik+ regulations4--,9 prescrib+ & ins]t+ 8regulations4-- 7,a7 ,9 g5]al ,9 prescrib+ 2 & 7,c7 by add+ at ! end ! foll[+ new subp>agraph3 7,c7 ,exceptions ,not)/&+ subp>agraph 7,a71 ! ,secret>y %all require returns or reports requir$ "u-- 7i7 sections #fjeg1 #fjeh1 & #fjei1 & 7ii7 sections #djh7;i71 #fjda1 & #fjdg to ! ext5t su* return or report relates to ! tax treatm5t ( a di/ribution f a plan1 acc\nt1 contract1 or annuity1 to be fil$ on magnetic m$ia1 b only ) respect to p]sons :o are requir$ to file at lea/ #ej returns dur+ ! cal5d> ye> :i* includes ! fir/ day ( ! plan ye> to :i* su* returns or reports relate4 4 7#b7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to returns & reports relat+ to ye>s beg9n+ aft] ! second ,decemb] #ca occurr+ aft] ! date ( ! enactm5t ( ?is ,act4 #bji4 ,ro? plan di/ribution rules 7a7 ,9 g5]al ,subsection 7d7 ( section #djb;,a is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#e7 ,m&atory di/ribution rules n to apply be=e dea? ,not)/&+ sections #djc7;b77#aj7 & #deg7;d77#b71 ! foll[+ provisions %all n apply to any designat$ ,ro? acc\nt3 7,a7 ,section #dja7;a77#i77;,a74 7,b7 ,! incid5tal dea? b5efit requirem5ts ( section #dja7;a74 4 7b7 ,effective date 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 7#b7 ,special rule ,! am5dm5t made by ?is section %all n apply to di/ributions :i* are requir$ ) respect to ye>s beg9n+ be=e ,janu>y #a1 #bjbd1 b are p]mitt$ to be paid on or aft] su* date4 #baj4 ,"o-"t election = qualifi$ *>itable di/ribution to split-int]e/ entity2 increase 9 qualifi$ *>itable di/ribution limitation 7a7 ,"o-"t election = qualifi$ *>itable di/ribution to split-int]e/ entity ,section #djh7;d77#h7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,f7 ,"o-"t election = qualifi$ *>itable di/ribution to split-int]e/ entity 7i7 ,9 g5]al ,a taxpay] may = a taxable ye> elect "u ?is subp>agraph to treat z meet+ ! requirem5t ( subp>agraph 7,b77i7 any di/ribution f an individual retirem5t acc\nt :i* is made directly by ! tru/ee to a split-int]e/ entity1 b only if-- 7,i7 an election is n 9 effect "u ?is subp>agraph = a prec$+ taxable ye>1 7,,ii7 ! aggregate am\nt ( di/ributions ( ! taxpay] ) respect to :i* an election "u ?is subp>agraph is made does n exce$ #ej1jjj1 & 7,,iii7 su* di/ribution meets ! requirem5ts ( clauses 7iii7 & 7iv74 7ii7 ,split-int]e/ entity ,= purposes ( ?is subp>agraph1 ! t]m split-int]e/ entity means-- 7,i7 a *>itable rema9d] annuity tru/ 7z def9$ 9 section #ffd7;d77#a771 b only if su* tru/ is fund$ exclusively by qualifi$ *>itable di/ributions1 7,,ii7 a *>itable rema9d] unitru/ 7z def9$ 9 section #ffd7;d77#b771 b only if su* unitru/ is fund$ exclusively by qualifi$ *>itable di/ributions1 or 7,,iii7 a *>itable gift annuity 7z def9$ 9 section #eja7m77#e771 b only if su* annuity is fund$ exclusively by qualifi$ *>itable di/ributions & comm5ces fix$ paym5ts ( #e p]c5t or great] n lat] ?an #a ye> f ! date ( fund+4 7iii7 ,contributions mu/ be o!rwise d$uctible ,a di/ribution meets ! requirem5ts ( ?is clause only if-- 7,i7 9 ! case ( a di/ribution to a *>itable rema9d] annuity tru/ or a *>itable rema9d] unitru/1 a d$uction = ! entire value ( ! rema9d] int]e/ 9 ! di/ribution = ! b5efit ( a specifi$ *>itable organization w\ld be all[able "u section #agj 7det]m9$ )\t reg>d to subsection 7b7 !re( & ?is p>agraph71 & 7,,ii7 9 ! case ( a *>itable gift annuity1 a d$uction 9 an am\nt equal to ! am\nt ( ! di/ribution r$uc$ by ! value ( ! annuity describ$ 9 section #eja7m77#e77;,b7 w\ld be all[able "u section #agj 7det]m9$ )\t reg>d to subsection 7b7 !re( & ?is p>agraph74 7iv7 ,limitation on income int]e/s ,a di/ribution meets ! requirem5ts ( ?is clause only if-- 7,i7 no p]son holds an income int]e/ 9 ! split-int]e/ entity o!r ?an ! individual = ^: b5efit su* acc\nt is ma9ta9$1 ! sp\se ( su* individual1 or bo?1 & 7,,ii7 ! income int]e/ 9 ! split-int]e/ entity is nonassignable4 7v7 ,special rules 7,i7 ,*>itable rema9d] tru/s ,not)/&+ section #ffd7;b71 di/ributions made f a tru/ describ$ 9 subclause 7,i7 or 7,,ii7 ( clause 7ii7 %all be treat$ z ord9>y income 9 ! h&s ( ! b5efici>y to :om ! annuity describ$ 9 section #ffd7;d77#a77;,a7 or ! paym5t describ$ 9 section #ffd7;d77#b77;,a7 is paid4 7,,ii7 ,*>itable gift annuities ,qualifi$ *>itable di/ributions made to fund a *>itable gift annuity %all n be treat$ z an inve/m5t 9 ! contract = purposes ( section #gb7;c74 4 7b7 ,inflation adju/m5t ,section #djh7;d77#h71 z am5d$ by subsection 7a71 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,g7 ,inflation adju/m5t 7i7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ aft] #bjbc1 ea* ( ! doll> am\nts 9 subp>agraphs 7,a7 & 7,f7 %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> #bjbb = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 7ii7 ,r\nd+ ,if any doll> am\nt increas$ "u clause 7i7 is n a multiple ( #a1jjj1 su* doll> am\nt %all be r\nd$ to ! ne>e/ multiple ( #a1jjj4 4 7c7 ,effective date ,! am5dm5t made by ?is section %all apply to di/ributions made 9 taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #baa4 ,exception to p5alty on e>ly di/ributions f qualifi$ plans = individuals ) a t]m9al illness 7a7 ,9 g5]al ,section #gb7t77#b71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,k7 ,t]m9al illness 7i7 ,9 g5]al ,di/ributions :i* are made to ! employee :o is a t]m9ally ill individual on or aft] ! date on :i* su* employee has be5 c]tifi$ by a physician z hav+ a t]m9al illness4 7ii7 ,def9ition ,= purposes ( ?is subp>agraph1 ! t]m t]m9ally ill individual has ! same mean+ giv5 su* t]m "u section #aja7;g77#d77;,a71 except t #hd mon?s %all be sub/itut$ = #bd mon?s4 7iii7 ,docum5tation ,= purposes ( ?is subp>agraph1 an employee %all n be consid]$ to be a t]m9ally ill individual unless su* employee furni%es suffici5t evid5ce to ! plan adm9i/rator 9 su* =m & mann] z ! ,secret>y may require4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to di/ributions made aft] ! date ( ! enactm5t ( ?is ,act4 #bab4 ,surviv+ sp\se election to be treat$ z employee 7a7 ,9 g5]al ,section #dja7;a77#i77;,b77iv71 z am5d$ by ?is ,act1 is fur!r am5d$ to read z foll[s3 7iv7 ,special rule = surviv+ sp\se ( employee ,if ! designat$ b5efici>y ref]r$ to 9 clause 7iii77,i7 is ! surviv+ sp\se ( ! employee & ! surviv+ sp\se elects ! treatm5t 9 ?is clause-- 7,i7 ! regulations ref]r$ to 9 clause 7iii77,,ii7 %all treat ! surviv+ sp\se z if ! surviv+ sp\se 7 ! employee1 7,,ii7 ! date on :i* ! di/ributions are requir$ to beg9 "u clause 7iii77,,iii7 %all n be e>li] ?an ! date on :i* ! employee w\ld h atta9$ ! applicable age1 & 7,,iii7 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 is ! employee4 ,an election describ$ 9 ?is clause %all be made at su* "t & 9 su* mann] z prescrib$ by ! ,secret>y1 %all include a timely notice to ! plan adm9i/rator1 & once made may n be revok$ except ) ! cons5t ( ! ,secret>y4 4 7b7 ,ext5sion ( election ( at lea/ z rapidly rule ,! ,secret>y %all am5d ,q,a-#e7;a7 ( ,treasury ,regulation section #a4dja7;a77#i7-e 7or any successor regulation !reto7 to provide t if ! surviv+ sp\se is ! employee's sole designat$ b5efici>y & ! sp\se elects treatm5t "u section #dja7;a77#i77;,b77iv71 !n ! applicable di/ribution p]iod = di/ribution cal5d> ye>s aft] ! di/ribution cal5d> ye> includ+ ! employee's date ( dea? is det]m9$ "u ! uni=m lifetime table4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to cal5d> ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #bac4 ,long-t]m c>e contracts pur*as$ ) retirem5t plan di/ributions 7a7 ,9 g5]al ,section #dja7;a7 is am5d$ by ins]t+ aft] p>agraph 7#ch7 ! foll[+ new p>agraph3 7#ci7 ,qualifi$ long-t]m c>e di/ributions 7,a7 ,9 g5]al ,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[+ qualifi$ long-t]m c>e di/ributions4 7,b7 ,qualifi$ long-t]m c>e di/ribution ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,! t]m qualifi$ long-t]m c>e di/ribution means s mu* ( ! di/ributions made dur+ ! taxable ye> z does n exce$1 9 ! aggregate1 ! less] (-- 7,i7 ! am\nt paid by or assess$ to ! p>ticipant dur+ ! taxable ye> = or ) respect to c]tifi$ long-t]m c>e insurance = ! p>ticipant or ! p>ticipant's sp\se 7or o!r family memb] ( ! p>ticipant z provid$ by ! ,secret>y by regulation71 or 7,,ii7 #b1ejj4 7ii7 ,adju/m5t = inflation ,9 ! case ( taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbd1 ! #b1ejj am\nt 9 clause 7i77,,ii7 %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> #bjbc = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,if any increase "u ! prec$+ s5t5ce is n a multiple ( #ajj1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #ajj4 7,c7 ,c]tifi$ long-t]m c>e insurance ,! t]m c]tifi$ long-t]m c>e insurance means-- 7i7 a qualifi$ long-t]m c>e insurance contract 7z def9$ 9 section #ggjb;,b7b77 cov]+ qualifi$ long-t]m c>e s]vices 7z def9$ 9 section #ggjb;,b7c771 7ii7 cov]age ( ! risk t an insur$ individual w\ld become a *ronically ill individual 7)9 ! mean+ ( section #aja7;g77#d77;,b77 "u a rid] or o!r provision ( a life insurance contract :i* satisfies ! requirem5ts ( section #aja7;g77#c7 7det]m9$ )\t reg>d to subp>agraph 7,d7 !re(71 or 7iii7 cov]age ( qualifi$ long-t]m c>e s]vices 7z s def9$7 "u a rid] or o!r provision ( an insurance or annuity contract :i* is treat$ z a sep>ate contract "u section #ggjb;,b7e7 & satisfies ! requirem5ts ( section #ggjb;,b7g71 if su* cov]age provides mean+ful f9ancial assi/ance 9 ! ev5t ! insur$ ne$s home-bas$ or nurs+ home c>e4 ,= purposes ( ! prec$+ s5t5ce1 cov]age %all n be deem$ to provide mean+ful f9ancial assi/ance unless b5efits are adju/$ = inflation & consum] protections are provid$1 includ+ protection 9 ! ev5t ! cov]age is t]m9at$4 7,d7 ,di/ributions mu/ o!rwise be includible ,rules simil> to ! rules ( section #djb7l77#c7 %all apply = purposes ( ?is p>agraph4 7,e7 ,long-t]m c>e premium /atem5t 7i7 ,9 g5]al ,no di/ribution %all be treat$ z a qualifi$ long-t]m c>e di/ribution unless a long-t]m c>e premium /atem5t ) respect to ! p>ticipant has be5 fil$ ) ! plan4 7ii7 ,long-t]m c>e premium /atem5t ,= purposes ( ?is p>agraph1 a long-t]m c>e premium /atem5t is a /atem5t provid$ by ! issu] ( long-t]m c>e cov]age1 ^u reque/ by ! own] ( su* cov]age1 :i* includes-- 7,i7 ! "n & taxpay] id5tification numb] ( su* issu]1 7,,ii7 a /atem5t t ! cov]age is c]tifi$ long-t]m c>e insurance1 7,,iii7 id5tification ( ! p>ticipant z ! own] ( su* cov]age1 7,,iv7 id5tification ( ! individual cov]$ & su* individual's relation%ip to ! p>ticipant1 7,v7 ! premiums ow$ = ! cov]age = ! cal5d> ye>1 & 7,,vi7 su* o!r in=mation z ! ,secret>y may require4 7iii7 ,fil+ ) ,secret>y ,a long-t]m c>e premium /atem5t w be accept$ only if ! issu] has complet$ a disclosure to ! ,secret>y = ! specific cov]age product to :i* ! /atem5t relates4 ,su* disclosure %all id5tify ! issu]1 type ( cov]age1 & su* o!r in=mation z ! ,secret>y may require :i* is includ$ 9 ! fil+ ( ! product ) ! applicable ,/ate au?ority4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #dja7k77#b77;,b77i7 is am5d$ by /rik+ or at ! end ( subclause 7,v71 by add+ or at ! end ( subclause 7,,vi71 & by add+ at ! end ! foll[+ new subclause3 7,,vii7 z provid$ 9 section #dja7;a77#ci71 4 7#b7 ,section #djc7;a7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#f7 ,qualifi$ long-t]m c>e di/ributions ,an annuity contract %all n fail to be subject to ?is subsection solely by reason ( all[+ di/ributions to :i* section #dja7;a77#ci7 applies4 4 7#c7 ,section #djc7;b77#aa7 is am5d$ by /rik+ or at ! end ( subp>agraph 7,c71 by /rik+ ! p]iod at ! end ( subp>agraph 7,d7 & ins]t+ 1 or1 & by ins]t+ aft] subp>agraph 7,d7 ! foll[+ new subp>agraph3 7,e7 = di/ributions to :i* section #dja7;a77#ci7 applies4 4 7#d7 ,section #deg7;d77#a77;,a7 is am5d$ by /rik+ or at ! end ( clause 7iii71 by /rik+ ! comma at ! end ( clause 7iv7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+ new clause3 7v7 z provid$ 9 section #dja7;a77#ci71 4 7c7 ,exemption f additional tax on e>ly di/ributions ,section #gb7t77#b71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,l7 ,qualifi$ long-t]m c>e di/ributions 7i7 ,9 g5]al ,any qualifi$ long-t]m c>e di/ribution :i* meets ! requirem5ts ( section #dja7;a77#ci74 7ii7 ,exception ,if ! individual cov]$ by ! long-t]m c>e cov]age to :i* su* di/ribution relates is ! sp\se ( ! p>ticipant 9 ! plan1 clause 7i7 %all apply only if ! p>ticipant & ! p>ticipant's sp\se file a jo9t return4 7iii7 ,exemption ( di/ributions f tru/ee to tru/ee transf] & )hold+ rules ,= purposes ( sections #dja7;a77#ca71 #djb7;f71 & #cdje1 a qualifi$ long-t]m c>e di/ribution %all n be treat$ z an eligible rollov] di/ribution4 4 7d7 ,report+ 7#a7 ,9 g5]al ,subp>t ,b ( "p ,,iii ( sub*apt] ,a ( *apt] #fa is am5d$ by add+ at ! end ! foll[+ new section3 #fjej,z4 ,reports relat+ to long-t]m c>e premium /atem5ts 7a7 ,requirem5t ( report+ ,any issu] ( c]tifi$ long-t]m c>e insurance 7z def9$ 9 section #dja7;a77#ci77;,c77 :o provides a long-t]m c>e premium /atem5t to any pur*as] pursuant to section #dja7;a77#ci77;,e7 = a cal5d> ye>1 %all make a return n lat] ?an ,febru>y #a ( ! succe$+ cal5d> ye>1 accord+ to =ms or regulations prescrib$ by ! ,secret>y1 sett+ =? ) respect to ea* su* pur*as]-- 7#a7 ! "n & taxpay] id5tification numb] ( su* issu]1 7#b7 a /atem5t t ! cov]age is c]tifi$ long-t]m c>e insurance z def9$ 9 section #dja7;a77#ci77;,c71 7#c7 ! "n ( ! own] ( su* cov]age1 7#d7 id5tification ( ! individual cov]$ & su* individual's relation%ip to ! own]1 7#e7 ! premiums paid = ! cov]age = ! cal5d> ye>1 & 7#f7 su* o!r in=mation z ! ,secret>y may require4 7b7 ,/atem5t to be furni%$ to p]sons ) respect to :om in=mation is requir$ ,e p]son requir$ to make a return "u subsection 7a7 %all furni% to ea* individual ^: "n is requir$ to be set =? 9 su* return a writt5 /atem5t %[+-- 7#a7 ! "n1 address1 & phone numb] ( ! in=mation contact ( ! issu] ( ! contract or cov]age1 & 7#b7 ! aggregate am\nt ( premiums & *>ges paid "u ! contract or cov]age cov]+ ! insur$ individual dur+ ! cal5d> ye>4 ,! writt5 /atem5t requir$ "u ! prec$+ s5t5ce %all be furni%$ to ! individual or individuals on or be=e ,janu>y #ca ( ! ye> foll[+ ! cal5d> ye> = :i* ! return requir$ "u subsection 7a7 0 requir$ to be made4 7c7 ,contracts or cov]age cov]+ m ?an "o insur$ ,9 ! case ( contracts or cov]age cov]+ m ?an "o insur$1 ! return & /atem5t requir$ by subsections 7a7 & 7b7 %all id5tify only ! portion ( ! premium t is prop]ly allocable to ! insur$ 9 respect ( :om ! return or /atem5t is made4 7d7 ,/atem5t to be furni%$ on reque/ ,if any individual to :om a return is requir$ to be furni%$ "u subsection 7b7 reque/s t su* a return be furni%$ at any "t be=e ! close ( ! cal5d> ye>1 ! p]son requir$ to make ! return "u subsection 7b7 %all comply ) su* reque/ & %all furni% to ! ,secret>y at su* "t a copy ( ! return s provid$4 4 7#b7 ,p5alties ,section #fgbd7;d7 is am5d$-- 7,a7 9 p>agraph 7#a77;,b71 by add+ or at ! end ( clause 7xxvii7 & by ins]t+ aft] su* clause ! foll[+ new clause3 7xxviii7 section #fjej,z 7relat+ to reports relat+ to long-t]m c>e premium /atem5ts71 & 1 & 7,b7 9 p>agraph 7#b7-- 7i7 by r$esignat+ subp>agraph 7,,jj71 relat+ to section #fjej,y1 z subp>agraph 7,,kk7 & mov+ su* subp>agraph to ! position imm$iately aft] subp>agraph 7,,jj71 relat+ to section #fbbf7;a77#b71 7ii7 by /rik+ or at ! end ( subp>agraph 7,,ii71 7iii7 by /rik+ ! p]iod at ! end ( subp>agraph 7,,jj71 relat+ to section #fbbf7;a77#b71 & ins]t+ a comma1 7iv7 by /rik+ ! p]iod at ! end ( subp>agraph 7,,kk71 z s r$esignat$1 & ins]t+ 1 or1 & 7v7 by ins]t+ aft] subp>agraph 7,,kk71 z s r$esignat$1 ! foll[+ new subp>agraph3 7,,ll7 section #fjej,z 7relat+ to reports relat+ to long-t]m c>e premium /atem5ts74 4 7#c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,b ( "p ,,iii ( sub*apt] ,a ( *apt] #fa is am5d$ by add+ aft] ! item relat+ to section #fjej,y ! foll[+ new item3 ,sec4 #fjej,z4 ,reports relat+ to long-t]m c>e premium /atem5ts4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ! date :i* is #c ye>s aft] ! date ( ! enactm5t ( ?is ,act4 7f7 ,disclosure to ,treasury ( long-t]m c>e insurance products ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all issue su* =ms & guidance z are necess>y to collect ! fil+ requir$ by section #dja7;a77#ci77;,e77iii7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is section4 7g7 ,treasury website ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all ma9ta9 a website t discloses in=mation reg>d+ long-t]m c>e insurance policies1 includ+ common policy features1 factors to consid] 9 select+ cov]age levels1 consum] protections1 tax rules = premiums & b5efits1 & ! special tax & di/ribution rules applicable to c]tifi$ long-t]m c>e insurance 7z def9$ 9 section #dja7;a77#ci77;,c7 ( ! ,int]nal ,rev5ue ,code ( #aihf74 ,su* website %all also id5tify issu]s ( c]tifi$ long-t]m c>e insurance 7z s def9$7 by ,/ate1 issu] contact in=mation1 & o!r in=mation specific to an issu] & its long-t]m c>e insurance :i* is includ$ 9 ! issu]'s fil+ = su* insurance ) ! applicable ,/ate au?ority & disclos$ to ! ,secret>y4 ,,iii ,public safety (fic]s & milit>y #cja4 ,milit>y sp\se retirem5t plan eligibility cr$it = small employ]s 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by add+ at ! end ! foll[+ new section3 #de,u4 ,milit>y sp\se retirem5t plan eligibility cr$it = small employ]s 7a7 ,9 g5]al ,= purposes ( section #ch1 9 ! case ( any eligible small employ]1 ! milit>y sp\se retirem5t plan eligibility cr$it det]m9$ "u ?is section = any taxable ye> is an am\nt equal to ! sum (-- 7#a7 #bjj ) respect to ea* milit>y sp\se :o is an employee ( su* employ] & :o is eligible to p>ticipate 9 an eligible def9$ contribution plan ( su* employ] at any "t dur+ su* taxable ye>1 plus 7#b7 s mu* ( ! contributions made by su* employ] to all su* plans ) respect to su* employee dur+ su* taxable ye> z d n exce$ #cjj4 7b7 ,limitation ,an individual %all only be tak5 into acc\nt z a milit>y sp\se "u subsection 7a7 = ! taxable ye> :i* includes ! date on :i* su* individual began p>ticipat+ 9 ! eligible def9$ contribution plan ( ! employ] & ! #b succe$+ taxable ye>s4 7c7 ,eligible small employ] ,= purposes ( ?is section1 ! t]m eligible small employ] means an eligible employ] 7z def9$ 9 section #djh7p77#b77;,c77i77,i74 7d7 ,milit>y sp\se ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m milit>y sp\se means1 ) respect to any employ]1 any individual :o is m>ri$ 7)9 ! mean+ ( section #ggjc z ( ! fir/ date t ! employee is employ$ by ! employ]7 to an individual :o is a memb] ( ! uni=m$ s]vices 7z def9$ section #aja7;a77#e7 ( title #aj1 ,unit$ ,/ates ,code74 ,= purposes ( ?is section1 an employ] may rely on an employee's c]tification t su* employee's sp\se is a memb] ( ! uni=m$ s]vices if su* c]tification provides ! "n1 rank1 & s]vice bran* ( su* sp\se4 7#b7 ,exclusion ( highly comp5sat$ employees ,) respect to any employ]1 ! t]m milit>y sp\se %all n include any individual if su* individual is a highly comp5sat$ employee ( su* employ] 7)9 ! mean+ ( section #dad7q774 7e7 ,eligible def9$ contribution plan ,= purposes ( ?is section1 ! t]m eligible def9$ contribution plan means1 ) respect to any eligible small employ]1 any def9$ contribution plan 7z def9$ 9 section #dad7;i77 ( su* employ] if1 "u ! t]ms ( su* plan-- 7#a7 milit>y sp\ses employ$ by su* employ] are eligible to p>ticipate 9 su* plan n lat] ?an ! date :i* is #b mon?s aft] ! date on :i* su* individual beg9s employm5t ) su* employ]1 & 7#b7 milit>y sp\ses :o are eligible to p>ticipate 9 su* plan-- 7,a7 are imm$iately eligible to receive an am\nt ( employ] contributions "u su* plan :i* is n less ! am\nt ( su* contributions t a simil>ly situat$ p>ticipant :o is n a milit>y sp\se w\ld be eligible to receive "u su* plan aft] #b ye>s ( s]vice1 & 7,b7 imm$iately h a non=feitable "r to ! employee's accru$ b5efit d]iv$ f employ] contributions "u su* plan4 7f7 ,aggregation rule ,all p]sons treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad %all be treat$ z "o employ] = purposes ( ?is section4 4 7b7 ,cr$it all[$ z "p ( g5]al bus9ess cr$it ,section #ch7;b7 is am5d$ by /rik+ plus at ! end ( p>agraph 7#cb71 by /rik+ ! p]iod at ! end ( p>agraph 7#cc7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cd7 9 ! case ( an eligible small employ] 7z def9$ 9 section #de,u7c771 ! milit>y sp\se retirem5t plan eligibility cr$it det]m9$ "u section #de,u7a74 4 7c7 ,specifi$ cr$it = purposes ( c]tifi$ pr(essional employ] organizations ,section #ceaa7;d77#b7 is am5d$ by r$esignat+ subp>agraphs 7,f71 7,g71 & 7,h7 z subp>agraphs 7,g71 7,h71 & 7,i71 respectively1 & by ins]t+ aft] subp>agraph 7,e7 ! foll[+ new subp>agraph3 7,f7 section #de,u 7milit>y sp\se retirem5t plan eligibility cr$it71 4 7d7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #de,u4 ,milit>y sp\se retirem5t plan eligibility cr$it = small employ]s4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #cjb4 ,di/ributions to firefight]s 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #gb7t77#aj7 is am5d$ by /rik+ #dad7;d77 & ins]t+ #dad7;d77 or a di/ribution f a plan describ$ 9 clause 7iii71 7iv71 or 7vi7 ( section #djb7;c77#h77;,b7 to an employee :o provides firefight+ s]vices4 7b7 ,con=m+ am5dm5t ,! head+ ( p>agraph 7#aj7 ( section #gb7t7 is am5d$ by /rik+ 9 gov]nm5tal plans & ins]t+ & private sector firefight]s4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ! date ( ! enactm5t ( ?is ,act4 #cjc4 ,exclusion ( c]ta9 disability-relat$ fir/ respond] retirem5t paym5ts 7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b ( *apt] #a is am5d$ by ins]t+ aft] section #aci;,b ! foll[+ new section3 #aci;,c4 ,c]ta9 disability-relat$ fir/ respond] retirem5t paym5ts 7a7 ,9 g5]al ,9 ! case ( an individual :o receives qualifi$ fir/ respond] retirem5t paym5ts = any taxable ye>1 gross income %all n include s mu* ( su* paym5ts z d n exce$ ! annualiz$ excludable disability am\nt ) respect to su* individual4 7b7 ,qualifi$ fir/ respond] retirem5t paym5ts ,= purposes ( ?is section1 ! t]m qualifi$ fir/ respond] retirem5t paym5ts means1 ) respect to any taxable ye>1 any p5sion or annuity :i* b = ?is section w\ld be includible 9 gross income = su* taxable ye> & :i* is receiv$-- 7#a7 f a plan describ$ 9 clause 7iii71 7iv71 7v71 or 7vi7 ( section #djb7;c77#h77;,b71 & 7#b7 9 connection ) su* individual's qualifi$ fir/ respond] s]vice4 7c7 ,annualiz$ excludable disability am\nt ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m annualiz$ excludable disability am\nt means1 ) respect to any individual1 ! s]vice-connect$ excludable disability am\nts :i* are prop]ly attributable to ! #ab-mon? p]iod imm$iately prec$+ ! date on :i* su* individual atta9s retirem5t age4 7#b7 ,s]vice-connect$ excludable disability am\nt ,! t]m s]vice-connect$ excludable disability am\nt means p]iodic paym5ts receiv$ by an individual :i*-- 7,a7 are n includible 9 su* individual's gross income "u section #ajd7;a77#a71 7,b7 are receiv$ 9 connection ) su* individual's qualifi$ fir/ respond] s]vice1 & 7,c7 t]m9ate :5 su* individual atta9s retirem5t age4 7#c7 ,special rule = p>tial-ye> paym5ts ,9 ! case ( an individual :o only receives s]vice-connect$ excludable disability am\nts prop]ly attributable to a portion ( ! #ab-mon? p]iod describ$ 9 p>agraph 7#a71 su* p>agraph %all be appli$ by multiply+ su* am\nts by ! ratio ( #cfe to ! numb] ( days 9 su* p]iod to :i* su* am\nts 7 prop]ly attributable4 7d7 ,qualifi$ fir/ respond] s]vice ,= purposes ( ?is section1 ! t]m qualifi$ fir/ respond] s]vice means s]vice z a law en=cem5t (fic]1 firefight]1 p>am$ic1 or em]g5cy m$ical te*nician4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = "p ,,iii ( sub*apt] ,b ( *apt] #a is am5d$ by ins]t+ aft] ! item relat+ to section #aci;,b ! foll[+ new item3 ,sec4 #aci;,c4 ,c]ta9 disability-relat$ fir/ respond] retirem5t paym5ts4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to am\nts receiv$ ) respect to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #cjd4 ,repeal ( direct paym5t requirem5t on exclusion f gross income ( di/ributions f gov]nm5tal plans = heal? & long-t]m c>e insurance 7a7 ,9 g5]al ,section #djb7l77#e77;,a7 is am5d$ to read z foll[s3 7,a7 ,direct paym5t to insur] p]mitt$ 7i7 ,9 g5]al ,p>agraph 7#a7 %all apply to a di/ribution )\t reg>d to :e!r paym5t ( ! premiums is made directly to ! provid] ( ! accid5t or heal? plan or qualifi$ long-t]m c>e insurance contract by d$uction f a di/ribution f ! eligible retirem5t plan1 or is made to ! employee4 7ii7 ,report+ ,9 ! case ( a paym5t made to ! employee z describ$ 9 clause 7i71 ! employee %all include ) ! return ( tax = ! taxable ye> 9 :i* ! di/ribution is made an atte/ation t ! di/ribution does n exce$ ! am\nt paid by ! employee = qualifi$ heal? insurance premiums = su* taxable ye>4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to di/ributions made aft] ! date ( ! enactm5t ( ?is ,act4 #cje4 ,modification ( eligible age = exemption f e>ly )drawal p5alty 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #gb7t77#aj71 z am5d$ by ?is ,act1 is fur!r am5d$ by /rik+ age #ej & ins]t+ age #ej or #be ye>s ( s]vice "u ! plan1 :i*ev] is e>li]4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to di/ributions made aft] ! date ( ! enactm5t ( ?is ,act4 #cjf4 ,exemption f e>ly )drawal p5alty = c]ta9 ,/ate & local gov]nm5t corrections employees 7a7 ,9 g5]al ,clause 7i7 ( section #gb7t77#aj77;,b7 is am5d$ by /rik+ or em]g5cy m$ical s]vices & ins]t+ em]g5cy m$ical s]vices1 or s]vices z a corrections (fic] or z a =5sic security employee provid+ = ! c>e1 cu/ody1 & control ( =5sic pati5ts4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to di/ributions made aft] ! date ( ! enactm5t ( ?is ,act4 ,,iv ,nonpr(its & educators #dja4 ,enhancem5t ( #djc7;b7 plans 7a7 ,p]mitt$ inve/m5ts ,subp>agraph 7,a7 ( section #djc7;b77#g7 is am5d$ by /rik+ if ! am\nts are to be inve/$ 9 regulat$ inve/m5t company /ock to be held 9 t cu/odial acc\nt & ins]t+ if ! am\nts are to be held 9 t cu/odial acc\nt & are inve/$ 9 regulat$ inve/m5t company /ock or a gr\p tru/ int5d$ to satisfy ! requirem5ts ( ,int]nal ,rev5ue ,s]vice ,rev5ue ,rul+ #ha-ajj 7or any successor guidance74 7b7 ,con=m+ am5dm5t ,! head+ ( p>agraph 7#g7 ( section #djc7;b7 is am5d$ by /rik+ = regulat$ inve/m5t company /ock4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to am\nts inve/$ aft] ! date ( ! enactm5t ( ?is ,act4 #djb4 ,h>d%ip )drawal rules = #djc7;b7 plans 7a7 ,9 g5]al ,section #djc7;b7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ae7 ,special rules relat+ to h>d%ip )drawals ,= purposes ( p>agraphs 7#g7 & 7#aa7-- 7,a7 ,am\nts :i* may be )drawn ,! foll[+ am\nts may be di/ribut$ ^u h>d%ip ( ! employee3 7i7 ,contributions made pursuant to a sal>y r$uction agreem5t 7)9 ! mean+ ( section #caba7;a77#e77;,d774 7ii7 ,qualifi$ nonelective contributions 7z def9$ 9 section #dja7m77#d77;,c774 7iii7 ,qualifi$ mat*+ contributions describ$ 9 section #dja7k77#c77;,d77ii77,i74 7iv7 ,e>n+s on any contributions describ$ 9 clause 7i71 7ii71 or 7iii74 7,b7 ,no requirem5t to take available loan ,a di/ribution %all n be treat$ z fail+ to be made ^u ! h>d%ip ( an employee solely because ! employee does n take any available loan "u ! plan4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #djc7;b77#g77;,a77i77,v7 is am5d$ by /rik+ 9 ! case ( contributions made pursuant to a sal>y r$uction agreem5t 7)9 ! mean+ ( section #caba7;a77#e77;,d77 & ins]t+ subject to ! provisions ( p>agraph 7#ae74 7#b7 ,p>agraph 7#aa7 ( section #djc7;b71 z am5d$ by ?is ,act1 is fur!r am5d$-- 7,a7 by /rik+ 9 9 subp>agraph 7,b7 & ins]t+ subject to ! provisions ( p>agraph 7#ae71 92 & 7,b7 by /rik+ ! la/ s5t5ce4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #djc4 ,multiple employ] #djc7;b7 plans 7a7 ,9 g5]al ,section #djc7;b71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#af7 ,multiple employ] plans 7,a7 ,9 g5]al ,except 9 ! case ( a *ur* plan1 ?is subsection %all n be treat$ z fail+ to apply to an annuity contract solely by reason ( su* contract be+ pur*as$ "u a plan ma9ta9$ by m ?an #a employ]4 7,b7 ,treatm5t ( employ]s fail+ to meet requirem5ts ( plan 7i7 ,9 g5]al ,9 ! case ( a plan ma9ta9$ by m ?an #a employ]1 ?is subsection %all n be treat$ z fail+ to apply to an annuity contract held "u su* plan m]ely because ( "o or m employ]s fail+ to meet ! requirem5ts ( ?is subsection if su* plan satisfies rules simil> to ! rules ( section #dac7;e77#b7 ) respect to any su* employ] failure4 7ii7 ,additional requirem5ts 9 case ( non-gov]nm5tal plans ,a plan %all n be treat$ z meet+ ! requirem5ts ( ?is subp>agraph unless ! plan satisfies rules simil> to ! rules ( subp>agraph 7,a7 or 7,b7 ( section #dac7;e77#a71 except 9 ! case ( a multiple employ] plan ma9ta9$ solely by any ( ! foll[+3 ,a ,/ate1 a political subdivision ( a ,/ate1 or an ag5cy or in/rum5tality ( any "o or m ( ! =ego+4 4 7b7 ,annual regi/ration = #djc7;b7 multiple employ] plan ,section #fjeg is am5d$ by r$esignat+ subsection 7g7 z subsection 7h7 & by ins]t+ aft] subsection 7f7 ! foll[+ new subsection3 7g7 #djc7;b7 multiple employ] plans treat$ z "o plan ,9 ! case ( annuity contracts to :i* ?is section applies & to :i* section #djc7;b7 applies by reason ( ! plan "u :i* su* contracts are pur*as$ meet+ ! requirem5ts ( p>agraph 7#af7 !re(1 su* plan %all be treat$ z a s+le plan = purposes ( ?is section4 4 7c7 ,annual in=mation returns = #djc7;b7 multiple employ] plan ,section #fjeh is am5d$ by r$esignat+ subsection 7f7 z subsection 7g7 & by ins]t+ aft] subsection 7e7 ! foll[+ new subsection3 7f7 #djc7;b7 multiple employ] plans treat$ z "o plan ,9 ! case ( annuity contracts to :i* ?is section applies & to :i* section #djc7;b7 applies by reason ( ! plan "u :i* su* contracts are pur*as$ meet+ ! requirem5ts ( p>agraph 7#af7 !re(1 su* plan %all be treat$ z a s+le plan = purposes ( ?is section4 4 7d7 ,regulations ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all prescribe su* regulations z may be necess>y to cl>ify1 9 ! case ( plans to :i* section #djc7;b77#af7 ( ! ,int]nal ,rev5ue ,code ( #aihf applies1 ! treatm5t ( an employ] dep>t+ su* plan 9 connection ) su* employ]'s failure to meet multiple employ] plan requirem5ts4 7e7 ,modification ( model plan language4 etc 7#a7 ,plan notifications ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all modify ! model plan language publi%$ "u section #dac7;e77#e7 ( ! ,int]nal ,rev5ue ,code ( #aihf to include language :i* notifies p>ticipat+ employ]s describ$ 9 section #eja7;c77#c71 & :i* are exempt f tax "u section #eja7;a71 t ! plan is subject to ! ,employee ,retirem5t ,income ,security ,act ( #aigd & t su* employ] is a plan sponsor ) respect to its employees p>ticipat+ 9 ! multiple employ] plan &1 z su*1 has c]ta9 fiduci>y duties ) respect to ! plan & to its employees4 7#b7 ,model plans = multiple employ] #djc7;b7 non-gov]nm5tal plans ,= plans to :i* section #djc7;b77#af77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf applies 7o!r ?an a plan ma9ta9$ = its employees by a ,/ate1 a political subdivision ( a ,/ate1 or an ag5cy or in/rum5tality ( any "o or m ( ! =ego+7 ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all publi% model plan language simil> to model plan language publi%$ "u section #dac7;e77#e7 ( su* ,code4 7#c7 ,educational outrea* to employ]s exempt f tax ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all provide education & outrea* to increase aw>5ess to employ]s describ$ 9 section #eja7;c77#c71 & :i* are exempt f tax "u section #eja7;a71 t multiple employ] plans are subject to ! ,employee ,retirem5t ,income ,security ,act ( #aigd & t su* employ] is a plan sponsor ) respect to its employees p>ticipat+ 9 ! multiple employ] plan &1 z su*1 has c]ta9 fiduci>y duties ) respect to ! plan & to its employees4 7f7 ,no inf]5ce ) respect to *ur* plans ,reg>d+ any application ( section #djc7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf to an annuity contract pur*as$ "u a *ur* plan 7z def9$ 9 section #dad7;e7 ( su* ,code7 ma9ta9$ by m ?an #a employ]1 or to any application ( rules simil> to section #dac7;e7 ( su* ,code to su* a plan1 no inf]5ce %all be made f section #djc7;b77#af77;,a7 ( su* ,code 7z add$ by ?is ,act7 n apply+ to su* plans4 7g7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 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* am5dm5t7 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 ! case ( a plan to :i* section #djc7;b77#af7 ( su* ,code applies4 ,v ,disa/] relief #eja4 ,special rules = use ( retirem5t funds 9 connection ) qualifi$ f$]ally decl>$ disa/]s 7a7 ,tax-,favor$ )drawals f retirem5t plans 7#a7 ,9 g5]al ,p>agraph 7#b7 ( section #gb7t71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,m7 ,di/ributions f retirem5t plans 9 connection ) f$]ally decl>$ disa/]s ,any qualifi$ disa/] recov]y di/ribution4 4 7#b7 ,qualifi$ disa/] recov]y di/ribution ,section #gb7t7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#aa7 ,qualifi$ disa/] recov]y di/ribution ,= purposes ( p>agraph 7#b77,m7-- 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! t]m qualifi$ disa/] recov]y di/ribution means any di/ribution made-- 7i7 on or aft] ! fir/ day ( ! incid5t p]iod ( a qualifi$ disa/] & be=e ! date t is #ahj days aft] ! applicable date ) respect to su* disa/]1 & 7ii7 to an individual ^: pr9cipal place ( abode at any "t dur+ ! incid5t p]iod ( su* qualifi$ disa/] is locat$ 9 ! qualifi$ disa/] area ) respect to su* qualifi$ disa/] & :o has su/a9$ an economic loss by reason ( su* qualifi$ disa/]4 7,b7 ,aggregate doll> limitation 7i7 ,9 g5]al ,= purposes ( ?is subsection1 ! aggregate am\nt ( di/ributions receiv$ by an individual :i* may be treat$ z qualifi$ disa/] recov]y di/ributions ) respect to any qualifi$ disa/] 9 all taxable ye>s %all n exce$ #bb1jjj4 7ii7 ,treatm5t ( plan di/ributions ,if a di/ribution to an individual w\ld 7)\t reg>d to clause 7i77 be a qualifi$ disa/] recov]y di/ribution1 a plan %all n be treat$ z violat+ any requirem5t ( ?is title m]ely because ! plan treats su* di/ribution z a qualifi$ disa/] recov]y di/ribution1 unless ! aggregate am\nt ( su* di/ributions f all plans ma9ta9$ by ! employ] 7& any memb] ( any controll$ gr\p :i* includes ! employ]7 to su* individual exce$s #bb1jjj ) respect to ! same qualifi$ disa/]4 7iii7 ,controll$ gr\p ,= purposes ( clause 7ii71 ! t]m controll$ gr\p means any gr\p treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad4 7,c7 ,am\nt di/ribut$ may be repaid 7i7 ,9 g5]al ,any individual :o receives a qualifi$ disa/] recov]y di/ribution may1 at any "t dur+ ! #c-ye> p]iod beg9n+ on ! day aft] ! date on :i* su* di/ribution 0 receiv$1 make "o or m contributions 9 an aggregate am\nt n to exce$ ! am\nt ( su* di/ribution to an eligible retirem5t plan ( :i* su* individual is a b5efici>y & to :i* a rollov] contribution ( su* di/ribution c\ld be made "u section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 or #deg7;e77#af71 z ! case may be4 7ii7 ,treatm5t ( repaym5ts ( di/ributions f eligible retirem5t plans o!r ?an ,i,r,as ,= purposes ( ?is title1 if a contribution is made pursuant to clause 7i7 ) respect to a qualifi$ disa/] recov]y di/ribution f a plan o!r ?an an individual retirem5t plan1 !n ! taxpay] %all1 to ! ext5t ( ! am\nt ( ! contribution1 be treat$ z hav+ receiv$ ! qualifi$ disa/] recov]y di/ribution 9 an eligible rollov] di/ribution 7z def9$ 9 section #djb7;c77#d77 & z hav+ transf]r$ ! am\nt to ! eligible retirem5t plan 9 a direct tru/ee to tru/ee transf] )9 #fj days ( ! di/ribution4 7iii7 ,treatm5t ( repaym5ts = di/ributions f ,i,r,as ,= purposes ( ?is title1 if a contribution is made pursuant to clause 7i7 ) respect to a qualifi$ disa/] recov]y di/ribution f an individual retirem5t plan1 !n1 to ! ext5t ( ! am\nt ( ! contribution1 ! qualifi$ disa/] recov]y di/ribution %all be treat$ z a di/ribution describ$ 9 section #djh7;d77#c7 & z hav+ be5 transf]r$ to ! eligible retirem5t plan 9 a direct tru/ee to tru/ee transf] )9 #fj days ( ! di/ribution4 7,d7 ,income inclusion spread ov] #c-ye> p]iod 7i7 ,9 g5]al ,9 ! case ( any qualifi$ disa/] recov]y di/ribution1 unless ! taxpay] elects n to h ?is subp>agraph apply = any taxable ye>1 any am\nt requir$ to be includ$ 9 gross income = su* taxable ye> %all be s includ$ ratably ov] ! #c-taxable ye> p]iod beg9n+ ) su* taxable ye>4 7ii7 ,special rule ,= purposes ( clause 7i71 rules simil> to ! rules ( subp>agraph 7,e7 ( section #djh;,a7d77#c7 %all apply4 7,e7 ,qualifi$ disa/] ,= purposes ( ?is p>agraph & p>agraph 7#h71 ! t]m qualifi$ disa/] means any disa/] ) respect to :i* a major disa/] has be5 decl>$ by ! ,presid5t "u section #dja ( ! ,rob]t ,t4 ,/af=d ,disa/] ,relief & ,em]g5cy ,assi/ance ,act aft] ,decemb] #bg1 #bjbj4 7,f7 ,o!r def9itions ,= purposes ( ?is p>agraph & p>agraph 7#h7-- 7i7 ,qualifi$ disa/] area 7,i7 ,9 g5]al ,! t]m qualifi$ disa/] area means1 ) respect to any qualifi$ disa/]1 ! area ) respect to :i* ! major disa/] 0 decl>$ "u ! ,rob]t ,t4 ,/af=d ,disa/] ,relief & ,em]g5cy ,assi/ance ,act4 7,,ii7 ,exceptions ,su* t]m %all n include any area :i* is a qualifi$ disa/] area solely by reason ( section #cja ( ! ,taxpay] ,c]ta9ty & ,disa/] ,tax ,relief ,act ( #bjbj4 7ii7 ,incid5t p]iod ,! t]m incid5t p]iod means1 ) respect to any qualifi$ disa/]1 ! p]iod specifi$ by ! ,f$]al ,em]g5cy ,managem5t ,ag5cy z ! p]iod dur+ :i* su* disa/] occurr$4 7iii7 ,applicable date ,! t]m applicable date means ! late/ (-- 7,i7 ! date ( ! enactm5t ( ?is p>agraph1 7,,ii7 ! fir/ day ( ! incid5t p]iod ) respect to ! qualifi$ disa/]1 or 7,,iii7 ! date ( ! disa/] decl>ation ) respect to ! qualifi$ disa/]4 7iv7 ,eligible retirem5t plan ,! t]m eligible retirem5t plan %all h ! mean+ giv5 su* t]m by section #djb7;c77#h77;,b74 7,g7 ,special rules 7i7 ,exemption ( di/ributions f tru/ee to tru/ee transf] & )hold+ rules ,= purposes ( sections #dja7;a77#ca71 #djb7;f71 & #cdje1 qualifi$ disa/] recov]y di/ributions %all n be treat$ z eligible rollov] di/ributions4 7ii7 ,qualifi$ disa/] recov]y di/ributions treat$ z meet+ plan di/ribution requirem5ts ,= purposes ( ?is title-- 7,i7 a qualifi$ disa/] recov]y di/ribution %all be treat$ z meet+ ! requirem5ts ( sections #dja7k77#b77;,b77i71 #djc7;b77#g77;,a77i71 #djc7;b77#aa71 & #deg7;d77#a77;,a71 & 7,,ii7 9 ! case ( a money pur*ase p5sion plan1 a qualifi$ disa/] recov]y di/ribution :i* is an 9-s]vice )drawal %all be treat$ z meet+ ! requirem5ts ( section #dja7;a7 applicable to di/ributions4 4 7#c7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to di/ributions ) respect to disa/]s ! incid5t p]iod 7z def9$ 9 section #gb7t77#aa77;,f77ii7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is subsection7 = :i* beg9s on or aft] ! date :i* is #cj days aft] ! date ( ! enactm5t ( ! ,taxpay] ,c]ta9ty & ,disa/] ,tax ,relief ,act ( #bjbj4 7b7 ,recontributions ( )drawals = home pur*ases 7#a7 ,individual retirem5t plans ,p>agraph 7#h7 ( section #gb7t7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,f7 ,recontributions 7i7 ,g5]al rule 7,i7 ,9 g5]al ,any individual :o receiv$ a qualifi$ di/ribution may1 dur+ ! applicable p]iod1 make "o or m contributions 9 an aggregate am\nt n to exce$ ! am\nt ( su* qualifi$ di/ribution to an eligible retirem5t plan 7z def9$ 9 section #djb7;c77#h77;,b77 ( :i* su* individual is a b5efici>y & to :i* a rollov] contribution ( su* di/ribution c\ld be made "u section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 or #djh7;d77#c71 z ! case may be4 7,,ii7 ,treatm5t ( repaym5ts ,rules simil> to ! rules ( clauses 7ii7 & 7iii7 ( p>agraph 7#aa77;,c7 %all apply = purposes ( ?is subsection4 7ii7 ,qualifi$ di/ribution ,= purposes ( ?is subp>agraph1 ! t]m qualifi$ di/ribution means any di/ribution-- 7,i7 :i* is a qualifi$ fir/-"t homebuy] di/ribution1 7,,ii7 :i* 0 to be us$ to pur*ase or con/ruct a pr9cipal resid5ce 9 a qualifi$ disa/] area1 b :i* 0 n s us$ on acc\nt ( ! qualifi$ disa/] ) respect to su* area1 & 7,,iii7 :i* 0 receiv$ dur+ ! p]iod beg9n+ on ! date :i* is #ahj days be=e ! fir/ day ( ! incid5t p]iod ( su* qualifi$ disa/] & end+ on ! date :i* is #cj days aft] ! la/ day ( su* incid5t p]iod4 7iii7 ,applicable p]iod ,= purposes ( ?is subp>agraph1 ! t]m applicable p]iod means1 9 ! case ( a pr9cipal resid5ce 9 a qualifi$ disa/] area ) respect to any qualifi$ disa/]1 ! p]iod beg9n+ on ! fir/ day ( ! incid5t p]iod ( su* qualifi$ disa/] & end+ on ! date :i* is #ahj days aft] ! applicable date ) respect to su* disa/]4 4 7#b7 ,qualifi$ plans ,subsection 7c7 ( section #djb1 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ac7 ,recontributions ( )drawals = home pur*ases 7,a7 ,g5]al rule 7i7 ,9 g5]al ,any individual :o receiv$ a qualifi$ di/ribution may1 dur+ ! applicable p]iod1 make "o or m contributions 9 an aggregate am\nt n to exce$ ! am\nt ( su* qualifi$ di/ribution to an eligible retirem5t plan 7z def9$ 9 p>agraph 7#h77;,b77 ( :i* su* individual is a b5efici>y & to :i* a rollov] contribution ( su* di/ribution c\ld be made "u subsection 7c7 or section #djc7;a77#d71 #djc7;b77#h71 or #djh7;d77#c71 z ! case may be4 7ii7 ,treatm5t ( repaym5ts ,rules simil> to ! rules ( clauses 7ii7 & 7iii7 ( section #gb7t77#aa77;,c7 %all apply = purposes ( ?is subsection4 7,b7 ,qualifi$ di/ribution ,= purposes ( ?is p>agraph1 ! t]m qualifi$ di/ribution means any di/ribution-- 7i7 describ$ 9 section #dja7k77#b77;,b77i77,,iv71 #djc7;b77#g77;,a77i77,v71 or #djc7;b77#aa77;,b71 7ii7 :i* 0 to be us$ to pur*ase or con/ruct a pr9cipal resid5ce 9 a qualifi$ disa/] area1 b :i* 0 n s us$ on acc\nt ( ! qualifi$ disa/] ) respect to su* area1 & 7iii7 :i* 0 receiv$ dur+ ! p]iod beg9n+ on ! date :i* is #ahj days be=e ! fir/ day ( ! incid5t p]iod ( su* qualifi$ disa/] & end+ on ! date :i* is #cj days aft] ! la/ day ( su* incid5t p]iod4 7,c7 ,def9itions ,= purposes ( ?is p>agraph-- 7i7 ! t]ms qualifi$ disa/]1 qualifi$ disa/] area1 & incid5t p]iod h ! mean+ giv5 su* t]ms "u section #gb7t77#aa71 & 7ii7 ! t]m applicable p]iod has ! mean+ giv5 su* t]m "u section #gb7t77#h77;,f74 4 7#c7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to recontributions ( )drawals = home pur*ases ) respect to disa/]s ! incid5t p]iod 7z def9$ 9 section #gb7t77#aa77;,f77ii7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is subsection7 = :i* beg9s on or aft] ! date :i* is #cj days aft] ! date ( ! enactm5t ( ! ,taxpay] ,c]ta9ty & ,disa/] ,tax ,relief ,act ( #bjbj4 7c7 ,loans f qualifi$ plans 7#a7 ,9 g5]al ,subsection 7p7 ( section #gb is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#f7 ,increase 9 limit on loans n treat$ z di/ributions 7,a7 ,9 g5]al ,9 ! case ( any loan f a qualifi$ employ] plan to a qualifi$ individual made dur+ ! applicable p]iod-- 7i7 clause 7i7 ( p>agraph 7#b77;,a7 %all be appli$ by sub/itut+ #ajj1jjj = #ej1jjj1 & 7ii7 clause 7ii7 ( su* p>agraph %all be appli$ by sub/itut+ ! pres5t value ( ! non=feitable accru$ b5efit ( ! employee "u ! plan = "o-half ( ! pres5t value ( ! non=feitable accru$ b5efit ( ! employee "u ! plan4 7,b7 ,delay ( repaym5t ,9 ! case ( a qualifi$ individual ) respect to any qualifi$ disa/] ) an out/&+ loan f a qualifi$ employ] plan on or aft] ! applicable date ) respect to ! qualifi$ disa/]-- 7i7 if ! due date pursuant to subp>agraph 7,b7 or 7,c7 ( p>agraph 7#b7 = any repaym5t ) respect to su* loan occurs dur+ ! p]iod beg9n+ on ! fir/ day ( ! incid5t p]iod ( su* qualifi$ disa/] & end+ on ! date :i* is #ahj days aft] ! la/ day ( su* incid5t p]iod1 su* due date may be delay$ = #a ye>1 7ii7 any subsequ5t repaym5ts ) respect to any su* loan may be appropriately adju/$ to reflect ! delay 9 ! due date "u clause 7i7 & any int]e/ accru+ dur+ su* delay1 & 7iii7 9 det]m9+ ! #e-ye> p]iod & ! t]m ( a loan "u subp>agraph 7,b7 or 7,c7 ( p>agraph 7#b71 ! p]iod describ$ 9 clause 7i7 may be disreg>d$4 7,c7 ,def9itions ,= purposes ( ?is p>agraph-- 7i7 ,qualifi$ individual ,! t]m qualifi$ individual means any individual-- 7,i7 ^: pr9cipal place ( abode at any "t dur+ ! incid5t p]iod ( any qualifi$ disa/] is locat$ 9 ! qualifi$ disa/] area ) respect to su* qualifi$ disa/]1 & 7,,ii7 :o has su/a9$ an economic loss by reason ( su* qualifi$ disa/]4 7ii7 ,applicable p]iod ,! applicable p]iod ) respect to any disa/] is ! p]iod-- 7,i7 beg9n+ on ! applicable date ) respect to su* disa/]1 & 7,,ii7 end+ on ! date t is #ahj days aft] su* applicable date4 7iii7 ,o!r t]ms ,= purposes ( ?is p>agraph-- 7,i7 ! t]ms applicable date1 qualifi$ disa/]1 qualifi$ disa/] area1 & incid5t p]iod h ! mean+ giv5 su* t]ms "u subsection 7t77#aa71 & 7,,ii7 ! t]m applicable p]iod has ! mean+ giv5 su* t]m "u subsection 7t77#h74 4 7#b7 ,effective date ,! am5dm5t made by p>agraph 7#a7 %all apply to plan loans made ) respect to disa/]s ! incid5t p]iod 7z def9$ 9 section #gb7t77#aa77;,f77ii7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is subsection7 = :i* beg9s on or aft] ! date :i* is #cj days aft] ! date ( ! enactm5t ( ! ,taxpay] ,c]ta9ty & ,disa/] ,tax ,relief ,act ( #bjbj4 7d7 ,,gao ,report ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all submit a report to ! ,committees on ,f9ance & ,heal?1 ,education1 ,labor & ,p5sions ( ! ,s5ate & ! ,committees on ,ways & ,means & ,education & ,labor ( ! ,h\se ( ,repres5tatives on taxpay] utilization ( ! retirem5t disa/] relief p]mitt$ by ! am5dm5ts made by ?is section & or p]mitt$ by prior legislation1 includ+ a comp>ison ( utilization by high] & l[] income taxpay]s & :e!r ! #bb1jjj ?re%old on di/ributions provides adequate relief = taxpay]s :o suff] f a disa/]4 ,,vi ,employ] plans #fja4 ,cr$it = employ]s ) respect to modifi$ safe h>bor requirem5ts 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a1 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new section3 #de,v4 ,cr$it = small employ]s ) respect to modifi$ safe h>bor requirem5ts = automatic contribution arrangem5ts 7a7 ,g5]al rule ,= purposes ( section #ch1 9 ! case ( a small employ]1 ! safe h>bor adoption cr$it det]m9$ "u ?is section = any taxable ye> is ! am\nt equal to ! total ( ! employ]'s mat*+ contributions "u section #dja7k77#af77;,d7 dur+ ! taxable ye> on behalf ( employees :o are n highly comp5sat$ employees4 7b7 ,limitations 7#a7 ,limitation ) respect to comp5sation ,! cr$it det]m9$ "u subsection 7a7 ) respect to contributions made on behalf ( any employee %all n exce$ #b p]c5t ( ! comp5sation ( su* employee = ! taxable ye>4 7#b7 ,limitation ) respect to ye>s ( p>ticipation ,a cr$it %all be det]m9$ "u subsection 7a7 ) respect to contributions made on behalf ( any employee only dur+ ! fir/ #e ye>s su* employee p>ticipates 9 ! secure def]ral arrangem5t4 7c7 ,def9itions 7#a7 ,9 g5]al ,any t]m us$ 9 ?is section :i* is also us$ 9 section #dja7k77#af7 %all h ! same mean+ z :5 us$ 9 su* section4 7#b7 ,small employ] ,! t]m small employ] means an eligible employ] 7z def9$ 9 section #djh7p77#b77;,c77i774 7d7 ,special rules 7#a7 ,aggregation rules ,= purposes ( ?is section1 all p]sons treat$ z a s+le employ] "u subsection 7a7 or 7b7 ( section #eb1 or subsection 7m7 or 7o7 ( section #dad1 %all be treat$ z "o p]son & all plans ( ! employ] %all be treat$ z #a eligible plan4 7#b7 ,d5ial ( d\ble b5efit ,no d$uction %all be all[able "u ?is title = any contribution ) respect to :i* a cr$it is all[$ "u ?is section4 7#c7 ,election n to claim cr$it ,?is section %all n apply to a taxpay] = any taxable ye> if su* taxpay] elects to h ?is section n apply = su* taxable ye>4 4 7b7 ,cr$it to be "p ( g5]al bus9ess cr$it ,subsection 7b7 ( section #ch1 z am5d$ by ?is ,act1 is fur!r am5d$ by /rik+ plus at ! end ( p>agraph 7#cc71 by /rik+ ! p]iod at ! end ( p>agraph 7#cd7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#ce7 ! safe h>bor adoption cr$it det]m9$ "u section #de,v4 4 7c7 ,treatm5t ( cr$it = c]tifi$ pr(essional employ] organizations ,p>agraph 7#b7 ( section #ceaa7;d71 z am5d$ by ?is ,act1 is fur!r am5d$-- 7#a7 by r$esignat+ subp>agraphs 7,g71 7,h71 & 7,i7 z subp>agraphs 7,h71 7,i71 & 7,j71 respectively1 & 7#b7 by ins]t+ aft] subp>agraph 7,f7 ! foll[+ new subp>agraph3 7,g7 section #de,v 7safe h>bor adoption cr$it71 4 7d7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a1 z am5d$ by ?is ,act1 is fur!r am5d$ by ins]t+ aft] ! item relat+ to section #de,u ! foll[+ new item3 ,sec4 #de,v4 ,cr$it = small employ]s ) respect to modifi$ safe h>bor requirem5ts = automatic contribution arrangem5ts4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s :i* include any portion ( a plan ye> beg9n+ aft] ,decemb] #ca1 #bjbc4 #fjb4 ,application ( top heavy rules to def9$ contribution plans cov]+ excludable employees 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #daf7;c7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,c7 ,application to employees n meet+ age & s]vice requirem5ts ,any employees n meet+ ! age or s]vice requirem5ts ( section #daj7;a77#a7 7)\t reg>d to subp>agraph 7,b7 !re(7 may be exclud$ f consid]ation 9 det]m9+ :e!r any plan ( ! employ] meets ! requirem5ts ( subp>agraphs 7,a7 & 7,b74 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #fjc4 ,increase 9 cr$it limitation = small employ] p5sion plan />tup co/s ( c]ta9 employ]s 7a7 ,9 g5]al ,subsection 7a7 ( section #de;,e is am5d$ by ins]t+ be=e ! p]iod at ! end ! foll[+3 7#ge p]c5t ( su* co/s 9 ! case ( an eligible employ]1 z det]m9$ by sub/itut+ #be = #ajj 9 section #djh7p77#b77;,c77i774 7b7 ,treatm5t ( cr$it = c]tifi$ pr(essional employ] organizations ,p>agraph 7#b7 ( section #ceaa7;d71 z am5d$ by ?is ,act1 is fur!r am5d$-- 7#a7 by r$esignat+ subp>agraphs 7,e71 7,f71 7,g71 7,h71 7,i71 & 7,j7 z subp>agraphs 7,f71 7,g71 7,h71 7,i71 7,j71 & 7,k71 respectively1 & 7#b7 by ins]t+ aft] subp>agraph 7,d7 ! foll[+ new subp>agraph3 7,e7 section #de;,e 7small employ] p5sion plan />tup co/ cr$it71 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #fjd4 ,expansion ( ,employee ,plans ,compliance ,resolution ,sy/em 7a7 ,9 g5]al ,except z o!rwise provid$ 9 guidance prescrib$ by ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate 7ref]r$ to 9 ?is section z ! ,secret>y71 any eligible inadv]t5t failure to comply ) ! rules applicable "u section #dja7;a71 #djc7;a71 #djc7;b71 #djh7p71 or #djh7k7 ( ! ,int]nal ,rev5ue ,code ( #aihf may be self-correct$ "u ! ,employee ,plans ,compliance ,resolution ,sy/em 7z describ$ 9 ,rev5ue ,proc$ure #bjba-cj or any successor guidance1 & h]eaft] ref]r$ to 9 ?is section z ! ,,epcrs71 except to ! ext5t t su* failure 0 id5tifi$ by ! ,secret>y prior to any actions :i* demon/rate a commitm5t to implem5t a self-correction4 ,rev5ue ,proc$ure #bjba-cj is deem$ am5d$ z ( ! date ( ! enactm5t ( ?is ,act to provide t1 except z o!rwise provid$ "u su* ,code or o!r guidance prescrib$ by ! ,secret>y1 ! correction p]iod "u section #i4jb ( su* ,rev5ue ,proc$ure 7or any successor guidance7 = an eligible inadv]t5t failure is indef9ite & has no la/ day1 o!r ?an ) respect to failures id5tifi$ by ! ,secret>y prior to any self-correction z describ$ 9 ! prec$+ s5t5ce4 7b7 ,loan errors ,9 ! case ( an eligible inadv]t5t failure relat+ to a loan f a plan to a p>ticipant1 su* failure may be self-correct$ "u subsection 7a7 accord+ to ! rules ( section #f4jg ( ,rev5ue ,proc$ure #bjba-cj 7or any successor guidance71 includ+ ! provisions relat$ to :e!r a deem$ di/ribution mu/ be report$ on ,=m #ajii-,r4 7c7 ,,epcrs = ,i,r,as ,! ,secret>y %all exp& ! ,,epcrs to all[ cu/odians ( individual retirem5t plans 7z def9$ 9 section #ggja7;a77#cg7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 to address eligible inadv]t5t failures ) respect to individual retirem5t plans 7z s def9$71 includ+-- 7#a7 waiv]s ( ! excise tax :i* w\ld o!rwise apply "u section #digd ( ! ,int]nal ,rev5ue ,code ( #aihf2 & 7#b7 rules p]mitt+ a nonsp\se b5efici>y to return di/ributions to an inh]it$ individual retirem5t plan describ$ 9 section #djh7;d77#c77;,c7 ( ! ,int]nal ,rev5ue ,code ( #aihf 9 a case :]e1 due to an inadv]t5t error by a s]vice provid]1 ! b5efici>y _h reason to believe t ! di/ribution c\ld be roll$ ov] )\t inclusion 9 income ( any "p ( ! di/ribut$ am\nt4 7d7 ,correction me?ods = eligible inadv]t5t failures ,! ,secret>y %all issue guidance on correction me?ods t are requir$ to be us$ to correct eligible inadv]t5t failures1 includ+ g5]al pr9ciples ( correction if a specific correction me?od is n specifi$ by ! ,secret>y4 7e7 ,eligible inadv]t5t failure ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! t]m eligible inadv]t5t failure means a failure t occurs despite ! exi/5ce ( practices & proc$ures :i*-- 7,a7 satisfy ! /&>ds set =? 9 section #d4jd ( ,rev5ue ,proc$ure #bjba-cj 7or any successor guidance71 or 7,b7 satisfy simil> /&>ds 9 ! case ( an individual retirem5t plan4 7#b7 ,exception ,! t]m eligible inadv]t5t failure %all n include any failure :i* is egregi\s1 relates to ! div]sion or misuse ( plan assets1 or is directly or indirectly relat$ to an abusive tax avoidance transaction4 7f7 ,deadl9e ,any guidance1 or revision to any su* guidance1 requir$ by ?is section %all be promulgat$ n lat] ?an ! date :i* is #b ye>s aft] ! date ( ! enactm5t ( ?is ,act4 #fje4 ,application ( cr$it = small employ] p5sion plan />tup co/s to employ]s :i* jo9 an exi/+ plan 7a7 ,9 g5]al ,section #de;,e7d77#c77;,a7 is am5d$ by /rik+ effective & ins]t+ effective ) respect to ! eligible employ]4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to eligible employ] plans :i* become effective ) respect to ! eligible employ] aft] ! date ( ! enactm5t ( ?is ,act4 #fjf4 ,safe h>bor = corrections ( employee elective def]ral failures ,! ,secret>y ( ! ,treasury %all modify ,app5dix ,a4#je7h7 ( ,rev5ue ,proc$ure #bjba-cj 7! ,employee ,plans ,compliance ,resolution ,sy/em1 or ,,epcrs7 n lat] ?an ,decemb] #ca1 #bjbc-- 7#a7 to provide t ! special safe h>bor correction me?od provid$ 9 ,app5dix ,a4#je7h7 = failures relat$ to automatic contribution features 9 a section #dja7k7 plan or a section #djc7;b7 plan is n limit$ to failures t beg9 on or be=e ,decemb] #ca1 #bjbc1 & 7#b7 to cl>ify t ,,epcrs correction me?ods = failures relat$ to automatic contribution features t require notices to a p>ticipant c be satisfi$ )\t reg>d to :e!r ! p>ticipant rema9s employ$ at ! "t corrections are made4 #fjg4 ,re=m ( family attribution rule 7a7 ,9 g5]al ,section #dad is am5d$-- 7#a7 9 subsection 7b7-- 7,a7 by /rik+ ,= purposes ( & ins]t+ ! foll[+3 7#a7 ,9 g5]al ,= purposes ( 1 & 7,b7 by add+ at ! end ! foll[+ new p>agraphs3 7#b7 ,special rules = apply+ family attribution ,= purposes ( apply+ ! attribution rules "u section #aefc ) respect to p>agraph 7#a71 ! foll[+ rules apply3 7,a7 ,community prop]ty laws %all be disreg>d$ = purposes ( det]m9+ own]%ip4 7,b7 ,except z provid$ by ! ,secret>y1 /ock ( an individual n attribut$ "u section #aefc7;e77#e7 to su* individual's sp\se %all n be attribut$ to su* sp\se by reason ( ! comb9$ application ( p>agraphs 7#a7 & 7#f77;,a7 ( section #aefc7;e74 7,c7 ,except z provid$ by ! ,secret>y1 9 ! case ( /ock 9 diff]5t corporations t is attribut$ to a *ild "u section #aefc7;e77#f77;,a7 f ea* p>5t1 & is n attribut$ to su* p>5ts z sp\ses "u section #aefc7;e77#e71 su* attribution to ! *ild %all n by itself result 9 su* corporations be+ memb]s ( ! same controll$ gr\p4 7#c7 ,plan %all n fail to be treat$ z satisfy+ ?is section ,if application ( p>agraph 7#b7 causes #b or m entities to be a controll$ gr\p or to no long] be 9 a controll$ gr\p1 su* *ange %all be treat$ z a transaction to :i* section #daj7;b77#f77;,c7 applies4 1 & 7#b7 9 subsection 7m77#f77;,b7-- 7,a7 by /rik+ ,own]%ip4--,9 det]m9+ & ins]t+ ! foll[+3 ,own]%ip4-- 7i7 ,9 g5]al ,9 det]m9+ 1 7,b7 by add+ at ! end ! foll[+ new clauses3 7ii7 ,special rules = apply+ family attribution ,= purposes ( apply+ ! attribution rules "u section #cah ) respect to clause 7i71 ! foll[+ rules apply3 7,i7 ,community prop]ty laws %all be disreg>d$ = purposes ( det]m9+ own]%ip4 7,,ii7 ,except z provid$ by ! ,secret>y1 /ock ( an individual n attribut$ "u section #cah7;a77#a77;,a77i7 to su* individual's sp\se %all n be attribut$ by reason ( ! comb9$ application ( p>agraphs 7#a77;,a77ii7 & 7#d7 ( section #cah7;a7 to su* sp\se f a *ild :o has n atta9$ ! age ( #ba ye>s4 7,,iii7 ,except z provid$ by ! ,secret>y1 9 ! case ( /ock 9 diff]5t organizations :i* is attribut$ "u section #cah7;a77#a77;,a77ii7 f ea* p>5t to a *ild :o has n atta9$ ! age ( #ba ye>s1 & is n attribut$ to su* p>5ts z sp\ses "u section #cah7;a77#a77;,a77i71 su* attribution to ! *ild %all n by itself result 9 su* organizations be+ memb]s ( ! same affiliat$ s]vice gr\p4 7iii7 ,plan %all n fail to be treat$ z satisfy+ ?is section ,if ! application ( clause 7ii7 causes two or m entities to be an affiliat$ s]vice gr\p1 or to no long] be 9 an affiliat$ s]vice gr\p1 su* *ange %all be treat$ z a transaction to :i* section #daj7;b77#f77;,c7 applies4 1 & 7,c7 by /rik+ apply 9 clause 7i71 z s add$1 & ins]t+ apply1 except t community prop]ty laws %all be disreg>d$ = purposes ( det]m9+ own]%ip4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #fjh4 ,contribution limit = simple ,i,r,as 7a7 ,9 g5]al ,subp>agraph 7,e7 ( section #djh7p77#b7 is am5d$-- 7#a7 by /rik+ am\nt is & all t foll[s 9 clause 7i7 & ins]t+ 8doll> am\nt is-- 7,i7 #af1ejj 9 ! case ( an eligible employ] describ$ 9 clause 7iii7 :i* _h n m ?an #be employees :o receiv$ at lea/ #e1jjj ( comp5sation f ! employ] = ! prec$+ ye>1 7,,ii7 #af1ejj 9 ! case ( an eligible employ] describ$ 9 clause 7iii7 :i* is n describ$ 9 subclause 7,i7 & :i* elects1 at su* "t & 9 su* mann] z prescrib$ by ! ,secret>y1 ! application ( ?is subclause = ! ye>1 & 7,,iii7 #aj1jjj 9 any o!r case4 1 7#b7 by /rik+ adju/m5t4--,9 ! case ( 9 clause 7ii7 & ins]t+ 8adju/m5t4-- 7,i7 ,c]ta9 l>ge employ]s ,9 ! case ( 1 7#c7 by /rik+ clause 7i7 9 clause 7ii7 & ins]t+ clause 7i77,,iii71 & 7#d7 by add+ at ! end ( clause 7ii7 ! foll[+ new subclause3 7,,ii7 ,o!r employ]s ,9 ! case ( a ye> beg9n+ aft] ,decemb] #ca1 #bjbd1 ! ,secret>y %all adju/ annually ! #af1ejj am\nt 9 subclauses 7,i7 & 7,,ii7 ( clause 7i7 9 ! mann] provid$ "u subclause 7,i7 ( ?is clause1 except t ! base p]iod tak5 into acc\nt %all be ! cal5d> qu>t] beg9n+ ,july #a1 #bjbc4 4 7b7 ,cat*-up contributions ,p>agraph 7#b7 ( section #dad7v7 is am5d$-- 7#a7 9 subp>agraph 7,b7-- 7,a7 by /rik+ ! applicable 9 clause 7ii7 & ins]t+ except z provid$ 9 clause 7iii71 ! applicable2 & 7,b7 by add+ at ! end ! foll[+ new clause3 7iii7 ,9 ! case ( an applicable employ] plan-- 7,i7 :i* is ma9ta9$ by an eligible employ] describ$ 9 section #djh7p77#b77;,e77i77,i71 or 7,,ii7 to :i* an election "u section #djh7p77#b77;,e77i77,,ii7 applies = ! ye> 7includ+ a plan describ$ 9 section #dja7k77#aa7 :i* is ma9ta9$ by an eligible employ] describ$ 9 section #djh7p77#b77;,e77i77,,ii7 & to :i* su* election applies by reason ( subp>agraphs 7,b77i77,i7 & 7,e7 ( section #dja7k77#aa771 ! applicable doll> am\nt is #d1gej4 1 & 7#b7 9 subp>agraph 7,c71 z am5d$ by ?is ,act1 by /rik+ & ! #b1ejj am\nt 9 subp>agraph 7,b77ii7 & ins]t+ 1 ! #b1ejj am\nt 9 subp>agraph 7,b77ii71 & ! #d1gej am\nt 9 subp>agraph 7,b77iii74 7c7 ,employ] mat* ,clause 7ii7 ( section #djh7p77#b77;,c7 is am5d$-- 7#a7 by /rik+ ,! t]m 9 subclause 7,i7 & ins]t+ ,except z provid$ 9 subclause 7,,iv71 ! t]m1 7#b7 by add+ at ! end ! foll[+ new subclause3 7,,iv7 ,special rule = elect+ l>g] employ]s ,9 ! case ( an employ] :i* _h m ?an #be employees :o receiv$ at lea/ #e1jjj ( comp5sation f ! employ] = ! prec$+ ye>1 & :i* makes ! election "u subp>agraph 7,e77i77,,ii7 = any ye>1 subclause 7,i7 %all be appli$ = su* ye> by sub/itut+ #d p]c5t = #c p]c5t4 1 & 7#c7 by /rik+ #c p]c5t ea* place x appe>s 9 subclauses 7,,ii7 & 7,,iii7 & ins]t+ ! applicable p]c5tage4 7d7 ,increase 9 nonelective employ] contribution = elect+ l>g] employ]s ,subp>agraph 7,b7 ( section #djh7p77#b7 is am5d$ by add+ at ! end ! foll[+ new clause3 7iii7 ,special rule = elect+ l>g] employ]s ,9 ! case ( an employ] :i* _h m ?an #be employees :o receiv$ at lea/ #e1jjj ( comp5sation f ! employ] = ! prec$+ ye>1 & :i* makes ! election "u subp>agraph 7,e77i77,,ii7 = any ye>1 clause 7i7 %all be appli$ = su* ye> by sub/itut+ #c p]c5t = #b p]c5t4 4 7e7 ,transition rule ,p>agraph 7#b7 ( section #djh7p71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,h7 #b-ye> grace p]iod ,an eligible employ] :i* _h n m ?an #be employees :o receiv$ at lea/ #e1jjj ( comp5sation f ! employ] = #a or m ye>s1 & :i* has m ?an #be su* employees = any subsequ5t ye>1 %all be treat$ = purposes ( subp>agraph 7,e77i7 z hav+ #be su* employees = ! #b ye>s foll[+ ! la/ ye> ! employ] _h n m ?an #be su* employees1 & n z hav+ made ! election "u subp>agraph 7,e77i77,,ii7 = su* #b ye>s4 ,rules simil> to ! second s5t5ce ( subp>agraph 7,c77i77,,ii7 %all apply = purposes ( ?is subp>agraph4 4 7f7 ,am5dm5ts apply only if employ] has n _h ano!r plan )9 #c ye>s ,subp>agraph 7,e7 ( section #djh7p77#b71 z am5d$ by subsection 7a71 is fur!r am5d$ by add+ at ! end ! foll[+ new clause3 7iii7 ,employ] has n _h ano!r plan )9 #c ye>s ,an eligible employ] is describ$ 9 ?is clause only if1 dur+ ! #c-taxable-ye> p]iod imm$iately prec$+ ! #a/ ye> ! employ] ma9ta9s ! qualifi$ sal>y r$uction arrangem5t "u ?is p>agraph1 nei!r ! employ] nor any memb] ( any controll$ gr\p includ+ ! employ] 7or any pr$ecessor ( ei!r7 e/abli%$ or ma9ta9$ any plan describ$ 9 clause 7i71 7ii71 or 7iv7 ( section #bai7;g77#e77;,a7 ) respect to :i* contributions 7 made1 or b5efits 7 accru$1 = sub/antially ! same employees z are eligible to p>ticipate 9 su* qualifi$ sal>y r$uction arrangem5t4 4 7g7 ,con=m+ am5dm5ts relat+ to simple #dja7k7s 7#a7 ,subclause 7,i7 ( section #dja7k77#aa77;,b77i7 is am5d$ by ins]t+ 7aft] ! application ( any election "u section #djh7p77#b77;,e77i77,,ii77 be=e ! comma4 7#b7 ,p>agraph 7#aa7 ( section #dja7k7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,e7 ,employ]s elect+ increas$ contributions ,9 ! case ( an employ] :i* applies an election "u section #djh7p77#b77;,e77i77,,ii7 = purposes ( ! contribution requirem5ts ( ?is p>agraph "u subp>agraph 7,b77i77,i71 rules simil> to ! rules ( subp>agraphs 7,b77iii71 7,c77ii77,,iv71 & 7,g7 ( section #djh7p77#b7 %all apply = purposes ( subp>agraphs 7,b77i77,,ii7 & 7,b77ii7 ( ?is p>agraph4 4 7h7 ,plan =ms to be %>$ ) ,secret>y 7#a7 ,9 g5]al ,subsection 7p7 ( section #djh is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#aa7 ,plan arrangem5t to be %>$ ) ,secret>y ,! tru/ee or issu] 79 ! case ( an individual retirem5t annuity7 ( a simple retirem5t acc\nt %all provide to ! ,secret>y1 at ! "t ! qualifi$ sal>y r$uction arrangem5t is e/abli%$ 7or n lat] ?an ,decemb] #ca1 #bjbd1 9 ! case ( arrangem5ts 9 effect on ! date ( ! enactm5t ( ?is p>agraph71 a copy ( ! writt5 arrangem5t describ$ 9 p>agraph 7#b77;,a74 4 7#b7 ,simple #dja7k7s ,p>agraph 7#aa7 ( section #dja7k71 z am5d$ by ?is section1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,f7 ,plan arrangem5t to be %>$ ) ,secret>y ,! plan adm9i/rator ( a ca% & def]r$ arrangem5t "u ?is p>agraph %all provide to ! ,secret>y1 at ! "t ! arrangem5t is e/abli%$ 7or n lat] ?an ,decemb] #ca1 #bjbd1 9 ! case ( arrangem5ts 9 effect on ! date ( ! enactm5t ( ?is p>agraph71 a writt5 copy ( ! arrangem5t4 4 7i7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 7j7 ,reports by ,secret>y 7#a7 ,9 g5]al ,! ,secret>y ( ! ,treasury %all1 n lat] ?an ,decemb] #ca1 #bjbd1 & annually !reaft]1 report to ! ,committees on ,f9ance & ,heal?1 ,education1 ,labor1 & ,p5sions ( ! ,s5ate & ! ,committees on ,ways & ,means & ,education & ,labor ( ! ,h\se ( ,repres5tatives on ! data describ$ 9 p>agraph 7#b71 toge!r ) any recomm5dations ! ,secret>y deems appropriate4 7#b7 ,data describ$ ,= purposes ( ! report requir$ "u p>agraph 7#a71 ! ,secret>y ( ! ,treasury %all collect data & in=mation on-- 7,a7 ! numb] ( plans describ$ 9 section #djh7p7 or #dja7k77#aa7 ( ! ,int]nal ,rev5ue ,code ( #aihf t are ma9ta9$ or e/abli%$ dur+ a ye>2 7,b7 ! numb] ( p>ticipants eligible to p>ticipate 9 su* plans = su* ye>2 7,c7 m$ian contribution am\nts = ! p>ticipants describ$ 9 subp>agraph 7,b72 7,d7 ! types ( inve/m5ts t are mo/ common "u su* plans2 & 7,e7 ! fee levels *>g$ 9 connection ) ! ma9t5ance ( acc\nts "u su* plans4 ,su* data & in=mation %all be collect$ sep>ately = ea* type ( plan4 ,= purposes ( collect+ su* data1 ! ,secret>y ( ! ,treasury may use su* data z is o!rwise available to ! ,secret>y = publication & may use su* approa*es z are appropriate "u ! circum/ances1 includ+ ! use ( volunt>y surveys & collaboration on /udies4 #fji4 ,employ]s all[$ to replace simple retirem5t acc\nts ) safe h>bor #dja7k7 plans dur+ a ye> 7a7 ,9 g5]al ,section #djh7p71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ab7 ,replacem5t ( simple retirem5t acc\nts ) safe h>bor plans dur+ plan ye> 7,a7 ,9 g5]al ,subject to ! requirem5ts ( ?is p>agraph1 an employ] may elect 79 su* =m & mann] z ! ,secret>y may prescribe7 at any "t dur+ a ye> to t]m9ate ! qualifi$ sal>y r$uction arrangem5t "u p>agraph 7#b71 b only if ! employ] e/abli%es & ma9ta9s 7z ( ! day aft] ! t]m9ation date7 a safe h>bor plan to replace ! t]m9at$ arrangem5t4 7,b7 ,comb9$ limits on contributions ,! t]m9at$ arrangem5t & safe h>bor plan %all bo? be treat$ z violat+ ! requirem5ts ( p>agraph 7#b77;,a77ii7 or section #dja7;a77#cj7 7:i*ev] is applicable7 if ! aggregate elective contributions ( ! employee "u ! t]m9at$ arrangem5t dur+ its la/ plan ye> & "u ! safe h>bor plan dur+ its transition ye> exce$ ! sum (-- 7i7 ! applicable doll> am\nt = su* arrangem5t 7det]m9$ on a full-ye> basis7 "u ?is subsection 7aft] ! application ( section #dad7v77 ) respect to ! employee = su* la/ plan ye> multipli$ by a fraction equal to ! numb] ( days 9 su* plan ye> divid$ by #cfe1 & 7ii7 ! applicable doll> am\nt 7z s det]m9$7 "u section #djb7;g77#a7 = su* safe h>bor plan on su* elective contributions dur+ ! transition ye> multipli$ by a fraction equal to ! numb] ( days 9 su* transition ye> divid$ by #cfe4 7,c7 ,transition ye> ,= purposes ( ?is p>agraph1 ! transition ye> is ! p]iod beg9n+ aft] ! t]m9ation date & end+ on ! la/ day ( ! cal5d> ye> dur+ :i* ! t]m9ation occurs4 7,d7 ,safe h>bor plan ,= purposes ( ?is p>agraph1 ! t]m safe h>bor plan means a qualifi$ ca% or def]r$ arrangem5t :i* meets ! requirem5ts ( p>agraph 7#aa71 7#ab71 7#ac71 or 7#af7 ( section #dja7k74 4 7b7 ,waiv] ( #b-,ye> )drawal limitation 9 case ( plans conv]t+ to #dja7k7 or #djc7;b7 7#a7 ,9 g5]al ,p>agraph 7#f7 ( section #gb7t7 is am5d$-- 7,a7 by /rik+ acc\nts4--,9 ! case ( & ins]t+ 8acc\nts4-- 7,a7 ,9 g5]al ,9 ! case ( 1 & 7,b7 by add+ at ! end ! foll[+ new subp>agraph3 7,b7 ,waiv] 9 case ( plan conv]sion to #dja7k7 or #djc7;b7 ,9 ! case ( an employee ( an employ] :i* t]m9ates ! qualifi$ sal>y r$uction arrangem5t ( ! employ] "u section #djh7p7 & e/abli%es a qualifi$ ca% or def]r$ arrangem5t describ$ 9 section #dja7k7 or pur*ases annuity contracts describ$ 9 section #djc7;b71 subp>agraph 7,a7 %all n apply to any am\nt :i* is paid 9 a rollov] contribution describ$ 9 section #djh7;d77#c7 into a qualifi$ tru/ "u section #dja7k7 7b only if su* contribution is subsequ5tly subject to ! rules ( section #dja7k77#b77;,b77 or an annuity contract describ$ 9 section #djc7;b7 7b only if su* contribution is subsequ5tly subject to ! rules ( section #djc7;b77#aa77 = ! b5efit ( ! employee4 4 7#b7 ,con=m+ am5dm5t ,subp>agraph 7,g7 ( section #djh7;d77#c7 is am5d$ by /rik+ #gb7t77#f7 & ins]t+ #gb7t77#f77;,a74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #faj4 ,/>t] #dja7k7 plans = employ]s ) no retirem5t plan 7a7 ,9 g5]al ,section #dja7k71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ag7 ,/>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* 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 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 #bjbd1 ! #f1jjj am\nt "u clause 7i7 %all be adju/$ 9 ! same mann] z "u section #djb7;g77#d71 except t #bjbc %all be sub/itut$ = #bjje4 7iii7 ,cat*-up contributions = individuals age #ej or ov] ,9 ! case ( an individual :o has atta9$ ! age ( #ej be=e ! close ( ! taxable ye>1 ! limitation "u clause 7i77,,ii7 %all be increas$ by ! applicable am\nt det]m9$ "u section #bai7;b77#e77;,b77ii7 7aft] ! application ( section #bai7;b77#e77;,c77iii774 7,e7 ,eligible employ] ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,! t]m eligible employ] means any employ] if ! employ] does n ma9ta9 a qualifi$ plan ) respect to :i* contributions are made1 or b5efits are accru$1 = s]vice 9 ! ye> = :i* ! det]m9ation is be+ made4 ,if only individuals o!r ?an employees describ$ 9 subp>agraph 7,a7 ( section #daj7;b77#c7 are eligible to p>ticipate 9 su* arrangem5t1 !n ! prec$+ s5t5ce %all be appli$ )\t reg>d to any qualifi$ plan 9 :i* only employees describ$ 9 su* subp>agraph are eligible to p>ticipate4 7ii7 ,relief = acquisitions1 etc ,rules simil> to ! rules ( section #djh7p77#aj7 %all apply = purposes ( clause 7i74 7iii7 ,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>agraph-- 7i7 ,9 g5]al ,! t]m eligible employee means any employee ( ! employ] :o meets ! m9imum age & s]vice conditions describ$ 9 section #daj7;a77#a74 7ii7 ,exclusions ,! employ] may elect to exclude f su* def9ition any employee describ$ 9 p>agraph 7#c7 or 7#d7 ( section #daj7;b74 4 7b7 ,c]ta9 annuity contracts ,subsection 7b7 ( section #djc1 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ag7 ,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 #bjbd1 ! #f1jjj am\nt "u clause 7i7 %all be adju/$ 9 ! same mann] z "u section #djb7;g77#d71 except t #bjbc %all be sub/itut$ = #bjje4 7iii7 ,cat*-up contributions = individuals age #ej or ov] ,9 ! case ( an individual :o has atta9$ ! age ( #ej be=e ! close ( ! taxable ye>1 ! limitation "u clause 7i77,,ii7 %all be increas$ by ! applicable am\nt det]m9$ "u section #bai7;b77#e77;,b77ii7 7aft] ! application ( section #bai7;b77#e77;,c77iii774 7,e7 ,eligible employ] ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,! t]m eligible employ] means any employ] if ! employ] does n ma9ta9 a qualifi$ plan ) respect to :i* contributions are made1 or b5efits are accru$1 = s]vice 9 ! ye> = :i* ! det]m9ation is be+ made4 ,if only individuals o!r ?an employees describ$ 9 subp>agraph 7,a7 ( section #daj7;b77#c7 are eligible to p>ticipate 9 su* arrangem5t1 !n ! prec$+ s5t5ce %all be appli$ )\t reg>d to any qualifi$ plan 9 :i* only employees describ$ 9 su* subp>agraph are eligible to p>ticipate4 7ii7 ,relief = acquisitions1 etc ,rules simil> to ! rules ( section #djh7p77#aj7 %all apply = purposes ( clause 7i74 7iii7 ,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 ,/>t] & safe h>bor plans n treat$ z top-,heavy plans ,subp>agraph 7,h7 ( section #daf7;g77#d71 z am5d$ by ?is ,act1 is fur!r am5d$-- 7#a7 by /rik+ arrangem5ts 9 ! head+ & ins]t+ arrangem5ts or plans1 7#b7 by /rik+ 1 & at ! end ( clause 7i7 & ins]t+ & mat*+ contributions ) respect to :i* ! requirem5ts ( p>agraph 7#aa71 7#ab71 or 7#ac7 ( section #dja7m7 are met1 or1 & 7#c7 by /rik+ clause 7ii7 & ins]t+ aft] clause 7i7 ! foll[+ new clause3 7ii7 a />t] #dja7k7 def]ral-only arrangem5t describ$ 9 section #dja7k77#ag77;,b7 or a safe h>bor def]ral-only plan describ$ 9 section #djc7;b77#ag74 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #faa4 ,cr$it = small employ]s t adapt an automatic portability arrangem5t 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a1 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new section3 #de,w4 ,employ] automatic portability arrangem5t cr$it 7a7 ,9 g5]al ,= purposes ( section #ch1 9 ! case ( an eligible employ]1 ! automatic portability arrangem5t cr$it det]m9$ "u ?is section = ! adoption ye> is an am\nt equal to #ejj4 7b7 ,eligible employ] ,= purposes ( ?is section1 ! t]m eligible employ] has ! mean+ giv5 ! t]m by section #djh7p77#b77;,c77i7 7)\t reg>d to subclause 7,,ii7 !re(74 7c7 ,adoption ye> ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m adoption ye> means ! taxable ye> dur+ :i* ! eligible employ] fir/ adopts an automatic portability arrangem5t z "p ( an eligible plan ma9ta9$ by ! employ]4 7#b7 ,automatic portability arrangem5t 7,a7 ,9 g5]al ,! t]m automatic portability arrangem5t means an arrangem5t provid+ = automatic portability transactions4 7,b7 ,automatic portability transaction ,! t]m automatic portability transaction means a transaction 9 :i* am\nts di/ribut$ pursuant to section #dja7;a77#ca77;,b77i7 f a plan to an individual retirem5t plan e/abli%$ on behalf ( an individual are subsequ5tly transf]r$ to an eligible plan 9 :i* su* individual is an active p>ticipant1 aft] su* individual has be5 giv5 advance notice ( ! transf] & has n affirmatively opt$ out ( su* transf]4 7#c7 ,eligible plan ,! t]m eligible plan means a qualifi$ employ] plan z def9$ 9 section #digb7;d77#a71 o!r ?an a def9$ b5efit plan4 4 7b7 ,cr$it to be "p ( g5]al bus9ess cr$it ,subsection 7b7 ( section #ch1 z am5d$ by ?is ,act1 is fur!r am5d$ by /rik+ plus at ! end ( p>agraph 7#cd71 by /rik+ ! p]iod at ! end ( p>agraph 7#ce7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cf7 9 ! case ( an eligible employ] 7z def9$ 9 section #de,w7b771 ! automatic portability arrangem5t cr$it det]m9$ "u section #de,w7a74 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a1 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #de,w4 ,employ] automatic portability arrangem5t cr$it4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #fab4 ,re-enrollm5t cr$it 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a1 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new section3 #de,x4 ,cr$it = re-enrollm5t provisions 9 plans provid$ by small employ]s 7a7 ,9 g5]al ,= purposes ( section #ch1 9 ! case ( an eligible employ]1 ! retirem5t re-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$it p]iod ) respect to any eligible employ] is ! #c-taxable-ye> p]iod beg9n+ ) ! fir/ taxable ye> = :i* ! employ] includes a re-enrollm5t provision 9 an eligible automatic contribution arrangem5t 7z def9$ 9 section #dad7w77#c77 9 a qualifi$ employ] plan 7z def9$ 9 section #digb7;d77 ma9ta9$ by ! employ]4 7#b7 ,ma9t5ance ( arrangem5t ,no taxable ye> ) respect to an employ] %all be treat$ z occurr+ )9 ! cr$it p]iod unless ! provision describ$ 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 7d7 ,re-,enrollm5t provision ,= purposes ( ?is section1 ! t]m re-enrollm5t provision means a provision ( an eligible automatic contribution arrangem5t "u :i*-- 7#a7 ,9 g5]al ,ea* employee eligible to p>ticipate 9 ! arrangem5t :o is n contribut+ or is contribut+ less ?an ! p]c5tage applicable to an eligible employee 9 ! fir/ ye> ( eligibility is treat$ z be+ 9 su* fir/ ye> ( eligibility 9 ea* applicable ye> ) respect to ! employee4 7#b7 ,election out ,! election treat$ z hav+ be5 made "u p>agraph 7#a7 %all cease to apply ) respect to any employee if su* employee makes an affirmative election-- 7,a7 to n h su* contributions made1 or 7,b7 to make elective contributions at a level specifi$ 9 su* affirmative election4 7#c7 ,applicable ye> e ?ird ye> 7,a7 ,9 g5]al ,= purposes ( ?is section1 ! t]m applicable ye> means1 ) respect to an employee1 su* employee's fir/ plan ye> ( eligibility "u ! arrangem5t1 & all subsequ5t plan ye>s ( eligibility4 7,b7 ,exception ,foll[+ any applicable ye> ( an employee 7det]m9$ aft] ! application ( ?is subp>agraph71 ! plan may elect to treat ! next #a or #b plan ye>s z n be+ applicable ye>s ) respect to su* employee4 4 7b7 ,cr$it to be "p ( g5]al bus9ess cr$it ,subsection 7b7 ( section #ch1 z am5d$ by ?is ,act1 is fur!r am5d$ by /rik+ plus at ! end ( p>agraph 7#ce71 by /rik+ ! p]iod at ! end ( p>agraph 7#cf7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cg7 9 ! case ( an eligible employ] 7z def9$ 9 section #de,x7c771 ! retirem5t re-enrollm5t cr$it det]m9$ "u section #de,x7a74 4 7c7 ,treatm5t ( cr$it = c]tifi$ pr(essional employ] organizations ,p>agraph 7#b7 ( section #ceaa7;d71 z am5d$ by ?is ,act1 is fur!r am5d$-- 7#a7 by r$esignat+ subp>agraphs 7,h71 7,i71 7,j71 & 7,k7 z subp>agraphs 7,i71 7,j71 7,k71 & 7,l7 respectively1 & 7#b7 by ins]t+ aft] subp>agraph 7,g7 ! foll[+ new subp>agraph3 7,h7 section #de,x 7retirem5t re-enrollm5t cr$it71 4 7d7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a1 z am5d$ by ?is ,act1 is fur!r am5d$ by ins]t+ aft] ! item relat+ to section #de,w ! foll[+ new item3 ,sec4 #de,x4 ,cr$it = re-enrollm5t provisions 9 plans provid$ by small employ]s4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #fac4 ,corrections ( mortality tables 7a7 ,9 g5]al ,n lat] ?an #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all am5d ! regulation relat+ to ,mortality ,tables = ,det]m9+ ,pres5t ,value ,"u ,def9$ ,b5efit ,p5sion ,plans 7#hb ,f$4 ,reg4 #dfchh 7,octob] #e1 #bjag774 ,"u su* am5dm5t1 = valuation dates occurr+ dur+ or aft] #bjbb1 su* mortality improvem5t rates %all n assume future mortality improvem5ts at any age :i* are great] ?an 4#gh p]c5t4 ,! ,secret>y ( ! ,treasury 7or delegate7 %all by regulation modify ! 4#gh p]c5t figure 9 ! prec$+ s5t5ce z necess>y to reflect mat]ial *anges 9 ! ov]all rate ( improvem5t project$ by ! ,social ,security ,adm9i/ration4 7b7 ,effective date ,! am5dm5ts requir$ "u subsection 7a7 %all be deem$ to h be5 made z ( ! date ( ! enactm5t ( ?is ,act1 & z ( su* date all applicable laws %all be appli$ 9 all respects z ?\gh ! actions :i* ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 is requir$ to take "u su* subsection _h be5 tak54 #fad4 ,enhanc+ retiree heal? b5efits 9 p5sion plans 7a7 ,ext5sion ( transf]s ( excess p5sion assets to retiree heal? acc\nts ,p>agraph 7#d7 ( section #dbj7;b7 is am5d$ by /rik+ ,decemb] #ca1 #bjbe & ins]t+ ,decemb] #ca1 #bjcb4 7b7 ,de m9imis transf] rule 7#a7 ,9 g5]al ,subsection 7e7 ( section #dbj is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#g7 ,special rule = de m9imis transf]s 7,a7 ,9 g5]al ,9 ! case ( a transf] ( an am\nt :i* is n m ?an #a4ge p]c5t ( ! am\nt det]m9$ "u p>agraph 7#b77;,a7 by a plan :i* meets ! requirem5ts ( subp>agraph 7,b71 p>agraph 7#b77;,b7 %all be appli$ by sub/itut+ #aaj p]c5t = #abe p]c5t4 7,b7 ,two-ye> lookback requirem5t ,a plan is describ$ 9 ?is subp>agraph if1 z ( any valuation date 9 ea* ( ! #b plan ye>s imm$iately prec$+ ! plan ye> 9 :i* ! transf] occurs1 ! am\nt det]m9$ "u p>agraph 7#b77;,a7 exce$$ #aaj p]c5t ( ! sum ( ! fund+ t>get & ! t>get normal co/ det]m9$ "u section #dcj = ea* su* plan ye>4 4 7#b7 ,co/ ma9t5ance p]iod ,subp>agraph 7,d7 ( section #dbj7;c77#c7 is am5d$ by /rik+ #e taxable ye>s & ins]t+ #e taxable ye>s 7#g taxable ye>s 9 ! case ( a transf] to :i* subsection 7e77#g7 applies74 7#c7 ,con=m+ am5dm5ts 7,a7 ,excess p5sion assets ,clause 7i7 ( section #dbj7;f77#b77;,b7 is am5d$-- 7i7 by /rik+ ,9 g5]al4--,9 & ins]t+ 8,9 g5]al4-- 7,i7 ,det]m9ation ,9 1 7ii7 by /rik+ subsection 7e77#b7 & ins]t+ subsection 7e77#b77;,b71 & 7iii7 by add+ at ! end ! foll[+ new subclause3 7,,ii7 ,special rule = collectively b>ga9$ transf]s ,9 det]m9+ excess p5sion assets = purposes ( a collectively b>ga9$ transf]1 subsection 7e77#g7 %all n apply4 4 7,b7 ,m9imum co/ ,subclause 7,i7 ( section #dbj7;f77#b77;,d77i7 is am5d$ by /rik+ #d? ye> & ins]t+ #d? ye> 7! #f? ye> 9 ! case ( a transf] to :i* subsection 7e77#g7 applies74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to transf]s made aft] ! date ( ! enactm5t ( ?is ,act4 #fae4 ,def]ral ( tax = c]ta9 sales ( employ] /ock to employee /ock own]%ip plan sponsor$ by ,s corporation 7a7 ,9 g5]al ,section #ajdb7;c77#a77;,a7 is am5d$ by /rik+ dome/ic ,c corporation & ins]t+ dome/ic corporation4 7b7 #aj p]c5t limitation on application ( ga9 on sale ( ,s corporation /ock ,section #ajdb is am5d$ by add+ at ! end ! foll[+ new subsection3 7h7 ,application ( section to sale ( /ock 9 ,s corporation ,9 ! case ( ! sale ( qualifi$ securities ( an ,s corporation1 ! election "u subsection 7a7 may be made ) respect to n m ?an #aj p]c5t ( ! am\nt realiz$ on su* sale = purposes ( det]m9+ ! am\nt ( ga9 n recogniz$ & ! ext5t to :i* 7if at all7 ! am\nt realiz$ on su* sale exce$s ! co/ ( qualifi$ replacem5t prop]ty4 ,! portion ( adju/$ basis t is prop]ly allocable to ! portion ( ! am\nt realiz$ ) respect to :i* ! election is made "u ?is subsection %all be tak5 into acc\nt = purposes ( ! prec$+ s5t5ce4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to sales aft] ,decemb] #ca1 #bjbg4 ,,vii ,notices #gja4 ,review & report to ,congress relat+ to report+ & disclosure requirem5ts 7a7 ,/udy ,z soon z practicable aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,director ( ! ,p5sion ,b5efit ,gu>anty ,corporation %all review ! report+ & disclosure requirem5ts z applicable to ea* su* ag5cy head1 (-- 7#a7 ! ,employee ,retirem5t ,income ,security ,act ( #aigd applicable to p5sion plans 7z def9$ 9 section #c7b7 ( su* ,act 7#bi ,u4,s4,c4 #ajjb7b772 & 7#b7 ! ,int]nal ,rev5ue ,code ( #aihf applicable to qualifi$ retirem5t plans 7z def9$ 9 section #digd7;c7 ( su* ,code1 )\t reg>d to p>agraphs 7#d7 & 7#e7 ( su* section74 7b7 ,report 7#a7 ,9 g5]al ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,director ( ! ,p5sion ,b5efit ,gu>anty ,corporation1 jo9tly1 & aft] consultation ) a balanc$ gr\p ( p>ticipant & employ] repres5tatives1 %all ) respect to plans ref]5c$ 9 subsection 7a7 report on ! effectiv5ess ( ! applicable report+ & disclosure requirem5ts & make su* recomm5dations z may be appropriate to ! ,committee on ,education & ,labor & ! ,committee on ,ways & ,means ( ! ,h\se ( ,repres5tatives & ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions & ! ,committee on ,f9ance ( ! ,s5ate to consolidate1 simplify1 /&>dize1 & improve su* requirem5ts s z to simplify report+ = su* plans & ensure t plans c furni% & p>ticipants & b5efici>ies timely receive & bett] und]/& ! in=mation !y ne$ to monitor _! plans1 plan = retirem5t1 & obta9 ! b5efits !y h e>n$4 7#b7 ,analysis ( effectiv5ess ,to assess ! effectiv5ess ( ! applicable report+ & disclosure requirem5ts1 ! report %all include an analysis1 bas$ on plan data1 ( h[ p>ticipants & b5efici>ies are provid+ pref]r$ contact in=mation1 ! me?ods by :i* plan sponsors & plans are furni%+ disclosures1 & ! rate at :i* p>ticipants & b5efici>ies 7gr\p$ by key demographics7 are receiv+1 access+1 und]/&+1 & reta9+ disclosures4 7#c7 ,collection ( in=mation ,! ag5cies %all conduct appropriate surveys & data collection to obta9 any ne$$ in=mation4 #gjb4 ,report to ,congress on section #djb7;f7 notices ,n lat] ?an #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all submit a report to ! ,committees on ,f9ance & ,heal?1 ,education1 ,labor1 & ,p5sions ( ! ,s5ate & ! ,committees on ,ways & ,means & ,education & ,labor ( ! ,h\se ( ,repres5tatives on ! notices provid$ by retirem5t plan adm9i/rators to plan p>ticipants "u section #djb7;f7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 ,! report %all analyze ! effectiv5ess ( su* notices & make recomm5dations1 z w>rant$ by ! f9d+s1 to facilitate bett] und]/&+ by recipi5ts ( diff]5t di/ribution options & correspond+ tax consequ5ces1 includ+ sp\sal rights4 #gjc4 ,elim9at+ unnecess>y plan requirem5ts relat$ to un5roll$ p>ticipants 7a7 ,9 g5]al ,section #dad1 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subsection3 7bb7 ,elim9at+ unnecess>y plan requirem5ts relat$ to un5roll$ p>ticipants 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is title1 ) respect to any def9$ contribution plan1 no disclosure1 notice1 or o!r plan docum5t 7o!r ?an ! notices & docum5ts describ$ 9 subp>agraphs 7,a7 & 7,b77 %all be requir$ to be furni%$ "u ?is title to any un5roll$ p>ticipant if ! un5roll$ p>ticipant receives-- 7,a7 an annual rem9d] notice ( su* p>ticipant's eligibility to p>ticipate 9 su* plan & any applicable election deadl9es "u ! plan1 & 7,b7 any docum5t reque/$ by su* p>ticipant :i* ! p>ticipant w\ld be entitl$ to receive not)/&+ ?is subsection4 7#b7 ,un5roll$ p>ticipant ,= purposes ( ?is subsection1 ! t]m un5roll$ p>ticipant means an employee :o-- 7,a7 is eligible to p>ticipate 9 a def9$ contribution plan1 7,b7 has receiv$-- 7i7 ! summ>y plan description pursuant to section #ajd7;b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 & 7ii7 any o!r notices relat$ to eligibility "u ! plan :i* are requir$ to be furni%$ "u ?is title or ! ,employee ,retirem5t ,income ,security ,act ( #aigd 9 connection ) su* p>ticipant's initial eligibility to p>ticipate 9 su* plan1 7,c7 is n p>ticipat+ 9 su* plan1 7,d7 does n h an acc\nt balance 9 ! plan1 & 7,e7 satisfies su* o!r crit]ia z ! ,secret>y may det]m9e appropriate1 z prescrib$ 9 guidance issu$ 9 consultation ) ! ,secret>y ( ,labor4 ,= purposes ( ?is subsection1 any eligibility to p>ticipate 9 ! plan foll[+ any p]iod = :i* su* employee 0 n eligible to p>ticipate %all be treat$ z initial eligibility4 7#c7 ,annual rem9d] notice ,= purposes ( ?is subsection1 ! t]m annual rem9d] notice means ! notice describ$ 9 section #aaa7;c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 ,,viii ,te*nical modifications #hja4 ,repaym5t ( qualifi$ bir? or adoption di/ribution limit$ to #c ye>s 7a7 ,9 g5]al ,section #gb7t77#b77;,h77v77,i7 is am5d$ by /rik+ may make & ins]t+ may1 at any "t dur+ ! #c-ye> p]iod beg9n+ on ! day aft] ! date on :i* su* di/ribution 0 receiv$1 make4 7b7 ,effective date ,! am5dm5t made by ?is section %all take effect z if includ$ 9 ! enactm5t ( section #aac ( ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai4 #hjb4 ,am5dm5ts relat+ to ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai 7a7 ,te*nical am5dm5ts 7#a7 ,am5dm5ts relat+ to section #ajc ,section #dja7m77#ab7 is am5d$ by /rik+ & at ! end ( subp>agraph 7,a71 by r$esignat+ subp>agraph 7,b7 z subp>agraph 7,c71 & by ins]t+ aft] subp>agraph 7,a7 7z s am5d$7 ! foll[+ new subp>agraph3 7,b7 meets ! notice requirem5ts ( subsection 7k77#ac77;,e71 & 4 7#b7 ,am5dm5ts relat+ to section #aab 7,a7 ,section #dja7k77#ae77;,b77i77,,ii71 z am5d$ by ?is ,act1 is fur!r am5d$ by /rik+ subsection 7m77#b7 & ins]t+ p>agraphs 7#b71 7#aa71 & 7#ab7 ( subsection 7m74 7,b7 ,section #dja7k77#ae77;,b77iii7 is am5d$ by /rik+ "u ! arrangem5t & ins]t+ "u ! plan4 7,c7 ,section #dja7k77#ae77;,b77iv7 is am5d$ by /rik+ section #daj7;a77#a77;,a77ii7 & ins]t+ p>agraph 7#b77;,d74 7#c7 ,am5dm5t relat+ to section #aaf ,section #digc7;b7 is am5d$ by add+ at ! end ( ! flu% matt] ! foll[+3 ,su* t]m %all n include any designat$ nond$uctible contribution 7z def9$ 9 subp>agraph 7,c7 ( section #djh7o77#b77 :i* does n exce$ ! nond$uctible limit "u subp>agraph 7,b7 !re( by reason ( an election "u section #djh7o77#e744 7b7 ,cl]ical am5dm5ts 7#a7 ,section #gb7t77#b77;,h77vi77,,iv7 is am5d$ by /rik+ #djc7;b77#g77;,a77ii7 & ins]t+ #djc7;b77#g77;,a77i74 7#b7 ,section #dja7k77#ab77;,g7 is am5d$ by /rik+ ! requirem5ts "u subp>agraph 7,a77i7 & ins]t+ ! contribution requirem5ts "u subp>agraph 7,b7 or 7,c74 7#c7 ,section #dja7k77#ac77;,d77iv7 is am5d$ by /rik+ & 7,f7 & ins]t+ & 7,g74 7#d7 ,section #djh7o77#e77;,a7 is am5d$ by /rik+ subsection 7b7 & ins]t+ section #bai7;b74 7c7 ,effective date ,! am5dm5ts made by ?is section %all take effect z if includ$ 9 section ( ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai to :i* ! am5dm5t relates4 #hjc4 ,modification ( requir$ m9imum di/ribution rules = special ne$s tru/s 7a7 ,9 g5]al ,section #dja7;a77#i77;,h77iv77,,ii7 is am5d$ by /rik+ no individual & ins]t+ no b5efici>y4 7b7 ,con=m+ am5dm5t ,section #dja7;a77#i77;,h77v7 is am5d$ by add+ at ! end ! foll[+ flu% s5t5ce3 ,= purposes ( ! prec$+ s5t5ce1 9 ! case ( a tru/ ! t]ms ( :i* are describ$ 9 clause 7iv77,,ii71 any b5efici>y :i* is an organization describ$ 9 section #djh7;d77#h77;,b77i7 %all be treat$ z a designat$ b5efici>y describ$ 9 subclause 7,,ii74 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to cal5d> ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 ,,ix ,plan am5dm5ts #ija4 ,provisions relat+ to plan am5dm5ts 7a7 ,9 g5]al ,if ?is section applies to any retirem5t plan or contract am5dm5t-- 7#a7 su* retirem5t plan or contract %all be treat$ z be+ op]at$ 9 accordance ) ! t]ms ( ! plan dur+ ! p]iod describ$ 9 subsection 7b77#b77;,a72 & 7#b7 to ! ext5t provid$ by ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate71 su* retirem5t 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 7b7 ,am5dm5ts to :i* section applies 7#a7 ,9 g5]al ,?is section %all apply to any am5dm5t to any retirem5t plan or annuity contract :i* is made-- 7,a7 pursuant to any am5dm5t made by ?is ,act or pursuant to any regulation issu$ by ! ,secret>y ( ! ,treasury or ! ,secret>y ( ,labor 7or a delegate ( ei!r su* ,secret>y7 "u ?is ,act2 & 7,b7 on or be=e ! la/ day ( ! fir/ plan ye> beg9n+ on or aft] ,janu>y #a1 #bjbd1 or su* lat] date z ! ,secret>y ( ! ,treasury may prescribe4 ,9 ! case ( a gov]nm5tal plan 7z def9$ 9 section #dad7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf71 or an applicable collectively b>ga9$ plan1 ?is p>agraph %all be appli$ by sub/itut+ #bjbf = #bjbd4 ,= purposes ( ! prec$+ s5t5ce1 ! t]m applicable collectively b>ga9$ plan means a plan ma9ta9$ pursuant to #a or m collective b>ga9+ agreem5ts betwe5 employee repres5tatives & #a or m employ]s ratifi$ be=e ! date ( enactm5t ( ?is ,act4 7#b7 ,conditions ,?is section %all n apply to any am5dm5t unless-- 7,a7 dur+ ! p]iod-- 7i7 beg9n+ on ! date ! legislative or regulatory am5dm5t describ$ 9 p>agraph 7#a77;,a7 takes effect 7or 9 ! case ( a plan or contract am5dm5t n requir$ by su* legislative or regulatory am5dm5t1 ! effective date specifi$ by ! plan72 & 7ii7 end+ on ! date describ$ 9 p>agraph 7#a77;,b7 7z modifi$ by ! second s5t5ce ( p>agraph 7#a77 7or1 if e>li]1 ! date ! plan or contract am5dm5t is adopt$71 ! plan or contract is op]at$ z if su* plan or contract am5dm5t 7 9 effect2 & 7,b7 su* plan or contract am5dm5t applies retroactively = su* p]iod4 7c7 ,coord9ation ) o!r provisions relat+ to plan am5dm5ts 7#a7 ,,secure ,act ,section #fja7;b77#a7 ( ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai is am5d$-- 7,a7 by /rik+ ,janu>y #a1 #bjbb 9 subp>agraph 7,b7 & ins]t+ ,janu>y #a1 #bjbd1 & 7,b7 by /rik+ sub/itut+ #bjbd = #bjbb4 9 ! flu% matt] at ! end & ins]t+ sub/itut+ #bjbf = #bjbd44 7#b7 ,,c>es ,act 7,a7 ,special rules = use ( retirem5t funds ,section #bbjb7;c77#b77;,a7 ( ! ,,c>es ,act is am5d$ by /rik+ ,janu>y #a1 #bjbb 9 clause 7ii7 & ins]t+ ,janu>y #a1 #bjbd4 7,b7 ,tempor>y waiv] ( requir$ m9imum di/ributions rules = c]ta9 retirem5t plans & acc\nts ,section #bbjc7;c77#b77;,b77i7 ( ! ,,c>es ,act is am5d$-- 7i7 by /rik+ ,janu>y #a1 #bjbb 9 subclause 7,,ii7 & ins]t+ ,janu>y #a1 #bjbd1 & 7ii7 by /rik+ sub/itut+ #bjbd = #bjbb4 9 ! flu% matt] at ! end & ins]t+ sub/itut+ #bjbf = #bjbd44 7,c7 ,taxpay] ,c]ta9ty & ,disa/] ,tax ,relief ,act ( #bjbj ,section #cjb7;d77#b77;,a7 ( ! ,taxpay] ,c]ta9ty & ,disa/] ,tax ,relief ,act ( #bjbj is am5d$ by /rik+ ,janu>y #a1 #bjbb 9 clause 7ii7 & ins]t+ ,janu>y #a1 #bjbd4 ,x ,tax ,c\rt retirem5t provisions #ajja4 ,provisions relat+ to judges ( ! ,tax ,c\rt 7a7 ,?rift ,sav+s ,plan contributions = judges 9 ! ,f$]al ,employees ,retirem5t ,sy/em 7#a7 ,9 g5]al ,subsection 7j77#c77;,b7 ( section #gddg is am5d$ 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 7#b7 ,(fset ,p>agraph 7#c7 ( section #gddg7;j7 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 7#c7 ,effective date ,! am5dm5ts made by ?is subsection %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 7b7 ,*ange 9 ve/+ p]iod = survivor annuities & waiv] ( ve/+ p]iod 9 ! ev5t ( assass9ation 7#a7 ,eligibility 9 case ( dea? ,subsection 7h7 ( section #gddh 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 special trial judge 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 special trial judge 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 special trial judge 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 special trial judge1 9 an am\nt comput$ z provid$ 9 subsection 7m71 & !re %all also be paid to or on behalf ( ea* su* *ild an imm$iate annuity equal to ! less] (-- 7i7 #aj p]c5t ( ! av]age annual sal>y ( su* judge or special trial judge 7det]m9$ 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 special trial judge 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$iate annuity equal to ! less] (-- 7i7 #bj p]c5t ( ! av]age annual sal>y ( su* judge or special trial judge 7det]m9$ 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 special trial judge elect+ "u subsection 7b7-- 7,a7 :o dies :ile a judge or special trial judge 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's 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 special trial judge leav+ a dep5d5t *ild or *ildr5 ( ! judge or special trial judge 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 special trial judge %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 special trial judge 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 special trial judge4 4 7#b7 ,def9ition ( assass9ation ,section #gddh7;a7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#aj7 ,! t]ms assass9at$ & assass9ation mean ! kill+ ( a judge or special trial judge t is motivat$ by ! p]=mance by ! judge or special trial judge ( 8 or h] (ficial duties4 4 7#c7 ,det]m9ation ( assass9ation ,subsection 7i7 ( section #gddh is am5d$-- 7,a7 by /rik+ ( dep5d5cy & disability4--,que/ions & ins]t+ 8by *ief judge4-- 7#a7 ,dep5d5cy & disability ,que/ions 1 & 7,b7 by add+ at ! end ! foll[+ new p>agraph3 7#b7 ,assass9ation ,! *ief judge %all det]m9e :e!r ! kill+ ( a judge or special trial judge 0 an assass9ation1 subject to review only by ! ,tax ,c\rt4 ,! head ( any ,f$]al ag5cy t inve/igates ! kill+ ( a judge or special trial judge %all provide to ! *ief judge any in=mation t w\ld assi/ ! *ief judge 9 mak+ su* a det]m9ation4 4 7#d7 ,computation ( annuities ,subsection 7m7 ( section #gddh is am5d$-- 7,a7 by /rik+ annuities4--,! annuity & ins]t+ 8annuities4-- 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! 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 ,s]vice ( less ?an #c ye>s ,9 ! case ( a judge or special trial judge :o has s]v$ less ?an #c ye>s1 ! annuity ( ! surviv+ sp\se ( su* judge or special trial judge %all be bas$ ^u ! av]age annual sal>y receiv$ by su* judge or special trial judge = judicial s]vice prior to ! dea? ( ! judge or special trial judge4 4 7#e7 ,o!r b5efits ,section #gddh is am5d$ by add+ at ! end ! foll[+ new subsection3 7u7 ,o!r b5efits 9 case ( assass9ation ,9 ! case ( a judge or special trial judge :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 special trial judge4 4 7c7 ,coord9ation ( retirem5t & survivor annuity ) ! ,f$]al ,employees ,retirem5t ,sy/em 7#a7 ,retirem5t ,section #gddg is am5d$-- 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 7#b7 ,annuities to surviv+ sp\ses & dep5d5t *ildr5 ,section #gddh is am5d$-- 7,a7 by /rik+ section #hccb 9 subsection 7d7 & ins]t+ sections #hccb & #hdaa1 & 7,b7 by /rik+ section #hccb 9 subsection 7n7 & ins]t+ sections #hccb & #hdaa4 7d7 ,limit on tea*+ comp5sation ( retir$ judges 7#a7 ,9 g5]al ,section #gddg 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 7#b7 ,effective date ,! am5dm5t made by ?is subsection %all apply to any individual s]v+ z a retir$ judge ( ! ,unit$ ,/ates ,tax ,c\rt on or aft] ! date ( ! enactm5t ( ?is ,act4 7e7 ,effective date ,except z o!rwise provid$1 ! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 #ajjb4 ,provisions relat+ to special trial judges ( ! ,tax ,c\rt 7a7 ,retirem5t & recall = special trial judges ,"p ,i ( sub*apt] ,c ( *apt] #gf is am5d$ by ins]t+ aft] section #gddg ! foll[+ new section3 #gddg;,a4 ,retirem5t = special trial judges 7a7 ,9 g5]al 7#a7 ,retirem5t ,any special trial judge appo9t$ pursuant to section #gddc;,a may retire f s]vice z a special trial judge if ! individual meets ! age & s]vice requirem5ts set =? 9 ! foll[+ table3 ,if ! special trial judge has atta9$ age3,& ! ye>s ( s]vice z a special trial judge are at lea/3#feaeffadfgacfhabfiaagjaj4 7#b7 ,l5g? ( s]vice ,9 mak+ any det]m9ation ( l5g? ( s]vice z a special trial judge !re %all be includ$ all p]iods 7:e!r or n consecutive7 dur+ :i* an individual s]v$ z a special trial judge 7b7 ,retirem5t ^u disability ,any special trial judge appo9t$ pursuant to section #gddc;,a :o becomes p]man5tly disabl$ f p]=m+ su* individual's duties %all retire f s]vice z a special trial judge4 7c7 ,recall+ ( retir$ special trial judges ,any individual :o has retir$ pursuant to subsection 7a7 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 special trial judge4 ,any individual :o is p]=m+ judicial duties pursuant to ?is subsection %all be paid ! same comp5sation 79 lieu ( retir$ pay7 & all[ances = travel & o!r exp5ses z a special trial judge4 7d7 ,retir$ pay 7#a7 ,9 g5]al ,any individual :o retires pursuant to subsection 7a7 & elects "u subsection 7e7 to receive retir$ pay "u ?is subsection %all receive retir$ pay dur+ any p]iod ( retirem5t f s]vice z a special trial judge at a rate :i* be>s ! same ratio to ! rate ( ! sal>y payable to a special trial judge dur+ su* p]iod z-- 7,a7 ! numb] ( ye>s su* individual has s]v$ z special trial judge be>s to1 7,b7 #ae1 except t ! rate ( su* retir$ pay %all n be m ?an ! rate ( su* sal>y = su* p]iod4 7#b7 ,retirem5t ^u disability ,any individual :o retires pursuant to subsection 7b7 & elects "u subsection 7e7 to receive retir$ pay "u ?is subsection %all receive retir$ pay dur+ any p]iod ( retirem5t f s]vice z a special trial judge-- 7,a7 at a rate equal to ! rate ( ! sal>y payable to a special trial judge dur+ su* p]iod1 if ! individual _h at lea/ #aj ye>s ( s]vice z a special trial judge be=e retirem5t1 & 7,b7 at a rate equal to ! rate describ$ 9 subp>agraph 7,a71 if ! individual _h few] ?an #aj ye>s ( s]vice z a special trial judge be=e retirem5t4 7#c7 ,beg9n+ date & paym5t ,retir$ pay "u ?is subsection %all beg9 to accrue on ! day foll[+ ! date on :i* ! individual's sal>y z a special trial judge ceases to accrue1 & %all cont9ue to accrue dur+ ! rema9d] ( su* individual's life4 ,retir$ pay "u ?is subsection %all be paid 9 ! same mann] z ! sal>y ( a special trial judge4 7#d7 ,p>tial ye>s ,9 comput+ ! rate ( ! retir$ pay = an individual to :om p>agraph 7#a7 applies1 any portion ( ! aggregate numb] ( ye>s su* individual has s]v$ z a special trial judge :i* is a fractional "p ( #a ye> %all be elim9at$ if x is less ?an #f mon?s1 or %all be c\nt$ z a full ye> if x is #f mon?s or m4 7#e7 ,recall$ s]vice ,9 comput+ ! rate ( ! retir$ pay = an individual to :om p>agraph 7#a7 applies1 any p]iod dur+ :i* su* individual p]=ms s]vices "u subsection 7c7 on a sub/antially full-"t basis %all be treat$ z a p]iod dur+ :i* su* individual has s]v$ z a special trial judge4 7e7 ,election to receive retir$ pay ,any special trial judge may elect to receive retir$ pay "u subsection 7d74 ,su* an election-- 7#a7 may be made only :ile an individual is a special trial judge 7except t 9 ! case ( an individual :o fails to be reappo9t$ z a special trial judge1 su* election may be made )9 #fj days aft] su* individual leaves (fice z a special trial judge71 7#b7 once made1 %all be irrevocable1 & 7#c7 %all be made by fil+ notice !re( 9 writ+ ) ! *ief judge4 ,! *ief judge %all transmit to ! ,(fice ( ,p]sonnel ,managem5t a copy ( ea* notice fil$ ) ! *ief judge "u ?is subsection4 7f7 ,o!r rules made applicable ,! rules ( subsections 7f71 7g71 7h71 7i71 & 7j7 ( section #gddg %all apply to a special trial judge 9 ! same mann] z a judge ( ! ,tax ,c\rt4 ,= purposes ( ! prec$+ s5t5ce1 any ref]5ce to ! ,presid5t 9 su* subsections %all be appli$ z if x 7 a ref]5ce to ! *ief judge4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #caba7;b77#e77;,e7 is am5d$ by ins]t+ or special trial judge be=e ( ! ,unit$ ,/ates ,tax ,c\rt4 7#b7 ,section #gddh7;b77#b7 is am5d$ to read z foll[s3 7#b7 ,special trial judges ,any special trial judge may by writt5 election fil$ ) ! *ief judge elect ! application ( ?is section4 ,su* election %all be fil$ :ile su* individual is a special trial judge4 4 7#c7 ,section #baj7;a77#e77;,e7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #daj7;a77#e77;,e77 is am5d$ by ins]t+ or special trial judge be=e ( ! ,unit$ ,/ates ,tax ,c\rt4 7c7 ,cl]ical am5dm5t ,! table ( sections = "p ,i ( sub*apt] ,c ( *apt] #gf is am5d$ by ins]t+ aft] ! item relat+ to section #gddg ! foll[+ new item3 ,sec4 #gddg;,a4 ,retirem5t = special trial judges4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 ,,xi ,rev5ue provisions #aaja4 ,simple & ,,sep ,ro? ,i,r,as 7a7 ,9 g5]al ,section #djh;,a is am5d$ by /rik+ subsection 7f74 7b7 ,rules relat+ to simplifi$ employee p5sions 7#a7 ,contributions ,section #djb7;h77#a7 is am5d$ by /rik+ & at ! end ( subp>agraph 7,a71 by /rik+ ! p]iod at ! end ( subp>agraph 7,b7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new subp>agraph3 7,c7 9 ! case ( any contributions pursuant to a simplifi$ employ] p5sion :i* are made to an individual retirem5t plan designat$ z a ,ro? ,,ira1 su* contribution %all n be excludable f gross income4 4 7#b7 ,di/ributions ,section #djb7;h77#c7 is am5d$ by ins]t+ 1 or section #djh;,a7d7 9 ! case ( an individual retirem5t plan designat$ z a ,ro? ,,ira be=e ! p]iod at ! end4 7#c7 ,election requir$ ,section #djh7k7 is am5d$ by r$esignat+ p>agraphs 7#g71 7#h71 & 7#i7 z p>agraphs 7#h71 7#i71 & 7#aj71 respectively1 & by ins]t+ aft] p>agraph 7#f7 ! foll[+ new p>agraph3 7#g7 ,ro? contribution election ,an individual retirem5t plan :i* is designat$ z a ,ro? ,,ira %all n be treat$ z a simplifi$ employee p5sion "u ?is subsection unless ! employee elects = su* plan to be s treat$ 7at su* "t & 9 su* mann] z ! ,secret>y may provide74 4 7c7 ,rules relat+ to simple retirem5t acc\nts 7#a7 ,election requir$ ,section #djh7p71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ac7 ,ro? contribution election ,an individual retirem5t plan :i* is designat$ z a ,ro? ,,ira %all n be treat$ z a simple retirem5t acc\nt "u ?is subsection unless ! employee elects = su* plan to be s treat$ 7at su* "t & 9 su* mann] z ! ,secret>y may provide74 4 7#b7 ,rollov]s ,section #djh;,a7e7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#c7 ,simple retirem5t acc\nts ,9 ! case ( any paym5t or di/ribution out ( a simple retirem5t acc\nt 7z def9$ 9 section #djh7p77 ) respect to :i* an election has be5 made "u section #djh7p77#ac7 & to :i* #gb7t77#f77;,a7 applies1 ! t]m qualifi$ rollov] contribution %all n include any paym5t or di/ribution paid into an acc\nt o!r ?an ano!r simple retirem5t acc\nt 7z s def9$74 4 7d7 ,coord9ation ) ,ro? contribution limitation ,section #djh;,a7c7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#g7 ,coord9ation ) limitation = simple retirem5t plans & ,s,e,ps ,9 ! case ( an individual on ^: behalf contributions are made to a simple retirem5t acc\nt or a simplifi$ employee p5sion1 ! am\nt describ$ 9 p>agraph 7#b77;,a7 %all be increas$ by an am\nt equal to ! contributions made on ! individual's behalf to su* acc\nt or p5sion = ! taxable ye>1 b only to ! ext5t su* contributions-- 7,a7 9 ! case ( a simplifi$ retirem5t acc\nt-- 7i7 d n exce$ ! sum ( ! doll> am\nt 9 effect = ! taxable ye> "u section #djh7p77#b77;,a77ii7 & ! employ] contribution requir$ "u subp>agraph 7,a77iii7 or 7,b77i71 z ! case may be1 ( section #djh7p77#b71 & 7ii7 d n cause ! elective def]rals 7z def9$ 9 section #djb7;g77#c77 on behalf ( su* individual to exce$ ! limitation "u section #djb7;g77#a7 7tak+ into acc\nt any additional elective def]rals p]mitt$ "u section #dad7v771 or 7,b7 9 ! case ( a simplifi$ employee p5sion1 d n exce$ ! limitation 9 effect "u section #djh7;j74 4 7e7 ,con=m+ am5dm5t ,section #djh;,a7d77#b77;,b7 is am5d$ by ins]t+ 1 or employ] 9 ! case ( a simple retirem5t acc\nt 7z def9$ 9 section #djh7p77 or simplifi$ employee p5sion 7z def9$ 9 section #djh7k771 aft] individual's sp\se4 7f7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #aajb4 ,elective def]rals g5]ally limit$ to regul> contribution limit 7a7 ,applicable employ] plans ,section #dad7v7 is am5d$ by add+ at ! end ! foll[+ new p>agraphs3 7#g7 ,c]ta9 def]rals mu/ be ,ro? contributions 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,c71 9 ! case ( an eligible p>ticipant ^: wages 7z def9$ 9 section #caba7;a77 = ! prec$+ ye> exce$ #ajj1jjj1 p>agraph 7#a7 %all apply only if any additional elective def]rals are designat$ ,ro? contributions 7z def9$ 9 section #djb;,a7c77#a774 7,b7 ,ro? option ,9 ! case ( an applicable employ] plan ) respect to :i* subp>agraph 7,a7 applies to any p>ticipant = a plan ye>1 p>agraph 7#a7 %all n apply to ! plan unless ! plan provides t any eligible p>ticipant may make ! p>ticipant's additional elective def]rals z designat$ ,ro? contributions4 7,c7 ,exception ,subp>agraph 7,a7 %all n apply 9 ! case ( an applicable employ] plan describ$ 9 p>agraph 7#f77;,a77iv74 7,d7 ,election to *ange def]rals ,! ,secret>y may provide by regulations t an eligible p>ticipant may elect to *ange ! p>ticipant's election to make additional elective def]rals if ! p>ticipant's comp5sation is det]m9$ to exce$ ! limitation "u subp>agraph 7,a7 aft] ! election is made4 7#h7 ,no re*>act]ization ( excess def]rals ,if ! elective def]rals = any ye> ( an eligible p>ticipant to :i* p>agraph 7#g77;,a7 applies exce$ any applicable limitation "u ?is title 7)\t reg>d to p>agraph 7#a77 or ! t]ms ( ! plan1 su* excess %all n be treat$ z additional elective def]rals to :i* p>agraph 7#a7 applies4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #djb7;g77#a7 is am5d$ by /rik+ subp>agraph 7,c74 7#b7 ,section #deg7;e77#ah77;,a77ii7 is am5d$ by ins]t+ ! less] ( any designat$ ,ro? contributions made by ! p>ticipant to ! plan or be=e ! applicable doll> am\nt4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #aajc4 ,optional treatm5t ( employ] mat*+ or nonelective contributions z ,ro? contributions 7a7 ,9 g5]al ,section #djb;,a7a7 is am5d$ by r$esignat+ p>agraph 7#b7 z p>agraph 7#d71 by /rik+ & at ! end ( p>agraph 7#a71 & by ins]t+ aft] p>agraph 7#a7 ! foll[+ new p>agraphs3 7#b7 any designat$ ,ro? contribution :i* is made by ! employ] to ! program on ! employee's behalf on acc\nt ( ! employee's contribution1 elective def]ral1 or 7subject to ! requirem5ts ( section #dja7m77#ad77 qualifi$ /ud5t loan paym5t %all be treat$ z a mat*+ contribution = purposes ( ?is *apt]1 except t su* contribution %all n be excludable f gross income1 7#c7 any designat$ ,ro? contribution :i* is made by ! employ] to ! program on ! employee's behalf & :i* is a nonelective contribution %all be fully ve/$ & %all n be excludable f gross income1 & 4 7b7 ,mat*+ includ$ 9 qualifi$ ,ro? contribution program ,section #djb;,a7b77#a7 is am5d$-- 7#a7 by ins]t+ 1 or to h made on ! employee's behalf1 aft] elect to make1 & 7#b7 by ins]t+ 1 or ( mat*+ contributions or nonelective contributions :i* may o!rwise be made on ! employee's behalf1 aft] o!rwise eligible to make4 7c7 ,designat$ ,ro? mat*+ contributions ,section #djb;,a7c77#a7 is am5d$ by ins]t+ 1 mat*+ contribution1 or nonelective contribution aft] elective def]ral4 7d7 ,mat*+ contribution def9$ ,section #djb;,a7e7 is am5d$ by add+ at ! end ! foll[+3 7#c7 ,mat*+ contribution ,! t]m mat*+ contribution means-- 7,a7 any mat*+ contribution describ$ 9 section #dja7m77#d77;,a71 & 7,b7 any contribution to an eligible def]r$ comp5sation plan 7z def9$ 9 section #deg7;b77 by an eligible employ] describ$ 9 section #deg7;e77#a77;,a7 on behalf ( an employee & on acc\nt ( su* employee's elective def]ral "u su* plan1 b only if su* contribution is fully ve/$ at ! "t receiv$4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to contributions made aft] ,decemb] #ca1 #bjbb4 #aajd4 ,*>itable cons]vation easem5ts 7a7 ,9 g5]al ,section #agj7;h7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#g7 ,limitation on d$uction = qualifi$ cons]vation contributions made by pass-?r\gh entities 7,a7 ,9 g5]al ,a contribution by a p>tn]%ip 7:e!r directly or z a di/ributive %>e ( a contribution ( ano!r p>tn]%ip7 %all n be treat$ z a qualifi$ cons]vation contribution = purposes ( ?is section if ! am\nt ( su* contribution exce$s #b4e times ! sum ( ea* p>tn]'s relevant basis 9 su* p>tn]%ip4 7,b7 ,relevant basis ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,! t]m relevant basis means1 ) respect to any p>tn]1 ! portion ( su* p>tn]'s modifi$ basis 9 ! p>tn]%ip :i* is allocable 7"u rules simil> to ! rules ( section #gee7 to ! portion ( ! real prop]ty ) respect to :i* ! contribution describ$ 9 subp>agraph 7,a7 is made4 7ii7 ,modifi$ basis ,! t]m modifi$ basis means1 ) respect to any p>tn]1 su* p>tn]'s adju/$ basis 9 ! p>tn]%ip z det]m9$-- 7,i7 imm$iately be=e ! contribution describ$ 9 subp>agraph 7,a71 7,,ii7 )\t reg>d to section #geb1 & 7,,iii7 by ! p>tn]%ip aft] tak+ into acc\nt ! adju/m5ts describ$ 9 subclauses 7,i7 & 7,,ii7 & su* o!r adju/m5ts z ! ,secret>y may provide4 7,c7 ,exception = contributions outside #c-ye> hold+ p]iod ,subp>agraph 7,a7 %all n apply to any contribution :i* is made at lea/ #c ye>s aft] ! late/ (-- 7i7 ! la/ date on :i* ! p>tn]%ip t made su* contribution acquir$ any portion ( ! real prop]ty ) respect to :i* su* contribution is made1 7ii7 ! la/ date on :i* any p>tn] 9 ! p>tn]%ip t made su* contribution acquir$ any int]e/ 9 su* p>tn]%ip1 & 7iii7 if ! int]e/ 9 ! p>tn]%ip t made su* contribution is held ?r\gh #a or m p>tn]%ips-- 7,i7 ! la/ date on :i* any su* p>tn]%ip acquir$ any int]e/ 9 any o!r su* p>tn]%ip1 & 7,,ii7 ! la/ date on :i* any p>tn] 9 any su* p>tn]%ip acquir$ any int]e/ 9 su* p>tn]%ip4 7,d7 ,exception = family p>tn]%ips 7i7 ,9 g5]al ,subp>agraph 7,a7 %all n apply ) respect to any contribution made by any p>tn]%ip if sub/antially all ( ! p>tn]%ip int]e/s 9 su* p>tn]%ip are held1 directly or indirectly1 by an individual & memb]s ( ! family ( su* individual4 7ii7 ,memb]s ( ! family ,= purposes ( ?is subp>agraph1 ! t]m memb]s ( ! family means1 ) respect to any individual-- 7,i7 ! sp\se ( su* individual1 & 7,,ii7 any individual :o be>s a relation%ip to su* individual :i* is describ$ 9 subp>agraphs 7,a7 ?r\gh 7,g7 ( section #aeb7;d77#b74 7,e7 ,application to o!r pass-?r\gh entities ,except z may be o!rwise provid$ by ! ,secret>y1 ! rules ( ?is p>agraph %all apply to ,s corporations & o!r pass-?r\gh entities 9 ! same mann] z su* rules apply to p>tn]%ips4 7,f7 ,regulations ,! ,secret>y %all prescribe su* regulations or o!r guidance z may be necess>y or appropriate to c>ry out ! purposes ( ?is p>agraph1 includ+ regulations or o!r guidance-- 7i7 to require report+1 includ+ report+ relat$ to ti]$ p>tn]%ips & ! modifi$ basis ( p>tn]s1 & 7ii7 to prev5t ! avoidance ( ! purposes ( ?is p>agraph4 4 7b7 ,application ( accuracy-relat$ p5alties 7#a7 ,9 g5]al ,section #fffb7;b7 is am5d$ by ins]t+ aft] p>agraph 7#i7 ! foll[+ new p>agraph3 7#aj7 ,any disall[ance ( a d$uction by reason ( section #agj7;h77#g74 4 7#b7 ,treatm5t z gross valuation mis/atem5t ,section #fffb7;h77#b7 is am5d$ by /rik+ & at ! end ( subp>agraph 7,b71 by /rik+ ! p]iod at ! end ( subp>agraph 7,c7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new subp>agraph3 7,d7 any disall[ance ( a d$uction describ$ 9 subsection 7b77#aj74 4 7#c7 ,no reasonable cause exception ,section #fffd7;c77#b7 is am5d$ by ins]t+ or to any disall[ance ( a d$uction describ$ 9 section #fffb7;b77#aj7 be=e ! p]iod at ! end4 7#d7 ,approval ( assessm5t n requir$ ,section #fgea7;b77#b77;,a7 is am5d$ by /rik+ subsection 7b77#i7 & ins]t+ p>agraph 7#i7 or 7#aj7 ( subsection 7b74 7c7 ,ext5sion ( /atute ( limitations = li/$ transactions ,any contribution describ$ 9 section #agj7;h77#g77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is section7 %all be treat$ = purposes ( sections #feja7;c77#aj7 & #fbce7;c77#f7 ( su* ,code z a transaction specifically id5tifi$ by ! ,secret>y z a tax avoidance transaction = purposes ( section #fjaa ( su* ,code4 7d7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to contributions made aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,no inf]5ce ,no inf]5ce is int5d$ z to ! appropriate treatm5t ( contributions made 9 taxable ye>s end+ on or be=e ! date specifi$ 9 p>agraph 7#a71 or z to any activity n describ$ 9 section #agj7;h77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is section4 ,septemb] #h1 #bjbb,read twice & plac$ on ! cal5d>