,i #aai? ,,congress #a/ ,session ,h4 ,r4 #fgbb ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,decemb] #ae1 #bjbe,mr4 ,neal introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to provide rules = automatic contribution retirem5t plans & arrangem5ts4 #a4 ,%ort title2 table ( cont5ts1 etc 7a7 ,%ort title ,?is ,act may be cit$ z ! ,automatic ,,ira ,act ( #bjbe4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts1 etc4 ,sec4 #b4 ,automatic contribution plan or arrangem5t4 ,sec4 #c4 ,cr$it = c]ta9 small employ] automatic ,,ira arrangem5ts4 ,sec4 #d4 ,treatm5t ( automatic ,,ira arrangem5ts "u ,/ate law4 7c7 ,am5dm5t ( #aihf ,code ,except z o!rwise expressly provid$1 :5ev] 9 ?is subtitle an am5dm5t or repeal is express$ 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 #b4 ,automatic contribution plan or arrangem5t 7a7 ,automatic contribution plan or arrangem5t 7#a7 ,9 g5]al ,section #dad is am5d$ by add+ at ! end ! foll[+3 7dd7 ,automatic contribution plan or arrangem5t ,= purposes ( ?is title-- 7#a7 ,9 g5]al ,! t]m automatic contribution plan or arrangem5t means-- 7,a7 a def9$ contribution plan t-- 7i7 is describ$ 9 clause 7i71 7ii71 or 7iv7 ( section #bai7;g77#e77;,a71 7ii7 includes a qualifi$ ca% or def]r$ arrangem5t or a sal>y r$uction arrangem5t1 & 7iii7 meets ! notice1 eligibility1 contribution1 fee1 & lifetime income requirem5ts ( p>agraphs 7#b71 7#c71 7#d71 7#f71 & 7#g71 respectively1 7,b7 an automatic ,,ira arrangem5t describ$ 9 p>agraph 7#h71 7,c7 an arrangem5t describ$ 9 section #djh7p7 t meets ! notice1 contribution1 inve/m5t1 & fee requirem5ts describ$ 9 p>agraphs 7#b71 7#d71 7#e71 7#f71 respectively1 & 7,d7 a plan describ$ 9 clause 7i71 7ii71 7iv71 7v71 or 7vi7 ( section #bai7;g77#e77;,a7 t is e/abli%$ & ma9ta9$ by an employ] z ( ! date ( enactm5t ( ! ,automatic ,,ira ,act ( #bjbe1 or a plan describ$ 9 section #bai7;g77#e77;,a77iv7 t is n subject to title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd & (f]s annuity contracts1 or makes cu/odial acc\nts available to employees1 z ( su* date4 7#b7 ,notice requirem5ts ,a plan or arrangem5t %all be treat$ z meet+ ! notice requirem5ts ( ?is p>agraph ) respect to an employee if ! plan or arrangem5t meets notice requirem5ts simil> to ! notice requirem5ts ( section #dja7k77#ac77;,e74 7#c7 ,eligibility requirem5ts 7,a7 ,9 g5]al ,! requirem5ts ( ?is p>agraph %all be treat$ z met if all employees ( ! employ] are eligible to p>ticipate 9 an automatic contribution plan or arrangem5t ma9ta9$ or facilitat$ by ! employ]4 7,b7 ,c]ta9 exclusions ,! foll[+ employees may be exclud$ f consid]ation 9 det]m9+ :e!r ! requirem5ts ( ?is p>agraph are met3 7i7 ,individuals less ?an #ba ye>s old ,any employee :o has n atta9$ age #ba4 7ii7 ,c]ta9 o!r employees ,any employee describ$ 9 section #daj7;b77#c74 7iii7 ,s]vice requirem5ts ,any employee :o has complet$ nei!r ( ! foll[+ p]iods ( s]vice ) ! employ] ma9ta9+ or facilitat+ ! plan or arrangem5t3 7,i7 ,! p]iod p]mitt$ "u section #daj7;a77#a7 7det]m9$ )\t reg>d to subp>agraph 7,b77i7 !re(74 7,,ii7 ,a p]iod ( #b consecutive #ab-mon? p]iods dur+ ea* ( :i* ! employee has at lea/ #ejj h\rs ( s]vice4 ,= purposes ( subclause 7,,ii71 #ab-mon? p]iods %all be det]m9$ 9 ! same mann] z "u ! la/ s5t5ce ( section #daj7;a77#c77;,a74 7iv7 ,c]ta9 /ud5ts 9 case ( a #djc7;b7 plans ,9 ! case ( an annuity contract describ$ 9 section #djc7;b71 employees :o are /ud5ts1 b only to ! ext5t su* employees may be exclud$ "u ! la/ s5t5ce ( #djc7;b77#ab77;,a74 7,c7 ,special rules = controll$ gr\ps ,all eligible employees ( an employ] ne$ n be eligible to p>ticipate 9 ! same automatic contribution plan or arrangem5t4 ,= purposes ( ?is subsection1 ! t]m employ] %all include all employ]s treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad4 7,d7 ,entry dates ,rules simil> to ! rules ( section #daj7;a77#d7 %all apply ) respect to employees :o h satisfi$ ! age & s]vice requirem5ts ref]5c$ 9 subp>agraph 7,b7 & :o are o!rwise entitl$ to p>ticipate 9 a plan or arrangem5t4 7,e7 ,automatic ,i,r,as = non-employees ,! ,secret>y %all by regulation or o!r guidance provide = mak+ available automatic ,i,r,as to individuals :o provide s]vices t d n con/itute employm5t4 7#d7 ,contribution requirem5ts 7,a7 ,9 g5]al ,! requirem5ts ( ?is p>agraph %all be treat$ z met if1 "u ! plan or arrangem5t1 ea* employee eligible to p>ticipate 9 ! plan or arrangem5t is treat$ z hav+ elect$ to h ! employ] make elective contributions 9 an am\nt equal to ! qualifi$ p]c5tage ( comp5sation4 7,b7 ,election out ,! election treat$ z hav+ be5 made "u subp>agraph 7,a7 %all cease to apply ) respect to any employee if su* employee makes an affirmative election-- 7i7 n to h su* contributions made1 or 7ii7 to make elective contributions at a level specifi$ 9 su* affirmative election4 7,c7 ,qualifi$ p]c5tage ,= purposes ( ?is p>agraph1 & except z provid$ 9 subp>agraph 7,d77i71 ! t]m qualifi$ p]c5tage means1 ) respect to any employee1 any p]c5tage det]m9$ "u ! plan or arrangem5t if su* p]c5tage is appli$ uni=mly1 does n exce$ #ae p]c5t 7#aj p]c5t dur+ ! p]iod describ$ 9 clause 7i771 & is at lea/-- 7i7 #f p]c5t dur+ ! p]iod beg9n+ on ! date on :i* ! fir/ elective contribution describ$ 9 subp>agraph 7,a7 is made ) respect to su* employee & end+ on ! la/ day ( ! fir/ plan ye> :i* beg9s aft] su* date1 7ii7 #g p]c5t dur+ ! fir/ plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 7iii7 #h p]c5t dur+ ! fir/ plan ye> foll[+ ! plan ye> describ$ 9 clause 7ii71 7iv7 #i p]c5t dur+ ! fir/ plan ye> foll[+ ! plan ye> describ$ 9 clause 7iii71 & 7v7 #aj p]c5t dur+ any subsequ5t plan ye>4 7,d7 ,rules relat+ to automatic ,,ira arrangem5ts ,= purposes ( ?is p>agraph-- 7i7 ,qualifi$ p]c5tage ,9 ! case ( an automatic ,,ira arrangem5t1 ! t]m qualifi$ p]c5tage means1 ) respect to an employee = any taxable ye>1 a p]c5tage equal to ! m9imum p]c5tage describ$ = ! taxable ye> "u subp>agraph 7,c7 det]m9$ by sub/itut+ taxable ye> ( ! employee = ! plan ye> ea* place x appe>s4 7ii7 ,payroll d$uction contributions ,9 ! case ( an automatic ,,ira arrangem5t1 any ref]5ce 9 ?is p>agraph to elective contributions %all be treat$ z includ+ a ref]5ce to payroll d$uction contributions4 7#e7 ,inve/m5t requirem5ts 7,a7 ,9 g5]al 7i7 ,default inve/m5ts ,a plan or arrangem5t %all be treat$ z meet+ ! requirem5ts ( ?is p>agraph if 9 ! abs5ce ( an inve/m5t election by a p>ticipant or b5efici>y1 am\nts are inve/$ only 9 ! class ( assets or funds describ$ 9 subp>agraph 7,b74 7ii7 ,requir$ inve/m5t options 9 automatic ,,ira arrangem5t ,9 addition to ! default inve/m5t requirem5t ( clause 7i71 an automatic ,,ira arrangem5t %all be treat$ z meet+ ! requirem5ts ( ?is p>agraph if ! arrangem5t provides ! option ( inve/+ 9 ea* ( ! classes ( assets or funds describ$ 9 subp>agraphs 7,b71 7,c71 7,d71 & 7,e71 & no o!r inve/m5t options4 7,b7 ,t>get date_/lifecycle option ,! class ( assets or funds describ$ 9 ?is clause is ! class ( assets or funds t con/itutes an inve/m5t fund product or model portfolio describ$ 9 ,dep>tm5t ( ,labor regulation section #beej4djd;c-#e7;e77#d77;i74 7,c7 ,pr9cipal pres]vation ,! class ( assets or funds describ$ 9 ?is clause is ! class ( assets or funds t is design$ to protect ! pr9cipal ( ! individual on an ongo+ basis4 7,d7 ,balanc$ option ,! class ( assets or funds describ$ 9 ?is clause is ! class ( assets or funds t con/itutes a qualifi$ default inve/m5t alt]native "u ,dep>tm5t ( ,labor regulation section #beej4djd;c-#e7;e77#d77;ii74 7,e7 ,o!r ,any o!r class ( assets or funds det]m9$ by ! ,secret>y to be a qualifi$ inve/m5t = purposes ( ?is section4 7#f7 ,fee requirem5ts ,9 ! case ( any plan or arrangem5t n o!rwise subject to title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 "u ! fee requirem5ts ( ?is p>agraph1 no p>ticipant1 b5efici>y1 employ]1 individual retirem5t acc\nt1 plan1 or arrangem5t may be *>g$ unreasonable fees or exp5ses4 7#g7 ,lifetime income requirem5ts 7,a7 ,9 g5]al ,except 9 ! case ( a plan ma9ta9$ by an eligible employ] 7z def9$ 9 section #djh7p77#b77;,c77i771 a plan or arrangem5t %all be treat$ z meet+ ! lifetime income requirem5t describ$ 9 ?is p>agraph if ! plan or arrangem5t p]mits p>ticipants to elect to receive at lea/ #ej p]c5t ( _! ve/$ acc\nt balance 9 a =m ( di/ribution describ$ 9 section #dja7;a77#ch77;,b77iii74 7,b7 ,exception 7i7 ,9 g5]al ,?is p>agraph %all n apply ) respect to any p>ticipant ^: ve/$ acc\nt balance is #bjj1jjj or less at ! "t ( di/ribution4 7ii7 ,n treat$ z discrim9atory 9 favor ( highly comp5sat$ employees ,a plan %all n be treat$ z fail+ to meet ! requirem5ts ( section #dja7;a77#d7 solely by reason ( apply+ ! exception ( clause 7i7 to ! requirem5ts ( subp>agraph 7,a74 7#h7 ,automatic ,,ira arrangem5t 7,a7 ,9 g5]al ,= purposes ( ?is p>agraph1 ! t]m automatic ,,ira arrangem5t means1 ) respect to an employ] 7& tru/ee or issu] designat$ by ! employ]71 an arrangem5t facilitat$ by ! employ] :i* meets ! requirem5ts ( ?is p>agraph & ! contribution1 inve/m5t1 & fee requirem5ts ( p>agraphs 7#d71 7#e71 & 7#f71 respectively1 & "u :i* an employee-- 7i7 may elect-- 7,i7 to h ! employ] make payroll d$uction deposits on behalf ( ! individual z payroll d$uction contributions to an individual retirem5t acc\nt1 or 7,,ii7 to h su* paym5ts paid to ! employee directly 9 ca%1 7ii7 is treat$ z hav+ made ! election "u clause 7i77,i7 at ! level det]m9$ "u p>agraph 7#d77;,d7 until ! individual makes an affirmative election n to h su* contributions made 7or to h su* contributions made at a level specifi$ 9 ! affirmative election71 & 7iii7 may elect to modify prospectively ! level at :i* contributions are made & ! mann] 9 :i* su* contributions are inve/$ = su* ye>4 7,b7 ,adm9i/rative requirem5ts 7i7 ,paym5ts ,! requirem5ts ( ?is p>agraph %all n be treat$ z met ) respect to any automatic ,,ira arrangem5t unless ! employ] makes ! paym5ts elect$ or treat$ z elect$ "u subp>agraph 7,a77i7 on or be=e ! la/ day ( ! mon? foll[+ ! mon? 9 :i* ! comp5sation o!rwise w\ld h be5 payable to ! employee 9 ca%4 7ii7 ,notice ( election p]iod ,! requirem5ts ( ?is p>agraph %all n be treat$ z met ) respect to any ye> unless ! employ] notifies ea* employee eligible to p>ticipate1 )9 a reasonable p]iod ( "t be=e ! beg9n+ ( su* ye> 7&1 = ! fir/ ye> ! employee is s eligible1 a reasonable p]iod ( "t be=e ! fir/ day su* employee is s eligible71 (-- 7,i7 ! opportunity to elect to h contributions made1 or to be treat$ z s elect+1 "u clause 7i77,i71 or 7ii71 ( subp>agraph 7,a71 7,,ii7 ! opportunity to elect n to h payroll d$uction contributions made or to h su* contributions made at a diff]5t p]c5tage or 9 a diff]5t am\nt1 & 7,,iii7 ! opportunity "u subp>agraph 7,a77iii7 to modify ! mann] 9 :i* su* am\nts are inve/$ = su* ye>4 ,! employ] %all provide su* notice 9 pap] =m or1 if ! employee s elects1 9 electronic =m4 7,c7 ,eligibility requirem5ts 7i7 ,9 g5]al ,! requirem5ts ( ?is p>agraph %all n be treat$ z met ) respect to an automatic ,,ira arrangem5t facilitat$ by ! employ] unless all employees ( ! employ] are eligible to p>ticipate 9 ! arrangem5t4 7ii7 ,c]ta9 exclusions ,! foll[+ employees may be exclud$ f consid]ation 9 det]m9+ :e!r ! requirem5ts ( ?is p>agraph are met3 7,i7 ,individuals less ?an #ah ye>s old ,any employee :o has n atta9$ age #ah4 7,,ii7 ,c]ta9 o!r employees ,any employee describ$ 9 section #daj7;b77#c74 7,,iii7 ,s]vice requirem5ts ,any employee :o has n complet$ at lea/ #c mon?s ( s]vice ) ! employ] facilitat+ ! arrangem5t4 7iii7 ,special rules = controll$ gr\ps ,= purposes ( ?is subp>agraph1 all eligible employees ( an employ] ne$ n be eligible to p>ticipate 9 ! same arrangem5t4 ,= purposes ( ?is clause1 ! t]m employ] %all include all employ]s treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad4 7iv7 ,automatic ,i,r,as = non-employees ,! ,secret>y %all by regulation or o!r guidance provide = mak+ available automatic ,i,r,as to individuals :o provide s]vices t d n con/itute employm5t4 7,d7 ,limits on contributions ,an employ] %all n be treat$ z fail+ to satisfy ! requirem5ts ( ?is section or any o!r provision ( ?is title m]ely because-- 7i7 aggregate payroll d$uction contributions by or on behalf ( an individual to individual retirem5t acc\nts ( ! individual exce$ ! d$uctible am\nt 9 effect "u section #bai7;b77#e7 7det]m9$ )\t reg>d to subp>agraph 7,b7 !re(7 = any taxable ye> 9 :i* any payroll d$uction contributions by ! employ] "u an automatic ,,ira arrangem5t are made1 or 7ii7 ! employ] *ooses to limit ! payroll d$uction contributions "u ?is subsection on behalf ( an employee = any cal5d> ye> 9 a mann] reasonably design$ to avoid exce$+ su* d$uctible am\nt4 7,e7 ,default treatm5t z ,ro? ,,ira ,an employee on ^: behalf payroll d$uction contributions are made to an individual retirem5t acc\nt "u subp>agraph 7,a7 may elect1 at su* "t & 9 su* mann] & =m z ! ,secret>y may prescribe1 :e!r to treat ! individual retirem5t acc\nt z designat$ z a ,ro? ,,ira4 ,if no su* election is made1 ! acc\nt %all be treat$ z designat$ z a ,ro? ,,ira4 7,f7 ,deposits to individual retirem5t acc\nts ( a designat$ tru/ee or issu] 7i7 ,9 g5]al ,an employ] %all n be treat$ z fail+ to satisfy ! requirem5ts ( ?is section1 or any o!r provision ( ?is title1 m]ely because ! employ] makes all payroll d$uction contributions on behalf ( all employees 7or all employees :o d n specify an individual retirem5t acc\nt1 tru/ee1 or issu] to receive ! contributions7 to individual retirem5t acc\nts specifi$ 9 clause 7ii74 7ii7 ,individual retirem5t acc\nts o!r ?an ^? select$ by employee 7,i7 ,9 g5]al ,an employ] may elect to h payroll d$uction contributions = all employees p>ticipat+ 9 an automatic ,,ira arrangem5t made to individual retirem5t acc\nts ( a tru/ee or issu] "u ! arrangem5t t has be5 designat$ by ! employ]1 b only if ! provid] ( su* acc\nts1 & ! inve/m5ts !re91 are id5tifi$ on ! website e/abli%$ "u subp>agraph 7,g77iii74 7,,ii7 ,notice ,subclause 7,i7 %all n apply unless ea* p>ticipant is notifi$ 9 writ+ t ! p>ticipant may direct ! p>ticipant's balance be transf]r$ )\t co/ or p5alty to ano!r individual retirem5t acc\nt e/abli%$ by or on behalf ( ! p>ticipant4 ,su* notice %all be 9 pap] =m or1 if ! employee s elects1 electronic =m4 7iii7 ,employ]s may p]mit employee to *oose ,,ira ,if ! employ] s elects1 ! arrangem5t may provide = an employee election to h payroll d$uction contributions made to any individual retirem5t acc\nt specifi$ by ! employee4 7iv7 ,regulations ,! ,secret>y may issue su* regulations z are necess>y to c>ry out ! purposes ( ?is subp>agraph1 includ+ e/abli%m5t ( proc$ures to assi/ employ]s & individuals 9 connect+ ) c]tifi$ & available provid]s ( individual retirem5t acc\nts & to communicate to individuals ! importance ( inve/m5t div]sification4 7,g7 ,model notice1 etc ,! ,secret>y %all-- 7i7 provide a model notice1 writt5 9 a mann] calculat$ to be und]/&able to ! av]age work]1 t is simple to use-- 7,i7 to notify employees ( ! requirem5t "u ?is section = ! employ] to provide c]ta9 employees ) ! opportunity to p>ticipate 9 an automatic ,,ira arrangem5t1 & 7,,ii7 to satisfy ! requirem5ts ( subp>agraph 7,b77ii71 7ii7 provide model =ms = enrollm5t1 includ+ automatic enrollm5t1 9 an automatic ,,ira arrangem5t1 7iii7 e/abli% a website or o!r electronic means t small employ]s & individuals c access & use to obta9 in=mation on automatic ,,ira arrangem5ts 7includ+ cle>1 /&>diz$1 easy-to-comp>e in=mation on fees & exp5ses1 inve/m5t options & returns1 & defaults 9 a =mat prescrib$ by ! ,secret>y7 & to obta9 notices & =ms1 & 7iv7 e/abli% a process-- 7,i7 = ! provid] ( an automatic ,,ira arrangem5t to demon/rate to ! ,secret>y t ! arrangem5t is describ$ 9 ?is p>agraph & meets ! requirem5ts specifi$ 9 p>agraph 7#a77;,b71 & 7,,ii7 to c]tify any arrangem5t t ! ,secret>y det]m9es s demon/rates1 to regul>ly monitor compliance & update su* det]m9ations & c]tifications1 & to li/ all arrangem5ts s c]tifi$ on ! website describ$ 9 clause 7iii7 z appropriate = use by employ]s & p>ticipants4 ,! in=mation ref]r$ to 9 clause 7iii7 %all be provid$ 9 a mann] design$ to assi/ employ]s & provid]s by facilitat+ ! id5tification by employ]s ( private-sector provid]s ( individual retirem5t acc\nts1 includ+ ! provid]'s inve/m5t options1 t are appropriate = use 9 automatic ,,ira arrangem5ts4 7,h7 ,c]ta9 ,/ate-bas$ arrangem5ts ,an arrangem5t facilitat$ by an employ] %all n fail to be treat$ z an automatic ,,ira arrangem5t m]ely because su* arrangem5t is requir$1 provid$ =1 facilitat$1 or o!rwise (f]$1 9 :ole or 9 "p1 by a ,/ate 7or a political subdivision1 ag5cy1 or in/rum5tality !re(74 7,i7 ,individual retirem5t acc\nt ,= purposes ( ?is p>agraph1 ! t]m individual retirem5t acc\nt %all h ! mean+ giv5 su* t]m by section #djh7;a71 except t su* t]m %all include individual retirem5t annuities 7z def9$ 9 section #djh7;b774 4 7#b7 ,o!r rules applicable to automatic ,,ira arrangem5ts 7,a7 ,p5alty = failure to timely remit contributions to automatic ,,ira arrangem5ts ,section #dige7;c7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#h7 ,special rule = automatic ,,ira arrangem5ts ,= purposes ( p>agraph 7#a71 if an employ] is requir$ "u an automatic ,,ira arrangem5t 7z def9$ 9 section #dad7;dd77#a77;,b77 to deposit am\nts )held f an employee's comp5sation into an individual retirem5t acc\nt 7)9 ! mean+ ( section #dad7;dd77#h77;,i77 b fails to d s )9 ! "t prescrib$ "u section #dad7;dd77#h77;,b77i71 su* am\nts %all be treat$ z assets ( ! individual retirem5t acc\nt4 4 7,b7 ,waiv] ( e>ly )drawal p5alty = c]ta9 di/ributions foll[+ initial election to p>ticipate 9 automatic ,,ira arrangem5t ,section #gb7t7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ab7 ,di/ribution foll[+ initial election to p>ticipate 9 automatic ,,ira arrangem5t ,p>agraph 7#a7 %all n apply 9 ! case ( a di/ribution-- 7,a7 to an individual f an individual retirem5t acc\nt 7)9 ! mean+ ( section #dad7;dd77#h77;,i77 t is "p ( an automatic ,,ira arrangem5t 7z def9$ 9 section #dad7;dd77#h77;,a771 & 7,b7 made n lat] ?an #ij days aft] ! individual is fir/ treat$ "u clause 7ii7 ( section #dad7;dd77#h77;,a7 z hav+ made an election "u clause 7i77,i7 ( su* section4 4 7,c7 ,automatic ,,ira ,advisory ,gr\p 7i7 ,9 g5]al ,n lat] ?an #ij days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all e/abli% an ,automatic ,,ira ,advisory ,gr\p 7h]e9aft] 9 ?is subp>agraph ref]r$ to z ! ,advisory ,gr\p74 ,! purpose ( ! ,advisory ,gr\p %all be to make recomm5dations1 advise1 & assi/ 9 ! ,secret>y's implem5tation & adm9i/ration ( p>agraphs 7#e71 7#f71 & 7#h7 ( section #dad7;dd7 ( ! ,int]nal ,rev5ue ,code ( #aihf ) respect to automatic ,,ira arrangem5ts 9 ! be/ f9ancial int]e/ ( sav]s1 includ+-- 7,i7 ! proc$ures & crit]ia = ! p]iodic c]tification1 website li/+1 & monitor+ ( arrangem5ts & inve/m5t options t meet ! requirem5ts ( ^? p>agraphs1 7,,ii7 us]-fri5dly disclosure reg>d+ inve/m5t returns & risks1 t]ms1 fees1 & exp5ses to facilitate comp>ison1 7,,iii7 ! use ( l[-co/ inve/m5t options1 7,,iv7 ! appropriate use ( electronic & pap] me?ods to provide notice & disclosure1 7,v7 any possible le>n+s or effici5cies bas$ on ! ,secret>y's proc$ures & exp]i5ce 9 approv+ nonbank individual retirem5t acc\nt tru/ees1 & 7,,vi7 su* o!r relat$ matt]s z may be det]m9$ by ! ,secret>y4 7ii7 ,memb]%ip ,! ,advisory ,gr\p %all consi/ ( n m ?an #ae memb]s & %all be compos$ (-- 7,i7 su* individuals z ! ,secret>y may consid] appropriate to provide exp]tise reg>d+ ! f9ancial ne$s & *all5ges ( l[]- & middle-income h\seholds1 7,,ii7 at lea/ "o individual :o is an exp]t 9 retirem5t-relat$ consum] protections or :o repres5ts ! g5]al public1 & 7,,iii7 at lea/ "o repres5tative ( ! ,dep>tm5t ( ! ,treasury4 7iii7 ,comp5sation ,! memb]s ( ! ,advisory ,gr\p %all s]ve )\t comp5sation4 7iv7 ,adm9i/rative support ,! ,dep>tm5t ( ! ,treasury %all provide appropriate adm9i/rative support to ! ,advisory ,gr\p1 includ+ te*nical assi/ance4 ,! ,advisory ,gr\p may use ! s]vices & facilities ( su* ,dep>tm5t1 ) or )\t reimbursem5t1 z det]m9$ by su* ,dep>tm5t4 7v7 ,report by ,advisory ,gr\p ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,advisory ,gr\p %all submit to ! ,secret>y ( ! ,treasury a report conta9+ its recomm5dations4 ,! ,secret>y may reque/ t ! ,advisory ,gr\p submit subsequ5t reports4 7#c7 ,con=m+ am5dm5t relat+ to qualifi$ ca% or def]r$ arrangem5ts ,section #dja7k77#ae77;,b77i7 is am5d$ by ins]t+ or section #dad7;dd77#c77;,b77iii77,,ii7 aft] p>agraph 7#b77;,d77ii7 9 ! matt] prec$+ subclause 7,i7 !re(4 7b7 ,excise tax = failure to ma9ta9 or facilitate automatic contribution plans or arrangem5ts 7#a7 ,9 g5]al ,*apt] #dc is am5d$ by add+ at ! end ! foll[+ new section3 #dihj;,j4 ,failure to ma9ta9 or facilitate automatic contribution plans or arrangem5ts 7a7 ,g5]al rule 7#a7 ,9 g5]al ,!re is h]eby impos$ a tax on ! failure ( an employ] to ma9ta9 or facilitate an automatic contribution plan or arrangem5t4 7#b7 ,exception = arrangem5ts "u qualifi$ ,/ate law ,p>agraph 7#a7 %all n apply to an employ] to ! ext5t su* employ] facilitates an arrangem5t describ$ 9 subsection 7f77#c77;,b7 "u a qualifi$ ,/ate law4 7b7 ,am\nt ( tax 7#a7 ,9 g5]al ,! am\nt ( ! tax impos$ by subsection 7a7 on any failure ) respect to an employee %all be #aj = ea* day 9 ! noncompliance p]iod ) respect to su* failure4 7#b7 ,noncompliance p]iod ,= purposes ( ?is section1 ! t]m noncompliance p]iod means1 ) respect to any failure1 ! p]iod-- 7,a7 beg9n+ on ! date su* failure fir/ occurs1 & 7,b7 end+ on ! e>li] (-- 7i7 ! date su* failure is correct$1 or 7ii7 ) respect to any employ]1 ! date t is #c mon?s aft] ! la/ date on :i* ! employee is requir$ to be eligible to p>ticipate 9 an automatic contribution plan or arrangem5t ma9ta9$ or facilitat$ by su* employ]4 7#c7 ,adju/m5t = inflation 7,a7 ,9 g5]al ,9 ! case ( any failure relat+ to ma9ta9+ or facilitat+ a plan or arrangem5t 9 a cal5d> ye> beg9n+ aft] #bjbh1 ! #aj am\nt "u p>agraph 7#a7 %all be increas$ by an am\nt equal to su* doll> am\nt multipli$ by ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> det]m9$ by sub/itut+ cal5d> ye> #bjbg = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 7,b7 ,r\nd+ ,if any am\nt adju/$ "u subp>agraph 7,a7 is n a :ole doll> am\nt1 su* am\nt %all be r\nd$ to ! ne>e/ :ole doll> am\nt4 7c7 ,limitations on am\nt ( tax 7#a7 ,tax n to apply :]e failure n discov]$ ex]cis+ reasonable dilig5ce ,no tax %all be impos$ by subsection 7a7 on any failure dur+ any p]iod = :i* x is e/abli%$ to ! satisfaction ( ! ,secret>y t none ( ! p]sons ref]r$ to 9 subsection 7e7 knew1 nor ex]cis+ reasonable dilig5ce w\ld h kn[n1 t su* failure exi/$4 7#b7 ,tax n to apply to failures correct$ )9 #i mon?s ,no tax %all be impos$ by subsection 7a7 on any failure if-- 7,a7 su* failure 0 due to reasonable cause & n to willful neglect1 & 7,b7 su* failure is correct$ dur+ ! #i-mon? p]iod beg9n+ on ! fir/ date any ( ! p]sons ref]r$ to 9 subsection 7e7 knew t su* failure exi/$1 or ex]cis+ reasonable dilig5ce w\ld h kn[n4 7#c7 ,ov]all limitation = un9t5tional failures ,9 ! case ( failures :i* are due to reasonable cause & n to willful neglect-- 7,a7 ,g5]al rule ,! tax impos$ by subsection 7a7 = failures dur+ ! taxable ye> ( ! employ] %all n exce$ #ejj1jjj4 7,b7 ,taxable ye>s 9 ! case ( c]ta9 controll$ gr\ps ,= purposes ( ?is subp>agraph1 if n all p]sons :o are treat$ z a s+le employ] = purposes ( ?is section h ! same taxable ye>1 ! taxable ye>s tak5 into acc\nt %all be det]m9$ "u pr9ciples simil> to ! pr9ciples ( section #aefa4 7#d7 ,waiv] by ,secret>y ,9 ! case ( a failure :i* is due to reasonable cause & n to willful neglect1 ! ,secret>y may waive "p or all ( ! tax impos$ by subsection 7a7 to ! ext5t t ! paym5t ( su* tax w\ld be excessive relative to ! failure involv$4 7d7 ,tax n to apply 9 c]ta9 cases ,?is section %all n apply 9 ! case (-- 7#a7 any employ] t employ$ no m ?an #aj employees ea* ( :om receiv$ at lea/ #e1jjj ( comp5sation f ! employ] dur+ ! prior cal5d> ye>1 7#b7 any employ] ) respect to a gov]nm5tal plan 7)9 ! mean+ ( section #dad7;d771 7#c7 any employ] ) respect to a *ur* plan 7)9 ! mean+ ( section #dad7;e771 or 7#d7 any employ] t has be5 9 exi/5ce = few] ?an #b ye>s1 tak+ into acc\nt all pr$ecessor employ]s4 7e7 ,liability = tax ,! employ] %all be liable = ! tax impos$ by subsection 7a7 on a failure4 ,all employ]s1 det]m9$ )\t reg>d to subsection 7f77#b71 %all be jo9tly & sev]ally liable = ! liability ( any o!r employ] ) :i* !y are aggregat$ "u subsection 7f77#b74 7f7 ,def9itions & special rules ,= purposes ( ?is section-- 7#a7 ,automatic contribution plan or arrangem5t ,! t]m automatic contribution plan or arrangem5t has ! mean+ giv5 su* t]m "u section #dad7;dd71 & 7#b7 ,employ] ,! t]m employ] includes all employ]s treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad4 7#c7 ,qualifi$ ,/ate law ,! t]m qualifi$ ,/ate law means a ,/ate law 7z x may be am5d$ f "t to "t7 t-- 7,a7 0 enact$ be=e ,janu>y #a1 #bjbh1 & 7,b7 requires c]ta9 employ]s to facilitate an automatic ,,ira arrangem5t pursuant to a payroll d$uction sav+s program ( ! ,/ate4 7#d7 ,treatm5t ( pr(essional employ] organizations & _! cu/om]s 7,a7 ,9 g5]al ,9 ! case ( an employ] :o "u a qualifi$ s]vice contract is a cu/om] ( a pr(essional employ] organization ) respect to an employee :o p]=ms s]vices = ! cu/om] "u su* contract-- 7i7 su* cu/om] %all be treat$ z ! employ] 7& su* pr(essional employ] organization %all n7 ) respect to su* employee1 & 7ii7 any automatic contribution plan or arrangem5t ma9ta9$ or facilitat$ by su* pr(essional employ] organization ) respect to su* employee %all be treat$ z ma9ta9$ or facilitat$1 z ! case may be1 by ! cu/om]4 7,b7 ,qualifi$ s]vice contract ,= purposes ( ?is p>agraph1 ! t]m qualifi$ s]vice contract means a s]vice contract t meets ! requirem5ts ( section #ggje7;e77#b74 ,= purposes ( ! prec$+ s5t5ce1 ! requirem5ts ( su* section %all be det]m9$ )\t reg>d to ! t]m c]tifi$ !re91 subp>agraph 7,f7 !re(1 & :e!r ! pr(essional employ] organization ) respect to su* contract is a c]tifi$ pr(essional employ] organization "u section #ggje4 4 7#b7 ,cl]ical am5dm5t ,! table ( sections = *apt] #dc is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #dihj;,j4 ,failure to ma9ta9 or facilitate automatic contribution plans or arrangem5ts4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbg4 #c4 ,cr$it = c]ta9 small employ] automatic ,,ira arrangem5ts 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by add+ at ! end ! foll[+ new section3 #de;,,bb4 ,cr$it = c]ta9 small employ] automatic ,,ira arrangem5ts 7a7 ,g5]al rule ,= purposes ( section #ch1 9 ! case ( an eligible employ]1 ! small employ] automatic ,,ira arrangem5t cr$it det]m9$ "u ?is section = any taxable ye> 9 ! cr$it p]iod is #ejj4 7b7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,eligible employ] ,! t]m eligible employ] means1 ) respect to ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 an employ] :i*-- 7,a7 7i7 facilitates an automatic ,,ira arrangem5t 7z def9$ 9 section #dad7;dd77#h771 or an arrangem5t describ$ 9 #dihj;,j7a77#b71 & 7ii7 is describ$ 9 #djh7p77#b77;,c77i71 & 7,b7 did n ma9ta9 an eligible employ] plan dur+ ! portion ( ! cal5d> ye> prec$+ ! comm5cem5t ( su* arrangem5t & ! #b prec$+ cal5d> ye>s4 7#b7 ,cr$it p]iod ,! t]m cr$it p]iod means ! fir/ #c cal5d> ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is section 9 :i* ! eligible employ] p>ticipates 9 ! arrangem5t4 7#c7 ,eligible employ] plan ,! t]m eligible employ] plan means a qualifi$ employ] plan )9 ! mean+ ( section #digb7;d74 7c7 ,o!r rules ,= purposes ( ?is section1 rules simil> to ! rules ( section #de;,e7e77#b7 %all apply4 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#dj71 by /rik+ ! p]iod at ! end ( p>agraph 7#da7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#db7 ! small employ] automatic ,,ira arrangem5t cr$it det]m9$ "u section #de;,,bb7a74 4 7c7 ,specifi$ cr$it = purposes ( c]tifi$ pr(essional employ] organizations ,section #ceaa7;d77#b7 ( su* ,code is am5d$ by r$esignat+ subp>agraphs 7,g71 7,h71 & 7,i7 z subp>agraphs 7,h71 7,i71 & 7,j71 respectively1 & by ins]t+ aft] subp>agraph 7,f7 ! foll[+ new subp>agraph3 7,g7 section #de;,,bb 7small employ] automatic ,,ira arrangem5t cr$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;,,bb4 ,cr$it = c]ta9 small employ] automatic ,,ira arrangem5ts4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbe4 #d4 ,treatm5t ( automatic ,,ira arrangem5ts "u ,/ate law 7a7 ,preemption ( ,/ate law ,?is ,act1 & ! am5dm5ts made !reby1 %all sup]s$e any law ( a ,/ate :i* w\ld directly or indirectly prohibit or re/rict an automatic ,,ira arrangem5t 7z def9$ 9 section #dad7;dd77#h7 ( ! ,int]nal ,rev5ue ,code ( #aihf74 7b7 ,employ]s ma9ta9+ automatic ,,ira arrangem5t 7#a7 ,9 g5]al ,any employ] ma9ta9+ su* an arrangem5t %all n be subject to any requirem5t impos$ by a ,/ate or political subdivision !re( to facilitate a payroll d$uction sav+s program ( a ,/ate or political subdivision !re(4 7#b7 ,qualifi$ ,/ate law exception ,p>agraph 7#a7 %all n apply ) respect to any employ] to ! ext5t t su* employ] facilitates an arrangem5t "u a qualifi$ ,/ate law 7z def9$ 9 section #dihj;,j7f77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 = employees ) respect to :om su* qualifi$ ,/ate law applies4