[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3527 Introduced in Senate (IS)]
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116th CONGRESS
2d Session
S. 3527
To waive required minimum distribution rules for retirement plans in
2020.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 18, 2020
Mr. Markey (for himself, Mr. Durbin, and Mr. Daines) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To waive required minimum distribution rules for retirement plans in
2020.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES FOR
CERTAIN RETIREMENT PLANS AND ACCOUNTS.
(a) In General.--Section 401(a)(9) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(I) Temporary waiver of minimum required
distribution.--
``(i) In general.--The requirements of this
paragraph shall not apply for calendar year
2020 to--
``(I) a defined contribution plan
which is described in this subsection
or in section 403(a) or 403(b),
``(II) a defined contribution plan
which is an eligible deferred
compensation plan described in section
457(b) but only if such plan is
maintained by an employer described in
section 457(e)(1)(A), or
``(III) an individual retirement
plan.
``(ii) Special rules regarding waiver
period.--For purposes of this paragraph--
``(I) the required beginning date
with respect to any individual shall be
determined without regard to this
subparagraph for purposes of applying
this paragraph for calendar years after
2020, and
``(II) if clause (ii) of
subparagraph (B) applies, the 5-year
period described in such clause shall
be determined without regard to
calendar year 2020.''.
(b) Eligible Rollover Distributions.--Section 402(c)(4) of the
Internal Revenue Code of 1986 (defining eligible rollover distribution)
is amended by adding at the end the following new flush sentence:
``If all or any portion of a distribution during 2020 is
treated as an eligible rollover distribution but would not be
so treated if the minimum distribution requirements under
section 401(a)(9) had applied during 2020, such distribution
shall not be treated as an eligible rollover distribution for
purposes of section 401(a)(31) or 3405(c) or subsection (f) of
this section.''.
(c) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply for calendar years beginning after December 31, 2019.
(2) Provisions relating to plan or contract amendments.--
(A) In general.--If this paragraph applies to any
pension plan or contract amendment, such pension plan
or contract shall not fail to be treated as being
operated in accordance with the terms of the plan
during the period described in subparagraph (B)(ii)
solely because the plan operates in accordance with
this section.
(B) Amendments to which paragraph applies.--
(i) In general.--This paragraph shall apply
to any amendment to any pension plan or annuity
contract which--
(I) is made pursuant to the
amendments made by this section, and
(II) is made on or before the last
day of the first plan year beginning on
or after January 1, 2022.
In the case of a governmental plan, subclause
(II) shall be applied by substituting ``2023''
for ``2022''.
(ii) Conditions.--This paragraph shall not
apply to any amendment unless during the period
beginning on the effective date of the
amendment and ending on December 31, 2020, the
plan or contract is operated as if such plan or
contract amendment were in effect.
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