,i #aai? ,,congress #b;d ,session ,h4 ,r4 #igib ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #bj1 #bjbf,mr4 ,p]ry introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committee on ,education & ,work=ce1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to am5d ! ,employee ,retirem5t ,income ,security ,act ( #aigd to p]mit employee /ock own]%ip plan p>ticipants to b5efit f ! full am\nt ( b5eficial own]%ip t c be accru$ 9 ! plan :ile also fully realiz+ ! b5efits ( sav+ = retirem5t 9 a def9$ contribution plan4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,employee ,own]%ip ,fairness ,act ( #bjbf4 #b4 ,f9d+s ,congress f9ds z foll[s3 7#a7 ,:ile ,congress p]mitt$ ! creation ( employee /ock own]%ip plans 7,e,s,o,ps7 9 ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 ^! plans are n j a retirem5t plan = _! p>ticipants4 7#b7 ,! legislative hi/ory ( ,e,s,o,ps indicate t ,e,s,o,ps 7 int5d$ to help ! economy at a "t :5 bank f9anc+ 0 difficult = companies to obta91 ) ! ,jo9t ,committee on ,taxation categoriz+ ! ,,esop provisions ( ! ,tax ,re=m ,act ( #aihd z ,inc5tives = ,inve/m5t & ,cont9u$ ,economic ,gr[?4 7#c7 ,e,s,o,ps emp[] work]s to ga9 own]%ip ( _! ent]prise1 !reby align+ ! inc5tives = own]s & work]s & af=d+ work]s an economic /ake 9 ! company's success4 7#d7 ,e,s,o,ps s]ve z a me*anism ( f9ance :]eby work]s :o o!rwise w\ld n h ! means c acquire ! bus9esses :]e !y "w4 7#e7 ,,esop employees :o run successful1 pr(itable companies are (t5 unable to make full use ( _! def9$ contribution plans z a result ( _! company's success accru+ to _! ,,esop balance1 !reby caus+ _! o!r plan contributions to exce$ ! annual cap4 7#f7 ,unlike def9$ contribution plans :]e ! am\nt contribut$ is det]m9$ by ! employee1 ,,esop contributions reflect gr[? 9 ! company & its value r ?an plann$ contributions by ! employee or employ]4 ,?is is :y ! va/ majority ( ,e,s,o,ps also sponsor a def9$ contribution plan1 su* z a qualifi$ ca% or def]r$ arrangem5t "u section #dja7k7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 :i* facilitates ! div]sification ( work]s' retirem5t sav+s4 7#g7 ,sections #djd & #dae ( ! ,int]nal ,rev5ue ,code impose limits on b5efits & contributions "u qualifi$ retirem5t plans4 ,^! limits imp$e ! ability = ,,esop employees to div]sify _! retirem5t sav+s & make _! own retirem5t sav+s contributions & (t5 require _! employ]s to d5y mat*+ contributions !y w\ld o!rwise receive4 #c4 ,,esop am5dm5ts 7a7 ,,erisa ,subtitle ,b ( title ,,iii ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #abba et seq47 is am5d$ by add+ at ! end ! foll[+3 #c ,special rules = employee /ock own]%ip plans #cjcc4 ,special rules = employee /ock own]%ip plans ,= purposes ( ! ,int]nal ,rev5ue ,code ( #aihf1 ) respect to an employee /ock own]%ip plan 7z def9$ 9 section #djg7;d77#f77-- 7#a7 = purposes ( apply+ section #djd7;a77#c77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 ! contributions tak5 into acc\nt = purposes ( clause 7i7 !re( %all n include-- 7,a7 contributions ( employ] /ock2 or 7,b7 contributions made to repay loans us$ to acquire employ] securities2 7#b7 ! limitations ( section #djd ( su* ,code %all be appli$ sep>ately to su* plan & any o!r def9$ contribution plan ( ! employ]2 7#c7 9 det]m9+ annual additions "u section #dae7;c77#b7 ( su* ,code1 employ] contributions "u subp>agraph 7,a7 !re( are det]m9$ )\t reg>d to-- 7,a7 contributions ( employ] /ock2 or 7,b7 contributions made to repay loans us$ to acquire employ] securities2 & 7#d7 = purposes ( section #dae ( su* ,code1 =feitures allocat$ to acc\nts "u ! plan %all n be tak5 into acc\nt z annual additions 7z def9$ 9 section #dae7;c77#b7 ( su* ,code74 4 7b7 ,,irc 7#a7 ,9 g5]al ,subp>agraph 7,a7 ( section #djd7;a77#c7 ( ! ,int]nal ,rev5ue ,code is am5d$ by add+ at ! end ! foll[+ new clause3 7vi7 ,exception = ,e,s,o,ps ,9 ! case ( an employee /ock own]%ip plan 7z def9$ 9 section #dige7;e77#g771 ! contributions tak5 into acc\nt = purposes ( clause 7i7 %all n include-- 7,i7 contributions ( employ] /ock1 or 7,,ii7 contributions made to repay loans us$ to acquire employ] securities4 4 7#b7 ,sep>ate det]m9ation ( limitations ,subsection 7a7 ( section #djd ( ! ,int]nal ,rev5ue ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ac7 ,sep>ate det]m9ation = ,e,s,o,ps ,9 ! case ( an employee /ock own]%ip plan 7z def9$ 9 section #dige7;e77#g771 ?is section %all be appli$ sep>ately to su* plan & any o!r def9$ contribution plan ( ! employ]4 4 7#c7 ,det]m9ation ( annual additions ,! second s5t5ce ( p>agraph 7#b7 ( section #dae7;c7 ( ! ,int]nal ,rev5ue ,code is am5d$-- 7,a7 by /rik+ #deg7;e77#af77 )\t reg>d & ins]t+ #deg7;e77#af77 & )\t reg>d2 & 7,b7 by ins]t+ 1 & 9 ! case ( an employee /ock own]%ip plan 7z def9$ 9 section #dige7;e77#g771 employ] contributions "u subp>agraph 7,a7 are det]m9$ )\t reg>d to contributions ( employ] /ock or contributions made to repay loans us$ to acquire employ] securities be=e ! p]iod at ! end4 7#d7 ,special rule ,section #dae ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7o7 ,special rule = ,e,s,o,ps ,9 ! case ( an employee /ock own]%ip plan 7z def9$ 9 section #dige7;e77#g771 =feitures allocat$ to acc\nts "u ! plan %all n be tak5 into acc\nt z annual additions4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4