Us Congress House Bill HB185 Introduced / Bill

                    I 
119THCONGRESS 
1
STSESSION H. R. 185 
To advance responsible policies. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY3, 2025 
Mr. M
CGOVERNintroduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Agri-
culture, Armed Services, Veterans’ Affairs, Oversight and Government 
Reform, Intelligence (Permanent Select), Foreign Affairs, Education and 
Workforce, Small Business, the Judiciary, Natural Resources, House Ad-
ministration, Energy and Commerce, Homeland Security, Science, Space, 
and Technology, Appropriations, Rules, Ethics, Transportation and Infra-
structure, the Budget, and Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To advance responsible policies. 
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Responsible Legis-4
lating Act’’. 5
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TITLE I 1
SEC. 101. LIVESTOCK MANDATORY REPORTING EXTENSION. 2
(a) I
NGENERAL.—Section 260 of the Agricultural 3
Marketing Act of 1946 (7 U.S.C. 1636i) is amended by 4
striking ‘‘2024’’ and inserting ‘‘2025’’. 5
(b) C
ONFORMINGAMENDMENT.—Section 942 of the 6
Livestock Mandatory Reporting Act of 1999 (7 U.S.C. 7
1635 note; Public Law 106–78) is amended by striking 8
‘‘2024’’ and inserting ‘‘2025’’. 9
TITLE II 10
SEC. 201. EDUCATION FOR SEPARATING MEMBERS OF THE 11
ARMED FORCES REGARDING REGISTERED 12
APPRENTICESHIPS. 13
Section 1144(b)(1) of title 10, United States Code, 14
is amended by inserting ‘‘(including apprenticeship pro-15
grams registered under the Act of August 16, 1937 (50 16
Stat. 664; commonly referred to as the ‘National Appren-17
ticeship Act’) and approved under chapters 30 through 36 18
of title 38)’’ after ‘‘employment opportunities’’. 19
SEC. 202. WEBSITES REGARDING APPRENTICESHIP PRO-20
GRAMS. 21
(a) W
EBSITEUNDER THEJURISDICTION OFSEC-22
RETARY OFLABOR.—The Assistant Secretary of Labor 23
for Veterans’ Employment and Training, in coordination 24
with the Secretary of Veterans Affairs, shall establish a 25
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user-friendly website (or update an existing website) that 1
is available to the public on which veterans can find infor-2
mation about apprenticeship programs registered under 3
the Act of August 16, 1937 (50 Stat. 664; commonly re-4
ferred to as the ‘‘National Apprenticeship Act’’) and ap-5
proved under chapters 30 through 36 of title 38, United 6
States Code. Such information shall be searchable and 7
sortable by occupation and location, and include, with re-8
gard to each such program, the following: 9
(1) A description, including any cost to a vet-10
eran. 11
(2) Contact information. 12
(3) Whether the program has been endorsed by 13
a veterans service organization or nonprofit organi-14
zation that caters to veterans. 15
(4) Whether the program prefers to hire vet-16
erans. 17
(5) Each certification or degree an individual 18
earns by completing the program. 19
(b) C
OORDINATIONWITHOTHERWEBSITE.—The 20
Assistant Secretary shall update all information regarding 21
programs for veterans listed on apprenticeship.gov (or any 22
successor website) to include the information specified 23
under subsection (a). 24
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TITLE III 1
SEC. 301. SENSE OF CONGRESS. 2
It is the sense of Congress that— 3
(1) it is in the best national and homeland se-4
curity interests of the United States for Federal 5
agencies to retain the specialized knowledge and ex-6
perience of individuals who suffer an injury or illness 7
while serving in a covered position (as defined under 8
the amendments made by this Act); and 9
(2) Federal agencies should ensure, to the 10
greatest extent possible, that an individual who can 11
no longer carry out the duties of a covered position, 12
and is reappointed to a position in the civil service 13
that is not a covered position, is reappointed within 14
the same Federal agency, in the same geographic lo-15
cation, and at a level of pay commensurate to the 16
position which the individual held immediately prior 17
to such injury or illness. 18
SEC. 302. RETIREMENT FOR CERTAIN EMPLOYEES. 19
(a) CSRS.—Section 8336(c) of title 5, United States 20
Code, is amended by adding at the end the following: 21
‘‘(3)(A) In this paragraph— 22
‘‘(i) the term ‘affected individual’ means 23
an individual covered under this subchapter 24
who— 25
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‘‘(I) is performing service in a covered 1
position; 2
‘‘(II) while on duty, becomes ill or is 3
injured as a direct result of the perform-4
ance of such duties before the date on 5
which the individual becomes entitled to an 6
annuity under paragraph (1) of this sub-7
section or subsection (e), (m), or (n), as 8
applicable; 9
‘‘(III) because of the illness or injury 10
described in subclause (II), is permanently 11
unable to render useful and efficient serv-12
ice in the employee’s covered position, as 13
determined by the agency in which the in-14
dividual was serving when such individual 15
incurred the illness or injury; and 16
‘‘(IV) is appointed to a position in the 17
civil service that— 18
‘‘(aa) is not a covered position; 19
and 20
‘‘(bb) is within an agency that 21
regularly appoints individuals to su-22
pervisory or administrative positions 23
related to the activities of the former 24
covered position of the individual; 25
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‘‘(ii) the term ‘covered position’ means a 1
position as a law enforcement officer, customs 2
and border protection officer, firefighter, air 3
traffic controller, nuclear materials courier, 4
member of the Capitol Police, or member of the 5
Supreme Court Police. 6
‘‘(B) Unless an affected individual files an 7
election described in subparagraph (E), cred-8
itable service by the affected individual in a po-9
sition described in subparagraph (A)(i)(IV) 10
shall be treated as creditable service in a cov-11
ered position for purposes of this chapter and 12
determining the amount to be deducted and 13
withheld from the pay of the affected individual 14
under section 8334. 15
‘‘(C) Subparagraph (B) shall only apply if 16
the affected employee transitions to a position 17
described in subparagraph (A)(i)(IV) without a 18
break in service exceeding 3 days. 19
‘‘(D) The service of an affected individual 20
shall no longer be eligible for treatment under 21
subparagraph (B) if such service occurs after 22
the individual— 23
‘‘(i) is transferred to a supervisory or 24
administrative position related to the ac-25
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tivities of the former covered position of 1
the individual; or 2
‘‘(ii) meets the age and service re-3
quirements that would subject the indi-4
vidual to mandatory separation under sec-5
tion 8335 if such individual had remained 6
in the former covered position. 7
‘‘(E) In accordance with procedures estab-8
lished by the Director of the Office of Personnel 9
Management, an affected individual may file an 10
election to have any creditable service per-11
formed by the affected individual treated in ac-12
cordance with this chapter without regard to 13
subparagraph (B). 14
‘‘(F) Nothing in this paragraph shall be 15
construed to apply to such affected individual 16
any other pay-related laws or regulations appli-17
cable to a covered position.’’. 18
(b) FERS.— 19
(1) I
N GENERAL.—Section 8412(d) of title 5, 20
United States Code, is amended— 21
(A) by redesignating paragraphs (1) and 22
(2) as subparagraphs (A) and (B), respectively; 23
(B) by inserting ‘‘(1)’’ before ‘‘An em-24
ployee’’; and 25
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(C) by adding at the end the following: 1
‘‘(2)(A) In this paragraph— 2
‘‘(i) the term ‘affected individual’ means 3
an individual covered under this chapter who— 4
‘‘(I) is performing service in a covered 5
position; 6
‘‘(II) while on duty, becomes ill or is 7
injured as a direct result of the perform-8
ance of such duties before the date on 9
which the individual becomes entitled to an 10
annuity under paragraph (1) of this sub-11
section or subsection (e), as applicable; 12
‘‘(III) because of the illness or injury 13
described in subclause (II), is permanently 14
unable to render useful and efficient serv-15
ice in the employee’s covered position, as 16
determined by the agency in which the in-17
dividual was serving when such individual 18
incurred the illness or injury; and 19
‘‘(IV) is appointed to a position in the 20
civil service that— 21
‘‘(aa) is not a covered position; 22
and 23
‘‘(bb) is within an agency that 24
regularly appoints individuals to su-25
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pervisory or administrative positions 1
related to the activities of the former 2
covered position of the individual; 3
‘‘(ii) the term ‘covered position’ means a 4
position as a law enforcement officer, customs 5
and border protection officer, firefighter, air 6
traffic controller, nuclear materials courier, 7
member of the Capitol Police, or member of the 8
Supreme Court Police. 9
‘‘(B) Unless an affected individual files an 10
election described in subparagraph (E), cred-11
itable service by the affected individual in a po-12
sition described in subparagraph (A)(i)(IV) 13
shall be treated as creditable service in a cov-14
ered position for purposes of this chapter and 15
determining the amount to be deducted and 16
withheld from the pay of the affected individual 17
under section 8422. 18
‘‘(C) Subparagraph (B) shall only apply if 19
the affected employee transitions to a position 20
described in subparagraph (A)(i)(IV) without a 21
break in service exceeding 3 days. 22
‘‘(D) The service of an affected individual 23
shall no longer be eligible for treatment under 24
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subparagraph (B) if such service occurs after 1
the individual— 2
‘‘(i) is transferred to a supervisory or 3
administrative position related to the ac-4
tivities of the former covered position of 5
the individual; or 6
‘‘(ii) meets the age and service re-7
quirements that would subject the indi-8
vidual to mandatory separation under sec-9
tion 8425 if such individual had remained 10
in the former covered position. 11
‘‘(E) In accordance with procedures estab-12
lished by the Director of the Office of Personnel 13
Management, an affected individual may file an 14
election to have any creditable service per-15
formed by the affected individual treated in ac-16
cordance with this chapter without regard to 17
subparagraph (B). 18
‘‘(F) Nothing in this paragraph shall be 19
construed to apply to such affected individual 20
any other pay-related laws or regulations appli-21
cable to a covered position.’’. 22
(2) T
ECHNICAL AND CONFORMING AMEND -23
MENTS.— 24
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(A) Chapter 84 of title 5, United States 1
Code, is amended— 2
(i) in section 8414(b)(3), by inserting 3
‘‘(1)’’ after ‘‘subsection (d)’’; 4
(ii) in section 8415— 5
(I) in subsection (e), in the mat-6
ter preceding paragraph (1), by in-7
serting ‘‘(1)’’ after ‘‘subsection (d)’’; 8
and 9
(II) in subsection (h)(2)(A), by 10
striking ‘‘(d)(2)’’ and inserting 11
‘‘(d)(1)(B)’’; 12
(iii) in section 8421(a)(1), by insert-13
ing ‘‘(1)’’ after ‘‘(d)’’; 14
(iv) in section 8421a(b)(4)(B)(ii), by 15
inserting ‘‘(1)’’ after ‘‘section 8412(d)’’; 16
(v) in section 8425, by inserting ‘‘(1)’’ 17
after ‘‘section 8412(d)’’ each place it ap-18
pears; and 19
(vi) in section 8462(c)(3)(B)(ii), by 20
inserting ‘‘(1)’’ after ‘‘subsection (d)’’. 21
(B) Title VIII of the Foreign Service Act 22
of 1980 (22 U.S.C. 4041 et seq.) is amended— 23
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(i) in section 805(d)(5) (22 U.S.C. 1
4045(d)(5)), by inserting ‘‘(1)’’ after ‘‘or 2
8412(d)’’; and 3
(ii) in section 812(a)(2)(B) (22 4
U.S.C. 4052(a)(2)(B)), by inserting ‘‘(1)’’ 5
after ‘‘or 8412(d)’’. 6
(c) CIA E
MPLOYEES.—Section 302 of the Central In-7
telligence Agency Retirement Act (50 U.S.C. 2152) is 8
amended by adding at the end the following: 9
‘‘(d) E
MPLOYEESDISABLED ONDUTY.— 10
‘‘(1) D
EFINITIONS.—In this subsection— 11
‘‘(A) the term ‘affected employee’ means 12
an employee of the Agency covered under sub-13
chapter II of chapter 84 of title 5, United 14
States Code, who— 15
‘‘(i) is performing service in a position 16
designated under subsection (a); 17
‘‘(ii) while on duty in the position des-18
ignated under subsection (a), becomes ill 19
or is injured as a direct result of the per-20
formance of such duties before the date on 21
which the employee becomes entitled to an 22
annuity under section 233 of this Act or 23
section 8412(d)(1) of title 5, United States 24
Code; 25
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‘‘(iii) because of the illness or injury 1
described in clause (ii), is permanently un-2
able to render useful and efficient service 3
in the employee’s covered position, as de-4
termined by the Director; and 5
‘‘(iv) is appointed to a position in the 6
civil service that is not a covered position 7
but is within the Agency; and 8
‘‘(B) the term ‘covered position’ means a 9
position as— 10
‘‘(i) a law enforcement officer de-11
scribed in section 8331(20) or 8401(17) of 12
title 5, United States Code; 13
‘‘(ii) a customs and border protection 14
officer described in section 8331(31) or 15
8401(36) of title 5, United States Code; 16
‘‘(iii) a firefighter described in section 17
8331(21) or 8401(14) of title 5, United 18
States Code; 19
‘‘(iv) an air traffic controller described 20
in section 8331(30) or 8401(35) of title 5, 21
United States Code; 22
‘‘(v) a nuclear materials courier de-23
scribed in section 8331(27) or 8401(33) of 24
title 5, United States Code; 25
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‘‘(vi) a member of the United States 1
Capitol Police; 2
‘‘(vii) a member of the Supreme Court 3
Police; 4
‘‘(viii) an affected employee; or 5
‘‘(ix) a special agent described in sec-6
tion 804(15) of the Foreign Service Act of 7
1980 (22 U.S.C. 4044(15)). 8
‘‘(2) T
REATMENT OF SERVICE AFTER DIS -9
ABILITY.—Unless an affected employee files an elec-10
tion described in paragraph (3), creditable service by 11
the affected employee in a position described in 12
paragraph (1)(A)(iv) shall be treated as creditable 13
service in a covered position for purposes of this Act 14
and chapter 84 of title 5, United States Code, in-15
cluding eligibility for an annuity under section 233 16
of this Act or 8412(d)(1) of title 5, United States 17
Code, and determining the amount to be deducted 18
and withheld from the pay of the affected employee 19
under section 8422 of title 5, United States Code. 20
‘‘(3) B
REAK IN SERVICE.—Paragraph (2) shall 21
only apply if the affected employee transitions to a 22
position described in paragraph (1)(A)(iv) without a 23
break in service exceeding 3 days. 24
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‘‘(4) LIMITATION ON TREATMENT OF SERV -1
ICE.—The service of an affected employee shall no 2
longer be eligible for treatment under paragraph (2) 3
if such service occurs after the employee is trans-4
ferred to a supervisory or administrative position re-5
lated to the activities of the former covered position 6
of the employee. 7
‘‘(5) O
PT OUT.—An affected employee may file 8
an election to have any creditable service performed 9
by the affected employee treated in accordance with 10
chapter 84 of title 5, United States Code, without 11
regard to paragraph (2).’’. 12
(d) F
OREIGNSERVICERETIREMENT AND DIS-13
ABILITYSYSTEM.—Section 806(a)(6) of the Foreign Serv-14
ice Act of 1980 (22 U.S.C. 4046(a)(6)) is amended by 15
adding at the end the following: 16
‘‘(D)(i) In this subparagraph— 17
‘‘(I) the term ‘affected special agent’ 18
means an individual covered under this 19
subchapter who— 20
‘‘(aa) is performing service as a 21
special agent; 22
‘‘(bb) while on duty as a special 23
agent, becomes ill or is injured as a 24
direct result of the performance of 25
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such duties before the date on which 1
the individual becomes entitled to an 2
annuity under section 811; 3
‘‘(cc) because of the illness or in-4
jury described in item (bb), is perma-5
nently unable to render useful and ef-6
ficient service in the employee’s cov-7
ered position, as determined by the 8
Secretary; and 9
‘‘(dd) is appointed to a position 10
in the Foreign Service that is not a 11
covered position; and 12
‘‘(II) the term ‘covered position’ 13
means a position as— 14
‘‘(aa) a law enforcement officer 15
described in section 8331(20) or 16
8401(17) of title 5, United States 17
Code; 18
‘‘(bb) a customs and border pro-19
tection officer described in section 20
8331(31) or 8401(36) of title 5, 21
United States Code; 22
‘‘(cc) a firefighter described in 23
section 8331(21) or 8401(14) of title 24
5, United States Code; 25
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‘‘(dd) an air traffic controller de-1
scribed in section 8331(30) or 2
8401(35) of title 5, United States 3
Code; 4
‘‘(ee) a nuclear materials courier 5
described in section 8331(27) or 6
8401(33) of title 5, United States 7
Code; 8
‘‘(ff) a member of the United 9
States Capitol Police; 10
‘‘(gg) a member of the Supreme 11
Court Police; 12
‘‘(hh) an employee of the Agency 13
designated under section 302(a) of the 14
Central Intelligence Agency Retire-15
ment Act (50 U.S.C. 2152(a)); or 16
‘‘(ii) a special agent. 17
‘‘(ii) Unless an affected special agent 18
files an election described in clause (iv), 19
creditable service by the affected special 20
agent in a position described in clause 21
(i)(I)(dd) shall be treated as creditable 22
service as a special agent for purposes of 23
this subchapter, including determining the 24
amount to be deducted and withheld from 25
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the pay of the individual under section 1
805. 2
‘‘(iii) Clause (ii) shall only apply if the 3
special agent transitions to a position de-4
scribed in clause (i)(I)(dd) without a break 5
in service exceeding 3 days. 6
‘‘(iv) The service of an affected em-7
ployee shall no longer be eligible for treat-8
ment under clause (ii) if such service oc-9
curs after the employee is transferred to a 10
supervisory or administrative position re-11
lated to the activities of the former covered 12
position of the employee. 13
‘‘(v) In accordance with procedures 14
established by the Secretary, an affected 15
special agent may file an election to have 16
any creditable service performed by the af-17
fected special agent treated in accordance 18
with this subchapter, without regard to 19
clause (ii).’’. 20
(e) I
MPLEMENTATION.— 21
(1) O
FFICE OF PERSONNEL MANAGEMENT .— 22
Not later than 1 year after the date of enactment 23
of this Act, the Director of the Office of Personnel 24
Management shall promulgate regulations to carry 25
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out the amendments made by subsections (a) and 1
(b). 2
(2) CIA 
EMPLOYEES.—The Director of the 3
Central Intelligence Agency shall promulgate regula-4
tions to carry out the amendment made by sub-5
section (c). 6
(3) F
OREIGN SERVICE RETIREMENT AND DIS -7
ABILITY SYSTEM.—The Secretary of State shall pro-8
mulgate regulations to carry out the amendment 9
made by subsection (d). 10
(4) A
GENCY CERTIFICATION .—The regulations 11
promulgated to carry out the amendments made by 12
this Act shall include a requirement that the head 13
of the agency at which an affected employee or spe-14
cial agent (as the case may be) incurred the applica-15
ble illness or injury certifies that such illness or in-16
jury— 17
(A) was incurred in the course of the em-18
ployee’s or special agent’s duties; and 19
(B) permanently precludes the employee or 20
special agent from rendering useful and effi-21
cient service in the covered position but would 22
not preclude the employee or special agent from 23
continuing to serve in the Federal service. 24
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(5) AGENCY REAPPOINTMENT .—The regula-1
tions promulgated to carry out the amendments 2
made by this Act shall ensure that, to the greatest 3
extent possible, the head of each agency appoints af-4
fected employees or special agents to supervisory or 5
administrative positions related to the activities of 6
the former covered position of the employee or spe-7
cial agent. 8
(6) T
REATMENT OF SERVICE .—The regulations 9
promulgated to carry out the amendments made by 10
this Act shall ensure that the creditable service of an 11
affected employee or special agent (as the case may 12
be) that is not in a covered position pursuant to an 13
election made under such amendments shall be 14
treated as the same type of service as the covered 15
position in which the employee or agent suffered the 16
qualifying illness or injury. 17
(f) E
FFECTIVEDATE; APPLICABILITY.—The amend-18
ments made by this Act— 19
(1) shall take effect on the date of enactment 20
of this Act; and 21
(2) shall apply to an individual who suffers an 22
illness or injury described in section 23
8336(c)(3)(A)(i)(II) or section 8412(d)(2)(A)(i)(II) 24
of title 5, United States Code, as amended by this 25
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section, section 302(d)(1)(A)(ii) of the Central Intel-1
ligence Agency Retirement Act, as amended by this 2
section, or section 806(a)(6)(D)(i)(I)(bb) of the For-3
eign Service Act of 1980, as amended by this sec-4
tion, on or after the date that is 2 years after the 5
date of enactment of this Act. 6
TITLE IV 7
SEC. 401. EXPANDING AUTOMATIC ENROLLMENT IN RE-8
TIREMENT PLANS. 9
(a) I
NGENERAL.—Subpart B of part I of subchapter 10
D of chapter 1 of the Internal Revenue Code of 1986 is 11
amended by inserting after section 414 the following new 12
section: 13
‘‘SEC. 414A. REQUIREMENTS RELATED TO AUTOMATIC EN-14
ROLLMENT. 15
‘‘(a) I
NGENERAL.—Except as otherwise provided in 16
this section— 17
‘‘(1) an arrangement shall not be treated as a 18
qualified cash or deferred arrangement described in 19
section 401(k) unless such arrangement meets the 20
automatic enrollment requirements of subsection (b), 21
and 22
‘‘(2) an annuity contract otherwise described in 23
section 403(b)(1) which is purchased under a salary 24
reduction agreement shall not be treated as de-25
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•HR 185 IH
scribed in such section unless such agreement meets 1
the automatic enrollment requirements of subsection 2
(b). 3
‘‘(b) A
UTOMATICENROLLMENTREQUIREMENTS.— 4
‘‘(1) I
N GENERAL.—An arrangement or agree-5
ment meets the requirements of this subsection if 6
such arrangement or agreement is an eligible auto-7
matic contribution arrangement (as defined in sec-8
tion 414(w)(3)) which meets the requirements of 9
paragraphs (2) through (4). 10
‘‘(2) A
LLOWANCE OF PERMISSIBLE WITH -11
DRAWALS.—An eligible automatic contribution ar-12
rangement meets the requirements of this paragraph 13
if such arrangement allows employees to make per-14
missible withdrawals (as defined in section 15
414(w)(2)). 16
‘‘(3) M
INIMUM CONTRIBUTION PERCENTAGE .— 17
‘‘(A) I
N GENERAL.—An eligible automatic 18
contribution arrangement meets the require-19
ments of this paragraph if— 20
‘‘(i) the uniform percentage of com-21
pensation contributed by the participant 22
under such arrangement during the first 23
year of participation is not less than 3 per-24
cent and not more than 10 percent (unless 25
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the participant specifically elects not to 1
have such contributions made or to have 2
such contributions made at a different per-3
centage), and 4
‘‘(ii) effective for the first day of each 5
plan year starting after each completed 6
year of participation under such arrange-7
ment such uniform percentage is increased 8
by 1 percentage point (to at least 10 per-9
cent, but not more than 15 percent) unless 10
the participant specifically elects not to 11
have such contributions made or to have 12
such contributions made at a different per-13
centage. 14
‘‘(B) I
NITIAL REDUCED CEILING FOR CER -15
TAIN PLANS.—In the case of any eligible auto-16
matic contribution arrangement (other than an 17
arrangement that meets the requirements of 18
paragraph (12) or (13) of section 401(k)), for 19
plan years ending before January 1, 2027, sub-20
paragraph (A)(ii) shall be applied by sub-21
stituting ‘10 percent’ for ‘15 percent’. 22
‘‘(4) I
NVESTMENT REQUIREMENTS .—An eligible 23
automatic contribution arrangement meets the re-24
quirements of this paragraph if amounts contributed 25
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pursuant to such arrangement, and for which no in-1
vestment is elected by the participant, are invested 2
in accordance with the requirements of section 3
2550.404c-5 of title 29, Code of Federal Regulations 4
(or any successor regulations). 5
‘‘(c) E
XCEPTIONS.—For purposes of this section— 6
‘‘(1) S
IMPLE PLANS.—Subsection (a) shall not 7
apply to any simple plan (within the meaning of sec-8
tion 401(k)(11)). 9
‘‘(2) E
XCEPTION FOR PLANS OR ARRANGE -10
MENTS ESTABLISHED BEFORE ENACTMENT OF SEC -11
TION.— 12
‘‘(A) I
N GENERAL.—Subsection (a) shall 13
not apply to— 14
‘‘(i) any qualified cash or deferred ar-15
rangement established before the date of 16
the enactment of this section, or 17
‘‘(ii) any annuity contract purchased 18
under a plan established before the date of 19
the enactment of this section. 20
‘‘(B) P
OST-ENACTMENT ADOPTION OF 21
MULTIPLE EMPLOYER PLAN .—Subparagraph 22
(A) shall not apply in the case of an employer 23
adopting after such date of enactment a plan 24
maintained by more than one employer, and 25
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subsection (a) shall apply with respect to such 1
employer as if such plan were a single plan. 2
‘‘(3) E
XCEPTION FOR GOVERNMENTAL AND 3
CHURCH PLANS.—Subsection (a) shall not apply to 4
any governmental plan (within the meaning of sec-5
tion 414(d)) or any church plan (within the meaning 6
of section 414(e)). 7
‘‘(4) E
XCEPTION FOR NEW AND SMALL BUSI -8
NESSES.— 9
‘‘(A) N
EW BUSINESS.—Subsection (a) 10
shall not apply to any qualified cash or deferred 11
arrangement, or any annuity contract pur-12
chased under a plan, while the employer main-13
taining such plan (and any predecessor em-14
ployer) has been in existence for less than 3 15
years. 16
‘‘(B) S
MALL BUSINESSES.—Subsection (a) 17
shall not apply to any qualified cash or deferred 18
arrangement, or any annuity contract pur-19
chased under a plan, earlier than the date that 20
is 1 year after the close of the first taxable year 21
with respect to which the employer maintaining 22
the plan normally employed more than 10 em-23
ployees. 24
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‘‘(C) TREATMENT OF MULTIPLE EM -1
PLOYER PLANS.—In the case of a plan main-2
tained by more than 1 employer, subparagraphs 3
(A) and (B) shall be applied separately with re-4
spect to each such employer, and all such em-5
ployers to which subsection (a) applies (after 6
the application of this paragraph) shall be 7
treated as maintaining a separate plan for pur-8
poses of this section.’’. 9
(b) C
LERICALAMENDMENT.—The table of sections 10
for subpart B of part I of subchapter D of chapter 1 of 11
such Code is amended by inserting after the item relating 12
to section 414 the following new item: 13
‘‘Sec. 414A. Requirements related to automatic enrollment.’’. 
(c) EFFECTIVEDATE.—The amendments made by 14
this section shall apply to plan years beginning after De-15
cember 31, 2025. 16
SEC. 402. MODIFICATION OF CREDIT FOR SMALL EM-17
PLOYER PENSION PLAN STARTUP COSTS. 18
(a) I
NCREASE INCREDITPERCENTAGE FOR SMALL-19
EREMPLOYERS.—Section 45E(e) of the Internal Revenue 20
Code of 1986 is amended by adding at the end the fol-21
lowing new paragraph: 22
‘‘(4) I
NCREASED CREDIT FOR CERTAIN SMALL 23
EMPLOYERS.—In the case of an employer which 24
would be an eligible employer under subsection (c) if 25
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•HR 185 IH
section 408(p)(2)(C)(i) was applied by substituting 1
‘50 employees’ for ‘100 employees’, subsection (a) 2
shall be applied by substituting ‘100 percent’ for ‘50 3
percent’.’’. 4
(b) A
DDITIONALCREDIT FOREMPLOYERCONTRIBU-5
TIONS BYCERTAINSMALLEMPLOYERS.—Section 45E of 6
such Code, as amended by subsection (a), is amended by 7
adding at the end the following new subsection: 8
‘‘(f) A
DDITIONALCREDIT FOR EMPLOYERCON-9
TRIBUTIONS BYCERTAINELIGIBLEEMPLOYERS.— 10
‘‘(1) I
N GENERAL.—In the case of an eligible 11
employer, the credit allowed for the taxable year 12
under subsection (a) (determined without regard to 13
this subsection) shall be increased by an amount 14
equal to the applicable percentage of employer con-15
tributions (other than any elective deferrals (as de-16
fined in section 402(g)(3)) by the employer to an eli-17
gible employer plan (other than a defined benefit 18
plan (as defined in section 414(j))). 19
‘‘(2) L
IMITATIONS.— 20
‘‘(A) D
OLLAR LIMITATION.—The amount 21
determined under paragraph (1) (before the ap-22
plication of subparagraph (B)) with respect to 23
any employee of the employer shall not exceed 24
$1,000. 25
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‘‘(B) CREDIT PHASE-IN.—In the case of 1
any eligible employer which had for the pre-2
ceding taxable year more than 50 employees, 3
the amount determined under paragraph (1) 4
(without regard to this subparagraph) shall be 5
reduced by an amount equal to the product 6
of— 7
‘‘(i) the amount otherwise so deter-8
mined under paragraph (1), multiplied by 9
‘‘(ii) a percentage equal to 2 percent-10
age points for each employee of the em-11
ployer for the preceding taxable year in ex-12
cess of 50 employees. 13
‘‘(3) A
PPLICABLE PERCENTAGE .—For purposes 14
of this section, the applicable percentage for the tax-15
able year during which the eligible employer plan is 16
established with respect to the eligible employer shall 17
be 100 percent, and for taxable years thereafter 18
shall be determined under the following table: 19
‘‘In the case of the following 
taxable year beginning 
after the taxable year 
during which plan is es-
tablished with respect to 
the eligible employer: 
The applicable percentage shall 
be: 
1st ................................................................................................ 100% 
2nd ............................................................................................... 75% 
3rd ............................................................................................... 50% 
4th ................................................................................................ 25% 
Any taxable year thereafter ......................................................... 0% 
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‘‘(4) DETERMINATION OF ELIGIBLE EMPLOYER ; 1
NUMBER OF EMPLOYEES .—For purposes of this sub-2
section, whether an employer is an eligible employer 3
and the number of employees of an employer shall 4
be determined under the rules of subsection (c), ex-5
cept that paragraph (2) thereof shall only apply to 6
the taxable year during which the eligible employer 7
plan to which this section applies is established with 8
respect to the eligible employer.’’. 9
(c) D
ISALLOWANCE OF DEDUCTION.—Section 10
45E(e)(2) of such Code is amended to read as follows: 11
‘‘(2) D
ISALLOWANCE OF DEDUCTION .—No de-12
duction shall be allowed— 13
‘‘(A) for that portion of the qualified start-14
up costs paid or incurred for the taxable year 15
which is equal to so much of the portion of the 16
credit determined under subsection (a) as is 17
properly allocable to such costs, and 18
‘‘(B) for that portion of the employer con-19
tributions by the employer for the taxable year 20
which is equal to so much of the credit increase 21
determined under subsection (f) as is properly 22
allocable to such contributions.’’. 23
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(d) EFFECTIVEDATE.—The amendments made by 1
this section shall apply to taxable years beginning after 2
December 31, 2024. 3
SEC. 403. PROMOTION OF SAVER’S CREDIT. 4
(a) I
NGENERAL.—The Secretary of the Treasury 5
shall take such steps as the Secretary determines are nec-6
essary and appropriate to increase public awareness of the 7
credit provided under section 25B of the Internal Revenue 8
Code of 1986. 9
(b) R
EPORT TOCONGRESS.— 10
(1) I
N GENERAL.—Not later than 90 days after 11
the date of the enactment of this Act, the Secretary 12
shall provide a report to Congress to summarize the 13
anticipated promotion efforts of the Treasury under 14
subsection (a). 15
(2) C
ONTENTS.—Such report shall include— 16
(A) a description of plans for— 17
(i) the development and distribution 18
of digital and print materials, including the 19
distribution of such materials to States for 20
participants in State facilitated retirement 21
savings programs; and 22
(ii) the translation of such materials 23
into the 10 most commonly spoken lan-24
guages in the United States after English 25
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•HR 185 IH
(as determined by reference to the most re-1
cent American Community Survey of the 2
Bureau of the Census); and 3
(B) such other information as the Sec-4
retary determines is necessary 5
SEC. 404. ENHANCEMENT OF SAVER’S CREDIT. 6
(a) 50 P
ERCENTCREDITRATE.—Section 25B(a) of 7
the Internal Revenue Code of 1986 is amended by striking 8
‘‘the applicable percentage’’ and inserting ‘‘50 percent’’. 9
(b) A
DJUSTEDGROSSINCOMEPHASEOUTS.—Section 10
25B(b) of such Code is amended to read as follows: 11
‘‘(b) L
IMITATION.—For purposes of this section— 12
‘‘(1) I
N GENERAL.—The amount of credit al-13
lowable under subsection (a) (determined without re-14
gard to this subsection) shall be reduced (but not 15
below zero) by an amount which bears the same 16
ratio to the credit otherwise so allowable as— 17
‘‘(A) the excess (if any) of— 18
‘‘(i) adjusted gross income of the tax-19
payer, over 20
‘‘(ii) the threshold amount, bears to 21
‘‘(B) the phaseout amount. 22
‘‘(2) T
HRESHOLD AMOUNT .—The term ‘thresh-23
old amount’ means— 24
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‘‘(A) in the case of a joint return or a sur-1
viving spouse (as defined in section 2(a)), 2
$48,000, 3
‘‘(B) in the case of a head of household, 75 4
percent of the amount in effect for the taxable 5
year under subparagraph (A), and 6
‘‘(C) in the case of any other individual, 50 7
percent of the amount in effect for the taxable 8
year under subparagraph (A). 9
‘‘(3) P
HASEOUT AMOUNT .—The term ‘phaseout 10
amount’ means— 11
‘‘(A) in the case of a joint return or a sur-12
viving spouse (as defined in 2(a)), $35,000, 13
‘‘(B) in the case of a head of household (as 14
defined in section 2(b)), 75 percent of the 15
amount in effect for the taxable year under sub-16
paragraph (A), and 17
‘‘(C) in the case of any other individual, 50 18
percent of the amount in effect for the taxable 19
year under subparagraph (A). 20
‘‘(4) I
NFLATION ADJUSTMENT .— 21
‘‘(A) I
N GENERAL.—In the case of any 22
taxable year beginning in a calendar year after 23
2028, the $48,000 dollar amount in paragraph 24
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(2) and the $35,000 in paragraph (3) shall 1
each be increased by an amount equal to— 2
‘‘(i) such dollar amount, multiplied by 3
‘‘(ii) the cost-of-living adjustment de-4
termined under section 1(f)(3) for the cal-5
endar year in which the taxable year be-6
gins, determined by substituting ‘calendar 7
year 2024’ for ‘calendar year 2016’ in sub-8
paragraph (A)(ii) thereof. 9
‘‘(B) R
OUNDING.—Any increase deter-10
mined under subparagraph (A) that is not a 11
multiple of $500 shall be rounded to the near-12
est multiple of $500.’’. 13
(c) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to taxable years beginning after 15
December 31, 2028. 16
SEC. 405. ENHANCEMENT OF 403(B) PLANS. 17
(a) I
NGENERAL.—Section 403(b)(7)(A) of the Inter-18
nal Revenue Code of 1986 is amended by striking ‘‘if the 19
amounts are to be invested in regulated investment com-20
pany stock to be held in that custodial account’’ and in-21
serting ‘‘if the amounts are to be held in that custodial 22
account and invested in regulated investment company 23
stock or a group trust intended to satisfy the requirements 24
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of Internal Revenue Service Revenue Ruling 81–100 (or 1
any successor guidance)’’. 2
(b) C
ONFORMING AMENDMENT.—The heading of 3
paragraph (7) of section 403(b) of such Code is amended 4
by striking ‘‘
FOR REGULATED INVESTMENT COMPANY 5
STOCK’’. 6
(c) E
FFECTIVEDATE.—The amendments made by 7
this section shall apply to amounts invested after Decem-8
ber 31, 2024. 9
SEC. 406. INCREASE IN AGE FOR REQUIRED BEGINNING 10
DATE FOR MANDATORY DISTRIBUTIONS. 11
(a) I
NGENERAL.—Section 401(a)(9)(C)(i)(I) of the 12
Internal Revenue Code of 1986 is amended by striking 13
‘‘age 72’’ and inserting ‘‘the applicable age’’. 14
(b) S
POUSEBENEFICIARIES; SPECIALRULE FOR 15
O
WNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec-16
tion 401(a)(9) of such Code are each amended by striking 17
‘‘age 72’’ and inserting ‘‘the applicable age’’. 18
(c) A
PPLICABLEAGE.—Section 401(a)(9)(C) of such 19
Code is amended by adding at the end the following new 20
clause: 21
‘‘(v) A
PPLICABLE AGE.— 22
‘‘(I) In the case of an individual 23
who attains age 72 after December 24
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31, 2024, and age 73 before January 1
1, 2032, the applicable age is 73. 2
‘‘(II) In the case of an individual 3
who attains age 73 after December 4
31, 2031, and age 74 before January 5
1, 2035, the applicable age is 74. 6
‘‘(III) In the case of an indi-7
vidual who attains age 74 after De-8
cember 31, 2034, the applicable age is 9
75.’’. 10
(d) C
ONFORMINGAMENDMENTS.—The last sentence 11
of section 408(b) of such Code is amended by striking 12
‘‘age 72’’ and inserting ‘‘the applicable age (determined 13
under section 401(a)(9)(C)(v) for the calendar year in 14
which such taxable year begins)’’. 15
(e) E
FFECTIVEDATE.—The amendments made by 16
this section shall apply to distributions required to be 17
made after December 31, 2024, with respect to individuals 18
who attain age 72 after such date. 19
SEC. 407. INDEXING IRA CATCH-UP LIMIT. 20
(a) I
NGENERAL.—Subparagraph (C) of section 21
219(b)(5) of the Internal Revenue Code of 1986 is amend-22
ed by adding at the end the following new clause: 23
‘‘(iii) I
NDEXING OF CATCH-UP LIMITA-24
TION.—In the case of any taxable year be-25
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ginning in a calendar year after 2025, the 1
$1,000 amount under subparagraph (B)(ii) 2
shall be increased by an amount equal to— 3
‘‘(I) such dollar amount, multi-4
plied by 5
‘‘(II) the cost-of-living adjust-6
ment determined under section 1(f)(3) 7
for the calendar year in which the tax-8
able year begins, determined by sub-9
stituting ‘calendar year 2024’ for ‘cal-10
endar year 2016’ in subparagraph 11
(A)(ii) thereof. 12
If any amount after adjustment under the 13
preceding sentence is not a multiple of 14
$100, such amount shall be rounded to the 15
next lower multiple of $100.’’. 16
(b) E
FFECTIVEDATE.—The amendments made by 17
this section shall apply to taxable years beginning after 18
December 31, 2025. 19
SEC. 408. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 62, 63, 20
AND 64. 21
(a) I
NGENERAL.— 22
(1) P
LANS OTHER THAN SIMPLE PLANS .—Sec-23
tion 414(v)(2)(B)(i) of the Internal Revenue Code of 24
1986 is amended by inserting the following before 25
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•HR 185 IH
the period: ‘‘($10,000, in the case of an eligible par-1
ticipant who would attain age 62, but not age 65, 2
before the close of the taxable year)’’. 3
(2) S
IMPLE PLANS.—Section 414(v)(2)(B)(ii) of 4
such Code is amended by inserting the following be-5
fore the period: ‘‘($5,000, in the case of an eligible 6
participant who would attain age 62, but not age 65, 7
before the close of the taxable year)’’. 8
(b) C
OST-OF-LIVINGADJUSTMENTS.—Subparagraph 9
(C) of section 414(v)(2) of such Code is amended by add-10
ing at the end the following: ‘‘In the case of a year begin-11
ning after December 31, 2023, the Secretary shall adjust 12
annually the $10,000 amount in subparagraph (B)(i) and 13
the $5,000 amount in subparagraph (B)(ii) for increases 14
in the cost-of-living at the same time and in the same 15
manner as adjustments under the preceding sentence; ex-16
cept that the base period taken into account shall be the 17
calendar quarter beginning July 1, 2022.’’. 18
(c) E
FFECTIVEDATE.—The amendments made by 19
this section shall apply to taxable years beginning after 20
December 31, 2025. 21
SEC. 409. POOLED EMPLOYER PLANS MODIFICATION. 22
(a) I
NGENERAL.—Section 3(43)(B)(ii) of the Em-23
ployee Retirement Income Security Act of 1974 (29 24
U.S.C. 1002(43)(B)(ii)) is amended to read as follows: 25
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‘‘(ii) designate a named fiduciary 1
(other than an employer in the plan) to be 2
responsible for collecting contributions to 3
the plan and require such fiduciary to im-4
plement written contribution collection pro-5
cedures that are reasonable, diligent, and 6
systematic;’’. 7
(b) E
FFECTIVEDATE.—The amendments made by 8
this section shall apply to plan years beginning after De-9
cember 31, 2024. 10
SEC. 410. MULTIPLE EMPLOYER 403(B) PLANS. 11
(a) I
NGENERAL.—Section 403(b) of the Internal 12
Revenue Code of 1986 is amended by adding at the end 13
the following new paragraph: 14
‘‘(15) M
ULTIPLE EMPLOYER PLANS .— 15
‘‘(A) I
N GENERAL.—Except in the case of 16
a church plan, this subsection shall not be 17
treated as failing to apply to an annuity con-18
tract solely by reason of such contract being 19
purchased under a plan maintained by more 20
than 1 employer. 21
‘‘(B) T
REATMENT OF EMPLOYERS FAILING 22
TO MEET REQUIREMENTS OF PLAN .— 23
‘‘(i) I
N GENERAL.—In the case of a 24
plan maintained by more than 1 employer, 25
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•HR 185 IH
this subsection shall not be treated as fail-1
ing to apply to an annuity contract held 2
under such plan merely because of one or 3
more employers failing to meet the require-4
ments of this subsection if such plan satis-5
fies rules similar to the rules of section 6
413(e)(2) with respect to any such em-7
ployer failure. 8
‘‘(ii) A
DDITIONAL REQUIREMENTS IN 9
CASE OF NON-GOVERNMENTAL PLANS .—A 10
plan shall not be treated as meeting the re-11
quirements of this subparagraph unless the 12
plan satisfies rules similar to the rules of 13
subparagraph (A) or (B) of section 14
413(e)(1), except in the case of a multiple 15
employer plan maintained solely by any of 16
the following: A State, a political subdivi-17
sion of a State, or an agency or instrumen-18
tality of any one or more of the fore-19
going.’’. 20
(b) A
NNUALREGISTRATION FOR 403(b) MULTIPLE 21
E
MPLOYERPLAN.—Section 6057 of such Code is amend-22
ed by redesignating subsection (g) as subsection (h) and 23
by inserting after subsection (f) the following new sub-24
section: 25
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‘‘(g) 403(b) MULTIPLEEMPLOYERPLANSTREATED 1
ASONEPLAN.—In the case of annuity contracts to which 2
this section applies and to which section 403(b) applies 3
by reason of the plan under which such contracts are pur-4
chased meeting the requirements of paragraph (15) there-5
of, such plan shall be treated as a single plan for purposes 6
of this section.’’. 7
(c) A
NNUALINFORMATION RETURNS FOR 403(b) 8
M
ULTIPLEEMPLOYERPLAN.—Section 6058 of such Code 9
is amended by redesignating subsection (f) as subsection 10
(g) and by inserting after subsection (e) the following new 11
subsection: 12
‘‘(f) 403(b) M
ULTIPLEEMPLOYERPLANSTREATED 13
ASONEPLAN.—In the case of annuity contracts to which 14
this section applies and to which section 403(b) applies 15
by reason of the plan under which such contracts are pur-16
chased meeting the requirements of paragraph (15) there-17
of, such plan shall be treated as a single plan for purposes 18
of this section.’’. 19
(d) A
MENDMENTS TO EMPLOYEERETIREMENTIN-20
COMESECURITYACT OF1974.— 21
(1) I
N GENERAL.—Section 3(43)(A) of the Em-22
ployee Retirement Income Security Act of 1974 is 23
amended— 24
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•HR 185 IH
(A) in clause (ii), by striking ‘‘section 1
501(a) of such Code or’’ and inserting ‘‘section 2
501(a) of such Code, a plan that consists of 3
contracts described in section 403(b) of such 4
Code, or’’; and 5
(B) in the flush text at the end, by striking 6
‘‘the plan.’’ and inserting ‘‘the plan, but such 7
term shall include any program (other than a 8
governmental plan) maintained for the benefit 9
of the employees of more than 1 employer that 10
consists of contracts described in section 403(b) 11
of such Code and that meets the requirements 12
of subparagraph (A) or (B) of section 413(e)(1) 13
of such Code.’’. 14
(2) C
ONFORMING AMENDMENTS .—Sections 15
3(43)(B)(v)(II) and 3(44)(A)(i)(I) of the Employee 16
Retirement Income Security Act of 1974 are each 17
amended by striking ‘‘section 401(a) of such Code 18
or’’ and inserting ‘‘section 401(a) of such Code, a 19
plan that consists of contracts described in section 20
403(b) of such Code, or’’. 21
(e) R
EGULATIONSRELATING TOEMPLOYERFAIL-22
URETOMEETMULTIPLEEMPLOYERPLANREQUIRE-23
MENTS.—The Secretary of the Treasury (or the Sec-24
retary’s delegate) shall prescribe such regulations as may 25
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•HR 185 IH
be necessary to clarify, in the case of plans to which sec-1
tion 403(b)(15) of the Internal Revenue Code of 1986 ap-2
plies, the treatment of an employer departing such plan 3
in connection with such employer’s failure to meet mul-4
tiple employer plan requirements. 5
(f) M
ODIFICATION OF MODELPLANLANGUAGE, 6
ETC.— 7
(1) P
LAN NOTIFICATIONS.—The Secretary of 8
the Treasury (or the Secretary’s delegate) shall mod-9
ify the model plan language published under section 10
413(e)(5) of the Internal Revenue Code of 1986 to 11
include language that notifies participating employ-12
ers described in section 501(c)(3), and which are ex-13
empt from tax under section 501(a), that the plan 14
is subject to the Employee Retirement Income Secu-15
rity Act of 1974 and that such employer is a plan 16
sponsor with respect to its employees participating 17
in the multiple employer plan and, as such, has cer-18
tain fiduciary duties with respect to the plan and to 19
its employees. 20
(2) M
ODEL PLANS FOR MULTIPLE EMPLOYER 21
403(B) NON-GOVERNMENTAL PLANS .—For plans to 22
which section 403(b)(15)(A) of the Internal Revenue 23
Code of 1986 applies (other than a plan maintained 24
for its employees by a State, a political subdivision 25
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•HR 185 IH
of a State, or an agency or instrumentality of any 1
one or more of the foregoing), the Secretary of the 2
Treasury shall publish model plan language similar 3
to model plan language published under section 4
413(e)(5) of such Code. 5
(3) E
DUCATIONAL OUTREACH TO EMPLOYERS 6
EXEMPT FROM TAX .—The Secretary of the Treasury 7
(or the Secretary’s delegate) shall provide education 8
and outreach to increase awareness to employers de-9
scribed in section 501(c)(3) of the Internal Revenue 10
Code of 1986, and which are exempt from tax under 11
section 501(a) of such Code, that multiple employer 12
plans are subject to the Employee Retirement In-13
come Security Act of 1974 and that such employer 14
is a plan sponsor with respect to its employees par-15
ticipating in the multiple employer plan and, as 16
such, has certain fiduciary duties with respect to the 17
plan and to its employees. 18
(g) N
OINFERENCEWITHRESPECT TOCHURCH 19
P
LANS.—Regarding any application of section 403(b) of 20
the Internal Revenue Code of 1986 to an annuity contract 21
purchased under a church plan (as defined in section 22
414(e) of such Code) maintained by more than 1 em-23
ployer, or to any application of rules similar to section 24
413(e) of such Code to such a plan, no inference shall 25
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•HR 185 IH
be made from section 403(b)(15)(A) of such Code (as 1
added by this Act) not applying to such plans. 2
(h) E
FFECTIVEDATE.— 3
(1) I
N GENERAL.—The amendments made by 4
this section shall apply to plan years beginning after 5
December 31, 2024. 6
(2) R
ULE OF CONSTRUCTION .—Nothing in the 7
amendments made by subsection (a) shall be con-8
strued as limiting the authority of the Secretary of 9
the Treasury or the Secretary’s delegate (determined 10
without regard to such amendment) to provide for 11
the proper treatment of a failure to meet any re-12
quirement applicable under the Internal Revenue 13
Code of 1986 with respect to one employer (and its 14
employees) in the case of a plan to which section 15
403(b)(15) of the Internal Revenue Code of 1986 16
applies. 17
SEC. 411. TREATMENT OF STUDENT LOAN PAYMENTS AS 18
ELECTIVE DEFERRALS FOR PURPOSES OF 19
MATCHING CONTRIBUTIONS. 20
(a) I
NGENERAL.—Section 401(m)(4)(A) of the In-21
ternal Revenue Code of 1986 is amended by striking 22
‘‘and’’ at the end of clause (i), by striking the period at 23
the end of clause (ii) and inserting ‘‘, and’’, and by adding 24
at the end the following new clause: 25
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‘‘(iii) subject to the requirements of 1
paragraph (13), any employer contribution 2
made to a defined contribution plan on be-3
half of an employee on account of a quali-4
fied student loan payment.’’ 5
(b) Q
UALIFIEDSTUDENTLOANPAYMENT.—Section 6
401(m)(4) of such Code is amended by adding at the end 7
the following new subparagraph: 8
‘‘(D) Q
UALIFIED STUDENT LOAN PAY -9
MENT.—The term ‘qualified student loan pay-10
ment’ means a payment made by an employee 11
in repayment of a qualified education loan (as 12
defined section 221(d)(1)) incurred by the em-13
ployee to pay qualified higher education ex-14
penses, but only— 15
‘‘(i) to the extent such payments in 16
the aggregate for the year do not exceed 17
an amount equal to— 18
‘‘(I) the limitation applicable 19
under section 402(g) for the year (or, 20
if lesser, the employee’s compensation 21
(as defined in section 415(c)(3)) for 22
the year), reduced by 23
‘‘(II) the elective deferrals made 24
by the employee for such year, and 25
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•HR 185 IH
‘‘(ii) if the employee certifies to the 1
employer making the matching contribu-2
tion under this paragraph that such pay-3
ment has been made on such loan. 4
For purposes of this subparagraph, the term 5
‘qualified higher education expenses’ means the 6
cost of attendance (as defined in section 472 of 7
the Higher Education Act of 1965, as in effect 8
on the day before the date of the enactment of 9
the Taxpayer Relief Act of 1997) at an eligible 10
educational institution (as defined in section 11
221(d)(2)).’’. 12
(c) M
ATCHINGCONTRIBUTIONS FOR QUALIFIED 13
S
TUDENTLOANPAYMENTS.—Section 401(m) of such 14
Code is amended by redesignating paragraph (13) as para-15
graph (14), and by inserting after paragraph (12) the fol-16
lowing new paragraph: 17
‘‘(13) M
ATCHING CONTRIBUTIONS FOR QUALI -18
FIED STUDENT LOAN PAYMENTS .— 19
‘‘(A) I
N GENERAL.—For purposes of para-20
graph (4)(A)(iii), an employer contribution 21
made to a defined contribution plan on account 22
of a qualified student loan payment shall be 23
treated as a matching contribution for purposes 24
of this title if— 25
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•HR 185 IH
‘‘(i) the plan provides matching con-1
tributions on account of elective deferrals 2
at the same rate as contributions on ac-3
count of qualified student loan payments, 4
‘‘(ii) the plan provides matching con-5
tributions on account of qualified student 6
loan payments only on behalf of employees 7
otherwise eligible to receive matching con-8
tributions on account of elective deferrals, 9
‘‘(iii) under the plan, all employees el-10
igible to receive matching contributions on 11
account of elective deferrals are eligible to 12
receive matching contributions on account 13
of qualified student loan payments, and 14
‘‘(iv) the plan provides that matching 15
contributions on account of qualified stu-16
dent loan payments vest in the same man-17
ner as matching contributions on account 18
of elective deferrals. 19
‘‘(B) T
REATMENT FOR PURPOSES OF NON -20
DISCRIMINATION RULES, ETC.— 21
‘‘(i) N
ONDISCRIMINATION RULES .— 22
For purposes of subparagraph (A)(iii), 23
subsection (a)(4), and section 410(b), 24
matching contributions described in para-25
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•HR 185 IH
graph (4)(A)(iii) shall not fail to be treated 1
as available to an employee solely because 2
such employee does not have debt incurred 3
under a qualified education loan (as de-4
fined in section 221(d)(1)). 5
‘‘(ii) S
TUDENT LOAN PAYMENTS NOT 6
TREATED AS PLAN CONTRIBUTION .—Ex-7
cept as provided in clause (iii), a qualified 8
student loan payment shall not be treated 9
as a contribution to a plan under this title. 10
‘‘(iii) M
ATCHING CONTRIBUTION 11
RULES.—Solely for purposes of meeting 12
the requirements of paragraph (11)(B) or 13
(12) of this subsection, or paragraph 14
(11)(B)(i)(II), (12)(B), or (13)(D) of sub-15
section (k), a plan may treat a qualified 16
student loan payment as an elective defer-17
ral or an elective contribution, whichever is 18
applicable. 19
‘‘(iv) A
CTUAL DEFERRAL PERCENT -20
AGE TESTING.—In determining whether a 21
plan meets the requirements of subsection 22
(k)(3)(A)(ii) for a plan year, the plan may 23
apply the requirements of such subsection 24
separately with respect to all employees 25
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•HR 185 IH
who receive matching contributions de-1
scribed in paragraph (4)(A)(iii) for the 2
plan year. 3
‘‘(C) E
MPLOYER MAY RELY ON EMPLOYEE 4
CERTIFICATION.—The employer may rely on an 5
employee certification of payment under para-6
graph (4)(D)(ii).’’. 7
(d) S
IMPLERETIREMENT ACCOUNTS.—Section 8
408(p)(2) of such Code is amended by adding at the end 9
the following new subparagraph: 10
‘‘(F) M
ATCHING CONTRIBUTIONS FOR 11
QUALIFIED STUDENT LOAN PAYMENTS .— 12
‘‘(i) I
N GENERAL.—Subject to the 13
rules of clause (iii), an arrangement shall 14
not fail to be treated as meeting the re-15
quirements of subparagraph (A)(iii) solely 16
because under the arrangement, solely for 17
purposes of such subparagraph, qualified 18
student loan payments are treated as 19
amounts elected by the employee under 20
subparagraph (A)(i)(I) to the extent such 21
payments do not exceed— 22
‘‘(I) the applicable dollar amount 23
under subparagraph (E) (after appli-24
cation of section 414(v)) for the year 25
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•HR 185 IH
(or, if lesser, the employee’s com-1
pensation (as defined in section 2
415(c)(3)) for the year), reduced by 3
‘‘(II) any other amounts elected 4
by the employee under subparagraph 5
(A)(i)(I) for the year. 6
‘‘(ii) Q
UALIFIED STUDENT LOAN PAY -7
MENT.—For purposes of this subpara-8
graph— 9
‘‘(I) I
N GENERAL.—The term 10
‘qualified student loan payment’ 11
means a payment made by an em-12
ployee in repayment of a qualified 13
education loan (as defined in section 14
221(d)(1)) incurred by the employee 15
to pay qualified higher education ex-16
penses, but only if the employee cer-17
tifies to the employer making the 18
matching contribution that such pay-19
ment has been made on such a loan. 20
‘‘(II) Q
UALIFIED HIGHER EDU -21
CATION EXPENSES.—The term ‘quali-22
fied higher education expenses’ has 23
the same meaning as when used in 24
section 401(m)(4)(D). 25
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•HR 185 IH
‘‘(iii) APPLICABLE RULES.—Clause (i) 1
shall apply to an arrangement only if, 2
under the arrangement— 3
‘‘(I) matching contributions on 4
account of qualified student loan pay-5
ments are provided only on behalf of 6
employees otherwise eligible to elect 7
contributions under subparagraph 8
(A)(i)(I), and 9
‘‘(II) all employees otherwise eli-10
gible to participate in the arrange-11
ment are eligible to receive matching 12
contributions on account of qualified 13
student loan payments.’’. 14
(e) 403(b) P
LANS.—Section 403(b)(12)(A) of such 15
Code is amended by adding at the end the following: ‘‘The 16
fact that the employer offers matching contributions on 17
account of qualified student loan payments as described 18
in section 401(m)(13) shall not be taken into account in 19
determining whether the arrangement satisfies the re-20
quirements of clause (ii) (and any regulation there-21
under).’’. 22
(f) 457(b) P
LANS.—Section 457(b) of such Code is 23
amended by adding at the end the following: ‘‘A plan 24
which is established and maintained by an employer which 25
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•HR 185 IH
is described in subsection (e)(1)(A) shall not be treated 1
as failing to meet the requirements of this subsection sole-2
ly because the plan, or another plan maintained by the 3
employer which meets the requirements of section 401(a) 4
or 403(b), provides for matching contributions on account 5
of qualified student loan payments as described in section 6
401(m)(13).’’. 7
(g) R
EGULATORYAUTHORITY.—The Secretary shall 8
prescribe regulations for purposes of implementing the 9
amendments made by this section, including regulations— 10
(1) permitting a plan to make matching con-11
tributions for qualified student loan payments, as 12
defined in sections 401(m)(4)(D) and 408(p)(2)(F) 13
of the Internal Revenue Code of 1986, as added by 14
this section, at a different frequency than matching 15
contributions are otherwise made under the plan, 16
provided that the frequency is not less than annu-17
ally; 18
(2) permitting employers to establish reasonable 19
procedures to claim matching contributions for such 20
qualified student loan payments under the plan, in-21
cluding an annual deadline (not earlier than 3 22
months after the close of each plan year) by which 23
a claim must be made; and 24
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•HR 185 IH
(3) promulgating model amendments which 1
plans may adopt to implement matching contribu-2
tions on such qualified student loan payments for 3
purposes of sections 401(m), 408(p), 403(b), and 4
457(b) of the Internal Revenue Code of 1986. 5
(h) E
FFECTIVEDATE.—The amendments made by 6
this section shall apply to contributions made for plan 7
years beginning after December 31, 2024. 8
SEC. 412. APPLICATION OF CREDIT FOR SMALL EMPLOYER 9
PENSION PLAN STARTUP COSTS TO EMPLOY-10
ERS WHICH JOIN AN EXISTING PLAN. 11
(a) I
NGENERAL.—Section 45E(d)(3)(A) of the In-12
ternal Revenue Code of 1986 is amended by striking ‘‘ef-13
fective’’ and inserting ‘‘effective with respect to the eligible 14
employer’’. 15
(b) E
FFECTIVEDATE.—The amendment made by 16
this section shall take effect as if included in the enact-17
ment of section 104 of the Setting Every Community Up 18
for Retirement Enhancement Act of 2019. 19
SEC. 413. MILITARY SPOUSE RETIREMENT PLAN ELIGI-20
BILITY CREDIT FOR SMALL EMPLOYERS. 21
(a) I
NGENERAL.—Subpart D of part IV of sub-22
chapter A of chapter 1 of the Internal Revenue Code of 23
1986 is amended by adding at the end the following new 24
section: 25
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•HR 185 IH
‘‘SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGI-1
BILITY CREDIT FOR SMALL EMPLOYERS. 2
‘‘(a) I
NGENERAL.—For purposes of section 38, in 3
the case of any eligible small employer, the military spouse 4
retirement plan eligibility credit determined under this 5
section for any taxable year is an amount equal to the 6
sum of— 7
‘‘(1) $250 with respect to each military spouse 8
who is an employee of such employer and who is eli-9
gible to participate in an eligible defined contribu-10
tion plan of such employer at any time during such 11
taxable year, plus 12
‘‘(2) so much of the contributions made by such 13
employer to all such plans with respect to such em-14
ployee during such taxable year as do not exceed 15
$250. 16
‘‘(b) L
IMITATION.—An individual shall only be taken 17
into account as a military spouse under subsection (a) for 18
the taxable year which includes the date on which such 19
individual began participating in the eligible defined con-20
tribution plan of the employer and the 2 succeeding tax-21
able years. 22
‘‘(c) E
LIGIBLESMALLEMPLOYER.—For purposes of 23
this section— 24
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‘‘(1) IN GENERAL.—The term ‘eligible small 1
employer’ means an eligible employer (as defined in 2
section 408(p)(2)(C)(i)(I)). 3
‘‘(2) A
PPLICATION OF 2-YEAR GRACE PERIOD.— 4
A rule similar to the rule of section 5
408(p)(2)(C)(i)(II) shall apply for purposes of this 6
section. 7
‘‘(d) M
ILITARYSPOUSE.—For purposes of this sec-8
tion— 9
‘‘(1) I
N GENERAL.—The term ‘military spouse’ 10
means, with respect to any employer, any individual 11
who is married (within the meaning of section 7703 12
as of the first date that the employee is employed by 13
the employer) to an individual who is a member of 14
the uniformed services (as defined section 101(a)(5) 15
of title 10, United States Code). For purposes of 16
this section, an employer may rely on an employee’s 17
certification that such employee’s spouse is a mem-18
ber of the uniformed services if such certification 19
provides the name, rank, and service branch of such 20
spouse. 21
‘‘(2) E
XCLUSION OF HIGHLY COMPENSATED 22
EMPLOYEES.—With respect to any employer, the 23
term ‘military spouse’ shall not include any indi-24
vidual if such individual is a highly compensated em-25
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•HR 185 IH
ployee of such employer (within the meaning of sec-1
tion 414(q)). 2
‘‘(e) E
LIGIBLEDEFINEDCONTRIBUTIONPLAN.— 3
For purposes of this section, the term ‘eligible defined con-4
tribution plan’ means, with respect to any eligible small 5
employer, any defined contribution plan (as defined in sec-6
tion 414(i)) of such employer if, under the terms of such 7
plan— 8
‘‘(1) military spouses employed by such em-9
ployer are eligible to participate in such plan not 10
later than the date which is 2 months after the date 11
on which such individual begins employment with 12
such employer, and 13
‘‘(2) military spouses who are eligible to partici-14
pate in such plan— 15
‘‘(A) are immediately eligible to receive an 16
amount of employer contributions under such 17
plan which is not less the amount of such con-18
tributions that a similarly situated participant 19
who is not a military spouse would be eligible 20
to receive under such plan after 2 years of serv-21
ice, and 22
‘‘(B) immediately have a nonforfeitable 23
right to the employee’s accrued benefit derived 24
from employer contributions under such plan. 25
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‘‘(f) AGGREGATIONRULE.—All persons treated as a 1
single employer under subsection (b), (c), (m), or (o) of 2
section 414 shall be treated as one employer for purposes 3
of this section.’’. 4
(b) C
REDITALLOWED ASPART OFGENERALBUSI-5
NESSCREDIT.—Section 38(b) of such Code is amended 6
by striking ‘‘plus’’ at the end of paragraph (32), by strik-7
ing the period at the end of paragraph (33) and inserting 8
‘‘, plus’’, and by adding at the end the following new para-9
graph: 10
‘‘(34) in the case of an eligible small employer 11
(as defined in section 45U(c)), the military spouse 12
retirement plan eligibility credit determined under 13
section 45U(a).’’. 14
(c) S
PECIFIEDCREDIT FORPURPOSES OF CER-15
TIFIEDPROFESSIONAL EMPLOYERORGANIZATIONS.— 16
Section 3511(d)(2) of such Code is amended by redesig-17
nating subparagraphs (F), (G), and (H) as subparagraphs 18
(G), (H), and (I), respectively, and by inserting after sub-19
paragraph (E) the following new subparagraph: 20
‘‘(F) section 45U (military spouse retire-21
ment plan eligibility credit),’’. 22
(d) C
LERICALAMENDMENT.—The table of sections 23
for subpart D of part IV of subchapter A of chapter 1 24
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•HR 185 IH
of such Code is amended by adding at the end the fol-1
lowing new item: 2
‘‘Sec. 45U. Military spouse retirement plan eligibility credit for small employ-
ers.’’. 
(e) EFFECTIVEDATE.—The amendments made by 3
this section shall apply to taxable years beginning after 4
the date of the enactment of this Act. 5
SEC. 414. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR 6
CONTRIBUTING TO A PLAN. 7
(a) I
NGENERAL.—Subparagraph (A) of section 8
401(k)(4) of the Internal Revenue Code of 1986 is amend-9
ed by inserting ‘‘(other than a de minimis financial incen-10
tive)’’ after ‘‘any other benefit’’. 11
(b) S
ECTION403(b) PLANS.—Subparagraph (A) of 12
section 403(b)(12) of such Code, as amended by the pre-13
ceding provisions of this Act, is amended by adding at the 14
end the following: ‘‘A plan shall not fail to satisfy clause 15
(ii) solely by reason of offering a de minimis financial in-16
centive to employees to elect to have the employer make 17
contributions pursuant to a salary reduction agreement.’’. 18
(c) E
XEMPTIONFROMPROHIBITEDTRANSACTION 19
R
ULES.—Subsection (d) of section 4975 of such Code is 20
amended by striking ‘‘or’’ at the end of paragraph (22), 21
by striking the period at the end of paragraph (23) and 22
inserting ‘‘, or’’, and by adding at the end the following 23
new paragraph: 24
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•HR 185 IH
‘‘(24) the provision of a de minimis financial in-1
centive described in section 401(k)(4)(A).’’. 2
(d) A
MENDMENT OF EMPLOYEERETIREMENTIN-3
COMESECURITYACT OF1974.—Subsection (b) of section 4
408 of the Employee Retirement Income Security Act of 5
1974 (29 U.S.C. 1108(b)) is amended by adding at the 6
end the following new paragraph: 7
‘‘(21) The provision of a de minimis financial 8
incentive described in section 401(k)(4)(A) or sec-9
tion 403(b)(12)(A) of the Internal Revenue Code of 10
1986.’’. 11
(e) E
FFECTIVEDATE.—The amendments made by 12
this section shall apply with respect to plan years begin-13
ning after the date of enactment of this Act. 14
SEC. 415. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE 15
ELECTIVE DEFERRAL FAILURES. 16
(a) I
NGENERAL.—Section 414 of the Internal Rev-17
enue Code of 1986 is amended by adding at the end the 18
following new subsection: 19
‘‘(aa) C
ORRECTINGAUTOMATICCONTRIBUTIONER-20
RORS.— 21
‘‘(1) I
N GENERAL.—Any plan or arrangement 22
shall not fail to be treated as a plan described in 23
sections 401(a), 403(b), 408, or 457(b), as applica-24
ble, solely by reason of a corrected error. 25
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‘‘(2) CORRECTED ERROR DEFINED .—For pur-1
poses of this subsection, the term ‘corrected error’ 2
means a reasonable administrative error in imple-3
menting an automatic enrollment or automatic esca-4
lation feature in accordance with the terms of an eli-5
gible automatic contribution arrangement (as de-6
fined under subsection (w)(3)), provided that such 7
implementation error— 8
‘‘(A) is corrected by the date that is 9
1
⁄2 9
months after the end of the plan year during 10
which the error occurred, 11
‘‘(B) is corrected in a manner that is fa-12
vorable to the participant, and 13
‘‘(C) is of a type which is so corrected for 14
all similarly situated participants in a non-15
discriminatory manner. 16
Such correction may occur before or after the partic-17
ipant has terminated employment and may occur 18
without regard to whether the error is identified by 19
the Secretary. 20
‘‘(3) R
EGULATIONS AND GUIDANCE FOR FAVOR -21
ABLE CORRECTION METHODS .—The Secretary shall, 22
by regulations or other guidance of general applica-23
bility, specify the correction methods that are in a 24
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manner favorable to the participant for purposes of 1
paragraph (2)(B).’’. 2
(b) E
FFECTIVEDATE.—The amendment made by 3
this section shall apply with respect to any errors with 4
respect to which the date referred to in section 414(aa) 5
(as added by this section) is after the date of enactment 6
of this Act. 7
SEC. 416. IMPROVING COVERAGE FOR PART-TIME WORK-8
ERS. 9
(a) I
NGENERAL.—Section 202 of the Employee Re-10
tirement Income Security Act of 1974 (29 U.S.C. 1052) 11
is amended by adding at the end the following new sub-12
section: 13
‘‘(c) S
PECIALRULE FORCERTAINPART-TIMEEM-14
PLOYEES.— 15
‘‘(1) I
N GENERAL.—A pension plan that in-16
cludes either a qualified cash or deferred arrange-17
ment (as defined in section 401(k) of the Internal 18
Revenue Code of 1986) or a salary reduction agree-19
ment (as described in section 403(b) of such Code) 20
shall not require, as a condition of participation in 21
the arrangement or agreement, that an employee 22
complete a period of service with the employer (or 23
employers) maintaining the plan extending beyond 24
the close of the earlier of— 25
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‘‘(A) the period permitted under subsection 1
(a)(1) (determined without regard to subpara-2
graph (B)(i) thereof); or 3
‘‘(B) the first 24-month period— 4
‘‘(i) consisting of 2 consecutive 12- 5
month periods during each of which the 6
employee has at least 500 hours of service; 7
and 8
‘‘(ii) by the close of which the em-9
ployee has attained the age of 21. 10
‘‘(2) E
XCEPTION.—Paragraph (1)(B) shall not 11
apply to any employee described in section 410(b)(3) 12
of the Internal Revenue Code of 1986. 13
‘‘(3) C
OORDINATION WITH OTHER RULES .— 14
‘‘(A) I
N GENERAL.—In the case of employ-15
ees who are eligible to participate in the ar-16
rangement or agreement solely by reason of 17
paragraph (1)(B): 18
‘‘(i) E
XCLUSIONS.—An employer may 19
elect to exclude such employees from the 20
application of subsections (a)(4), (k)(3), 21
(k)(12), (k)(13), and (m)(2) of section 401 22
of the Internal Revenue Code of 1986 and 23
section 410(b) of such Code. 24
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‘‘(ii) NONDISCRIMINATION RULES .— 1
Notwithstanding paragraph (1), section 2
401(k)(15)(B)(i)(I) of such Code shall 3
apply. 4
‘‘(iii) T
IME OF PARTICIPATION.—The 5
rules of subsection (a)(4) shall apply to 6
such employees. 7
‘‘(B) T
OP-HEAVY RULES.—An employer 8
may elect to exclude all employees who are eligi-9
ble to participate in a plan maintained by the 10
employer solely by reason of paragraph (1)(B) 11
from the application of the vesting and benefit 12
requirements under subsections (b) and (c) of 13
section 416 of the Internal Revenue Code of 14
1986. 15
‘‘(4) 12-
MONTH PERIOD.—For purposes of this 16
subsection, 12-month periods shall be determined in 17
the same manner as under the last sentence of sub-18
section (a)(3)(A), except that 12-month periods be-19
ginning before January 1, 2023, shall not be taken 20
into account.’’ 21
(b) V
ESTING.—Section 203(b) of the Employee Re-22
tirement Income Security Act of 1974 (29 U.S.C. 23
1053(a)) is amended by redesignating paragraph (4) as 24
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paragraph (5) and by inserting after paragraph (3) the 1
following new paragraph: 2
‘‘(4) P
ART-TIME EMPLOYEES.—For purposes of 3
determining whether an employee who is eligible to 4
participate in a qualified cash or deferred arrange-5
ment or a salary reduction agreement under a plan 6
solely by reason of section 202(c)(1)(B) has a non-7
forfeitable right to employer contributions— 8
‘‘(A) except as provided in subparagraph 9
(B), each 12-month period for which the em-10
ployee has at least 500 hours of service shall be 11
treated as a year of service; and 12
‘‘(B) paragraph (3) shall be applied by 13
substituting ‘at least 500 hours of service’ for 14
‘more than 500 hours of service’ in subpara-15
graph (A) thereof. 16
For purposes of this paragraph, 12-month periods 17
shall be determined in the same manner as under 18
the last sentence of section 202(a)(3)(A), except that 19
12-month periods beginning before January 1, 2023, 20
shall not be taken into account.’’. 21
(c) R
EDUCTION INPERIODSERVICEREQUIREMENT 22
FORQUALIFIEDCASH AND DEFERRED ARRANGE-23
MENTS.—Section 401(k)(2)(D)(ii) of the Internal Revenue 24
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Code of 1986 is amended by striking ‘‘3’’ and inserting 1
‘‘2’’. 2
(d) P
RE-2021 SERVICE.—Section 112(b) of the Set-3
ting Every Community Up for Retirement Enhancement 4
Act of 2019 (26 U.S.C. 401 note) is amended by striking 5
‘‘section 401(k)(2)(D)(ii)’’ and inserting ‘‘paragraphs 6
(2)(D)(ii) and (15)(B)(iii) of section 401(k)’’. 7
(e) E
FFECTIVEDATES.— 8
(1) I
N GENERAL.—Except as provided in para-9
graph (2), the amendments made by this section 10
shall apply to plan years beginning after December 11
31, 2024. 12
(2) S
UBSECTION (D).—The amendment made 13
by subsection (d) shall take effect as if included in 14
the enactment of section 112 of the Setting Every 15
Community Up for Retirement Enhancement Act of 16
2019. 17
SEC. 417. DEFERRAL OF TAX FOR CERTAIN SALES OF EM-18
PLOYER STOCK TO EMPLOYEE STOCK OWN-19
ERSHIP PLAN SPONSORED BY S CORPORA-20
TION. 21
(a) I
NGENERAL.—Section 1042(c)(1)(A) of the In-22
ternal Revenue Code of 1986 is amended by striking ‘‘do-23
mestic C corporation’’ and inserting ‘‘domestic corpora-24
tion’’. 25
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(b) 10 PERCENTLIMITATION ONAPPLICATION OF 1
G
AIN ONSALE OFS CORPORATIONSTOCK.—Section 2
1042 of such Code is amended by adding at the end the 3
following new subsection: 4
‘‘(h) A
PPLICATION OFSECTION TOSALE OFSTOCK 5
INS CORPORATION.—In the case of the sale of qualified 6
securities of an S corporation, the election under sub-7
section (a) may be made with respect to not more than 8
10 percent of the amount realized on such sale for pur-9
poses of determining the amount of gain not recognized 10
and the extent to which (if at all) the amount realized 11
on such sale exceeds the cost of qualified replacement 12
property. The portion of adjusted basis that is properly 13
allocable to the portion of the amount realized with respect 14
to which the election is made under this subsection shall 15
be taken into account for purposes of the preceding sen-16
tence.’’. 17
(c) E
FFECTIVEDATE.—The amendments made by 18
this section shall apply to sales after December 31, 2029. 19
SEC. 418. CERTAIN SECURITIES TREATED AS PUBLICLY 20
TRADED IN CASE OF EMPLOYEE STOCK OWN-21
ERSHIP PLANS. 22
(a) I
NGENERAL.—Section 401(a)(35) of the Internal 23
Revenue Code of 1986 is amended by adding at the end 24
the following new subparagraph: 25
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‘‘(I) ESOP RULES RELATING TO PUBLICLY 1
TRADED SECURITIES.—In the case of an appli-2
cable defined contribution plan which is an em-3
ployee stock ownership plan, an employer secu-4
rity shall be treated as described in subpara-5
graph (G)(v) if— 6
‘‘(i) the security is the subject of 7
priced quotations by at least 4 dealers, 8
published and made continuously available 9
on an interdealer quotation system (as 10
such term is used in section 13 of the Se-11
curities Exchange Act of 1934) which has 12
made the request described in section 6(j) 13
of such Act to be treated as an alternative 14
trading system, 15
‘‘(ii) the security is not a penny stock 16
(as defined by section 3(a)(51) of such 17
Act), 18
‘‘(iii) the security is issued by a cor-19
poration which is not a shell company (as 20
such term is used in section 4(d)(6) of the 21
Securities Act of 1933), a blank check 22
company (as defined in section 7(b)(3) of 23
such Act), or subject to bankruptcy pro-24
ceedings, 25
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‘‘(iv) the security has a public float 1
(as such term is used in section 240.12b- 2
2 of title 17, Code of Federal Regulations) 3
which has a fair market value of at least 4
$1,000,000 and constitutes at least 10 per-5
cent of the total shares issued and out-6
standing. 7
‘‘(v) in the case of a security issued 8
by a domestic corporation, the issuer pub-9
lishes, not less frequently than annually, fi-10
nancial statements audited by an inde-11
pendent auditor registered with the Public 12
Company Accounting Oversight Board es-13
tablished under the Sarbanes-Oxley Act of 14
2002, and 15
‘‘(vi) in the case of a security issued 16
by a foreign corporation, the security is 17
represented by a depositary share (as de-18
fined under section 240.12b-2 of title 17, 19
Code of Federal Regulations), or is issued 20
by a foreign corporation incorporated in 21
Canada and readily tradeable on an estab-22
lished securities market in Canada, and 23
the issuer— 24
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‘‘(I) is subject to, and in compli-1
ance with, the reporting requirements 2
of section 13 or 15(d) of the Securi-3
ties Exchange Act of 1934 (15 U.S.C. 4
78m or 78o(d)), 5
‘‘(II) is subject to, and in compli-6
ance with, the reporting requirements 7
of section 230.257 of title 17, Code of 8
Federal Regulations, or 9
‘‘(III) is exempt from such re-10
quirements under section 240.12g3– 11
2(b) of title 17, Code of Federal Reg-12
ulations.’’. 13
(b) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to plan years beginning after De-15
cember 31, 2029. 16
SEC. 419. REMOVE REQUIRED MINIMUM DISTRIBUTION 17
BARRIERS FOR LIFE ANNUITIES. 18
(a) I
NGENERAL.—Section 401(a)(9) of the Internal 19
Revenue Code of 1986 is amended by adding at the end 20
the following new subparagraph: 21
‘‘(J) C
ERTAIN INCREASES IN PAYMENTS 22
UNDER A COMMERCIAL ANNUITY .—Nothing in 23
this section shall prohibit a commercial annuity 24
(within the meaning of section 3405(e)(6)) that 25
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is issued in connection with any eligible retire-1
ment plan (within the meaning of section 2
402(c)(8)(B), other than a defined benefit plan) 3
from providing one or more of the following 4
types of payments on or after the annuity start-5
ing date: 6
‘‘(i) annuity payments that increase 7
by a constant percentage, applied not less 8
frequently than annually, at a rate that is 9
less than 5 percent per year, 10
‘‘(ii) a lump sum payment that— 11
‘‘(I) results in a shortening of the 12
payment period with respect to an an-13
nuity or a full or partial commutation 14
of the future annuity payments, pro-15
vided that such lump sum is deter-16
mined using reasonable actuarial 17
methods and assumptions, as deter-18
mined in good faith by the issuer of 19
the contract, or 20
‘‘(II) accelerates the receipt of 21
annuity payments that are scheduled 22
to be received within the ensuing 12 23
months, regardless of whether such 24
acceleration shortens the payment pe-25
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•HR 185 IH
riod with respect to the annuity, re-1
duces the dollar amount of benefits to 2
be paid under the contract, or results 3
in a suspension of annuity payments 4
during the period being accelerated, 5
‘‘(iii) an amount which is in the na-6
ture of a dividend or similar distribution, 7
provided that the issuer of the contract de-8
termines such amount based on a reason-9
able comparison of the actuarial factors as-10
sumed when calculating the initial annuity 11
payments and the issuer’s experience with 12
respect to those factors, or 13
‘‘(iv) a final payment upon death that 14
does not exceed the excess of the total 15
amount of the consideration paid for the 16
annuity payments, less the aggregate 17
amount of prior distributions or payments 18
from or under the contract.’’. 19
(b) E
FFECTIVEDATE.—This section shall apply to 20
calendar years ending after the date of the enactment of 21
this Act. 22
SEC. 420. QUALIFYING LONGEVITY ANNUITY CONTRACTS. 23
(a) I
NGENERAL.—Not later than the date which is 24
1 year after the date of the enactment of this Act, the 25
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Secretary of the Treasury or the Secretary’s delegate 1
(hereafter in this section referred to as the ‘‘Secretary’’) 2
shall amend the regulation issued by the Department of 3
the Treasury relating to ‘‘Longevity Annuity Contracts’’ 4
(79 Fed. Reg. 37633 (July 2, 2014)), as follows: 5
(1) R
EPEAL 25-PERCENT PREMIUM LIMIT .—The 6
Secretary shall amend Q&A–17(b)(3) of Treasury 7
Regulation section 1.401(a)(9)–6 and Q&A–12(b)(3) 8
of Treasury Regulation section 1.408–8 to eliminate 9
the requirement that premiums for qualifying lon-10
gevity annuity contracts be limited to a percentage 11
of an individual’s account balance, and to make such 12
corresponding changes to the regulations and related 13
forms as are necessary to reflect the elimination of 14
this requirement. 15
(2) F
ACILITATE JOINT AND SURVIVOR BENE -16
FITS.—The Secretary shall amend Q&A–17(c) of 17
Treasury Regulation section 1.401(a)(9)–6, and 18
make such corresponding changes to the regulations 19
and related forms as are necessary, to provide that, 20
in the case of a qualifying longevity annuity contract 21
which was purchased with joint and survivor annuity 22
benefits for the individual and the individual’s 23
spouse which were permissible under the regulations 24
at the time the contract was originally purchased, a 25
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divorce occurring after the original purchase and be-1
fore the annuity payments commence under the con-2
tract will not affect the permissibility of the joint 3
and survivor annuity benefits or other benefits under 4
the contract, or require any adjustment to the 5
amount or duration of benefits payable under the 6
contract, provided that any qualified domestic rela-7
tions order (within the meaning of section 414(p) of 8
the Internal Revenue Code of 1986) or, in the case 9
of an arrangement not subject to section 414(p) of 10
such Code or section 206(d) of the Employee Retire-11
ment Income Security Act of 1974 (29 U.S.C. 12
1056(d)), any divorce or separation instrument (as 13
defined in subsection (b))— 14
(A) provides that the former spouse is en-15
titled to the survivor benefits under the con-16
tract; 17
(B) does not modify the treatment of the 18
former spouse as the beneficiary under the con-19
tract who is entitled to the survivor benefits; or 20
(C) does not modify the treatment of the 21
former spouse as the measuring life for the sur-22
vivor benefits under the contract. 23
(3) P
ERMIT SHORT FREE LOOK PERIOD .—The 24
Secretary shall amend Q&A–17(a)(4) of Treasury 25
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Regulation section 1.401(a)(9)–6 to ensure that 1
such Q&A does not preclude a contract from includ-2
ing a provision under which an employee may re-3
scind the purchase of the contract within a period 4
not exceeding 90 days from the date of purchase. 5
(b) D
IVORCE ORSEPARATIONINSTRUMENT.—For 6
purposes of subsection (a)(2), the term ‘‘divorce or separa-7
tion instrument’’ means— 8
(1) a decree of divorce or separate maintenance 9
or a written instrument incident to such a decree, 10
(2) a written separation agreement, or 11
(3) a decree (not described in paragraph (1)) 12
requiring a spouse to make payments for the sup-13
port or maintenance of the other spouse. 14
(c) E
FFECTIVEDATES, ENFORCEMENT, ANDINTER-15
PRETATIONS.— 16
(1) E
FFECTIVE DATES.— 17
(A) Paragraph (1) of subsection (a) shall 18
be effective with respect to contracts purchased 19
or received in an exchange on or after the date 20
of the enactment of this Act. 21
(B) Paragraphs (2) and (3) of subsection 22
(a) shall be effective with respect to contracts 23
purchased or received in an exchange on or 24
after July 2, 2016. 25
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(2) ENFORCEMENT AND INTERPRETATIONS .— 1
Prior to the date on which the Secretary issues final 2
regulations pursuant to subsection (a)— 3
(A) the Secretary (or delegate) shall ad-4
minister and enforce the law in accordance with 5
subsection (a) and the effective dates in para-6
graph (1) of this subsection; and 7
(B) taxpayers may rely upon their reason-8
able good faith interpretations of subsection (a). 9
(d) R
EGULATORYSUCCESSORPROVISION.—Any ref-10
erence to a regulation under this section shall be treated 11
as including a reference to any successor regulation there-12
to. 13
SEC. 421. INSURANCE-DEDICATED EXCHANGE-TRADED 14
FUNDS. 15
(a) I
NGENERAL.—Not later than the date which is 16
7 years after the date of the enactment of this Act, the 17
Secretary of the Treasury (or the Secretary’s delegate) 18
shall amend the regulation issued by the Department of 19
the Treasury relating to ‘‘Income Tax; Diversification Re-20
quirements for Variable Annuity, Endowment, and Life 21
Insurance Contracts’’, 54 Fed. Reg. 8728 (March 2, 22
1989), and make any necessary corresponding amend-23
ments to other regulations, in order to facilitate the use 24
of exchange-traded funds as investment options under 25
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variable contracts within the meaning of section 817(d) 1
of the Internal Revenue Code of 1986, in accordance with 2
subsections (b) and (c) of this section. 3
(b) D
ESIGNATECERTAINAUTHORIZEDPARTICI-4
PANTS ANDMARKETMAKERS ASELIGIBLEINVESTORS.— 5
The Secretary of the Treasury (or the Secretary’s dele-6
gate) shall amend Treasury Regulation section 1.817– 7
5(f)(3) to provide that satisfaction of the requirements in 8
Treasury Regulation section 1.817–5(f)(2)(i) with respect 9
to an exchange-traded fund shall not be prevented by rea-10
son of beneficial interests in such a fund being held by 11
1 or more authorized participants or market makers. 12
(c) D
EFINERELEVANT TERMS.—In amending 13
Treasury Regulation section 1.817–5(f)(3) in accordance 14
with subsections (b) of this section, the Secretary of the 15
Treasury (or the Secretary’s delegate) shall provide defini-16
tions consistent with the following: 17
(1) E
XCHANGE-TRADED FUND.—The term ‘‘ex-18
change-traded fund’’ means a regulated investment 19
company, partnership, or trust— 20
(A) that is registered with the Securities 21
and Exchange Commission as an open-end in-22
vestment company or a unit investment trust; 23
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(B) the shares of which can be purchased 1
or redeemed directly from the fund only by an 2
authorized participant; and 3
(C) the shares of which are traded 4
throughout the day on a national stock ex-5
change at market prices that may or may not 6
be the same as the net asset value of the 7
shares. 8
(2) A
UTHORIZED PARTICIPANT .—The term 9
‘‘authorized participant’’ means a financial institu-10
tion that is a member or participant of a clearing 11
agency registered under section 17A(b) of the Secu-12
rities Exchange Act of 1934 that enters into a con-13
tractual relationship with an exchange-traded fund 14
pursuant to which the financial institution is per-15
mitted to purchase and redeem shares directly from 16
the fund and to sell such shares to third parties, but 17
only if the contractual arrangement or applicable law 18
precludes the financial institution from— 19
(A) purchasing the shares for its own in-20
vestment purposes rather than for the exclusive 21
purpose of creating and redeeming such shares 22
on behalf of third parties; and 23
(B) selling the shares to third parties who 24
are not market makers or otherwise described 25
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in paragraphs (2) and (3) of Treasury Regula-1
tion section 1.817–5(f). 2
(3) M
ARKET MAKER .—The term ‘‘market 3
maker’’ means a financial institution that is a reg-4
istered broker or dealer under section 15(b) of the 5
Securities Exchange Act of 1934 that maintains li-6
quidity for an exchange-traded fund on a national 7
stock exchange by being always ready to buy and sell 8
shares of such fund on the market, but only if the 9
financial institution is contractually or legally pre-10
cluded from selling or buying such shares to or from 11
persons who are not authorized participants or oth-12
erwise described in paragraphs (2) and (3) of Treas-13
ury Regulations section 1.817–5(f). 14
(d) E
FFECTIVEDATE.—Subsections (b) and (c) shall 15
apply to segregated asset account investments made on 16
or after the date that is 7 years after the date of the enact-17
ment of this Act. 18
SEC. 422. RECOVERY OF RETIREMENT PLAN OVERPAY-19
MENTS. 20
(a) O
VERPAYMENTSUNDERERISA.—Section 206 of 21
the Employee Retirement Income Security Act of 1974 22
(29 U.S.C. 1056) is amended by adding at the end the 23
following new subsection: 24
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‘‘(h) SPECIALRULESAPPLICABLE TO BENEFIT 1
O
VERPAYMENTS.— 2
‘‘(1) G
ENERAL RULE.—In the case of an inad-3
vertent benefit overpayment by any pension plan, the 4
responsible plan fiduciary shall not be considered to 5
have failed to comply with the requirements of this 6
title merely because such fiduciary determines, in 7
the exercise of its fiduciary discretion, not to seek 8
recovery of all or part of such overpayment from— 9
‘‘(A) any participant or beneficiary, 10
‘‘(B) any plan sponsor of, or contributing 11
employer to— 12
‘‘(i) an individual account plan, pro-13
vided that the amount needed to prevent or 14
restore any impermissible forfeiture from 15
any participant’s or beneficiary’s account 16
arising in connection with the overpayment 17
is, separately from and independently of 18
the overpayment, allocated to such account 19
pursuant to the nonforfeitability require-20
ments of section 203 (for example, out of 21
the plan’s forfeiture account, additional 22
employer contributions, or recoveries from 23
those responsible for the overpayment), or 24
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‘‘(ii) a defined benefit pension plan 1
subject to the funding rules in part 3 of 2
this subtitle B, unless the responsible plan 3
fiduciary determines, in the exercise of its 4
fiduciary discretion, that failure to recover 5
all or part of the overpayment faster than 6
required under such funding rules would 7
materially affect the plan’s ability to pay 8
benefits due to other participants and 9
beneficiaries, or 10
‘‘(C) any fiduciary of the plan, other than 11
a fiduciary (including a plan sponsor or contrib-12
uting employer acting in a fiduciary capacity) 13
whose breach of its fiduciary duties resulted in 14
such overpayment, provided that if the plan has 15
established prudent procedures to prevent and 16
minimize overpayment of benefits and the rel-17
evant plan fiduciaries have followed such proce-18
dures, an inadvertent benefit overpayment will 19
not give rise to a breach of fiduciary duty. 20
‘‘(2) R
EDUCTION IN FUTURE BENEFIT PAY -21
MENTS AND RECOVERY FROM RESPONSIBLE 22
PARTY.—Paragraph (1) shall not fail to apply with 23
respect to any inadvertent benefit overpayment 24
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merely because, after discovering such overpayment, 1
the responsible plan fiduciary— 2
‘‘(A) reduces future benefit payments to 3
the correct amount provided for under the 4
terms of the plan, or 5
‘‘(B) seeks recovery from the person or 6
persons responsible for the overpayment. 7
‘‘(3) E
MPLOYER FUNDING OBLIGATIONS .— 8
Nothing in this subsection shall relieve an employer 9
of any obligation imposed on it to make contribu-10
tions to a plan to meet the minimum funding stand-11
ards under part 3 of this subtitle B or to prevent 12
or restore an impermissible forfeiture in accordance 13
with section 203. 14
‘‘(4) R
ECOUPMENT FROM PARTICIPANTS AND 15
BENEFICIARIES.—If the responsible plan fiduciary, 16
in the exercise of its fiduciary discretion, decides to 17
seek recoupment from a participant or beneficiary of 18
all or part of an inadvertent benefit overpayment 19
made by the plan to such participant or beneficiary, 20
it may do so, subject to the following conditions: 21
‘‘(A) No interest or other additional 22
amounts (such as collection costs or fees) are 23
sought on overpaid amounts for any period. 24
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‘‘(B) If the plan seeks to recoup past over-1
payments of a non-decreasing periodic benefit 2
by reducing future benefit payments— 3
‘‘(i) the reduction ceases after the 4
plan has recovered the full dollar amount 5
of the overpayment, 6
‘‘(ii) the amount recouped each cal-7
endar year does not exceed 10 percent of 8
the full dollar amount of the overpayment, 9
and 10
‘‘(iii) future benefit payments are not 11
reduced to below 90 percent of the periodic 12
amount otherwise payable under the terms 13
of the plan. 14
Alternatively, if the plan seeks to recoup past 15
overpayments of a non-decreasing periodic ben-16
efit through one or more installment payments, 17
the sum of such installment payments in any 18
calendar year does not exceed the sum of the 19
reductions that would be permitted in such year 20
under the preceding sentence. 21
‘‘(C) If the plan seeks to recoup past over-22
payments of a benefit other than a non-decreas-23
ing periodic benefit, the plan satisfies require-24
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ments developed by the Secretary for purposes 1
of this subparagraph. 2
‘‘(D) Efforts to recoup overpayments are— 3
‘‘(i) not accompanied by threats of 4
litigation, unless the responsible plan fidu-5
ciary reasonably believes it could prevail in 6
a civil action brought in Federal or State 7
court to recoup the overpayments, and 8
‘‘(ii) not made through a collection 9
agency or similar third party, unless the 10
participant or beneficiary ignores or rejects 11
efforts to recoup the overpayment following 12
either a final judgment in Federal or State 13
court or a settlement between the partici-14
pant or beneficiary and the plan, in either 15
case authorizing such recoupment. 16
‘‘(E) Recoupment of past overpayments to 17
a participant is not sought from any beneficiary 18
of the participant, including a spouse, surviving 19
spouse, former spouse, or other beneficiary. 20
‘‘(F) Recoupment may not be sought if the 21
first overpayment occurred more than 3 years 22
before the participant or beneficiary is first no-23
tified in writing of the error. 24
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‘‘(G) A participant or beneficiary from 1
whom recoupment is sought is entitled to con-2
test all or part of the recoupment pursuant to 3
the plan’s claims procedures. 4
‘‘(H) In determining the amount of 5
recoupment to seek, the responsible plan fidu-6
ciary may take into account the hardship that 7
recoupment likely would impose on the partici-8
pant or beneficiary. 9
‘‘(5) E
FFECT OF CULPABILITY .—Subpara-10
graphs (A) through (F) of paragraph (4) shall not 11
apply to protect a participant or beneficiary who is 12
culpable. For purposes of this paragraph, a partici-13
pant or beneficiary is culpable if the individual bears 14
responsibility for the overpayment (such as through 15
misrepresentations or omissions that led to the over-16
payment), or if the individual knew, or had good 17
reason to know under the circumstances, that the 18
benefit payment or payments were materially in ex-19
cess of the correct amount. Notwithstanding the pre-20
ceding sentence, an individual is not culpable merely 21
because the individual believed the benefit payment 22
or payments were or might be in excess of the cor-23
rect amount, if the individual raised that question 24
with an authorized plan representative and was told 25
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the payment or payments were not in excess of the 1
correct amount. With respect to a culpable partici-2
pant or beneficiary, efforts to recoup overpayments 3
shall not be made through threats of litigation, un-4
less a lawyer for the plan could make the representa-5
tions required under Rule 11 of the Federal Rules 6
of Civil Procedure if the litigation were brought in 7
Federal court.’’. 8
(b) O
VERPAYMENTS UNDERINTERNALREVENUE 9
C
ODE OF1986.— 10
(1) Q
UALIFICATION REQUIREMENTS .—Section 11
414 of the Internal Revenue Code of 1986, as 12
amended by this preceding provisions of this Act, is 13
amended by adding at the end the following new 14
subsection: 15
‘‘(bb) S
PECIALRULESAPPLICABLE TO BENEFIT 16
O
VERPAYMENTS.— 17
‘‘(1) I
N GENERAL.—A plan shall not fail to be 18
treated as described in clause (i), (ii), (iii), or (iv) 19
of section 219(g)(5)(A) (and shall not fail to be 20
treated as satisfying the requirements of section 21
401(a) or 403) merely because— 22
‘‘(A) the plan fails to obtain payment from 23
any participant, beneficiary, employer, plan 24
sponsor, fiduciary, or other party on account of 25
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any inadvertent benefit overpayment made by 1
the plan, or 2
‘‘(B) the plan sponsor amends the plan to 3
increase past or future benefit payments to af-4
fected participants and beneficiaries in order to 5
adjust for prior inadvertent benefit overpay-6
ments. 7
‘‘(2) R
EDUCTION IN FUTURE BENEFIT PAY -8
MENTS AND RECOVERY FROM RESPONSIBLE 9
PARTY.—Paragraph (1) shall not fail to apply to a 10
plan merely because, after discovering a benefit over-11
payment, such plan— 12
‘‘(A) reduces future benefit payments to 13
the correct amount provided for under the 14
terms of the plan, or 15
‘‘(B) seeks recovery from the person or 16
persons responsible for such overpayment. 17
‘‘(3) E
MPLOYER FUNDING OBLIGATIONS .— 18
Nothing in this subsection shall relieve an employer 19
of any obligation imposed on it to make contribu-20
tions to a plan to meet the minimum funding stand-21
ards under sections 412 and 430 or to prevent or re-22
store an impermissible forfeiture in accordance with 23
section 411. 24
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‘‘(4) OBSERVANCE OF BENEFIT LIMITATIONS .— 1
Notwithstanding paragraph (1), a plan to which 2
paragraph (1) applies shall observe any limitations 3
imposed on it by section 401(a)(17) or 415. The 4
plan may enforce such limitations using any method 5
approved by the Secretary of the Treasury for re-6
couping benefits previously paid or allocations pre-7
viously made in excess of such limitations. 8
‘‘(5) C
OORDINATION WITH OTHER QUALIFICA -9
TION REQUIREMENTS .—The Secretary of the Treas-10
ury may issue regulations or other guidance of gen-11
eral applicability specifying how benefit overpay-12
ments and their recoupment or non-recoupment 13
from a participant or beneficiary shall be taken into 14
account for purposes of satisfying any requirement 15
applicable to a plan to which paragraph (1) applies.’’ 16
(2) R
OLLOVERS.—Section 402(c) of such Code 17
is amended by adding at the end the following new 18
paragraph: 19
‘‘(12) In the case of an inadvertent benefit 20
overpayment from a plan to which section 21
414(bb)(1) applies that is transferred to an eligible 22
retirement plan by or on behalf of a participant or 23
beneficiary— 24
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‘‘(A) the portion of such overpayment with 1
respect to which recoupment is not sought on 2
behalf of the plan shall be treated as having 3
been paid in an eligible rollover distribution if 4
the payment would have been an eligible roll-5
over distribution but for being an overpayment, 6
and 7
‘‘(B) the portion of such overpayment with 8
respect to which recoupment is sought on behalf 9
of the plan shall be permitted to be returned to 10
such plan and in such case shall be treated as 11
an eligible rollover distribution transferred to 12
such plan by the participant or beneficiary who 13
received such overpayment (and the plans mak-14
ing and receiving such transfer shall be treated 15
as permitting such transfer). 16
In any case in which recoupment is sought on behalf 17
of the plan but is disputed by the participant or ben-18
eficiary who received such overpayment, such dispute 19
shall be subject to the claims procedures of the plan 20
that made such overpayment, such plan shall notify 21
the plan receiving the rollover of such dispute, and 22
the plan receiving the rollover shall retain such over-23
payment on behalf of the participant or beneficiary 24
(and shall be entitled to treat such overpayment as 25
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•HR 185 IH
plan assets) pending the outcome of such proce-1
dures.’’. 2
(c) E
FFECTIVEDATE.—The amendments made by 3
this section shall apply as of the date of the enactment 4
of this Act. 5
(d) C
ERTAINACTIONSBEFOREDATE OFENACT-6
MENT.—Plans, fiduciaries, employers, and plan sponsors 7
are entitled to rely on— 8
(1) a good faith interpretation of then existing 9
administrative guidance for inadvertent benefit over-10
payment recoupments and recoveries that com-11
menced before the date of enactment of this Act, 12
and 13
(2) determinations made before the date of en-14
actment of this Act by the responsible plan fidu-15
ciary, in the exercise of its fiduciary discretion, not 16
to seek recoupment or recovery of all or part of an 17
inadvertent benefit overpayment. 18
In the case of a benefit overpayment that occurred prior 19
to the date of enactment of this Act, any installment pay-20
ments by the participant or beneficiary to the plan or any 21
reduction in periodic benefit payments to the participant 22
or beneficiary, which were made in recoupment of such 23
overpayment and which commenced prior to such date, 24
may continue after such date. Nothing in this subsection 25
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shall relieve a fiduciary from responsibility for an overpay-1
ment that resulted from a breach of its fiduciary duties. 2
SEC. 423. REDUCTION IN EXCISE TAX ON CERTAIN ACCU-3
MULATIONS IN QUALIFIED RETIREMENT 4
PLANS. 5
(a) I
NGENERAL.—Section 4974(a) of the Internal 6
Revenue Code of 1986 is amended by striking ‘‘50 per-7
cent’’ and inserting ‘‘25 percent’’. 8
(b) R
EDUCTION INEXCISETAX ONFAILURESTO 9
T
AKEREQUIREDMINIMUMDISTRIBUTIONS.—Section 10
4974 of such Code is amended by adding at the end the 11
following new subsection: 12
‘‘(e) R
EDUCTION OFTAX INCERTAINCASES.— 13
‘‘(1) R
EDUCTION.—In the case of a taxpayer 14
who— 15
‘‘(A) corrects, during the correction win-16
dow, a shortfall of distributions from an indi-17
vidual retirement plan which resulted in imposi-18
tion of a tax under subsection (a), and 19
‘‘(B) submits a return, during the correc-20
tion window, reflecting such tax (as modified by 21
this subsection), 22
the first sentence of subsection (a) shall be applied 23
by substituting ‘10 percent’ for ‘25 percent’. 24
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‘‘(2) CORRECTION WINDOW .—For purposes of 1
this subsection, the term ‘correction window’ means 2
the period of time beginning on the date on which 3
the tax under subsection (a) is imposed with respect 4
to a shortfall of distributions from an individual re-5
tirement plan, and ending on the earlier of— 6
‘‘(A) the date on which the Secretary initi-7
ates an audit, or otherwise demands payment, 8
with respect to the shortfall of distributions, or 9
‘‘(B) the last day of the second taxable 10
year that begins after the end of the taxable 11
year in which the tax under subsection (a) is 12
imposed.’’. 13
(c) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to taxable years beginning after 15
December 31, 2024. 16
SEC. 424. PERFORMANCE BENCHMARKS FOR ASSET ALLO-17
CATION FUNDS. 18
(a) I
NGENERAL.—Not later than 1 year after the 19
date of enactment of this Act, the Secretary of Labor shall 20
provide that, in the case of a designated investment alter-21
native that contains a mix of asset classes, the adminis-22
trator of a plan may, but is not required to, use a bench-23
mark that is a blend of different broad-based securities 24
market indices if— 25
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(1) the blend is reasonably representative of the 1
asset class holdings of the designated investment al-2
ternative; 3
(2) for purposes of determining the blend’s re-4
turns for 1-, 5-, and 10-calendar-year periods (or for 5
the life of the alternative, if shorter), the blend is 6
modified at least once per year to reflect changes in 7
the asset class holdings of the designated investment 8
alternative; 9
(3) the blend is furnished to participants and 10
beneficiaries in a manner that is reasonably designed 11
to be understandable; and 12
(4) each securities market index that is used for 13
an associated asset class would separately satisfy the 14
requirements of such regulation for such asset class. 15
(b) S
TUDY.—Not later than 3 years after the date 16
of enactment of this Act, the Secretary of Labor shall de-17
liver a report to the Committees on Finance and Health, 18
Education, Labor, and Pensions of the Senate and the 19
Committees on Ways and Means and Education and 20
Labor of the House of Representatives regarding the utili-21
zation, effectiveness, and participants’ understanding of 22
the benchmarking requirements under this section. 23
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SEC. 425. REVIEW AND REPORT TO CONGRESS RELATING 1
TO REPORTING AND DISCLOSURE REQUIRE-2
MENTS. 3
(a) S
TUDY.—As soon as practicable after the date of 4
enactment of this Act, the Secretary of Labor, the Sec-5
retary of the Treasury, and the Director of the Pension 6
Benefit Guaranty Corporation shall review the reporting 7
and disclosure requirements as applicable to each such 8
agency head, of— 9
(1) the Employee Retirement Income Security 10
Act of 1974 applicable to pension plans (as defined 11
in section 3(2) of such Act (29 U.S.C. 1002(2)); and 12
(2) the Internal Revenue Code of 1986 applica-13
ble to qualified retirement plans (as defined in sec-14
tion 4974(c) of such Code, without regard to para-15
graphs (4) and (5) of such section). 16
(b) R
EPORT.— 17
(1) I
N GENERAL.—Not later than 2 years after 18
the date of enactment of this Act, the Secretary of 19
Labor, the Secretary of the Treasury, and the Direc-20
tor of the Pension Benefit Guaranty Corporation, 21
jointly, and after consultation with a balanced group 22
of participant and employer representatives, shall 23
with respect to plans referenced in subsection (a) re-24
port on the effectiveness of the applicable reporting 25
and disclosure requirements and make such rec-26
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ommendations as may be appropriate to the Com-1
mittee on Education and Labor and the Committee 2
on Ways and Means of the House of Representatives 3
and the Committee on Health, Education, Labor, 4
and Pensions and the Committee on Finance of the 5
Senate to consolidate, simplify, standardize, and im-6
prove such requirements so as to simplify reporting 7
for such plans and ensure that plans can furnish 8
and participants and beneficiaries timely receive and 9
better understand the information they need to mon-10
itor their plans, plan for retirement, and obtain the 11
benefits they have earned. 12
(2) A
NALYSIS OF EFFECTIVENESS .—To assess 13
the effectiveness of the applicable reporting and dis-14
closure requirements, the report shall include an 15
analysis, based on plan data, of how participants 16
and beneficiaries are providing preferred contact in-17
formation, the methods by which plan sponsors and 18
plans are furnishing disclosures, and the rate at 19
which participants and beneficiaries (grouped by key 20
demographics) are receiving, accessing, under-21
standing, and retaining disclosures. 22
(3) C
OLLECTION OF INFORMATION .—The agen-23
cies shall conduct appropriate surveys and data col-24
lection to obtain any needed information. 25
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SEC. 426. ELIMINATING UNNECESSARY PLAN REQUIRE-1
MENTS RELATED TO UNENROLLED PARTICI-2
PANTS. 3
(a) A
MENDMENT OF EMPLOYEERETIREMENTIN-4
COMESECURITYACT OF1974.— 5
(1) I
N GENERAL.—Part 1 of subtitle B of sub-6
chapter I of the Employee Retirement Income Secu-7
rity Act of 1974 is amended by redesignating section 8
111 as section 112 and by inserting after section 9
110 the following new section: 10
‘‘SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIRE-11
MENTS RELATED TO UNENROLLED PARTICI-12
PANTS. 13
‘‘(a) I
NGENERAL.—Notwithstanding any other pro-14
vision of this title, with respect to any individual account 15
plan, no disclosure, notice, or other plan document (other 16
than the notices and documents described in paragraphs 17
(1) and (2)) shall be required to be furnished under this 18
title to any unenrolled participant if the unenrolled partici-19
pant receives— 20
‘‘(1) an annual reminder notice of such partici-21
pant’s eligibility to participate in such plan and any 22
applicable election deadlines under the plan; and 23
‘‘(2) any document requested by such partici-24
pant that the participant would be entitled to receive 25
notwithstanding this section. 26
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‘‘(b) UNENROLLEDPARTICIPANT.—For purposes of 1
this section, the term ‘unenrolled participant’ means an 2
employee who— 3
‘‘(1) is eligible to participate in an individual 4
account plan; 5
‘‘(2) has received— 6
‘‘(A) the summary plan description pursu-7
ant to section 104(b); and 8
‘‘(B) any other notices related to eligibility 9
under the plan required to be furnished under 10
this title, or the Internal Revenue Code of 11
1986, in connection with such participant’s ini-12
tial eligibility to participate in such plan; 13
‘‘(3) is not participating in such plan; 14
‘‘(4) does not have an account balance in the 15
plan; and 16
‘‘(5) satisfies such other criteria as the Sec-17
retary of Labor may determine appropriate, as pre-18
scribed in guidance issued in consultation with the 19
Secretary of Treasury. 20
For purposes of this section, any eligibility to participate 21
in the plan following any period for which such employee 22
was not eligible to participate shall be treated as initial 23
eligibility. 24
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‘‘(c) ANNUALREMINDERNOTICE.—For purposes of 1
this section, the term ‘annual reminder notice’ means a 2
notice provided in accordance with section 2520.104b–1 3
of title 29, Code of Federal Regulations (or any successor 4
regulation), which— 5
‘‘(1) is furnished in connection with the annual 6
open season election period with respect to the plan 7
or, if there is no such period, is furnished within a 8
reasonable period prior to the beginning of each plan 9
year; 10
‘‘(2) notifies the unenrolled participant of— 11
‘‘(A) the unenrolled participant’s eligibility 12
to participate in the plan; and 13
‘‘(B) the key benefits and rights under the 14
plan, with a focus on employer contributions 15
and vesting provisions; and 16
‘‘(3) provides such information in a prominent 17
manner calculated to be understood by the average 18
participant.’’. 19
(2) C
LERICAL AMENDMENT .—The table of con-20
tents in section 1 of the Employee Retirement In-21
come Security Act of 1974 is amended by striking 22
the item relating to section 111 and by inserting 23
after the item relating to section 110 the following 24
new items: 25
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‘‘Sec. 111. Eliminating unnecessary plan requirements related to unenrolled 
participants. 
‘‘Sec. 112. Repeal and effective date.’’. 
(b) AMENDMENT OF INTERNALREVENUECODE OF 1
1986.—Section 414 of the Internal Revenue Code of 2
1986, as amended by the preceding provisions of this Act, 3
is amended by adding at the end the following new sub-4
section: 5
‘‘(cc) E
LIMINATINGUNNECESSARYPLANREQUIRE-6
MENTSRELATED TOUNENROLLEDPARTICIPANTS.— 7
‘‘(1) I
N GENERAL.—Notwithstanding any other 8
provision of this title, with respect to any defined 9
contribution plan, no disclosure, notice, or other plan 10
document (other than the notices and documents de-11
scribed in subparagraphs (A) and (B)) shall be re-12
quired to be furnished under this title to any 13
unenrolled participant if the unenrolled participant 14
receives— 15
‘‘(A) an annual reminder notice of such 16
participant’s eligibility to participate in such 17
plan and any applicable election deadlines under 18
the plan, and 19
‘‘(B) any document requested by such par-20
ticipant that the participant would be entitled 21
to receive notwithstanding this subsection. 22
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‘‘(2) UNENROLLED PARTICIPANT .—For pur-1
poses of this subsection, the term ‘unenrolled partici-2
pant’ means an employee who— 3
‘‘(A) is eligible to participate in a defined 4
contribution plan, 5
‘‘(B) has received— 6
‘‘(i) the summary plan description 7
pursuant to section 104(b) of the Em-8
ployee Retirement Income Security Act of 9
1974, and 10
‘‘(ii) any other notices related to eligi-11
bility under the plan and required to be 12
furnished under this title, or the Employee 13
Retirement Income Security Act of 1974, 14
in connection with such participant’s initial 15
eligibility to participate in such plan, 16
‘‘(C) is not participating in such plan, 17
‘‘(D) does not have an account balance in 18
the plan, and 19
‘‘(E) satisfies such other criteria as the 20
Secretary of the Treasury may determine ap-21
propriate, as prescribed in guidance issued in 22
consultation with the Secretary of Labor. 23
For purposes of this subsection, any eligibility to 24
participate in the plan following any period for 25
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which such employee was not eligible to participate 1
shall be treated as initial eligibility. 2
‘‘(3) A
NNUAL REMINDER NOTICE .—For pur-3
poses of this subsection, the term ‘annual reminder 4
notice’ means the notice described in section 111(c) 5
of the Employee Retirement Income Security Act of 6
1974.’’. 7
(c) E
FFECTIVEDATE.—The amendments made by 8
this section shall apply to plan years beginning after De-9
cember 31, 2024. 10
SEC. 427. RETIREMENT SAVINGS LOST AND FOUND. 11
(a) I
NGENERAL.— 12
(1) E
STABLISHMENT OF RETIREMENT SAVINGS 13
LOST AND FOUND .—Part 5 of title I of the Em-14
ployee Retirement Income Security Act of 1974 (29 15
U.S.C. 1341 et seq.) is amended by adding at the 16
end the following: 17
‘‘SEC. 523. RETIREMENT SAVINGS LOST AND FOUND. 18
‘‘(a) E
STABLISHMENT.— 19
‘‘(1) I
N GENERAL.—Not later than 2 years 20
after the date of the enactment of this section, the 21
Secretary of Labor, in consultation with the Sec-22
retary of the Treasury, shall establish an online 23
searchable database (to be managed by the Depart-24
ment of Labor in accordance with this section) to be 25
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known as the ‘Retirement Savings Lost and Found’. 1
The Retirement Savings Lost and Found shall— 2
‘‘(A) allow an individual to search for in-3
formation that enables the individual to locate 4
the administrator of any plan described in para-5
graph (2) with respect to which the individual 6
is or was a participant or beneficiary, and pro-7
vide contact information for the administrator 8
of any such plan; 9
‘‘(B) allow the Department of Labor to as-10
sist such an individual in locating any such plan 11
of the individual; and 12
‘‘(C) allow the Department of Labor to 13
make any necessary changes to contact infor-14
mation on record for the administrator based 15
on any changes to the plan due to merger or 16
consolidation of the plan with any other plan, 17
division of the plan into two or more plans, 18
bankruptcy, termination, change in name of the 19
plan, change in name or address of the admin-20
istrator, or other causes. 21
The Retirement Savings Lost and Found established 22
under this paragraph shall include information re-23
ported under this section and other relevant infor-24
mation obtained by the Department of Labor. 25
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‘‘(2) PLANS DESCRIBED.—A plan described in 1
this paragraph is a plan to which the vesting stand-2
ards of section 203 apply. 3
‘‘(b) A
DMINISTRATION.—The Retirement Savings 4
Lost and Found established under subsection (a) shall 5
provide individuals described in subsection (a)(1) only 6
with the ability to search for information that enables the 7
individual to locate the administrator and contact informa-8
tion for the administrator of any plan with respect to 9
which the individual is or was a participant or beneficiary, 10
sufficient to allow the individual to locate the individual’s 11
plan in order to recover any benefit owing to the individual 12
under the plan. 13
‘‘(c) S
AFEGUARDINGPARTICIPANTPRIVACY ANDSE-14
CURITY.—In establishing the Retirement Savings Lost 15
and Found under subsection (a), the Department of Labor 16
shall take all necessary and proper precautions to ensure 17
that individuals’ plan information maintained by the Re-18
tirement Savings Lost and Found is protected. 19
‘‘(d) D
EFINITION OFADMINISTRATOR.—For pur-20
poses of this section, the term ‘administrator’ has the 21
meaning given such term in section 3(16)(A). 22
‘‘(e) I
NFORMATIONCOLLECTIONFROMPLANS.—Ef-23
fective with respect to plan years beginning after the sec-24
ond December 31 occurring after the date of the enact-25
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ment of this subsection, the administrator of a plan to 1
which the vesting standards of section 203 apply shall sub-2
mit to the Department of Labor, at such time and in such 3
form and manner as is prescribed in regulations— 4
‘‘(1) the information described in paragraphs 5
(1) through (4) of section 6057(b) of the Internal 6
Revenue Code of 1986; 7
‘‘(2) the information described in subpara-8
graphs (A) and (B) of section 6057(a)(2) of such 9
Code; 10
‘‘(3) the name and taxpayer identifying number 11
of each participant or former participant in the 12
plan— 13
‘‘(A) who, during the current plan year or 14
any previous plan year, was reported under sec-15
tion 6057(a)(2)(C) of such Code, and with re-16
spect to whom the benefits described in clause 17
(ii) thereof were fully paid during the plan year; 18
‘‘(B) with respect to whom any amount 19
was distributed under section 401(a)(31)(B) of 20
such Code during the plan year; or 21
‘‘(C) with respect to whom a deferred an-22
nuity contract was distributed during the plan 23
year; 24
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‘‘(4) in the case of a participant or former par-1
ticipant to whom paragraph (3) applies— 2
‘‘(A) in the case of a participant described 3
in subparagraph (B) thereof, the name and ad-4
dress of the designated trustee or issuer de-5
scribed in section 401(a)(31)(B)(i) of such 6
Code and the account number of the individual 7
retirement plan to which the amount was dis-8
tributed; and 9
‘‘(B) in the case of a participant described 10
in subparagraph (C) thereof, the name and ad-11
dress of the issuer of such annuity contract and 12
the contract or certificate number; and 13
‘‘(5) such other information as the Secretary of 14
Labor may require. 15
‘‘(f) I
NFORMATION COLLECTIONFROMFEDERAL 16
A
GENCIES.—On request, the Secretary of Labor may ac-17
cess and receive such information collected by other Fed-18
eral agencies as may be necessary and appropriate to per-19
form work related to the Retirement Savings Lost and 20
Found. 21
‘‘(g) P
ROGRAMINTEGRITYAUDIT.—On an annual 22
basis for each of the first 5 years beginning one year after 23
the establishment of the database in subsection (a)(1) and 24
every 5 years thereafter, the Inspector General of the De-25
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partment of Labor shall conduct an audit of the adminis-1
tration of the Retirement Savings Lost and Found.’’. 2
(3) C
ONFORMING AMENDMENT .—The table of 3
contents for the Employee Retirement Income Secu-4
rity Act of 1974 (29 U.S.C. 1001 et seq.) is amend-5
ed by inserting after the item relating to section 522 6
the following: 7
‘‘Sec. 523.Retirement Savings Lost and Found.’’. 
SEC. 428. UPDATING DOLLAR LIMIT FOR MANDATORY DIS-
8
TRIBUTIONS. 9
(a) I
NGENERAL.—Section 203(e)(1) of the Em-10
ployee Retirement Income Security Act of 1974 and sec-11
tions 401(a)(31)(B)(ii) and 411(a)(11)(A) of the Internal 12
Revenue Code of 1986 are each amended by striking 13
‘‘$5,000’’ and inserting ‘‘$7,000’’. 14
(b) E
FFECTIVEDATE.—The amendments made by 15
this section shall apply to distributions made after Decem-16
ber 31, 2024. 17
SEC. 429. EXPANSION OF EMPLOYEE PLANS COMPLIANCE 18
RESOLUTION SYSTEM. 19
(a) I
NGENERAL.—Except as otherwise provided in 20
the Internal Revenue Code of 1986 or regulations pre-21
scribed by the Secretary of the Treasury or the Secretary’s 22
delegate (referred to in this section as the ‘‘Secretary’’), 23
any eligible inadvertent failure to comply with the rules 24
applicable under section 401(a), 403(a), 403(b), 408(p), 25
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•HR 185 IH
or 408(k) of such Code may be self-corrected under the 1
Employee Plans Compliance Resolution System (as de-2
scribed in Revenue Procedure 2021–30, or any successor 3
guidance, and hereafter in this section referred to as the 4
‘‘EPCRS’’), except to the extent that such failure was 5
identified by the Secretary prior to any actions which dem-6
onstrate a commitment to implement a self-correction. 7
Revenue Procedure 2021–30 is deemed amended as of the 8
date of the enactment of this Act to provide that the cor-9
rection period under section 9.02 of such Revenue Proce-10
dure (or any successor guidance) for an eligible inad-11
vertent failure, except as otherwise provided under such 12
Code or in regulations prescribed by the Secretary, is in-13
definite and has no last day, other than with respect to 14
failures identified by the Secretary prior to any self-correc-15
tion as described in the preceding sentence. 16
(b) L
OANERRORS.—In the case of an eligible inad-17
vertent failure relating to a loan from a plan to a partici-18
pant— 19
(1) such failure may be self-corrected under 20
subsection (a) according to the rules of section 6.07 21
of Revenue Procedure 2021–30 (or any successor 22
guidance), including the provisions related to wheth-23
er a deemed distribution must be reported on Form 24
1099–R; and 25
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(2) the Secretary of Labor shall treat any such 1
failure which is so self-corrected under subsection 2
(a) as meeting the requirements of the Voluntary Fi-3
duciary Correction Program of the Department of 4
Labor if, with respect to the violation of the fidu-5
ciary standards of the Employee Retirement Income 6
Security Act of 1974, there is a similar loan error 7
eligible for correction under EPCRS and the loan 8
error is corrected in such manner. 9
(c) EPCRS 
FORIRAS.—The Secretary shall expand 10
the EPCRS to allow custodians of individual retirement 11
plans (as defined in section 7701(a)(37) of the Internal 12
Revenue Code of 1986) to address eligible inadvertent fail-13
ures with respect to an individual retirement plan (as so 14
defined), including (but not limited to)— 15
(1) waivers of the excise tax which would other-16
wise apply under section 4974 of the Internal Rev-17
enue Code of 1986; 18
(2) under the self-correction component of the 19
EPCRS, waivers of the 60-day deadline for a roll-20
over where the deadline is missed for reasons beyond 21
the reasonable control of the account owner; and 22
(3) rules permitting a nonspouse beneficiary to 23
return distributions to an inherited individual retire-24
ment plan described in section 408(d)(3)(C) of the 25
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Internal Revenue Code of 1986 in a case where, due 1
to an inadvertent error by a service provider, the 2
beneficiary had reason to believe that the distribu-3
tion could be rolled over without inclusion in income 4
of any part of the distributed amount. 5
(d) A
DDITIONALSAFEHARBORS.—The Secretary 6
shall expand the EPCRS to provide additional safe harbor 7
means of correcting eligible inadvertent failures described 8
in subsection (a), including safe harbor means of calcu-9
lating the earnings which must be restored to a plan in 10
cases where plan assets have been depleted by reason of 11
an eligible inadvertent failure. 12
(e) E
LIGIBLEINADVERTENT FAILURE.—For pur-13
poses of this section— 14
(1) I
N GENERAL.—Except as provided in para-15
graph (2), the term ‘‘eligible inadvertent failure’’ 16
means a failure that occurs despite the existence of 17
practices and procedures which— 18
(A) satisfy the standards set forth in sec-19
tion 4.04 of Revenue Procedure 2021–30 (or 20
any successor guidance); or 21
(B) satisfy similar standards in the case of 22
an individual retirement plan. 23
(2) E
XCEPTION.—The term ‘‘eligible inad-24
vertent failure’’ shall not include any failure which 25
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•HR 185 IH
is egregious, relates to the diversion or misuse of 1
plan assets, or is directly or indirectly related to an 2
abusive tax avoidance transaction. 3
(f) A
PPLICATION OFCERTAINREQUIREMENTS FOR 4
C
ORRECTINGERRORS.—This section shall not apply to 5
any failure unless the correction of such failure under this 6
section is made in conformity with the general principles 7
that apply to corrections of such failures under the Inter-8
nal Revenue Code of 1986, including regulations or other 9
guidance issued thereunder and including those principles 10
and corrections set forth in Revenue Procedure 2021–30 11
(or any successor guidance). 12
SEC. 430. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE-13
QUIREMENT FOR GOVERNMENTAL SECTION 14
457(B) PLANS. 15
(a) I
NGENERAL.—Section 457(b)(4) of the Internal 16
Revenue Code of 1986 is amended to read as follows: 17
‘‘(4) which provides that compensation— 18
‘‘(A) in the case of an eligible employer de-19
scribed in subsection (e)(1)(A), will be deferred 20
only if an agreement providing for such deferral 21
has been entered into before the compensation 22
is currently available to the individual, and 23
‘‘(B) in any other case, will be deferred for 24
any calendar month only if an agreement pro-25
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viding for such deferral has been entered into 1
before the beginning of such month,’’. 2
(b) E
FFECTIVEDATE.—The amendment made by 3
this section shall apply to taxable years beginning after 4
the date of the enactment of this Act. 5
SEC. 431. ONE-TIME ELECTION FOR QUALIFIED CHARI-6
TABLE DISTRIBUTION TO SPLIT-INTEREST 7
ENTITY; INCREASE IN QUALIFIED CHARI-8
TABLE DISTRIBUTION LIMITATION. 9
(a) O
NE-TIMEELECTION FORQUALIFIEDCHARI-10
TABLEDISTRIBUTION TO SPLIT-INTERESTENTITY.— 11
Section 408(d)(8) of the Internal Revenue Code of 1986 12
is amended by adding at the end the following new sub-13
paragraph: 14
‘‘(F) O
NE-TIME ELECTION FOR QUALIFIED 15
CHARITABLE DISTRIBUTION TO SPLIT -INTEREST 16
ENTITY.— 17
‘‘(i) I
N GENERAL.—A taxpayer may 18
for a taxable year elect under this subpara-19
graph to treat as meeting the requirement 20
of subparagraph (B)(i) any distribution 21
from an individual retirement account 22
which is made directly by the trustee to a 23
split-interest entity, but only if— 24
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‘‘(I) an election is not in effect 1
under this subparagraph for a pre-2
ceding taxable year, 3
‘‘(II) the aggregate amount of 4
distributions of the taxpayer with re-5
spect to which an election under this 6
subparagraph is made does not exceed 7
$50,000, and 8
‘‘(III) such distribution meets the 9
requirements of clauses (iii) and (iv). 10
‘‘(ii) S
PLIT-INTEREST ENTITY.—For 11
purposes of this subparagraph, the term 12
‘split-interest entity’ means— 13
‘‘(I) a charitable remainder annu-14
ity trust (as defined in section 15
664(d)(1)), but only if such trust is 16
funded exclusively by qualified chari-17
table distributions, 18
‘‘(II) a charitable remainder 19
unitrust (as defined in section 20
664(d)(2)), but only if such unitrust 21
is funded exclusively by qualified char-22
itable distributions, or 23
‘‘(III) a charitable gift annuity 24
(as defined in section 501(m)(5)), but 25
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•HR 185 IH
only if such annuity is funded exclu-1
sively by qualified charitable distribu-2
tions and commences fixed payments 3
of 5 percent or greater not later than 4
1 year from the date of funding. 5
‘‘(iii) C
ONTRIBUTIONS MUST BE OTH -6
ERWISE DEDUCTIBLE .—A distribution 7
meets the requirement of this clause only 8
if— 9
‘‘(I) in the case of a distribution 10
to a charitable remainder annuity 11
trust or a charitable remainder 12
unitrust, a deduction for the entire 13
value of the remainder interest in the 14
distribution for the benefit of a speci-15
fied charitable organization would be 16
allowable under section 170 (deter-17
mined without regard to subsection 18
(b) thereof and this paragraph), and 19
‘‘(II) in the case of a charitable 20
gift annuity, a deduction in an 21
amount equal to the amount of the 22
distribution reduced by the value of 23
the annuity described in section 24
501(m)(5)(B) would be allowable 25
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under section 170 (determined with-1
out regard to subsection (b) thereof 2
and this paragraph). 3
‘‘(iv) L
IMITATION ON INCOME INTER -4
ESTS.—A distribution meets the require-5
ments of this clause only if— 6
‘‘(I) no person holds an income 7
interest in the split-interest entity 8
other than the individual for whose 9
benefit such account is maintained, 10
the spouse of such individual, or both, 11
and 12
‘‘(II) the income interest in the 13
split-interest entity is nonassignable. 14
‘‘(v) S
PECIAL RULES.— 15
‘‘(I) C
HARITABLE REMAINDER 16
TRUSTS.—Notwithstanding section 17
664(b), distributions made from a 18
trust described in subclause (I) or (II) 19
of clause (ii) shall be treated as ordi-20
nary income in the hands of the bene-21
ficiary to whom the annuity described 22
in section 664(d)(1)(A) or the pay-23
ment described in section 24
664(d)(2)(A) is paid. 25
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‘‘(II) CHARITABLE GIFT ANNU -1
ITIES.—Qualified charitable distribu-2
tions made to fund a charitable gift 3
annuity shall not be treated as an in-4
vestment in the contract for purposes 5
of section 72(c).’’. 6
(b) I
NFLATIONADJUSTMENT.—Section 408(d)(8) of 7
such Code, as amended by subsection (a), is amended by 8
adding at the end the following new subparagraph: 9
‘‘(G) I
NFLATION ADJUSTMENT .— 10
‘‘(i) I
N GENERAL.—In the case of any 11
taxable year beginning after 2022, each of 12
the dollar amounts in subparagraphs (A) 13
and (F) shall be increased by an amount 14
equal to— 15
‘‘(I) such dollar amount, multi-16
plied by 17
‘‘(II) the cost-of-living adjust-18
ment determined under section 1(f)(3) 19
for the calendar year in which the tax-20
able year begins, determined by sub-21
stituting ‘calendar year 2021’ for ‘cal-22
endar year 2016’ in subparagraph 23
(A)(ii) thereof. 24
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‘‘(ii) ROUNDING.—If any dollar 1
amount increased under clause (i) is not a 2
multiple of $1,000, such dollar amount 3
shall be rounded to the nearest multiple of 4
$1,000.’’. 5
(c) E
FFECTIVEDATE.—The amendment made by 6
this section shall apply to distributions made in taxable 7
years ending after the date of the enactment of this Act. 8
SEC. 432. DISTRIBUTIONS TO FIREFIGHTERS. 9
(a) I
NGENERAL.—Subparagraph (A) of section 10
72(t)(10) of the Internal Revenue Code of 1986 is amend-11
ed by striking ‘‘414(d))’’ and inserting ‘‘414(d)) or a dis-12
tribution from a plan described in clause (iii), (iv), or (vi) 13
of section 402(c)(8)(B) to an employee who provides fire-14
fighting services’’. 15
(b) C
ONFORMING AMENDMENT.—The heading of 16
paragraph (10) of section 72(t) of such Code is amended 17
by striking ‘‘
IN GOVERNMENTAL PLANS ’’ and inserting 18
‘‘
AND PRIVATE SECTOR FIREFIGHTERS ’’. 19
(c) E
FFECTIVEDATE.—The amendments made by 20
this section shall apply to distributions made after Decem-21
ber 31, 2024. 22
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SEC. 433. EXCLUSION OF CERTAIN DISABILITY-RELATED 1
FIRST RESPONDER RETIREMENT PAYMENTS. 2
(a) I
NGENERAL.—Part III of subchapter B of chap-3
ter 1 of the Internal Revenue Code of 1986 is amended 4
by inserting after section 139B the following new section: 5
‘‘SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RE-6
SPONDER RETIREMENT PAYMENTS. 7
‘‘(a) I
NGENERAL.—In the case of an individual who 8
receives qualified first responder retirement payments for 9
any taxable year, gross income shall not include so much 10
of such payments as do not exceed the annualized exclud-11
able disability amount with respect to such individual. 12
‘‘(b) Q
UALIFIEDFIRSTRESPONDERRETIREMENT 13
P
AYMENTS.—For purposes of this section, the term ‘quali-14
fied first responder retirement payments’ means, with re-15
spect to any taxable year, any pension or annuity which 16
but for this section would be includible in gross income 17
for such taxable year and which is received— 18
‘‘(1) from a plan described in clause (iii), (iv), 19
(v), or (vi) of section 402(c)(8)(B), and 20
‘‘(2) in connection with such individual’s quali-21
fied first responder service. 22
‘‘(c) A
NNUALIZED EXCLUDABLE DISABILITY 23
A
MOUNT.—For purposes of this section— 24
‘‘(1) I
N GENERAL.—The term ‘annualized ex-25
cludable disability amount’ means, with respect to 26
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any individual, the service-connected excludable dis-1
ability amounts which are properly attributable to 2
the 12-month period immediately preceding the date 3
on which such individual attains retirement age. 4
‘‘(2) S
ERVICE-CONNECTED EXCLUDABLE DIS -5
ABILITY AMOUNT.—The term ‘service-connected ex-6
cludable disability amount’ means periodic payments 7
received by an individual which— 8
‘‘(A) are not includible in such individual’s 9
gross income under section 104(a)(1), 10
‘‘(B) are received in connection with such 11
individual’s qualified first responder service, 12
and 13
‘‘(C) terminate when such individual at-14
tains retirement age. 15
‘‘(3) S
PECIAL RULE FOR PARTIAL -YEAR PAY-16
MENTS.—In the case of an individual who only re-17
ceives service-connected excludable disability 18
amounts properly attributable to a portion of the 12- 19
month period described in paragraph (1), such para-20
graph shall be applied by multiplying such amounts 21
by the ratio of 365 to the number of days in such 22
period to which such amounts were properly attrib-23
utable. 24
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‘‘(d) QUALIFIEDFIRSTRESPONDERSERVICE.—For 1
purposes of this section, the term ‘qualified first responder 2
service’ means service as a law enforcement officer, fire-3
fighter, paramedic, or emergency medical technician.’’. 4
(b) C
LERICALAMENDMENT.—The table of sections 5
for part III of subchapter B of chapter 1 of such Code 6
is amended by inserting after the item relating to section 7
139B the following new item: 8
‘‘Sec. 139C. Certain disability-related first responder retirement payments.’’. 
(c) EFFECTIVEDATE.—The amendments made by 9
this section shall apply to amounts received with respect 10
to taxable years beginning after December 31, 2029. 11
SEC. 434. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIM-12
ITATIONS FOR EXCISE TAX ON EXCESS CON-13
TRIBUTIONS AND CERTAIN ACCUMULATIONS. 14
Section 6501(l) of the Internal Revenue Code of 1986 15
is amended by adding at the end the following new para-16
graph: 17
‘‘(4) I
NDIVIDUAL RETIREMENT PLANS .— 18
‘‘(A) I
N GENERAL.—For purposes of any 19
tax imposed by section 4973 or 4974 in connec-20
tion with an individual retirement plan, the re-21
turn referred to in this section shall be the in-22
come tax return filed by the person on whom 23
the tax under such section is imposed for the 24
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year in which the act (or failure to act) giving 1
rise to the liability for such tax occurred. 2
‘‘(B) R
ULE IN CASE OF INDIVIDUALS NOT 3
REQUIRED TO FILE RETURN .—In the case of a 4
person who is not required to file an income tax 5
return for such year— 6
‘‘(i) the return referred to in this sec-7
tion shall be the income tax return that 8
such person would have been required to 9
file but for the fact that such person was 10
not required to file such return, and 11
‘‘(ii) the 3-year period referred to in 12
subsection (a) with respect to the return 13
shall be deemed to begin on the date by 14
which the return would have been required 15
to be filed (excluding any extension there-16
of).’’. 17
SEC. 435. REQUIREMENT TO PROVIDE PAPER STATEMENTS 18
IN CERTAIN CASES. 19
(a) I
NGENERAL.—Section 105(a)(2) of the Em-20
ployee Retirement Income Security Act of 1974 (29 21
U.S.C. 1025(a)(2)) is amended— 22
(1) in subparagraph (A)(iv), by inserting ‘‘sub-23
ject to subparagraph (E),’’ before ‘‘may be deliv-24
ered’’; and 25
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(2) by adding at the end the following: 1
‘‘(E) P
ROVISION OF PAPER STATE -2
MENTS.—With respect to at least 1 pension 3
benefit statement furnished for a calendar year 4
with respect to an individual account plan 5
under paragraph (1)(A), and with respect to at 6
least 1 pension benefit statement furnished 7
every 3 calendar years with respect to a defined 8
benefit plan under paragraph (1)(B), such 9
statement shall be furnished on paper in writ-10
ten form except— 11
‘‘(i) in the case of a plan that fur-12
nishes such statement in accordance with 13
section 2520.104b–1(c) of title 29, Code of 14
Federal Regulations; or 15
‘‘(ii) in the case of a plan that permits 16
a participant or beneficiary to request that 17
the statements referred to in the matter 18
preceding clause (i) be furnished by elec-19
tronic delivery, if the participant or bene-20
ficiary requests that such statements be 21
delivered electronically and the statements 22
are so delivered.’’. 23
(b) I
MPLEMENTATION.— 24
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(1) IN GENERAL.—The Secretary of Labor 1
shall, not later than December 31, 2024, update sec-2
tion 2520.104b–1(c) of title 29, Code of Federal 3
Regulations, to provide that a plan may furnish the 4
statements referred to in subparagraph (E) of sec-5
tion 105(a)(2) by electronic delivery only if, in addi-6
tion to meeting the other requirements under the 7
regulations— 8
(A) such plan furnishes each participant or 9
beneficiary, including participants described in 10
subparagraph (B), a one-time initial notice on 11
paper in written form, prior to the electronic 12
delivery of any pension benefit statement, of 13
their right to request that all documents re-14
quired to be disclosed under title I of the Em-15
ployee Retirement Income Security Act of 1974 16
be furnished on paper in written form; and 17
(B) such plan furnishes each participant 18
who is separated from service with at least 1 19
pension benefit statement on paper in written 20
form for each calendar year, unless, on election 21
of the participant, the participant receives such 22
statements electronically. 23
(2) O
THER GUIDANCE.—In implementing the 24
amendment made by subsection (a) with respect to 25
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•HR 185 IH
a plan that discloses required documents or state-1
ments electronically, in accordance with applicable 2
guidance governing electronic disclosure by the De-3
partment of Labor (with the exception of section 4
2520.104b–1(c) of title 29, Code of Federal Regula-5
tions), the Secretary of Labor shall, not later than 6
December 31, 2024, update such guidance to the ex-7
tent necessary to ensure that— 8
(A) a participant or beneficiary under such 9
a plan is permitted the opportunity to request 10
that any disclosure required to be delivered on 11
paper under applicable guidance by the Depart-12
ment of Labor shall be furnished by electronic 13
delivery; 14
(B) each paper statement furnished under 15
such a plan pursuant to the amendment shall 16
include— 17
(i) an explanation of how to request 18
that all such statements, and any other 19
document required to be disclosed under 20
title I of the Employee Retirement Income 21
Security Act of 1974, be furnished by elec-22
tronic delivery; and 23
(ii) contact information for the plan 24
sponsor, including a telephone number; 25
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(C) the plan may not charge any fee to a 1
participant or beneficiary for the delivery of any 2
paper statements; 3
(D) each paper pension benefit statement 4
shall identify each plan document required to be 5
disclosed and shall include information about 6
how a participant or beneficiary may access 7
each such document; 8
(E) each document required to be disclosed 9
that is furnished by electronic delivery under 10
such a plan shall include an explanation of how 11
to request that all such documents be furnished 12
on paper in written form; and 13
(F) a plan is permitted to furnish a dupli-14
cate electronic statement in any case in which 15
the plan furnishes a paper pension benefit 16
statement. 17
(c) E
FFECTIVEDATE.—The amendment made by 18
subsection (a) shall apply with respect to plan years begin-19
ning after December 31, 2025. 20
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SEC. 436. SEPARATE APPLICATION OF TOP HEAVY RULES 1
TO DEFINED CONTRIBUTION PLANS COV-2
ERING EXCLUDIBLE EMPLOYEES. 3
(a) I
NGENERAL.—Section 416(c)(2) of the Internal 4
Revenue Code of 1986 is amended by adding at the end 5
the following: 6
‘‘(C) S
EPARATE APPLICATION TO EMPLOY -7
EES NOT MEETING AGE AND SERVICE REQUIRE -8
MENTS.—If employees not meeting the age or 9
service requirements of section 410(a)(1) (with-10
out regard to subparagraph (B) thereof) are 11
covered under a plan of the employer which 12
meets the requirements of subparagraphs (A) 13
and (B) separately with respect to such employ-14
ees, such employees may be excluded from con-15
sideration in determining whether any plan of 16
the employer meets the requirements of sub-17
paragraphs (A) and (B).’’. 18
(b) E
FFECTIVEDATE.—The amendment made by 19
subsection (a) shall apply to plan years beginning after 20
the date of the enactment of this Act. 21
SEC. 437. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 22
DISTRIBUTION LIMITED TO 3 YEARS. 23
(a) I
NGENERAL.—Section 72(t)(2)(H)(v)(I) of the 24
Internal Revenue Code of 1986 is amended by striking 25
‘‘may make’’ and inserting ‘‘may, at any time during the 26
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•HR 185 IH
3-year period beginning on the day after the date on which 1
such distribution was received, make’’. 2
(b) E
FFECTIVEDATE.—The amendment made by 3
this section shall take effect as if included in the enact-4
ment of section 113 of the Setting Every Community Up 5
for Retirement Enhancement Act of 2019. 6
SEC. 438. EMPLOYER MAY RELY ON EMPLOYEE CERTI-7
FYING THAT DEEMED HARDSHIP DISTRIBU-8
TION CONDITIONS ARE MET. 9
(a) C
ASH ORDEFERREDARRANGEMENTS.—Section 10
401(k)(14) of the Internal Revenue Code of 1986 is 11
amended by adding at the end the following new subpara-12
graph: 13
‘‘(C) E
MPLOYEE CERTIFICATION .—In de-14
termining whether a distribution is upon the 15
hardship of an employee, the administrator of 16
the plan may rely on a certification by the em-17
ployee that the distribution is on account of a 18
financial need of a type that is deemed in regu-19
lations prescribed by the Secretary to be an im-20
mediate and heavy financial need and that such 21
distribution is not in excess of the amount re-22
quired to satisfy such financial need.’’. 23
(b) 403(b) P
LANS.— 24
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(1) CUSTODIAL ACCOUNTS .—Section 403(b)(7) 1
of such Code is amended by adding at the end the 2
following new subparagraph: 3
‘‘(D) E
MPLOYEE CERTIFICATION .—In de-4
termining whether a distribution is upon the fi-5
nancial hardship of an employee, the adminis-6
trator of the plan may rely on a certification by 7
the employee that the distribution is on account 8
of a financial need of a type that is deemed in 9
regulations prescribed by the Secretary to be an 10
immediate and heavy financial need and that 11
such distribution is not in excess of the amount 12
required to satisfy such financial need.’’. 13
(2) A
NNUITY CONTRACTS.—Section 403(b)(11) 14
of such Code is amended by adding at the end the 15
following: ‘‘In determining whether a distribution is 16
upon hardship of an employee, the administrator of 17
the plan may rely on a certification by the employee 18
that the distribution is on account of a financial 19
need of a type that is deemed in regulations pre-20
scribed by the Secretary to be an immediate and 21
heavy financial need and that such distribution is 22
not in excess of the amount required to satisfy such 23
financial need.’’. 24
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(c) 457(B) PLAN.—Section 457(d) of such Code is 1
amended by adding at the end the following new para-2
graph: 3
‘‘(4) P
ARTICIPANT CERTIFICATION .—In deter-4
mining whether a distribution to a participant is 5
made when the participant is faced with an unfore-6
seeable emergency, the administrator of a plan 7
maintained by an eligible employer described in sub-8
section (e)(1)(A) may rely on a certification by the 9
participant that the distribution is made when the 10
participant is faced with unforeseeable emergency of 11
a type that is described in regulations prescribed by 12
the Secretary as an unforeseeable emergency and 13
that the distribution is not in excess of the amount 14
reasonably necessary to satisfy the emergency 15
need.’’. 16
(d) E
FFECTIVEDATE.—The amendments made by 17
this section shall apply to plan years beginning after De-18
cember 31, 2024. 19
SEC. 439. PENALTY-FREE WITHDRAWALS FROM RETIRE-20
MENT PLANS FOR INDIVIDUALS IN CASE OF 21
DOMESTIC ABUSE. 22
(a) I
NGENERAL.—Section 72(t)(2) of the Internal 23
Revenue Code of 1986 is amended by adding at the end 24
the following new subparagraph: 25
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‘‘(I) DISTRIBUTIONS FROM RETIREMENT 1
PLANS IN CASE OF DOMESTIC ABUSE .— 2
‘‘(i) I
N GENERAL.—Any eligible dis-3
tribution to a domestic abuse victim. 4
‘‘(ii) L
IMITATION.—The aggregate 5
amount which may be treated as an eligi-6
ble distribution to a domestic abuse victim 7
by any individual shall not exceed an 8
amount equal to the lesser of— 9
‘‘(I) $10,000, or 10
‘‘(II) 50 percent of the present 11
value of the nonforfeitable accrued 12
benefit of the employee under the 13
plan. 14
‘‘(iii) E
LIGIBLE DISTRIBUTION TO A 15
DOMESTIC ABUSE VICTIM .—For purposes 16
of this subparagraph— 17
‘‘(I) I
N GENERAL.—A distribu-18
tion shall be treated as an eligible dis-19
tribution to a domestic abuse victim if 20
such distribution is from an applicable 21
eligible retirement plan to an indi-22
vidual and made during the 1-year pe-23
riod beginning on any date on which 24
the individual is a victim of domestic 25
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•HR 185 IH
abuse by a spouse or domestic part-1
ner. 2
‘‘(II) D
OMESTIC ABUSE .—The 3
term ‘domestic abuse’ means physical, 4
psychological, sexual, emotional, or 5
economic abuse, including efforts to 6
control, isolate, humiliate, or intimi-7
date the victim, or to undermine the 8
victim’s ability to reason independ-9
ently, including by means of abuse of 10
the victim’s child or another family 11
member living in the household. 12
‘‘(iv) T
REATMENT OF PLAN DISTRIBU -13
TIONS.— 14
‘‘(I) I
N GENERAL.—If a distribu-15
tion to an individual would (without 16
regard to clause (ii)) be an eligible 17
distribution to a domestic abuse vic-18
tim, a plan shall not be treated as 19
failing to meet any requirement of 20
this title merely because the plan 21
treats the distribution as an eligible 22
distribution to a domestic abuse vic-23
tim, unless the aggregate amount of 24
such distributions from all plans 25
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•HR 185 IH
maintained by the employer (and any 1
member of any controlled group which 2
includes the employer) to such indi-3
vidual exceeds the limitation under 4
clause (ii). 5
‘‘(II) C
ONTROLLED GROUP .—For 6
purposes of subclause (I), the term 7
‘controlled group’ means any group 8
treated as a single employer under 9
subsection (b), (c), (m), or (o) of sec-10
tion 414. 11
‘‘(v) A
MOUNT DISTRIBUTED MAY BE 12
REPAID.— 13
‘‘(I) I
N GENERAL.—Any indi-14
vidual who receives a distribution de-15
scribed in clause (i) may, at any time 16
during the 3-year period beginning on 17
the day after the date on which such 18
distribution was received, make one or 19
more contributions in an aggregate 20
amount not to exceed the amount of 21
such distribution to an applicable eli-22
gible retirement plan of which such 23
individual is a beneficiary and to 24
which a rollover contribution of such 25
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•HR 185 IH
distribution could be made under sec-1
tion 402(c), 403(a)(4), 403(b)(8), 2
408(d)(3), or 457(e)(16), as the case 3
may be. 4
‘‘(II) L
IMITATION ON CONTRIBU -5
TIONS TO APPLICABLE ELIGIBLE RE -6
TIREMENT PLANS OTHER THAN 7
IRAS.—The aggregate amount of con-8
tributions made by an individual 9
under subclause (I) to any applicable 10
eligible retirement plan which is not 11
an individual retirement plan shall not 12
exceed the aggregate amount of eligi-13
ble distributions to a domestic abuse 14
victim which are made from such plan 15
to such individual. Subclause (I) shall 16
not apply to contributions to any ap-17
plicable eligible retirement plan which 18
is not an individual retirement plan 19
unless the individual is eligible to 20
make contributions (other than those 21
described in subclause (I)) to such ap-22
plicable eligible retirement plan. 23
‘‘(III) T
REATMENT OF REPAY -24
MENTS OF DISTRIBUTIONS FROM AP -25
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PLICABLE ELIGIBLE RETIREMENT 1
PLANS OTHER THAN IRAS .—If a con-2
tribution is made under subclause (I) 3
with respect to an eligible distribution 4
to a domestic abuse victim from an 5
applicable eligible retirement plan 6
other than an individual retirement 7
plan, then the taxpayer shall, to the 8
extent of the amount of the contribu-9
tion, be treated as having received 10
such distribution in an eligible rollover 11
distribution (as defined in section 12
402(c)(4)) and as having transferred 13
the amount to the applicable eligible 14
retirement plan in a direct trustee to 15
trustee transfer within 60 days of the 16
distribution. 17
‘‘(IV) T
REATMENT OF REPAY -18
MENTS FOR DISTRIBUTIONS FROM 19
IRAS.—If a contribution is made 20
under subclause (I) with respect to an 21
eligible distribution to a domestic 22
abuse victim from an individual retire-23
ment plan, then, to the extent of the 24
amount of the contribution, such dis-25
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•HR 185 IH
tribution shall be treated as a dis-1
tribution described in section 2
408(d)(3) and as having been trans-3
ferred to the applicable eligible retire-4
ment plan in a direct trustee to trust-5
ee transfer within 60 days of the dis-6
tribution. 7
‘‘(vi) D
EFINITION AND SPECIAL 8
RULES.—For purposes of this subpara-9
graph: 10
‘‘(I) A
PPLICABLE ELIGIBLE RE -11
TIREMENT PLAN.—The term ‘applica-12
ble eligible retirement plan’ means an 13
eligible retirement plan (as defined in 14
section 402(c)(8)(B)) other than a de-15
fined benefit plan. 16
‘‘(II) E
XEMPTION OF DISTRIBU -17
TIONS FROM TRUSTEE TO TRUSTEE 18
TRANSFER AND WITHHOLDING 19
RULES.—For purposes of sections 20
401(a)(31), 402(f), and 3405, an eli-21
gible distribution to a domestic abuse 22
victim shall not be treated as an eligi-23
ble rollover distribution. 24
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‘‘(III) DISTRIBUTIONS TREATED 1
AS MEETING PLAN DISTRIBUTION RE -2
QUIREMENTS; SELF-CERTIFICATION.— 3
Any distribution which the employee 4
or participant certifies as being an eli-5
gible distribution to a domestic abuse 6
victim shall be treated as meeting the 7
requirements of sections 8
401(k)(2)(B)(i), 403(b)(7)(A)(i), 9
403(b)(11), and 457(d)(1)(A).’’. 10
(b) E
FFECTIVEDATE.—The amendments made by 11
this section shall apply to distributions made after the 12
date of the enactment of this Act. 13
SEC. 440. REFORM OF FAMILY ATTRIBUTION RULES. 14
(a) C
ONTROLLEDGROUPS.—Section 414(b) of the 15
Internal Revenue Code of 1986 is amended— 16
(1) by striking ‘‘For purposes of’’ and inserting 17
the following: 18
‘‘(1) I
N GENERAL.—For purposes of’’, and 19
(2) by adding at the end the following new 20
paragraphs: 21
‘‘(2) S
PECIAL RULES FOR APPLYING FAMILY 22
ATTRIBUTION.—For purposes of applying the attri-23
bution rules under section 1563 with respect to 24
paragraph (1), the following rules apply: 25
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•HR 185 IH
‘‘(A) Community property laws shall be 1
disregarded for purposes of determining owner-2
ship. 3
‘‘(B) Except as provided by the Secretary, 4
stock of an individual not attributed under sec-5
tion 1563(e)(5) to such individual’s spouse shall 6
not be attributed to such spouse by reason of 7
section 1563(e)(6)(A). 8
‘‘(C) Except as provided by the Secretary, 9
in the case of stock in different corporations 10
that is attributed to a child under section 11
1563(e)(6)(A) from each parent, and is not at-12
tributed to such parents as spouses under sec-13
tion 1563(e)(5), such attribution to the child 14
shall not by itself result in such corporations 15
being members of the same controlled group. 16
‘‘(3) P
LAN SHALL NOT FAIL TO BE TREATED AS 17
SATISFYING THIS SECTION .—If the application of 18
paragraph (2) causes two or more entities to be a 19
controlled group, or to no longer be in a controlled 20
group, such change shall be treated as a transaction 21
to which section 410(b)(6)(C) applies.’’. 22
(b) A
FFILIATED SERVICE GROUPS.—Section 23
414(m)(6)(B) of such Code is amended— 24
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•HR 185 IH
(1) by striking ‘‘OWNERSHIP.—In determining’’ 1
and inserting the following: ‘‘O
WNERSHIP.— 2
‘‘(i) I
N GENERAL.—In determining’’; 3
and 4
(2) by adding at the end the following new 5
clauses: 6
‘‘(ii) S
PECIAL RULES FOR APPLYING 7
FAMILY ATTRIBUTION .—For purposes of 8
applying the attribution rules under section 9
318 with respect to clause (i), the following 10
rules apply: 11
‘‘(I) Community property laws 12
shall be disregarded for purposes of 13
determining ownership. 14
‘‘(II) Except as provided by the 15
Secretary, stock of an individual not 16
attributed under section 17
318(a)(1)(A)(i) to such individual’s 18
spouse shall not be attributed by rea-19
son of section 318(a)(1)(A)(ii) to such 20
spouse from a child who has not at-21
tained the age of 21 years. 22
‘‘(III) Except as provided by the 23
Secretary, in the case of stock in dif-24
ferent corporations that is attributed 25
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•HR 185 IH
under section 318(a)(1)(A)(ii) to a 1
child who has not attained the age of 2
21 years from each parent, and is not 3
attributed to such parents as spouses 4
under section 318(a)(1)(A)(i), such 5
attribution to the child shall not by 6
itself result in such corporations being 7
members of the same affiliated service 8
group. 9
‘‘(iii) P
LAN SHALL NOT FAIL TO BE 10
TREATED AS SATISFYING THIS SECTION .— 11
If the application of clause (ii) causes two 12
or more entities to be an affiliated service 13
group, or to no longer be in an affiliated 14
service group, such change shall be treated 15
as a transaction to which section 16
410(b)(6)(C) applies.’’. 17
(c) E
FFECTIVEDATE.—The amendments made by 18
this section shall apply to plan years beginning on or after 19
the date of the enactment of this Act. 20
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SEC. 441. AMENDMENTS TO INCREASE BENEFIT ACCRUALS 1
UNDER PLAN FOR PREVIOUS PLAN YEAR AL-2
LOWED UNTIL EMPLOYER TAX RETURN DUE 3
DATE. 4
(a) I
NGENERAL.—Section 401(b) of the Internal 5
Revenue Code of 1986 is amended by adding at the end 6
the following new paragraph: 7
‘‘(3) R
ETROACTIVE PLAN AMENDMENTS THAT 8
INCREASE BENEFIT ACCRUALS .—If— 9
‘‘(A) an employer amends a stock bonus, 10
pension, profit-sharing, or annuity plan to in-11
crease benefits accrued under the plan effective 12
for the preceding plan year (other than increas-13
ing the amount of matching contributions (as 14
defined in subsection (m)(4)(A))), 15
‘‘(B) such amendment would not otherwise 16
cause the plan to fail to meet any of the re-17
quirements of this subchapter, and 18
‘‘(C) such amendment is adopted before 19
the time prescribed by law for filing the return 20
of the employer for a taxable year (including 21
extensions thereof) during which such amend-22
ment is effective, 23
the employer may elect to treat such amendment as 24
having been adopted as of the last day of the plan 25
year in which the amendment is effective.’’. 26
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•HR 185 IH
(b) EFFECTIVEDATE.—The amendments made by 1
this section shall apply to plan years beginning after De-2
cember 31, 2025. 3
SEC. 442. RETROACTIVE FIRST YEAR ELECTIVE DEFER-4
RALS FOR SOLE PROPRIETORS. 5
(a) I
NGENERAL.—Section 401(b)(2) of the Internal 6
Revenue Code of 1986 is amended by adding at the end 7
the following: ‘‘In the case of an individual who owns the 8
entire interest in an unincorporated trade or business, and 9
who is the only employee of such trade or business, any 10
elective deferrals (as defined in section 402(g)(3)) under 11
a qualified cash or deferred arrangement to which the pre-12
ceding sentence applies, which are made by such individual 13
before the time for filing the return of such individual for 14
the taxable year (determined without regard to any exten-15
sions) ending after or with the end of the plan’s first plan 16
year, shall be treated as having been made before the end 17
of such first plan year.’’. 18
(b) E
FFECTIVEDATE.—The amendment made by 19
this section shall apply to plan years beginning after the 20
date of the enactment of this Act. 21
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SEC. 443. LIMITING CESSATION OF IRA TREATMENT TO 1
PORTION OF ACCOUNT INVOLVED IN A PRO-2
HIBITED TRANSACTION. 3
(a) I
NGENERAL.—Section 408(e)(2)(A) of the Inter-4
nal Revenue Code of 1986 is amended by striking ‘‘such 5
account ceases to be an individual retirement account’’ 6
and inserting the following: ‘‘the amount involved (as de-7
fined in section 4975(f)(4)) in such transaction shall be 8
treated as distributed to the individual’’. 9
(b) C
ONFORMINGAMENDMENTS.— 10
(1) Section 408(e)(2)(B) of such Code is 11
amended to read as follows: 12
‘‘(B) A
CCOUNT TREATED AS DISTRIBUTING 13
POTION OF ASSETS USED IN PROHIBITED 14
TRANSACTION.—In any case in which a portion 15
of an individual retirement account is treated as 16
distributed under subparagraph (A) as of the 17
first day of any taxable year, paragraph (1) of 18
subsection (d) applies as if there were a dis-19
tribution on such first day in an amount equal 20
to the fair market value of such portion, deter-21
mined as of the date on which the transaction 22
prohibited by section 4975 occurs.’’. 23
(A) by striking ‘‘
ALL ITS ASSETS.—In any 24
case’’ and all that follows through ‘‘by reason 25
of subparagraph (A)’’ and inserting the fol-26
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lowing: ‘‘PORTION OF ASSETS USED IN PROHIB -1
ITED TRANSACTION.—In any case in which a 2
portion of an individual retirement account is 3
treated as distributed under subparagraph 4
(A)’’; and 5
(B) by striking ‘‘all assets in the account’’ 6
and inserting ‘‘such portion’’. 7
(2) Section 4975(c)(3) of such Code is amended 8
by striking ‘‘the account ceases’’ and all that follows 9
and inserting the following: ‘‘the portion of the ac-10
count used in the transaction is treated as distrib-11
uted under paragraph (2)(A) or (4) of section 12
408(e).’’. 13
(c) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to taxable years beginning after 15
the date of the enactment of this Act. 16
SEC. 444. REVIEW OF PENSION RISK TRANSFER INTERPRE-17
TIVE BULLETIN. 18
Not later than 1 year after the date of enactment 19
of this Act, the Secretary of Labor shall— 20
(1) review section 2509.95–1 of title 29, Code 21
of Federal Regulations (relating to the fiduciary 22
standards under the Employee Retirement Income 23
Security Act of 1974 when selecting an annuity pro-24
vider for a defined benefit pension plan) to deter-25
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mine whether amendments to such section are war-1
ranted; and 2
(2) report to Congress on the findings of such 3
review, including an assessment of any risk to par-4
ticipants. 5
SEC. 445. AMENDMENTS RELATING TO SETTING EVERY 6
COMMUNITY UP FOR RETIREMENT ENHANCE-7
MENT ACT OF 2019. 8
(a) T
ECHNICALAMENDMENTS.— 9
(1) A
MENDMENTS RELATING TO SECTION 10
103.— 11
(A) Section 401(k)(12)(G) of the Internal 12
Revenue Code of 1986 is amended by striking 13
‘‘the requirements under subparagraph (A)(i)’’ 14
and inserting ‘‘the contribution requirements 15
under subparagraph (B) or (C)’’. 16
(B) Section 401(k)(13)(D)(iv) of such 17
Code is amended by striking ‘‘and (F)’’ and in-18
serting ‘‘and (G)’’. 19
(C) Section 401(m)(12) of such Code is 20
amended by striking ‘‘and’’ at the end of sub-21
paragraph (A), by redesignating subparagraph 22
(B) as subparagraph (C), and by inserting after 23
subparagraph (A) (as so amended) the fol-24
lowing new subparagraph: 25
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‘‘(B) meets the notice requirements of sub-1
section (k)(13)(E), and’’. 2
(2) A
MENDMENT RELATING TO SECTION 112 .— 3
Section 401(k)(15)(B)(i)(II) of such Code is amend-4
ed by striking ‘‘subsection (m)(2)’’ and inserting 5
‘‘paragraphs (2), (11), and (12) of subsection (m)’’. 6
(3) A
MENDMENT RELATING TO SECTION 114 .— 7
Section 401(a)(9)(C)(iii) of such Code is amended 8
by striking ‘‘employee to whom clause (i)(II) ap-9
plies’’ and inserting ‘‘employee (other than an em-10
ployee to whom clause (i)(II) does not apply by rea-11
son of clause (ii))’’. 12
(4) A
MENDMENT RELATING TO SECTION 116 .— 13
Section 4973(b) of such Code is amended by adding 14
at the end of the flush matter the following: ‘‘Such 15
term shall not include any designated nondeductible 16
contribution (as defined in subparagraph (C) of sec-17
tion 408(o)(2)) which does not exceed the non-18
deductible limit under subparagraph (B) thereof by 19
reason of an election under section 408(o)(5).’’. 20
(5) E
FFECTIVE DATE.—The amendments made 21
by this subsection shall take effect as if included in 22
the section of the Setting Every Community Up for 23
Retirement Enhancement Act of 2019 to which the 24
amendment relates. 25
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(b) CLERICALAMENDMENTS.— 1
(1) Section 408(o)(5)(A) of such Code is 2
amended by striking ‘‘subsection (b)’’ and inserting 3
‘‘section 219(b)’’. 4
(2) Section 72(t)(2)(H)(vi)(IV) of such Code is 5
amended by striking ‘‘403(b)(7)(A)(ii)’’ and insert-6
ing ‘‘ 403(b)(7)(A)(i)’’. 7
SEC. 446. PROVISIONS RELATING TO PLAN AMENDMENTS. 8
(a) I
NGENERAL.—If this section applies to any re-9
tirement plan or contract amendment— 10
(1) such retirement plan or contract shall be 11
treated as being operated in accordance with the 12
terms of the plan during the period described in sub-13
section (b)(2)(A); and 14
(2) except as provided by the Secretary of the 15
Treasury (or the Secretary’s delegate), such retire-16
ment plan shall not fail to meet the requirements of 17
section 411(d)(6) of the Internal Revenue Code of 18
1986 and section 204(g) of the Employee Retire-19
ment Income Security Act of 1974 by reason of such 20
amendment. 21
(b) A
MENDMENTS TO WHICHSECTIONAPPLIES.— 22
(1) I
N GENERAL.—This section shall apply to 23
any amendment to any retirement plan or annuity 24
contract which is made— 25
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(A) pursuant to any amendment made by 1
this Act or pursuant to any regulation issued by 2
the Secretary of the Treasury or the Secretary 3
of Labor (or a delegate of either such Sec-4
retary) under this Act; and 5
(B) on or before the last day of the first 6
plan year beginning on or after January 1, 7
2026, or such later date as the Secretary of the 8
Treasury may prescribe. 9
In the case of a governmental plan (as defined in 10
section 414(d) of the Internal Revenue Code of 11
1986), or an applicable collectively bargained plan, 12
this paragraph shall be applied by substituting 13
‘‘2028’’ for ‘‘2026’’. For purposes of the preceding 14
sentence, the term ‘‘applicable collectively bargained 15
plan’’ means a plan maintained pursuant to 1 or 16
more collective bargaining agreements between em-17
ployee representatives and 1 or more employers rati-18
fied before the date of enactment of this Act. 19
(2) C
ONDITIONS.—This section shall not apply 20
to any amendment unless— 21
(A) during the period— 22
(i) beginning on the date the legisla-23
tive or regulatory amendment described in 24
paragraph (1)(A) takes effect (or in the 25
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•HR 185 IH
case of a plan or contract amendment not 1
required by such legislative or regulatory 2
amendment, the effective date specified by 3
the plan); and 4
(ii) ending on the date described in 5
paragraph (1)(B) (as modified by the sec-6
ond sentence of paragraph (1)) (or, if ear-7
lier, the date the plan or contract amend-8
ment is adopted), 9
the plan or contract is operated as if such plan 10
or contract amendment were in effect; and 11
(B) such plan or contract amendment ap-12
plies retroactively for such period. 13
(c) C
OORDINATIONWITHOTHERPROVISIONSRE-14
LATING TOPLANAMENDMENTS.— 15
(1) S
ECURE ACT.—Section 601(b)(1) of the 16
Setting Every Community Up for Retirement En-17
hancement Act of 2019 is amended— 18
(A) by striking ‘‘January 1, 2022’’ in sub-19
paragraph (B) and inserting ‘‘January 1, 20
2024’’, and 21
(B) by striking ‘‘substituting ‘2024’ for 22
‘2022’.’’ in the flush matter at the end and in-23
serting ‘‘substituting ‘2026’ for ‘2024’.’’. 24
(2) C
ARES ACT.— 25
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(A) SPECIAL RULES FOR USE OF RETIRE -1
MENT FUNDS.—Section 2202(c)(2)(A) of the 2
CARES Act is amended by striking ‘‘January 3
1, 2022’’ in clause (ii) and inserting ‘‘January 4
1, 2026’’. 5
(B) T
EMPORARY WAIVER OF REQUIRED 6
MINIMUM DISTRIBUTIONS RULES FOR CERTAIN 7
RETIREMENT PLANS AND ACCOUNTS .—Section 8
2203(c)(2)(B)(i) of the CARES Act is amend-9
ed— 10
(i) by striking ‘‘January 1, 2022’’ in 11
subclause (II) and inserting ‘‘January 1, 12
2026’’, and 13
(ii) by striking ‘‘substituting ‘2024’ 14
for ‘2022’.’’ in the flush matter at the end 15
and inserting ‘‘substituting ‘2028’ for 16
‘2024’.’’. 17
(C) T
AXPAYER CERTAINTY AND DISASTER 18
TAX RELIEF ACT OF 2020 .—Section 19
302(d)(2)(A) of the Taxpayer Certainty and 20
Disaster Tax Relief Act of 2020 is amended by 21
striking ‘‘January 1, 2022’’ in clause (ii) and 22
inserting ‘‘January 1, 2026’’. 23
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SEC. 447. SIMPLE AND SEP ROTH IRAS. 1
(a) I
NGENERAL.—Section 408A of the Internal Rev-2
enue Code of 1986 is amended by striking subsection (f). 3
(b) R
ULESRELATING TOSIMPLIFIEDEMPLOYEE 4
P
ENSIONS.— 5
(1) C
ONTRIBUTIONS.—Section 402(h)(1) of 6
such Code is amended by striking ‘‘and’’ at the end 7
of subparagraph (A), by striking the period at the 8
end of subparagraph (B) and inserting ‘‘, and’’, and 9
by adding at the end the following new subpara-10
graph: 11
‘‘(C) in the case of any contributions pur-12
suant to a simplified employer pension which 13
are made to an individual retirement plan des-14
ignated as a Roth IRA, such contribution shall 15
not be excludable from gross income.’’. 16
(2) D
ISTRIBUTIONS.—Section 402(h)(3) of such 17
Code is amended by inserting ‘‘, or section 408A(d) 18
in the case of an individual retirement plan des-19
ignated as a Roth IRA’’ before the period at the 20
end. 21
(3) E
LECTION REQUIRED .—Section 408(k) of 22
such Code is amended by redesignating paragraphs 23
(7), (8), and (9) as paragraphs (8), (9), and (10), 24
respectively, and by inserting the after paragraph 25
(6) the following new paragraph: 26
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‘‘(7) ROTH CONTRIBUTION ELECTION .—An in-1
dividual retirement plan which is designated as a 2
Roth IRA shall not be treated as a simplified em-3
ployee pension under this subsection unless the em-4
ployee elects for such plan to be so treated (at such 5
time and in such manner as the Secretary may pro-6
vide).’’. 7
(c) R
ULESRELATING TOSIMPLERETIREMENTAC-8
COUNTS.— 9
(1) E
LECTION REQUIRED .—Section 408(p) of 10
such Code is amended by adding at the end the fol-11
lowing new paragraph: 12
‘‘(11) R
OTH CONTRIBUTION ELECTION .—An in-13
dividual retirement plan which is designated as a 14
Roth IRA shall not be treated as a simple retirement 15
account under this subsection unless the employee 16
elects for such plan to be so treated (at such time 17
and in such manner as the Secretary may pro-18
vide).’’. 19
(2) R
OLLOVERS.—Section 408A(e) of such 20
Code is amended by adding at the end the following 21
new paragraph: 22
‘‘(3) S
IMPLE RETIREMENT ACCOUNTS .—In the 23
case of any payment or distribution out of a simple 24
retirement account (as defined in section 408(p)) 25
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with respect to which an election has been made 1
under section 408(p)(11) and to which 72(t)(6) ap-2
plies, the term ‘qualified rollover contribution’ shall 3
not include any payment or distribution paid into an 4
account other than another simple retirement ac-5
count (as so defined).’’. 6
(d) C
OORDINATIONWITHROTHCONTRIBUTIONLIM-7
ITATION.—Section 408A(c) of such Code is amended by 8
adding at the end the following new paragraph: 9
‘‘(7) C
OORDINATION WITH LIMITATION FOR 10
SIMPLE RETIREMENT PLANS AND SEPS .—In the case 11
of an individual on whose behalf contributions are 12
made to a simple retirement account or a simplified 13
employee pension, the amount described in para-14
graph (2)(A) shall be increased by an amount equal 15
to the contributions made on the individual’s behalf 16
to such account or pension for the taxable year, but 17
only to the extent such contributions— 18
‘‘(A) in the case of a simplified retirement 19
account— 20
‘‘(i) do not exceed the sum of the dol-21
lar amount in effect for the taxable year 22
under section 408(p)(2)(A)(ii) and the em-23
ployer contribution required under sub-24
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•HR 185 IH
paragraph (A)(iii) or (B)(i), as the case 1
may be, of section 408(p)(2), and 2
‘‘(ii) do not cause the elective defer-3
rals (as defined in section 402(g)(3)) on 4
behalf of such individual to exceed the lim-5
itation under section 402(g)(1) (taking 6
into account any additional elective defer-7
rals permitted under section 414(v)), or 8
‘‘(B) in the case of a simplified employee 9
pension, do not exceed the limitation in effect 10
under section 408(j).’’. 11
(e) C
ONFORMING AMENDMENT.—Section 12
408A(d)(2)(B) of such Code is amended by inserting ‘‘, 13
or employer in the case of a simple retirement account 14
(as defined in section 408(p)) or simplified employee pen-15
sion (as defined in section 408(k)),’’ after ‘‘individual’s 16
spouse’’. 17
(f) E
FFECTIVEDATE.—The amendments made by 18
this section shall apply to taxable years beginning after 19
December 31, 2024. 20
SEC. 448. HARDSHIP WITHDRAWAL RULES FOR 403(B) 21
PLANS. 22
(a) I
NGENERAL.—Section 403(b) of the Internal 23
Revenue Code of 1986, as amended by the preceding pro-24
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visions of this Act, is amended by adding at the end the 1
following new paragraph: 2
‘‘(16) S
PECIAL RULES RELATING TO HARDSHIP 3
WITHDRAWALS.—For purposes of paragraphs (7) 4
and (11)— 5
‘‘(A) A
MOUNTS WHICH MAY BE WITH -6
DRAWN.—The following amounts may be dis-7
tributed upon hardship of the employee: 8
‘‘(i) Contributions made pursuant to a 9
salary reduction agreement (within the 10
meaning of section 3121(a)(5)(D)). 11
‘‘(ii) Qualified nonelective contribu-12
tions (as defined in section 401(m)(4)(C)). 13
‘‘(iii) Qualified matching contributions 14
described in section 401(k)(3)(D)(ii)(I). 15
‘‘(iv) Earnings on any contributions 16
described in clause (i), (ii), or (iii). 17
‘‘(B) N
O REQUIREMENT TO TAKE AVAIL -18
ABLE LOAN.—A distribution shall not be treat-19
ed as failing to be made upon the hardship of 20
an employee solely because the employee does 21
not take any available loan under the plan.’’. 22
(b) C
ONFORMINGAMENDMENTS.— 23
(1) Section 403(b)(7)(A)(i)(V) of such Code is 24
amended by striking ‘‘in the case of contributions 25
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made pursuant to a salary reduction agreement 1
(within the meaning of section 3121(a)(5)(D))’’ and 2
inserting ‘‘subject to the provisions of paragraph 3
(16)’’. 4
(2) Paragraph (11) of section 403(b) of such 5
Code, as amended by the preceding provisions of this 6
Act, is amended— 7
(A) by striking ‘‘in’’ in subparagraph (B) 8
and inserting ‘‘subject to the provisions of para-9
graph (16), in’’, and 10
(B) by striking the penultimate sentence. 11
(c) E
FFECTIVEDATE.—The amendments made by 12
this section shall apply to plan years beginning after De-13
cember 31, 2024. 14
SEC. 449. ELECTIVE DEFERRALS GENERALLY LIMITED TO 15
REGULAR CONTRIBUTION LIMIT. 16
(a) A
PPLICABLE EMPLOYER PLANS.—Section 17
414(v)(1) of the Internal Revenue Code of 1986 is amend-18
ed by adding at the end the following: ‘‘Except in the case 19
of an applicable employer plan described in paragraph 20
(6)(A)(iv), the preceding sentence shall only apply if con-21
tributions are designated Roth contributions (as defined 22
in section 402A(c)(1)).’’. 23
(b) C
ONFORMINGAMENDMENTS.— 24
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(1) Section 402(g)(1) of such Code is amended 1
by striking subparagraph (C). 2
(2) Section 457(e)(18)(A)(ii) of such Code is 3
amended by inserting ‘‘the lesser of any designated 4
Roth contributions made by the participant to the 5
plan or’’ before ‘‘the applicable dollar amount’’. 6
(c) E
FFECTIVEDATE.—The amendments made by 7
this section shall apply to taxable years beginning after 8
December 31, 2024. 9
SEC. 450. OPTIONAL TREATMENT OF EMPLOYER MATCHING 10
CONTRIBUTIONS AS ROTH CONTRIBUTIONS. 11
(a) I
NGENERAL.—Section 402A(a) of the Internal 12
Revenue Code of 1986 is amended by redesignating para-13
graph (2) as paragraph (3), by striking ‘‘and’’ at the end 14
of paragraph (1), and by inserting after paragraph (1) the 15
following new paragraph: 16
‘‘(2) any designated Roth contribution which is 17
made by the employer to the program on the em-18
ployee’s behalf, and on account of the employee’s 19
contribution, elective deferral, or (subject to the re-20
quirements of section 401(m)(13)) qualified student 21
loan payment, shall be treated as a matching con-22
tribution for purposes of this chapter, except that 23
such contribution shall not be excludable from gross 24
income, and’’. 25
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(b) MATCHINGINCLUDED INQUALIFIEDROTHCON-1
TRIBUTIONPROGRAM.—Section 402A(b)(1) of such Code 2
is amended— 3
(1) by inserting ‘‘, or to have made on the em-4
ployee’s behalf,’’ after ‘‘elect to make’’, and 5
(2) by inserting ‘‘, or of matching contributions 6
which may otherwise be made on the employee’s be-7
half,’’ after ‘‘otherwise eligible to make’’. 8
(c) D
ESIGNATED ROTHMATCHINGCONTRIBU-9
TIONS.—Section 402A(c)(1) of such Code is amended by 10
inserting ‘‘or matching contribution’’ after ‘‘elective defer-11
ral’’. 12
(d) M
ATCHINGCONTRIBUTIONDEFINED.—Section 13
402A(e) of such Code is amended by adding at the end 14
the following: 15
‘‘(3) M
ATCHING CONTRIBUTION .—The term 16
‘matching contribution’ means— 17
‘‘(A) any matching contribution described 18
in section 401(m)(4)(A), and 19
‘‘(B) any contribution to an eligible de-20
ferred compensation plan (as defined in section 21
457(b)) by an eligible employer described in 22
section 457(e)(1)(A) on behalf of an employee 23
and on account of such employee’s elective de-24
ferral under such plan.’’. 25
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(e) EFFECTIVEDATE.—The amendments made by 1
this section shall apply to contributions made after the 2
date of the enactment of this Act. 3
TITLE V 4
SEC. 501. BOOTS TO BUSINESS PROGRAM. 5
Section 32 of the Small Business Act (15 U.S.C. 6
657b) is amended by adding at the end the following: 7
‘‘(h) B
OOTS TOBUSINESSPROGRAM.— 8
‘‘(1) C
OVERED INDIVIDUAL DEFINED .—In this 9
subsection, the term ‘covered individual’ means— 10
‘‘(A) a member of the Armed Forces, in-11
cluding the National Guard or Reserves; 12
‘‘(B) an individual who is participating in 13
the Transition Assistance Program established 14
under section 1144 of title 10, United States 15
Code; 16
‘‘(C) an individual who— 17
‘‘(i) served on active duty in any 18
branch of the Armed Forces, including the 19
National Guard or Reserves; and 20
‘‘(ii) was discharged or released from 21
such service under conditions other than 22
dishonorable; and 23
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‘‘(D) a spouse or dependent of an indi-1
vidual described in subparagraph (A), (B), or 2
(C). 3
‘‘(2) E
STABLISHMENT.—During the period be-4
ginning on the date of enactment of this subsection 5
and ending on September 30, 2028, the Adminis-6
trator shall carry out a program to be known as the 7
‘Boots to Business Program’ to provide entrepre-8
neurship training to covered individuals. 9
‘‘(3) G
OALS.—The goals of the Boots to Busi-10
ness Program are to— 11
‘‘(A) provide assistance and in-depth train-12
ing to covered individuals interested in business 13
ownership; and 14
‘‘(B) provide covered individuals with the 15
tools, skills, and knowledge necessary to identify 16
a business opportunity, draft a business plan, 17
identify sources of capital, connect with local 18
resources for small business concerns, and start 19
up a small business concern. 20
‘‘(4) P
ROGRAM COMPONENTS .— 21
‘‘(A) I
N GENERAL.—The Boots to Busi-22
ness Program may include— 23
‘‘(i) a presentation providing exposure 24
to the considerations involved in self-em-25
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ployment and ownership of a small busi-1
ness concern; 2
‘‘(ii) an online, self-study course fo-3
cused on the basic skills of entrepreneur-4
ship, the language of business, and the 5
considerations involved in self-employment 6
and ownership of a small business concern; 7
‘‘(iii) an in-person classroom instruc-8
tion component providing an introduction 9
to the foundations of self employment and 10
ownership of a small business concern; and 11
‘‘(iv) in-depth training delivered 12
through online instruction, including an 13
online course that leads to the creation of 14
a business plan. 15
‘‘(B) C
OLLABORATION.—The Adminis-16
trator may— 17
‘‘(i) collaborate with public and pri-18
vate entities to develop course curricula for 19
the Boots to Business Program; and 20
‘‘(ii) modify program components in 21
coordination with entities participating in a 22
Warriors in Transition program, as defined 23
in section 738(e) of the National Defense 24
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Authorization Act for Fiscal Year 2013 1
(10 U.S.C. 1071 note). 2
‘‘(C) U
SE OF RESOURCE PARTNERS AND 3
DISTRICT OFFICES.— 4
‘‘(i) I
N GENERAL.—The Administrator 5
shall— 6
‘‘(I) ensure that Veteran Busi-7
ness Outreach Centers regularly par-8
ticipate, on a nationwide basis, in the 9
Boots to Business Program; and 10
‘‘(II) to the maximum extent 11
practicable, use district offices of the 12
Administration and a variety of other 13
resource partners and entities in ad-14
ministering the Boots to Business 15
Program. 16
‘‘(ii) G
RANT AUTHORITY.—In carrying 17
out clause (i), the Administrator may make 18
grants, subject to the availability of appro-19
priations in advance, to Veteran Business 20
Outreach Centers, other resource partners, 21
or other entities to carry out components 22
of the Boots to Business Program. 23
‘‘(D) A
VAILABILITY TO DEPARTMENT OF 24
DEFENSE AND THE DEPARTMENT OF LABOR .— 25
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The Administrator shall make available to the 1
Secretary of Defense and the Secretary of 2
Labor information regarding the Boots to Busi-3
ness Program, including all course materials 4
and outreach materials related to the Boots to 5
Business Program, for inclusion on the websites 6
of the Department of Defense and the Depart-7
ment of Labor relating to the Transition Assist-8
ance Program, in the Transition Assistance 9
Program manual, and in other relevant mate-10
rials available for distribution from the Sec-11
retary of Defense and the Secretary of Labor. 12
‘‘(E) A
VAILABILITY TO DEPARTMENT OF 13
VETERANS AFFAIRS.—In consultation with the 14
Secretary of Veterans Affairs, the Adminis-15
trator shall make available for distribution and 16
display on the website of the Department of 17
Veterans Affairs and at local facilities of the 18
Department of Veterans Affairs outreach mate-19
rials regarding the Boots to Business Program, 20
which shall, at a minimum— 21
‘‘(i) describe the Boots to Business 22
Program and the services provided; and 23
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‘‘(ii) include eligibility requirements 1
for participating in the Boots to Business 2
Program. 3
‘‘(F) A
VAILABILITY TO OTHER PARTICI -4
PATING AGENCIES.—The Administrator shall 5
ensure information regarding the Boots to 6
Business program, including all course mate-7
rials and outreach materials related to the 8
Boots to Business Program, is made available 9
to other participating agencies in the Transition 10
Assistance Program and upon request of other 11
agencies. 12
‘‘(5) C
OMPETITIVE BIDDING PROCEDURES .— 13
The Administration shall use relevant competitive 14
bidding procedures with respect to any contract or 15
cooperative agreement executed by the Administra-16
tion under the Boots to Business Program. 17
‘‘(6) P
UBLICATION OF NOTICE OF FUNDING OP -18
PORTUNITY.—Not later than 30 days before the 19
deadline for submitting applications for any funding 20
opportunity under the Boots to Business Program, 21
the Administration shall publish a notice of the 22
funding opportunity. 23
‘‘(7) R
EPORT.—Not later than 180 days after 24
the date of enactment of this subsection, and not 25
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less frequently than annually thereafter, the Admin-1
istrator shall submit to the Committee on Small 2
Business and Entrepreneurship of the Senate and 3
the Committee on Small Business of the House of 4
Representatives a report on the performance and ef-5
fectiveness of the Boots to Business Program, 6
which— 7
‘‘(A) may be included as part of another 8
report submitted to such committees by the Ad-9
ministrator related to the Office of Veterans 10
Business Development; and 11
‘‘(B) shall summarize available information 12
relating to— 13
‘‘(i) grants awarded under paragraph 14
(4)(C); 15
‘‘(ii) the total cost of the Boots to 16
Business Program; 17
‘‘(iii) the number of program partici-18
pants using each component of the Boots 19
to Business Program; 20
‘‘(iv) the completion rates for each 21
component of the Boots to Business Pro-22
gram; 23
‘‘(v) to the extent possible— 24
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‘‘(I) the demographics of pro-1
gram participants, to include gender, 2
age, race, ethnicity, and relationship 3
to military; 4
‘‘(II) the number of program 5
participants that connect with a dis-6
trict office of the Administration, a 7
Veteran Business Outreach Center, or 8
another resource partner of the Ad-9
ministration; 10
‘‘(III) the number of program 11
participants that start a small busi-12
ness concern; 13
‘‘(IV) the results of the Boots to 14
Business and Boots to Business 15
Reboot course quality surveys con-16
ducted by the Office of Veterans Busi-17
ness Development before and after at-18
tending each of those courses, includ-19
ing a summary of any comments re-20
ceived from program participants; 21
‘‘(V) the results of the Boots to 22
Business Program outcome surveys 23
conducted by the Office of Veterans 24
Business Development, including a 25
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•HR 185 IH
summary of any comments received 1
from program participants; and 2
‘‘(VI) the results of other ger-3
mane participant satisfaction surveys; 4
‘‘(C) an evaluation of the overall effective-5
ness of the Boots to Business Program based 6
on each geographic region covered by the Ad-7
ministration during the most recent fiscal year; 8
‘‘(D) an assessment of additional perform-9
ance outcome measures for the Boots to Busi-10
ness Program, as identified by the Adminis-11
trator; 12
‘‘(E) any recommendations of the Adminis-13
trator for improvement of the Boots to Busi-14
ness Program, which may include expansion of 15
the types of individuals who are covered individ-16
uals; 17
‘‘(F) an explanation of how the Boots to 18
Business Program has been integrated with 19
other transition programs and related resources 20
of the Administration and other Federal agen-21
cies; and 22
‘‘(G) any additional information the Ad-23
ministrator determines necessary.’’. 24
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TITLE VI 1
SEC. 601. INCREASED PUNISHMENT FOR HUMAN TRAF-2
FICKING IN SCHOOL ZONES. 3
Section 1591 of title 18, United States Code, is 4
amended— 5
(1) by redesignating subsection (e) as sub-6
section (f); and 7
(2) by inserting after subsection (d) the fol-8
lowing: 9
‘‘(e)(1) Whoever violates subsection (a) in a school 10
zone, or on, or within 1,000 feet of, a premises on which 11
a school-sponsored activity is taking place, or on, or within 12
1,000 feet of a premises owned by an institution of higher 13
education, shall, in addition to the punishment otherwise 14
provided under this section, be imprisoned for not more 15
than 5 years. 16
‘‘(2) In this subsection: 17
‘‘(A) The term ‘school zone’ has the meaning 18
given such term in section 921. 19
‘‘(B) The term ‘school-sponsored activity’ 20
means any activity that is produced, financed, ar-21
ranged, supervised, or coordinated by a school or a 22
State educational agency or local educational agency 23
or is under the jurisdiction of a State educational 24
agency or local educational agency. 25
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‘‘(C) The terms ‘State educational agency’ and 1
‘local educational agency’ have the meanings given 2
those terms under section 8101 of the Elementary 3
and Secondary Education Act of 1965. 4
‘‘(D) The term ‘institution of higher education’ 5
has the meaning given such term in section 101 of 6
the Higher Education Act of 1965 (20 U.S.C. 7
1001).’’. 8
SEC. 602. INCREASED PUNISHMENT FOR COERCION AND 9
ENTICEMENT IN SCHOOL ZONES. 10
Section 2422 of title 18, United States Code, is 11
amended— 12
(1) in subsection (b), by striking ‘‘individual 13
who has not attained the age of 18 years’’ and in-14
serting ‘‘minor’’; and 15
(2) by adding at the end the following: 16
‘‘(c)(1) Whoever violates subsection (a) or (b) know-17
ing, or having reasonable cause to believe, that the viola-18
tion is committed against a minor who is enrolled in school 19
and is, at the time of the violation, in a school zone or 20
on, or within 1,000 feet of, a premises on which a school- 21
sponsored activity is taking place, or against a person who 22
is enrolled in an institution of higher education and is, 23
at the time of the violation on or within 1,000 feet of a 24
premises owned by the institution of higher education, 25
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shall, in addition to the punishment otherwise provided 1
under this section, be imprisoned for not more than 5 2
years. 3
‘‘(2) Paragraph (1) shall not apply in a case in which 4
a minor’s presence on, or within 1,000 feet of, the prem-5
ises on which a school-sponsored activity is taking place 6
is not related to such school-sponsored activity, or the per-7
son’s presence on or within 1,000 feet of the premises 8
owned by the institution of higher education is not related 9
to their enrollment at such institution. 10
‘‘(d) In this section: 11
‘‘(1) The term ‘minor’ means an individual who 12
has not attained 18 years of age. 13
‘‘(2) The term ‘school’ means a public, paro-14
chial, or private school that provides elementary or 15
secondary education. 16
‘‘(3) The term ‘school zone’ has the meaning 17
given such term in section 921. 18
‘‘(4) The term ‘school-sponsored activity’ means 19
any activity that is produced, financed, arranged, su-20
pervised, or coordinated by a school or a State edu-21
cational agency or local educational agency or is 22
under the jurisdiction of a State educational agency 23
or local educational agency. 24
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‘‘(5) The terms ‘State educational agency’ and 1
‘local educational agency’ have the meanings given 2
those terms under section 8101 of the Elementary 3
and Secondary Education Act of 1965. 4
‘‘(6) The term ‘institution of higher education’ 5
has the meaning given such term in section 101 of 6
the Higher Education Act of 1965 (20 U.S.C. 7
1001).’’. 8
TITLE VII 9
SEC. 701. ESTABLISHMENT OF COMMISSION. 10
(a) I
NGENERAL.—There is established the Commis-11
sion to Study the Potential Creation of a National Mu-12
seum of Asian Pacific American History and Culture 13
(hereafter in this Act referred to as the ‘‘Commission’’). 14
(b) M
EMBERSHIP.—The Commission shall be com-15
posed of 8 members, of whom— 16
(1) 2 members shall be appointed by the major-17
ity leader of the Senate; 18
(2) 2 members shall be appointed by the Speak-19
er of the House of Representatives; 20
(3) 2 members shall be appointed by the minor-21
ity leader of the Senate; and 22
(4) 2 members shall be appointed by the minor-23
ity leader of the House of Representatives. 24
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(c) QUALIFICATIONS.—Members of the Commission 1
shall be appointed to the Commission from among individ-2
uals, or representatives of institutions or entities, who pos-3
sess— 4
(1)(A) a demonstrated commitment to the re-5
search, study, or promotion of Asian Pacific Amer-6
ican history, art, political or economic status, or cul-7
ture; and 8
(B)(i) expertise in museum administration; 9
(ii) expertise in fundraising for nonprofit 10
or cultural institutions; 11
(iii) experience in the study and teaching 12
of Asian Pacific American history; 13
(iv) experience in studying the issue of the 14
representation of Asian Pacific Americans in 15
art, life, history, and culture at the Smithsonian 16
Institution; or 17
(v) extensive experience in public or elected 18
service; 19
(2) experience in the administration of, or the 20
planning for, the establishment of, museums; or 21
(3) experience in the planning, design, or con-22
struction of museum facilities. 23
(d) D
EADLINE FOR INITIALAPPOINTMENT.—The 24
initial members of the Commission shall be appointed not 25
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•HR 185 IH
later than the date that is 90 days after the date of enact-1
ment of this Act. 2
(e) V
ACANCIES.—A vacancy in the Commission— 3
(1) shall not affect the powers of the Commis-4
sion; and 5
(2) shall be filled in the same manner as the 6
original appointment was made. 7
(f) C
HAIRPERSON.—The Commission shall, by major-8
ity vote of all of the members, select 1 member of the 9
Commission to serve as the Chairperson of the Commis-10
sion. 11
(g) P
ROHIBITION.—No employee of the Federal Gov-12
ernment may serve as a member of the Commission. 13
SEC. 702. DUTIES OF THE COMMISSION. 14
(a) R
EPORTS.— 15
(1) P
LAN OF ACTION.—The Commission shall 16
submit to the President and Congress a report con-17
taining the recommendations of the Commission 18
with respect to a plan of action regarding the feasi-19
bility of establishing and maintaining a National 20
Museum of Asian Pacific American History and Cul-21
ture in Washington, DC, and its environs (hereafter 22
in this Act referred to as the ‘‘Museum’’). 23
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(2) REPORT ON ISSUES.—The Commission shall 1
submit to the President and Congress a report that 2
addresses the following issues: 3
(A) The availability and cost of collections 4
to be acquired and housed in the Museum. 5
(B) The impact of the Museum on existing 6
Asian Pacific American history-related muse-7
ums. 8
(C) In consultation with the Smithsonian 9
Institution, develop criteria for evaluating pos-10
sible locations for the Museum in Washington, 11
DC, and its environs. 12
(D) The feasibility of the Museum becom-13
ing part of the Smithsonian Institution, taking 14
into account the Museum’s potential impact on 15
the Smithsonian’s existing facilities mainte-16
nance backlog, collections storage needs, and 17
identified construction or renovation costs for 18
new or existing museums. 19
(E) The governance and organizational 20
structure from which the Museum should oper-21
ate. 22
(F) Best practices for engaging Asian Pa-23
cific Americans in the development and design 24
of the Museum. 25
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(G) The cost of constructing, operating, 1
and maintaining the Museum. 2
(3) D
EADLINE.—The reports required under 3
paragraphs (1) and (2) shall be submitted not later 4
than the date that is 18 months after the date of 5
the first meeting of the Commission. 6
(b) F
UNDRAISINGPLAN.— 7
(1) I
N GENERAL.—The Commission shall de-8
velop a fundraising plan that will address the ability 9
to support the establishment, operation, and mainte-10
nance of the Museum through contributions from 11
the public. 12
(2) C
ONSIDERATIONS.—In developing the fund-13
raising plan under paragraph (1), the Commission 14
shall consider issues relating to funding the oper-15
ations and maintenance of the Museum in perpetuity 16
without reliance on appropriations of Federal funds. 17
(3) I
NDEPENDENT REVIEW .—The Commission 18
shall obtain an independent review of the viability of 19
the plan developed under paragraph (1) and such re-20
view shall include an analysis as to whether the plan 21
is able to achieve the level of resources necessary to 22
fund the construction of the Museum and the oper-23
ations and maintenance of the Museum in perpetuity 24
without reliance on appropriations of Federal funds. 25
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(4) SUBMISSION.—The Commission shall sub-1
mit the plan developed under paragraph (1) and the 2
review conducted under paragraph (3) to the Com-3
mittees on House Administration, Natural Re-4
sources, and Appropriations of the House of Rep-5
resentatives and the Committees on Rules and Ad-6
ministration, Energy and Natural Resources, and 7
Appropriations of the Senate. 8
(c) L
EGISLATIONTOCARRYOUTPLAN OFAC-9
TION.—Based on the recommendations contained in the 10
report submitted under paragraphs (1) and (2) of sub-11
section (a), the Commission shall submit for consideration 12
to the Committees on House Administration, Natural Re-13
sources, and Appropriations of the House of Representa-14
tives and the Committees on Rules and Administration, 15
Energy and Natural Resources, and Appropriations of the 16
Senate recommendations for a legislative plan of action 17
on the feasibility of establishing and constructing the Mu-18
seum. 19
(d) N
ATIONALCONFERENCE.—Not later than 18 20
months after the date on which the initial members of the 21
Commission are appointed under section 2, the Commis-22
sion may, in carrying out the duties of the Commission 23
under this section, convene a national conference relating 24
to the Museum, to be comprised of individuals committed 25
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to the advancement of the life, art, history, and culture 1
of Asian Pacific Americans. 2
SEC. 703. ADMINISTRATIVE PROVISIONS. 3
(a) C
OMPENSATION.— 4
(1) I
N GENERAL.—A member of the Commis-5
sion— 6
(A) shall not be considered to be a Federal 7
employee for any purpose by reason of service 8
on the Commission; and 9
(B) shall serve without pay. 10
(2) T
RAVEL EXPENSES .—A member of the 11
Commission shall be allowed a per diem allowance 12
for travel expenses, at rates consistent with those 13
authorized under subchapter I of chapter 57 of title 14
5, United States Code. 15
(3) G
IFTS, BEQUESTS, AND DEVISES.—The 16
Commission may solicit, accept, use, and dispose of 17
gifts, bequests, or devises of money, services, or real 18
or personal property for the purpose of aiding or fa-19
cilitating the work of the Commission. 20
(4) F
EDERAL ADVISORY COMMITTEE ACT .—The 21
Commission shall not be subject to the Federal Advi-22
sory Committee Act (5 U.S.C. App.). 23
(b) T
ERMINATION.—The Commission shall terminate 24
on the date that is 30 days after the date on which the 25
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final versions of the reports required under section 3 are 1
submitted. 2
(c) F
UNDING.— 3
(1) I
N GENERAL.—The Commission shall be 4
solely responsible for acceptance of contributions for, 5
and payment of the expenses of, the Commission. 6
(2) P
ROHIBITION.—No Federal funds may be 7
obligated to carry out this Act. 8
(d) D
IRECTOR ANDSTAFF OFCOMMISSION.— 9
(1) D
IRECTOR AND STAFF.— 10
(A) I
N GENERAL.—The Commission may 11
employ and compensate an executive director 12
and any other additional personnel that are 13
necessary to enable the Commission to perform 14
the duties of the Commission. 15
(B) R
ATES OF PAY.—Rates of pay for per-16
sons employed under subparagraph (A) shall be 17
consistent with the rates of pay allowed for em-18
ployees of a temporary organization under sec-19
tion 3161 of title 5, United States Code. 20
(2) N
OT FEDERAL EMPLOYMENT .—Any indi-21
vidual employed under this section shall not be con-22
sidered a Federal employee for the purpose of any 23
law governing Federal employment. 24
(3) T
ECHNICAL ASSISTANCE.— 25
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(A) IN GENERAL.—Subject to subpara-1
graph (B), on request of the Commission, the 2
head of a Federal agency may provide technical 3
assistance to the Commission. 4
(B) P
ROHIBITION.—No Federal employees 5
may be detailed to the Commission. 6
TITLE VIII 7
SEC. 801. SELECTUSA DEFINED. 8
In this Act, the term ‘‘SelectUSA’’ means the 9
SelectUSA program of the Department of Commerce es-10
tablished by Executive Order No. 13577 (76 Fed. Reg. 11
35715). 12
SEC. 802. FINDINGS. 13
Congress makes the following findings: 14
(1) Semiconductors underpin the United States 15
and global economies, including manufacturing sec-16
tors. Semiconductors are also essential to the na-17
tional security of the United States. 18
(2) A shortage of semiconductors, brought 19
about by the COVID–19 pandemic and other com-20
plex factors impacting the overall supply chain, has 21
threatened the economic recovery of the United 22
States and industries that employ millions of United 23
States citizens. 24
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(3) Addressing current challenges and building 1
resilience against future risks requires ensuring a se-2
cure and stable supply chain for semiconductors that 3
will support the economic and national security 4
needs of the United States and its allies. 5
(4) The supply chain for semiconductors is 6
complex and global. While the United States plays 7
a leading role in certain segments of the semicon-8
ductor industry, securing the supply chain requires 9
onshoring, reshoring, or diversifying vulnerable seg-10
ments, such as for— 11
(A) fabrication; 12
(B) advanced packaging; and 13
(C) materials and equipment used to man-14
ufacture semiconductor products. 15
(5) The Federal Government can leverage for-16
eign direct investment and private dollars to grow 17
the domestic manufacturing and production capacity 18
of the United States for vulnerable segments of the 19
semiconductor supply chain. 20
(6) The SelectUSA program of the Department 21
of Commerce, in coordination with other Federal 22
agencies and State-level economic development orga-23
nizations, is positioned to boost foreign direct invest-24
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ment in domestic manufacturing and to help secure 1
the semiconductor supply chain of the United States. 2
SEC. 803. COORDINATION WITH STATE-LEVEL ECONOMIC 3
DEVELOPMENT ORGANIZATIONS. 4
Not later than 180 days after the date of the enact-5
ment of this Act, the Executive Director of SelectUSA 6
shall solicit comments from State-level economic develop-7
ment organizations— 8
(1) to review— 9
(A) what efforts the Federal Government 10
can take to support increased foreign direct in-11
vestment in any segment of semiconductor-re-12
lated production; 13
(B) what barriers to such investment may 14
exist and how to amplify State efforts to attract 15
such investment; 16
(C) public opportunities those organiza-17
tions have identified to attract foreign direct in-18
vestment to help increase investment described 19
in subparagraph (A); 20
(D) resource gaps or other challenges that 21
prevent those organizations from increasing 22
such investment; and 23
(2) to develop recommendations for— 24
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(A) how SelectUSA can increase such in-1
vestment independently or through partnership 2
with those organizations; and 3
(B) working with countries that are allies 4
or partners of the United States to ensure that 5
foreign adversaries (as defined in section 6
8(c)(2) of the Secure and Trusted Communica-7
tions Networks Act of 2019 (47 U.S.C. 8
1607(c)(2))) do not benefit from United States 9
efforts to increase such investment. 10
SEC. 804. REPORT ON INCREASING FOREIGN DIRECT IN-11
VESTMENT IN SEMICONDUCTOR-RELATED 12
MANUFACTURING AND PRODUCTION. 13
Not later than 2 years after the date of the enact-14
ment of this Act, the Executive Director of SelectUSA, 15
in coordination with the Federal Interagency Investment 16
Working Group established by Executive Order No. 13577 17
(76 Fed. Reg. 35,715; relating to establishment of the 18
SelectUSA Initiative), shall submit to the Committee on 19
Commerce, Science, and Transportation of the Senate and 20
the Committee on Energy and Commerce of the House 21
of Representatives a report that includes— 22
(1) a review of the comments SelectUSA re-23
ceived from State-level economic development organi-24
zations under section 803; 25
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(2) a description of activities SelectUSA is en-1
gaged in to increase foreign direct investment in 2
semiconductor-related manufacturing and produc-3
tion; and 4
(3) an assessment of strategies SelectUSA may 5
implement to achieve an increase in such investment 6
and to help secure the United States supply chain 7
for semiconductors, including by— 8
(A) working with other relevant Federal 9
agencies; and 10
(B) working with State-level economic de-11
velopment organizations and implementing any 12
strategies or recommendations SelectUSA re-13
ceived from those organizations. 14
TITLE IX 15
SEC. 901. APPROVAL OF CERTAIN EQUIPMENT. 16
(a) I
NGENERAL.—Section 2008 of the Homeland 17
Security Act of 2002 (6 U.S.C. 609) is amended— 18
(1) in subsection (f)— 19
(A) by striking ‘‘If an applicant’’ and in-20
serting the following: 21
‘‘(1) A
PPLICATION REQUIREMENT .—If an appli-22
cant’’; and 23
(B) by adding at the end the following new 24
paragraphs: 25
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‘‘(2) REVIEW PROCESS.—The Administrator 1
shall implement a uniform process for reviewing ap-2
plications that, in accordance with paragraph (1), 3
contain explanations to use grants provided under 4
section 2003 or 2004 to purchase equipment or sys-5
tems that do not meet or exceed any applicable na-6
tional voluntary consensus standards developed 7
under section 647 of the Post-Katrina Emergency 8
Management Reform Act of 2006 (6 U.S.C. 747). 9
‘‘(3) F
ACTORS.—In carrying out the review 10
process under paragraph (2), the Administrator 11
shall consider the following: 12
‘‘(A) Current or past use of proposed 13
equipment or systems by Federal agencies or 14
the Armed Forces. 15
‘‘(B) The absence of a national voluntary 16
consensus standard for such equipment or sys-17
tems. 18
‘‘(C) The existence of an international con-19
sensus standard for such equipment or systems, 20
and whether such equipment or systems meets 21
such standard. 22
‘‘(D) The nature of the capability gap 23
identified by the applicant and how such equip-24
ment or systems will address such gap. 25
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‘‘(E) The degree to which such equipment 1
or systems will serve the needs of the applicant 2
better than equipment or systems that meet or 3
exceed existing consensus standards. 4
‘‘(F) Any other factor determined appro-5
priate by the Administrator.’’; and 6
(2) by adding at the end the following new sub-7
section: 8
‘‘(g) R
EVIEWPROCESS.—The Administrator shall 9
implement a uniform process for reviewing applications to 10
use grants provided under section 2003 or 2004 to pur-11
chase equipment or systems not included on the Author-12
ized Equipment List maintained by the Administrator.’’. 13
(b) I
NSPECTORGENERALREPORT.—Not later than 14
three years after the date of the enactment of this Act, 15
the Inspector General of the Department of Homeland Se-16
curity shall submit to the Committee on Homeland Secu-17
rity of the House of Representatives and the Committee 18
on Homeland Security and Governmental Affairs of the 19
Senate a report assessing the implementation of the review 20
process established under paragraph (2) of subsection (f) 21
of section 2008 of the Homeland Security Act of 2002 22
(as added by subsection (a) of this section), including in-23
formation on the following: 24
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•HR 185 IH
(1) The number of requests to purchase equip-1
ment or systems that do not meet or exceed any ap-2
plicable consensus standard evaluated under such re-3
view process. 4
(2) The capability gaps identified by applicants 5
and the number of such requests granted or denied. 6
(3) The processing time for the review of such 7
requests. 8
TITLE X 9
SEC. 1001. FINDINGS. 10
Congress finds the following: 11
(1) NASA uses enhanced use leasing to enter 12
into agreements with private sector entities, State 13
and local governments, academic institutions, and 14
other Federal agencies for lease of non-excess, un-15
derutilized NASA properties and facilities. 16
(2) NASA uses enhanced use leasing authority 17
to support responsible management of its real prop-18
erty, including to improve the use of underutilized 19
property for activities that are compatible with 20
NASA’s mission and to reduce facility operating and 21
maintenance costs. 22
(3) In fiscal year 2019, under its enhanced use 23
lease authority, NASA leased 65 real properties. 24
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•HR 185 IH
(4) In fiscal year 2019, NASA’s use of en-1
hanced use leasing resulted in the collection of 2
$10,843,025.77 in net revenue. 3
(5) In fiscal year 2019, NASA used a portion 4
of its enhanced use leasing revenues for repairs of 5
facility control systems such as lighting and heating, 6
ventilation, and air conditioning. 7
(6) NASA’s use of enhanced use leasing author-8
ity can contribute to reducing the rate of increase of 9
the Agency’s overall deferred maintenance cost. 10
SEC. 1002. EXTENSION OF AUTHORITY TO ENTER INTO 11
LEASES OF NON-EXCESS PROPERTY OF THE 12
NATIONAL AERONAUTICS AND SPACE ADMIN-13
ISTRATION. 14
Section 20145(h) of title 51, United States Code, is 15
amended by striking ‘‘December 31, 2032’’ and inserting 16
‘‘December 31, 2033’’. 17
TITLE XI 18
SEC. 1101. HEARINGS. 19
(a) I
NGENERAL.—Each standing committee of the 20
House of Representatives shall hold a hearing on the im-21
plementation of this Act within one year of enactment. 22
(b) E
XERCISE OFRULEMAKINGAUTHORITY.—Sub-23
section (a) is enacted— 24
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•HR 185 IH
(1) as an exercise of rulemaking power of the 1
House of Representatives, and, as such, shall be con-2
sidered as part of the rules of the House, and such 3
rules shall supersede any other rule of the House 4
only to the extent that rule is inconsistent therewith; 5
and 6
(2) with full recognition of the constitutional 7
right of either House to change such rules (so far 8
as relating to the procedure in such House) at any 9
time, in the same manner, and to the same extent 10
as in the case of any other rule of the House. 11
TITLE XII 12
SEC. 1201. CODE OF OFFICIAL CONDUCT. 13
In rule XXIII of the Rules of the House of Rep-14
resentatives, strike clause 21 and insert the following: 15
‘‘21.(a) Except as provided in paragraphs (b) and (c), 16
a Member, Delegate, Resident Commissioner, officer, or 17
employee of the House shall not knowingly and willfully 18
disclose publicly the identity of, or personally identifiable 19
information about, any individual who has reported allega-20
tions of possible wrongdoing, including retaliation, under 21
processes and protections provided by the Civil Service Re-22
form Act of 1978, the Whistleblower Protection Act of 23
1989, the Intelligence Community Whistleblower Protec-24
tion Act of 1998, or any other Federal law that establishes 25
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•HR 185 IH
the right for individuals to make protected disclosures to 1
Congress. 2
‘‘(b) The limitation in paragraph (a) shall not apply 3
to any disclosure of an individual’s identity or personally 4
identifiable information if— 5
‘‘(1) the individual has provided express written 6
consent prior to such disclosure; 7
‘‘(2) the individual has already voluntarily and 8
publicly disclosed their identity; or 9
‘‘(3) the disclosure is by the chair of a com-10
mittee after an affirmative vote by two-thirds of the 11
members of the committee that such disclosure is in 12
the public interest. 13
‘‘(c) Nothing in this clause shall prevent— 14
‘‘(1) an investigation of any allegation of 15
wrongdoing disclosed by any individual; or 16
‘‘(2) the public disclosure of substantive infor-17
mation shared by any individual that is not person-18
ally identifiable to that individual. 19
‘‘(d) Disclosures made pursuant to paragraph (b)(3) 20
shall be subject to appropriate safeguards, including that 21
the individual be provided timely advance notice if possible 22
before their identity or any personally identifiable informa-23
tion is disclosed prior to the vote described in paragraph 24
(b)(3), unless such information would jeopardize the re-25
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•HR 185 IH
lated investigations. When providing such notice to the in-1
dividual the committee chair shall send the individual a 2
written explanation of the reasons for the disclosure.’’. 3
TITLE XIII 4
SEC. 1301. STUDY ON FOREIGN PORTS. 5
(a) I
NGENERAL.—Not later than 90 days after the 6
date of enactment of this Act, the Chairman of the Fed-7
eral Maritime Commission shall seek to enter into an 8
agreement with a federally funded research and develop-9
ment center to evaluate how foreign ownership of marine 10
terminals at the 15 largest United States container ports 11
affects or could affect United States economic security. 12
(b) C
ONTENTS.—In carrying out the study under 13
subsection (a), the center selected under such subsection 14
shall— 15
(1) consider— 16
(A) changes in ownership of the 15 largest 17
United States container ports over the past 10 18
years as well as announced ownership changes 19
from 2025 and 2026; 20
(B) instances of ownership in individual 21
marine terminals and cumulative ownership by 22
Chinese or Russian entities or nationals; 23
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(C) instances of ownership in individual 1
marine terminals and cumulative ownership by 2
any foreign entity; 3
(D) the amount of— 4
(i) Port Infrastructure Development 5
Grant funds since fiscal year 2018 that 6
have gone to ports and marine terminals 7
that are owned wholly or partially foreign 8
owned; and 9
(ii) Port Security Grant funds since 10
fiscal year 2003 that have gone to ports 11
and marine terminals that are owned whol-12
ly or partially foreign owned; and 13
(E) where ownership exists, a detailed de-14
scription of foreign operational control includ-15
ing both affirmative and negative control; and 16
(2) offer recommendations on— 17
(A) policies by ports and marine terminal 18
operators to prevent excessive foreign ownership 19
that could threaten United States economic se-20
curity; 21
(B) whether ownership affords the foreign 22
owner access to operational technology and in-23
formation unique to the United States and oth-24
erwise unavailable; and 25
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•HR 185 IH
(C) whether foreign ownership has or could 1
affect the supply chain and policies related to 2
the prioritization of certain cargoes. 3
(c) R
EPORT.—Not later than 1 year after the initi-4
ation of the evaluation under subsection (a), the Chairman 5
of the Federal Maritime Commission shall submit to the 6
Committee on Commerce, Science, and Transportation of 7
the Senate and the Committee on Transportation and In-8
frastructure of the House of Representatives the results 9
of such evaluation. 10
TITLE XIV 11
SEC. 1401. DETERMINATION OF BUDGETARY EFFECTS. 12
The budgetary effects of this Act, for the purpose of 13
complying with the Statutory Pay-As-You-Go-Act of 2010, 14
shall be determined by reference to the latest statement 15
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 16
Act, submitted for printing in the Congressional Record 17
by the Chairman of the House Budget Committee, pro-18
vided that such statement has been submitted prior to the 19
vote on passage. 20
TITLE XV 21
SEC. 1501. FREQUENCY OF BOARD OF DIRECTORS MEET-22
INGS. 23
Section 113 of the Federal Credit Union Act (12 24
U.S.C. 1761b) is amended— 25
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(1) by striking ‘‘monthly’’ each place such term 1
appears; 2
(2) in the matter preceding paragraph (1), by 3
striking ‘‘The board of directors’’ and inserting the 4
following: 5
‘‘(a) I
NGENERAL.—The board of directors’’; 6
(3) in subsection (a) (as so designated), by 7
striking ‘‘shall meet at least once a month and’’; and 8
(4) by adding at the end the following: 9
‘‘(b) M
EETINGS.—The board of directors of a Federal 10
credit union shall meet as follows: 11
‘‘(1) With respect to a de novo Federal credit 12
union, not less frequently than monthly during each 13
of the first five years of the existence of such Fed-14
eral credit union. 15
‘‘(2) Not less than six times annually, with at 16
least one meeting held during each fiscal quarter, 17
with respect to a Federal credit union— 18
‘‘(A) with composite rating of either 1 or 19
2 under the Uniform Financial Institutions 20
Rating System (or an equivalent rating under a 21
comparable rating system); and 22
‘‘(B) with a capability of management rat-23
ing under such composite rating of either 1 or 24
2. 25
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•HR 185 IH
‘‘(3) Not less frequently than once a month, 1
with respect to a Federal credit union— 2
‘‘(A) with composite rating of either 3, 4, 3
or 5 under the Uniform Financial Institutions 4
Rating System (or an equivalent rating under a 5
comparable rating system); or 6
‘‘(B) with a capability of management rat-7
ing under such composite rating of either 3, 4, 8
or 5.’’. 9
TITLE XVI 10
SEC. 1601. APPROPRIATIONS. 11
The following sums are hereby appropriated, out of 12
any money in the Treasury not otherwise appropriated, 13
for the fiscal year ending September 30, 2026, and for 14
other purposes, namely: 15
DEPARTMENT OF HEALTH AND HUMAN 16
SERVICES 17
H
EALTHRESOURCES ANDSERVICESADMINISTRATION 18
RURAL HEALTH 19
For an additional amount for the Telehealth Re-20
source Center of the Federal Office of Rural Health Policy 21
of the Office for the Advancement of Telehealth, to pro-22
vide assistance with respect to technical, legal, regulatory 23
service delivery or other related barriers to the develop-24
ment of telehealth technologies for skilled nursing facilities 25
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•HR 185 IH
(as defined in section 1819 of the Social Security Act) and 1
nursing facilities (as defined in section 1919 of such Act), 2
$1,000,000 to remain available through September 30, 3
2025. 4
DEPARTMENT OF AGRICULTURE 5
E
XECUTIVEOPERATIONS 6
OFFICE OF BUDGET AND PROGRAM ANALYSIS 7
For an additional amount for necessary expenses of 8
the Office of Budget and Program Analysis, $1,000,000. 9
DEPARTMENT OF STATE 10
C
APITALINVESTMENTFUND 11
For an additional amount for necessary expenses of 12
the Capital Investment Fund, as authorized, $1,000,000, 13
to remain available until expended. 14
DEPARTMENT OF DEFENSE 15
O
PERATION ANDMAINTENANCE 16
OPERATION AND MAINTENANCE , ARMY 17
For an additional amount for expenses, not otherwise 18
provided for, necessary for the operation and maintenance 19
of the Army, as authorized by law, $1,000,000. 20
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DEPARTMENT OF HOMELAND SECURITY 1
D
EPARTMENTAL MANAGEMENT, INTELLIGENCE, 2
S
ITUATIONALAWARENESS, ANDOVERSIGHT 3
MANAGEMENT DIRECTORATE 4
OPERATIONS AND SUPPORT 5
For an additional amount for necessary expenses of 6
the Management Directorate for operations and support, 7
$1,000,000. 8
DEPARTMENT OF ENERGY 9
E
NERGYPROGRAMS 10
ENERGY INFORMATION ADMINISTRATION 11
For an additional amount for Department of Energy 12
expenses necessary in carrying out the activities of the En-13
ergy Information Administration, $1,000,000, to remain 14
available until expended. 15
Æ 
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