[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 185 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 185
To advance responsible policies.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2025
Mr. McGovern introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on
Agriculture, Armed Services, Veterans' Affairs, Oversight and
Government Reform, Intelligence (Permanent Select), Foreign Affairs,
Education and Workforce, Small Business, the Judiciary, Natural
Resources, House Administration, Energy and Commerce, Homeland
Security, Science, Space, and Technology, Appropriations, Rules,
Ethics, Transportation and Infrastructure, the Budget, and Financial
Services, for a period to be subsequently 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Responsible Legislating Act''.
TITLE I
SEC. 101. LIVESTOCK MANDATORY REPORTING EXTENSION.
(a) In General.--Section 260 of the Agricultural Marketing Act of
1946 (7 U.S.C. 1636i) is amended by striking ``2024'' and inserting
``2025''.
(b) Conforming Amendment.--Section 942 of the Livestock Mandatory
Reporting Act of 1999 (7 U.S.C. 1635 note; Public Law 106-78) is
amended by striking ``2024'' and inserting ``2025''.
TITLE II
SEC. 201. EDUCATION FOR SEPARATING MEMBERS OF THE ARMED FORCES
REGARDING REGISTERED APPRENTICESHIPS.
Section 1144(b)(1) of title 10, United States Code, is amended by
inserting ``(including apprenticeship programs registered under the Act
of August 16, 1937 (50 Stat. 664; commonly referred to as the `National
Apprenticeship Act') and approved under chapters 30 through 36 of title
38)'' after ``employment opportunities''.
SEC. 202. WEBSITES REGARDING APPRENTICESHIP PROGRAMS.
(a) Website Under the Jurisdiction of Secretary of Labor.--The
Assistant Secretary of Labor for Veterans' Employment and Training, in
coordination with the Secretary of Veterans Affairs, shall establish a
user-friendly website (or update an existing website) that is available
to the public on which veterans can find information about
apprenticeship programs registered under the Act of August 16, 1937 (50
Stat. 664; commonly referred to as the ``National Apprenticeship Act'')
and approved under chapters 30 through 36 of title 38, United States
Code. Such information shall be searchable and sortable by occupation
and location, and include, with regard to each such program, the
following:
(1) A description, including any cost to a veteran.
(2) Contact information.
(3) Whether the program has been endorsed by a veterans
service organization or nonprofit organization that caters to
veterans.
(4) Whether the program prefers to hire veterans.
(5) Each certification or degree an individual earns by
completing the program.
(b) Coordination With Other Website.--The Assistant Secretary shall
update all information regarding programs for veterans listed on
apprenticeship.gov (or any successor website) to include the
information specified under subsection (a).
TITLE III
SEC. 301. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) it is in the best national and homeland security
interests of the United States for Federal agencies to retain
the specialized knowledge and experience of individuals who
suffer an injury or illness while serving in a covered position
(as defined under the amendments made by this Act); and
(2) Federal agencies should ensure, to the greatest extent
possible, that an individual who can no longer carry out the
duties of a covered position, and is reappointed to a position
in the civil service that is not a covered position, is
reappointed within the same Federal agency, in the same
geographic location, and at a level of pay commensurate to the
position which the individual held immediately prior to such
injury or illness.
SEC. 302. RETIREMENT FOR CERTAIN EMPLOYEES.
(a) CSRS.--Section 8336(c) of title 5, United States Code, is
amended by adding at the end the following:
``(3)(A) In this paragraph--
``(i) the term `affected individual' means an
individual covered under this subchapter who--
``(I) is performing service in a covered
position;
``(II) while on duty, becomes ill or is
injured as a direct result of the performance
of such duties before the date on which the
individual becomes entitled to an annuity under
paragraph (1) of this subsection or subsection
(e), (m), or (n), as applicable;
``(III) because of the illness or injury
described in subclause (II), is permanently
unable to render useful and efficient service
in the employee's covered position, as
determined by the agency in which the
individual was serving when such individual
incurred the illness or injury; and
``(IV) is appointed to a position in the
civil service that--
``(aa) is not a covered position;
and
``(bb) is within an agency that
regularly appoints individuals to
supervisory or administrative positions
related to the activities of the former
covered position of the individual;
``(ii) the term `covered position' means a position
as a law enforcement officer, customs and border
protection officer, firefighter, air traffic
controller, nuclear materials courier, member of the
Capitol Police, or member of the Supreme Court Police.
``(B) Unless an affected individual files an
election described in subparagraph (E), creditable
service by the affected individual in a position
described in subparagraph (A)(i)(IV) shall be treated
as creditable service in a covered position for
purposes of this chapter and determining the amount to
be deducted and withheld from the pay of the affected
individual under section 8334.
``(C) Subparagraph (B) shall only apply if the
affected employee transitions to a position described
in subparagraph (A)(i)(IV) without a break in service
exceeding 3 days.
``(D) The service of an affected individual shall
no longer be eligible for treatment under subparagraph
(B) if such service occurs after the individual--
``(i) is transferred to a supervisory or
administrative position related to the
activities of the former covered position of
the individual; or
``(ii) meets the age and service
requirements that would subject the individual
to mandatory separation under section 8335 if
such individual had remained in the former
covered position.
``(E) In accordance with procedures established by
the Director of the Office of Personnel Management, an
affected individual may file an election to have any
creditable service performed by the affected individual
treated in accordance with this chapter without regard
to subparagraph (B).
``(F) Nothing in this paragraph shall be construed
to apply to such affected individual any other pay-
related laws or regulations applicable to a covered
position.''.
(b) FERS.--
(1) In general.--Section 8412(d) of title 5, United States
Code, is amended--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(B) by inserting ``(1)'' before ``An employee'';
and
(C) by adding at the end the following:
``(2)(A) In this paragraph--
``(i) the term `affected individual' means an
individual covered under this chapter who--
``(I) is performing service in a covered
position;
``(II) while on duty, becomes ill or is
injured as a direct result of the performance
of such duties before the date on which the
individual becomes entitled to an annuity under
paragraph (1) of this subsection or subsection
(e), as applicable;
``(III) because of the illness or injury
described in subclause (II), is permanently
unable to render useful and efficient service
in the employee's covered position, as
determined by the agency in which the
individual was serving when such individual
incurred the illness or injury; and
``(IV) is appointed to a position in the
civil service that--
``(aa) is not a covered position;
and
``(bb) is within an agency that
regularly appoints individuals to
supervisory or administrative positions
related to the activities of the former
covered position of the individual;
``(ii) the term `covered position' means a position
as a law enforcement officer, customs and border
protection officer, firefighter, air traffic
controller, nuclear materials courier, member of the
Capitol Police, or member of the Supreme Court Police.
``(B) Unless an affected individual files an
election described in subparagraph (E), creditable
service by the affected individual in a position
described in subparagraph (A)(i)(IV) shall be treated
as creditable service in a covered position for
purposes of this chapter and determining the amount to
be deducted and withheld from the pay of the affected
individual under section 8422.
``(C) Subparagraph (B) shall only apply if the
affected employee transitions to a position described
in subparagraph (A)(i)(IV) without a break in service
exceeding 3 days.
``(D) The service of an affected individual shall
no longer be eligible for treatment under subparagraph
(B) if such service occurs after the individual--
``(i) is transferred to a supervisory or
administrative position related to the
activities of the former covered position of
the individual; or
``(ii) meets the age and service
requirements that would subject the individual
to mandatory separation under section 8425 if
such individual had remained in the former
covered position.
``(E) In accordance with procedures established by
the Director of the Office of Personnel Management, an
affected individual may file an election to have any
creditable service performed by the affected individual
treated in accordance with this chapter without regard
to subparagraph (B).
``(F) Nothing in this paragraph shall be construed
to apply to such affected individual any other pay-
related laws or regulations applicable to a covered
position.''.
(2) Technical and conforming amendments.--
(A) Chapter 84 of title 5, United States Code, is
amended--
(i) in section 8414(b)(3), by inserting
``(1)'' after ``subsection (d)'';
(ii) in section 8415--
(I) in subsection (e), in the
matter preceding paragraph (1), by
inserting ``(1)'' after ``subsection
(d)''; and
(II) in subsection (h)(2)(A), by
striking ``(d)(2)'' and inserting
``(d)(1)(B)'';
(iii) in section 8421(a)(1), by inserting
``(1)'' after ``(d)'';
(iv) in section 8421a(b)(4)(B)(ii), by
inserting ``(1)'' after ``section 8412(d)'';
(v) in section 8425, by inserting ``(1)''
after ``section 8412(d)'' each place it
appears; and
(vi) in section 8462(c)(3)(B)(ii), by
inserting ``(1)'' after ``subsection (d)''.
(B) Title VIII of the Foreign Service Act of 1980
(22 U.S.C. 4041 et seq.) is amended--
(i) in section 805(d)(5) (22 U.S.C.
4045(d)(5)), by inserting ``(1)'' after ``or
8412(d)''; and
(ii) in section 812(a)(2)(B) (22 U.S.C.
4052(a)(2)(B)), by inserting ``(1)'' after ``or
8412(d)''.
(c) CIA Employees.--Section 302 of the Central Intelligence Agency
Retirement Act (50 U.S.C. 2152) is amended by adding at the end the
following:
``(d) Employees Disabled on Duty.--
``(1) Definitions.--In this subsection--
``(A) the term `affected employee' means an
employee of the Agency covered under subchapter II of
chapter 84 of title 5, United States Code, who--
``(i) is performing service in a position
designated under subsection (a);
``(ii) while on duty in the position
designated under subsection (a), becomes ill or
is injured as a direct result of the
performance of such duties before the date on
which the employee becomes entitled to an
annuity under section 233 of this Act or
section 8412(d)(1) of title 5, United States
Code;
``(iii) because of the illness or injury
described in clause (ii), is permanently unable
to render useful and efficient service in the
employee's covered position, as determined by
the Director; and
``(iv) is appointed to a position in the
civil service that is not a covered position
but is within the Agency; and
``(B) the term `covered position' means a position
as--
``(i) a law enforcement officer described
in section 8331(20) or 8401(17) of title 5,
United States Code;
``(ii) a customs and border protection
officer described in section 8331(31) or
8401(36) of title 5, United States Code;
``(iii) a firefighter described in section
8331(21) or 8401(14) of title 5, United States
Code;
``(iv) an air traffic controller described
in section 8331(30) or 8401(35) of title 5,
United States Code;
``(v) a nuclear materials courier described
in section 8331(27) or 8401(33) of title 5,
United States Code;
``(vi) a member of the United States
Capitol Police;
``(vii) a member of the Supreme Court
Police;
``(viii) an affected employee; or
``(ix) a special agent described in section
804(15) of the Foreign Service Act of 1980 (22
U.S.C. 4044(15)).
``(2) Treatment of service after disability.--Unless an
affected employee files an election described in paragraph (3),
creditable service by the affected employee in a position
described in paragraph (1)(A)(iv) shall be treated as
creditable service in a covered position for purposes of this
Act and chapter 84 of title 5, United States Code, including
eligibility for an annuity under section 233 of this Act or
8412(d)(1) of title 5, United States Code, and determining the
amount to be deducted and withheld from the pay of the affected
employee under section 8422 of title 5, United States Code.
``(3) Break in service.--Paragraph (2) shall only apply if
the affected employee transitions to a position described in
paragraph (1)(A)(iv) without a break in service exceeding 3
days.
``(4) Limitation on treatment of service.--The service of
an affected employee shall no longer be eligible for treatment
under paragraph (2) if such service occurs after the employee
is transferred to a supervisory or administrative position
related to the activities of the former covered position of the
employee.
``(5) Opt out.--An affected employee may file an election
to have any creditable service performed by the affected
employee treated in accordance with chapter 84 of title 5,
United States Code, without regard to paragraph (2).''.
(d) Foreign Service Retirement and Disability System.--Section
806(a)(6) of the Foreign Service Act of 1980 (22 U.S.C. 4046(a)(6)) is
amended by adding at the end the following:
``(D)(i) In this subparagraph--
``(I) the term `affected special agent'
means an individual covered under this
subchapter who--
``(aa) is performing service as a
special agent;
``(bb) while on duty as a special
agent, becomes ill or is injured as a
direct result of the performance of
such duties before the date on which
the individual becomes entitled to an
annuity under section 811;
``(cc) because of the illness or
injury described in item (bb), is
permanently unable to render useful and
efficient service in the employee's
covered position, as determined by the
Secretary; and
``(dd) is appointed to a position
in the Foreign Service that is not a
covered position; and
``(II) the term `covered position' means a
position as--
``(aa) a law enforcement officer
described in section 8331(20) or
8401(17) of title 5, United States
Code;
``(bb) a customs and border
protection officer described in section
8331(31) or 8401(36) of title 5, United
States Code;
``(cc) a firefighter described in
section 8331(21) or 8401(14) of title
5, United States Code;
``(dd) an air traffic controller
described in section 8331(30) or
8401(35) of title 5, United States
Code;
``(ee) a nuclear materials courier
described in section 8331(27) or
8401(33) of title 5, United States
Code;
``(ff) a member of the United
States Capitol Police;
``(gg) a member of the Supreme
Court Police;
``(hh) an employee of the Agency
designated under section 302(a) of the
Central Intelligence Agency Retirement
Act (50 U.S.C. 2152(a)); or
``(ii) a special agent.
``(ii) Unless an affected special agent
files an election described in clause (iv),
creditable service by the affected special
agent in a position described in clause
(i)(I)(dd) shall be treated as creditable
service as a special agent for purposes of this
subchapter, including determining the amount to
be deducted and withheld from the pay of the
individual under section 805.
``(iii) Clause (ii) shall only apply if the
special agent transitions to a position
described in clause (i)(I)(dd) without a break
in service exceeding 3 days.
``(iv) The service of an affected employee
shall no longer be eligible for treatment under
clause (ii) if such service occurs after the
employee is transferred to a supervisory or
administrative position related to the
activities of the former covered position of
the employee.
``(v) In accordance with procedures
established by the Secretary, an affected
special agent may file an election to have any
creditable service performed by the affected
special agent treated in accordance with this
subchapter, without regard to clause (ii).''.
(e) Implementation.--
(1) Office of personnel management.--Not later than 1 year
after the date of enactment of this Act, the Director of the
Office of Personnel Management shall promulgate regulations to
carry out the amendments made by subsections (a) and (b).
(2) CIA employees.--The Director of the Central
Intelligence Agency shall promulgate regulations to carry out
the amendment made by subsection (c).
(3) Foreign service retirement and disability system.--The
Secretary of State shall promulgate regulations to carry out
the amendment made by subsection (d).
(4) Agency certification.--The regulations promulgated to
carry out the amendments made by this Act shall include a
requirement that the head of the agency at which an affected
employee or special agent (as the case may be) incurred the
applicable illness or injury certifies that such illness or
injury--
(A) was incurred in the course of the employee's or
special agent's duties; and
(B) permanently precludes the employee or special
agent from rendering useful and efficient service in
the covered position but would not preclude the
employee or special agent from continuing to serve in
the Federal service.
(5) Agency reappointment.--The regulations promulgated to
carry out the amendments made by this Act shall ensure that, to
the greatest extent possible, the head of each agency appoints
affected employees or special agents to supervisory or
administrative positions related to the activities of the
former covered position of the employee or special agent.
(6) Treatment of service.--The regulations promulgated to
carry out the amendments made by this Act shall ensure that the
creditable service of an affected employee or special agent (as
the case may be) that is not in a covered position pursuant to
an election made under such amendments shall be treated as the
same type of service as the covered position in which the
employee or agent suffered the qualifying illness or injury.
(f) Effective Date; Applicability.--The amendments made by this
Act--
(1) shall take effect on the date of enactment of this Act;
and
(2) shall apply to an individual who suffers an illness or
injury described in section 8336(c)(3)(A)(i)(II) or section
8412(d)(2)(A)(i)(II) of title 5, United States Code, as amended
by this section, section 302(d)(1)(A)(ii) of the Central
Intelligence Agency Retirement Act, as amended by this section,
or section 806(a)(6)(D)(i)(I)(bb) of the Foreign Service Act of
1980, as amended by this section, on or after the date that is
2 years after the date of enactment of this Act.
TITLE IV
SEC. 401. EXPANDING AUTOMATIC ENROLLMENT IN RETIREMENT PLANS.
(a) In General.--Subpart B of part I of subchapter D of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 414 the following new section:
``SEC. 414A. REQUIREMENTS RELATED TO AUTOMATIC ENROLLMENT.
``(a) In General.--Except as otherwise provided in this section--
``(1) an arrangement shall not be treated as a qualified
cash or deferred arrangement described in section 401(k) unless
such arrangement meets the automatic enrollment requirements of
subsection (b), and
``(2) an annuity contract otherwise described in section
403(b)(1) which is purchased under a salary reduction agreement
shall not be treated as described in such section unless such
agreement meets the automatic enrollment requirements of
subsection (b).
``(b) Automatic Enrollment Requirements.--
``(1) In general.--An arrangement or agreement meets the
requirements of this subsection if such arrangement or
agreement is an eligible automatic contribution arrangement (as
defined in section 414(w)(3)) which meets the requirements of
paragraphs (2) through (4).
``(2) Allowance of permissible withdrawals.--An eligible
automatic contribution arrangement meets the requirements of
this paragraph if such arrangement allows employees to make
permissible withdrawals (as defined in section 414(w)(2)).
``(3) Minimum contribution percentage.--
``(A) In general.--An eligible automatic
contribution arrangement meets the requirements of this
paragraph if--
``(i) the uniform percentage of
compensation contributed by the participant
under such arrangement during the first year of
participation is not less than 3 percent and
not more than 10 percent (unless the
participant specifically elects not to have
such contributions made or to have such
contributions made at a different percentage),
and
``(ii) effective for the first day of each
plan year starting after each completed year of
participation under such arrangement such
uniform percentage is increased by 1 percentage
point (to at least 10 percent, but not more
than 15 percent) unless the participant
specifically elects not to have such
contributions made or to have such
contributions made at a different percentage.
``(B) Initial reduced ceiling for certain plans.--
In the case of any eligible automatic contribution
arrangement (other than an arrangement that meets the
requirements of paragraph (12) or (13) of section
401(k)), for plan years ending before January 1, 2027,
subparagraph (A)(ii) shall be applied by substituting
`10 percent' for `15 percent'.
``(4) Investment requirements.--An eligible automatic
contribution arrangement meets the requirements of this
paragraph if amounts contributed pursuant to such arrangement,
and for which no investment is elected by the participant, are
invested in accordance with the requirements of section
2550.404c-5 of title 29, Code of Federal Regulations (or any
successor regulations).
``(c) Exceptions.--For purposes of this section--
``(1) Simple plans.--Subsection (a) shall not apply to any
simple plan (within the meaning of section 401(k)(11)).
``(2) Exception for plans or arrangements established
before enactment of section.--
``(A) In general.--Subsection (a) shall not apply
to--
``(i) any qualified cash or deferred
arrangement established before the date of the
enactment of this section, or
``(ii) any annuity contract purchased under
a plan established before the date of the
enactment of this section.
``(B) Post-enactment adoption of multiple employer
plan.--Subparagraph (A) shall not apply in the case of
an employer adopting after such date of enactment a
plan maintained by more than one employer, and
subsection (a) shall apply with respect to such
employer as if such plan were a single plan.
``(3) Exception for governmental and church plans.--
Subsection (a) shall not apply to any governmental plan (within
the meaning of section 414(d)) or any church plan (within the
meaning of section 414(e)).
``(4) Exception for new and small businesses.--
``(A) New business.--Subsection (a) shall not apply
to any qualified cash or deferred arrangement, or any
annuity contract purchased under a plan, while the
employer maintaining such plan (and any predecessor
employer) has been in existence for less than 3 years.
``(B) Small businesses.--Subsection (a) shall not
apply to any qualified cash or deferred arrangement, or
any annuity contract purchased under a plan, earlier
than the date that is 1 year after the close of the
first taxable year with respect to which the employer
maintaining the plan normally employed more than 10
employees.
``(C) Treatment of multiple employer plans.--In the
case of a plan maintained by more than 1 employer,
subparagraphs (A) and (B) shall be applied separately
with respect to each such employer, and all such
employers to which subsection (a) applies (after the
application of this paragraph) shall be treated as
maintaining a separate plan for purposes of this
section.''.
(b) Clerical Amendment.--The table of sections for subpart B of
part I of subchapter D of chapter 1 of such Code is amended by
inserting after the item relating to section 414 the following new
item:
``Sec. 414A. Requirements related to automatic enrollment.''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2025.
SEC. 402. MODIFICATION OF CREDIT FOR SMALL EMPLOYER PENSION PLAN
STARTUP COSTS.
(a) Increase in Credit Percentage for Smaller Employers.--Section
45E(e) of the Internal Revenue Code of 1986 is amended by adding at the
end the following new paragraph:
``(4) Increased credit for certain small employers.--In the
case of an employer which would be an eligible employer under
subsection (c) if section 408(p)(2)(C)(i) was applied by
substituting `50 employees' for `100 employees', subsection (a)
shall be applied by substituting `100 percent' for `50
percent'.''.
(b) Additional Credit for Employer Contributions by Certain Small
Employers.--Section 45E of such Code, as amended by subsection (a), is
amended by adding at the end the following new subsection:
``(f) Additional Credit for Employer Contributions by Certain
Eligible Employers.--
``(1) In general.--In the case of an eligible employer, the
credit allowed for the taxable year under subsection (a)
(determined without regard to this subsection) shall be
increased by an amount equal to the applicable percentage of
employer contributions (other than any elective deferrals (as
defined in section 402(g)(3)) by the employer to an eligible
employer plan (other than a defined benefit plan (as defined in
section 414(j))).
``(2) Limitations.--
``(A) Dollar limitation.--The amount determined
under paragraph (1) (before the application of
subparagraph (B)) with respect to any employee of the
employer shall not exceed $1,000.
``(B) Credit phase-in.--In the case of any eligible
employer which had for the preceding taxable year more
than 50 employees, the amount determined under
paragraph (1) (without regard to this subparagraph)
shall be reduced by an amount equal to the product of--
``(i) the amount otherwise so determined
under paragraph (1), multiplied by
``(ii) a percentage equal to 2 percentage
points for each employee of the employer for
the preceding taxable year in excess of 50
employees.
``(3) Applicable percentage.--For purposes of this section,
the applicable percentage for the taxable year during which the
eligible employer plan is established with respect to the
eligible employer shall be 100 percent, and for taxable years
thereafter shall be determined under the following table:
``In the case of the following The applicable percentage shall be:
taxable year beginning
after the taxable year
during which plan is
established with respect to
the eligible employer:
1st................................................ 100%
2nd................................................ 75%
3rd................................................ 50%
4th................................................ 25%
Any taxable year thereafter........................ 0%
``(4) Determination of eligible employer; number of
employees.--For purposes of this subsection, whether an
employer is an eligible employer and the number of employees of
an employer shall be determined under the rules of subsection
(c), except that paragraph (2) thereof shall only apply to the
taxable year during which the eligible employer plan to which
this section applies is established with respect to the
eligible employer.''.
(c) Disallowance of Deduction.--Section 45E(e)(2) of such Code is
amended to read as follows:
``(2) Disallowance of deduction.--No deduction shall be
allowed--
``(A) for that portion of the qualified startup
costs paid or incurred for the taxable year which is
equal to so much of the portion of the credit
determined under subsection (a) as is properly
allocable to such costs, and
``(B) for that portion of the employer
contributions by the employer for the taxable year
which is equal to so much of the credit increase
determined under subsection (f) as is properly
allocable to such contributions.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 403. PROMOTION OF SAVER'S CREDIT.
(a) In General.--The Secretary of the Treasury shall take such
steps as the Secretary determines are necessary and appropriate to
increase public awareness of the credit provided under section 25B of
the Internal Revenue Code of 1986.
(b) Report to Congress.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary shall provide a report
to Congress to summarize the anticipated promotion efforts of
the Treasury under subsection (a).
(2) Contents.--Such report shall include--
(A) a description of plans for--
(i) the development and distribution of
digital and print materials, including the
distribution of such materials to States for
participants in State facilitated retirement
savings programs; and
(ii) the translation of such materials into
the 10 most commonly spoken languages in the
United States after English (as determined by
reference to the most recent American Community
Survey of the Bureau of the Census); and
(B) such other information as the Secretary
determines is necessary
SEC. 404. ENHANCEMENT OF SAVER'S CREDIT.
(a) 50 Percent Credit Rate.--Section 25B(a) of the Internal Revenue
Code of 1986 is amended by striking ``the applicable percentage'' and
inserting ``50 percent''.
(b) Adjusted Gross Income Phaseouts.--Section 25B(b) of such Code
is amended to read as follows:
``(b) Limitation.--For purposes of this section--
``(1) In general.--The amount of credit allowable under
subsection (a) (determined without regard to this subsection)
shall be reduced (but not below zero) by an amount which bears
the same ratio to the credit otherwise so allowable as--
``(A) the excess (if any) of--
``(i) adjusted gross income of the
taxpayer, over
``(ii) the threshold amount, bears to
``(B) the phaseout amount.
``(2) Threshold amount.--The term `threshold amount'
means--
``(A) in the case of a joint return or a surviving
spouse (as defined in section 2(a)), $48,000,
``(B) in the case of a head of household, 75
percent of the amount in effect for the taxable year
under subparagraph (A), and
``(C) in the case of any other individual, 50
percent of the amount in effect for the taxable year
under subparagraph (A).
``(3) Phaseout amount.--The term `phaseout amount' means--
``(A) in the case of a joint return or a surviving
spouse (as defined in 2(a)), $35,000,
``(B) in the case of a head of household (as
defined in section 2(b)), 75 percent of the amount in
effect for the taxable year under subparagraph (A), and
``(C) in the case of any other individual, 50
percent of the amount in effect for the taxable year
under subparagraph (A).
``(4) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning in a calendar year after 2028, the $48,000
dollar amount in paragraph (2) and the $35,000 in
paragraph (3) shall each be increased by an amount
equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2024'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--Any increase determined under
subparagraph (A) that is not a multiple of $500 shall
be rounded to the nearest multiple of $500.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2028.
SEC. 405. ENHANCEMENT OF 403(B) PLANS.
(a) In General.--Section 403(b)(7)(A) of the Internal Revenue Code
of 1986 is amended by striking ``if the amounts are to be invested in
regulated investment company stock to be held in that custodial
account'' and inserting ``if the amounts are to be held in that
custodial account and invested in regulated investment company stock or
a group trust intended to satisfy the requirements of Internal Revenue
Service Revenue Ruling 81-100 (or any successor guidance)''.
(b) Conforming Amendment.--The heading of paragraph (7) of section
403(b) of such Code is amended by striking ``for regulated investment
company stock''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts invested after December 31, 2024.
SEC. 406. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR MANDATORY
DISTRIBUTIONS.
(a) In General.--Section 401(a)(9)(C)(i)(I) of the Internal Revenue
Code of 1986 is amended by striking ``age 72'' and inserting ``the
applicable age''.
(b) Spouse Beneficiaries; Special Rule for Owners.--Subparagraphs
(B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) of such Code are each
amended by striking ``age 72'' and inserting ``the applicable age''.
(c) Applicable Age.--Section 401(a)(9)(C) of such Code is amended
by adding at the end the following new clause:
``(v) Applicable age.--
``(I) In the case of an individual
who attains age 72 after December 31,
2024, and age 73 before January 1,
2032, the applicable age is 73.
``(II) In the case of an individual
who attains age 73 after December 31,
2031, and age 74 before January 1,
2035, the applicable age is 74.
``(III) In the case of an
individual who attains age 74 after
December 31, 2034, the applicable age
is 75.''.
(d) Conforming Amendments.--The last sentence of section 408(b) of
such Code is amended by striking ``age 72'' and inserting ``the
applicable age (determined under section 401(a)(9)(C)(v) for the
calendar year in which such taxable year begins)''.
(e) Effective Date.--The amendments made by this section shall
apply to distributions required to be made after December 31, 2024,
with respect to individuals who attain age 72 after such date.
SEC. 407. INDEXING IRA CATCH-UP LIMIT.
(a) In General.--Subparagraph (C) of section 219(b)(5) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new clause:
``(iii) Indexing of catch-up limitation.--
In the case of any taxable year beginning in a
calendar year after 2025, the $1,000 amount
under subparagraph (B)(ii) shall be increased
by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for the calendar year in which
the taxable year begins, determined by
substituting `calendar year 2024' for
`calendar year 2016' in subparagraph
(A)(ii) thereof.
If any amount after adjustment under the
preceding sentence is not a multiple of $100,
such amount shall be rounded to the next lower
multiple of $100.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 408. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 62, 63, AND 64.
(a) In General.--
(1) Plans other than simple plans.--Section 414(v)(2)(B)(i)
of the Internal Revenue Code of 1986 is amended by inserting
the following before the period: ``($10,000, in the case of an
eligible participant who would attain age 62, but not age 65,
before the close of the taxable year)''.
(2) Simple plans.--Section 414(v)(2)(B)(ii) of such Code is
amended by inserting the following before the period:
``($5,000, in the case of an eligible participant who would
attain age 62, but not age 65, before the close of the taxable
year)''.
(b) Cost-of-Living Adjustments.--Subparagraph (C) of section
414(v)(2) of such Code is amended by adding at the end the following:
``In the case of a year beginning after December 31, 2023, the
Secretary shall adjust annually the $10,000 amount in subparagraph
(B)(i) and the $5,000 amount in subparagraph (B)(ii) for increases in
the cost-of-living at the same time and in the same manner as
adjustments under the preceding sentence; except that the base period
taken into account shall be the calendar quarter beginning July 1,
2022.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 409. POOLED EMPLOYER PLANS MODIFICATION.
(a) In General.--Section 3(43)(B)(ii) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1002(43)(B)(ii)) is amended to
read as follows:
``(ii) designate a named fiduciary (other
than an employer in the plan) to be responsible
for collecting contributions to the plan and
require such fiduciary to implement written
contribution collection procedures that are
reasonable, diligent, and systematic;''.
(b) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2024.
SEC. 410. MULTIPLE EMPLOYER 403(B) PLANS.
(a) In General.--Section 403(b) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(15) Multiple employer plans.--
``(A) In general.--Except in the case of a church
plan, this subsection shall not be treated as failing
to apply to an annuity contract solely by reason of
such contract being purchased under a plan maintained
by more than 1 employer.
``(B) Treatment of employers failing to meet
requirements of plan.--
``(i) In general.--In the case of a plan
maintained by more than 1 employer, this
subsection shall not be treated as failing to
apply to an annuity contract held under such
plan merely because of one or more employers
failing to meet the requirements of this
subsection if such plan satisfies rules similar
to the rules of section 413(e)(2) with respect
to any such employer failure.
``(ii) Additional requirements in case of
non-governmental plans.--A plan shall not be
treated as meeting the requirements of this
subparagraph unless the plan satisfies rules
similar to the rules of subparagraph (A) or (B)
of section 413(e)(1), except in the case of a
multiple employer plan maintained solely by any
of the following: A State, a political
subdivision of a State, or an agency or
instrumentality of any one or more of the
foregoing.''.
(b) Annual Registration for 403(b) Multiple Employer Plan.--Section
6057 of such Code is amended by redesignating subsection (g) as
subsection (h) and by inserting after subsection (f) the following new
subsection:
``(g) 403(b) Multiple Employer Plans Treated as One Plan.--In the
case of annuity contracts to which this section applies and to which
section 403(b) applies by reason of the plan under which such contracts
are purchased meeting the requirements of paragraph (15) thereof, such
plan shall be treated as a single plan for purposes of this section.''.
(c) Annual Information Returns for 403(b) Multiple Employer Plan.--
Section 6058 of such Code is amended by redesignating subsection (f) as
subsection (g) and by inserting after subsection (e) the following new
subsection:
``(f) 403(b) Multiple Employer Plans Treated as One Plan.--In the
case of annuity contracts to which this section applies and to which
section 403(b) applies by reason of the plan under which such contracts
are purchased meeting the requirements of paragraph (15) thereof, such
plan shall be treated as a single plan for purposes of this section.''.
(d) Amendments to Employee Retirement Income Security Act of
1974.--
(1) In general.--Section 3(43)(A) of the Employee
Retirement Income Security Act of 1974 is amended--
(A) in clause (ii), by striking ``section 501(a) of
such Code or'' and inserting ``section 501(a) of such
Code, a plan that consists of contracts described in
section 403(b) of such Code, or''; and
(B) in the flush text at the end, by striking ``the
plan.'' and inserting ``the plan, but such term shall
include any program (other than a governmental plan)
maintained for the benefit of the employees of more
than 1 employer that consists of contracts described in
section 403(b) of such Code and that meets the
requirements of subparagraph (A) or (B) of section
413(e)(1) of such Code.''.
(2) Conforming amendments.--Sections 3(43)(B)(v)(II) and
3(44)(A)(i)(I) of the Employee Retirement Income Security Act
of 1974 are each amended by striking ``section 401(a) of such
Code or'' and inserting ``section 401(a) of such Code, a plan
that consists of contracts described in section 403(b) of such
Code, or''.
(e) Regulations Relating to Employer Failure To Meet Multiple
Employer Plan Requirements.--The Secretary of the Treasury (or the
Secretary's delegate) shall prescribe such regulations as may be
necessary to clarify, in the case of plans to which section 403(b)(15)
of the Internal Revenue Code of 1986 applies, the treatment of an
employer departing such plan in connection with such employer's failure
to meet multiple employer plan requirements.
(f) Modification of Model Plan Language, etc.--
(1) Plan notifications.--The Secretary of the Treasury (or
the Secretary's delegate) shall modify the model plan language
published under section 413(e)(5) of the Internal Revenue Code
of 1986 to include language that notifies participating
employers described in section 501(c)(3), and which are exempt
from tax under section 501(a), that the plan is subject to the
Employee Retirement Income Security Act of 1974 and that such
employer is a plan sponsor with respect to its employees
participating in the multiple employer plan and, as such, has
certain fiduciary duties with respect to the plan and to its
employees.
(2) Model plans for multiple employer 403(b) non-
governmental plans.--For plans to which section 403(b)(15)(A)
of the Internal Revenue Code of 1986 applies (other than a plan
maintained for its employees by a State, a political
subdivision of a State, or an agency or instrumentality of any
one or more of the foregoing), the Secretary of the Treasury
shall publish model plan language similar to model plan
language published under section 413(e)(5) of such Code.
(3) Educational outreach to employers exempt from tax.--The
Secretary of the Treasury (or the Secretary's delegate) shall
provide education and outreach to increase awareness to
employers described in section 501(c)(3) of the Internal
Revenue Code of 1986, and which are exempt from tax under
section 501(a) of such Code, that multiple employer plans are
subject to the Employee Retirement Income Security Act of 1974
and that such employer is a plan sponsor with respect to its
employees participating in the multiple employer plan and, as
such, has certain fiduciary duties with respect to the plan and
to its employees.
(g) No Inference With Respect to Church Plans.--Regarding any
application of section 403(b) of the Internal Revenue Code of 1986 to
an annuity contract purchased under a church plan (as defined in
section 414(e) of such Code) maintained by more than 1 employer, or to
any application of rules similar to section 413(e) of such Code to such
a plan, no inference shall be made from section 403(b)(15)(A) of such
Code (as added by this Act) not applying to such plans.
(h) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to plan years beginning after December 31, 2024.
(2) Rule of construction.--Nothing in the amendments made
by subsection (a) shall be construed as limiting the authority
of the Secretary of the Treasury or the Secretary's delegate
(determined without regard to such amendment) to provide for
the proper treatment of a failure to meet any requirement
applicable under the Internal Revenue Code of 1986 with respect
to one employer (and its employees) in the case of a plan to
which section 403(b)(15) of the Internal Revenue Code of 1986
applies.
SEC. 411. TREATMENT OF STUDENT LOAN PAYMENTS AS ELECTIVE DEFERRALS FOR
PURPOSES OF MATCHING CONTRIBUTIONS.
(a) In General.--Section 401(m)(4)(A) of the Internal Revenue Code
of 1986 is amended by striking ``and'' at the end of clause (i), by
striking the period at the end of clause (ii) and inserting ``, and'',
and by adding at the end the following new clause:
``(iii) subject to the requirements of
paragraph (13), any employer contribution made
to a defined contribution plan on behalf of an
employee on account of a qualified student loan
payment.''
(b) Qualified Student Loan Payment.--Section 401(m)(4) of such Code
is amended by adding at the end the following new subparagraph:
``(D) Qualified student loan payment.--The term
`qualified student loan payment' means a payment made
by an employee in repayment of a qualified education
loan (as defined section 221(d)(1)) incurred by the
employee to pay qualified higher education expenses,
but only--
``(i) to the extent such payments in the
aggregate for the year do not exceed an amount
equal to--
``(I) the limitation applicable
under section 402(g) for the year (or,
if lesser, the employee's compensation
(as defined in section 415(c)(3)) for
the year), reduced by
``(II) the elective deferrals made
by the employee for such year, and
``(ii) if the employee certifies to the
employer making the matching contribution under
this paragraph that such payment has been made
on such loan.
For purposes of this subparagraph, the term `qualified
higher education expenses' means the cost of attendance
(as defined in section 472 of the Higher Education Act
of 1965, as in effect on the day before the date of the
enactment of the Taxpayer Relief Act of 1997) at an
eligible educational institution (as defined in section
221(d)(2)).''.
(c) Matching Contributions for Qualified Student Loan Payments.--
Section 401(m) of such Code is amended by redesignating paragraph (13)
as paragraph (14), and by inserting after paragraph (12) the following
new paragraph:
``(13) Matching contributions for qualified student loan
payments.--
``(A) In general.--For purposes of paragraph
(4)(A)(iii), an employer contribution made to a defined
contribution plan on account of a qualified student
loan payment shall be treated as a matching
contribution for purposes of this title if--
``(i) the plan provides matching
contributions on account of elective deferrals
at the same rate as contributions on account of
qualified student loan payments,
``(ii) the plan provides matching
contributions on account of qualified student
loan payments only on behalf of employees
otherwise eligible to receive matching
contributions on account of elective deferrals,
``(iii) under the plan, all employees
eligible to receive matching contributions on
account of elective deferrals are eligible to
receive matching contributions on account of
qualified student loan payments, and
``(iv) the plan provides that matching
contributions on account of qualified student
loan payments vest in the same manner as
matching contributions on account of elective
deferrals.
``(B) Treatment for purposes of nondiscrimination
rules, etc.--
``(i) Nondiscrimination rules.--For
purposes of subparagraph (A)(iii), subsection
(a)(4), and section 410(b), matching
contributions described in paragraph
(4)(A)(iii) shall not fail to be treated as
available to an employee solely because such
employee does not have debt incurred under a
qualified education loan (as defined in section
221(d)(1)).
``(ii) Student loan payments not treated as
plan contribution.--Except as provided in
clause (iii), a qualified student loan payment
shall not be treated as a contribution to a
plan under this title.
``(iii) Matching contribution rules.--
Solely for purposes of meeting the requirements
of paragraph (11)(B) or (12) of this
subsection, or paragraph (11)(B)(i)(II),
(12)(B), or (13)(D) of subsection (k), a plan
may treat a qualified student loan payment as
an elective deferral or an elective
contribution, whichever is applicable.
``(iv) Actual deferral percentage
testing.--In determining whether a plan meets
the requirements of subsection (k)(3)(A)(ii)
for a plan year, the plan may apply the
requirements of such subsection separately with
respect to all employees who receive matching
contributions described in paragraph
(4)(A)(iii) for the plan year.
``(C) Employer may rely on employee
certification.--The employer may rely on an employee
certification of payment under paragraph (4)(D)(ii).''.
(d) Simple Retirement Accounts.--Section 408(p)(2) of such Code is
amended by adding at the end the following new subparagraph:
``(F) Matching contributions for qualified student
loan payments.--
``(i) In general.--Subject to the rules of
clause (iii), an arrangement shall not fail to
be treated as meeting the requirements of
subparagraph (A)(iii) solely because under the
arrangement, solely for purposes of such
subparagraph, qualified student loan payments
are treated as amounts elected by the employee
under subparagraph (A)(i)(I) to the extent such
payments do not exceed--
``(I) the applicable dollar amount
under subparagraph (E) (after
application of section 414(v)) for the
year (or, if lesser, the employee's
compensation (as defined in section
415(c)(3)) for the year), reduced by
``(II) any other amounts elected by
the employee under subparagraph
(A)(i)(I) for the year.
``(ii) Qualified student loan payment.--For
purposes of this subparagraph--
``(I) In general.--The term
`qualified student loan payment' means
a payment made by an employee in
repayment of a qualified education loan
(as defined in section 221(d)(1))
incurred by the employee to pay
qualified higher education expenses,
but only if the employee certifies to
the employer making the matching
contribution that such payment has been
made on such a loan.
``(II) Qualified higher education
expenses.--The term `qualified higher
education expenses' has the same
meaning as when used in section
401(m)(4)(D).
``(iii) Applicable rules.--Clause (i) shall
apply to an arrangement only if, under the
arrangement--
``(I) matching contributions on
account of qualified student loan
payments are provided only on behalf of
employees otherwise eligible to elect
contributions under subparagraph
(A)(i)(I), and
``(II) all employees otherwise
eligible to participate in the
arrangement are eligible to receive
matching contributions on account of
qualified student loan payments.''.
(e) 403(b) Plans.--Section 403(b)(12)(A) of such Code is amended by
adding at the end the following: ``The fact that the employer offers
matching contributions on account of qualified student loan payments as
described in section 401(m)(13) shall not be taken into account in
determining whether the arrangement satisfies the requirements of
clause (ii) (and any regulation thereunder).''.
(f) 457(b) Plans.--Section 457(b) of such Code is amended by adding
at the end the following: ``A plan which is established and maintained
by an employer which is described in subsection (e)(1)(A) shall not be
treated as failing to meet the requirements of this subsection solely
because the plan, or another plan maintained by the employer which
meets the requirements of section 401(a) or 403(b), provides for
matching contributions on account of qualified student loan payments as
described in section 401(m)(13).''.
(g) Regulatory Authority.--The Secretary shall prescribe
regulations for purposes of implementing the amendments made by this
section, including regulations--
(1) permitting a plan to make matching contributions for
qualified student loan payments, as defined in sections
401(m)(4)(D) and 408(p)(2)(F) of the Internal Revenue Code of
1986, as added by this section, at a different frequency than
matching contributions are otherwise made under the plan,
provided that the frequency is not less than annually;
(2) permitting employers to establish reasonable procedures
to claim matching contributions for such qualified student loan
payments under the plan, including an annual deadline (not
earlier than 3 months after the close of each plan year) by
which a claim must be made; and
(3) promulgating model amendments which plans may adopt to
implement matching contributions on such qualified student loan
payments for purposes of sections 401(m), 408(p), 403(b), and
457(b) of the Internal Revenue Code of 1986.
(h) Effective Date.--The amendments made by this section shall
apply to contributions made for plan years beginning after December 31,
2024.
SEC. 412. APPLICATION OF CREDIT FOR SMALL EMPLOYER PENSION PLAN STARTUP
COSTS TO EMPLOYERS WHICH JOIN AN EXISTING PLAN.
(a) In General.--Section 45E(d)(3)(A) of the Internal Revenue Code
of 1986 is amended by striking ``effective'' and inserting ``effective
with respect to the eligible employer''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in the enactment of section 104 of the Setting
Every Community Up for Retirement Enhancement Act of 2019.
SEC. 413. MILITARY SPOUSE RETIREMENT PLAN ELIGIBILITY CREDIT FOR SMALL
EMPLOYERS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGIBILITY CREDIT FOR
SMALL EMPLOYERS.
``(a) In General.--For purposes of section 38, in the case of any
eligible small employer, the military spouse retirement plan
eligibility credit determined under this section for any taxable year
is an amount equal to the sum of--
``(1) $250 with respect to each military spouse who is an
employee of such employer and who is eligible to participate in
an eligible defined contribution plan of such employer at any
time during such taxable year, plus
``(2) so much of the contributions made by such employer to
all such plans with respect to such employee during such
taxable year as do not exceed $250.
``(b) Limitation.--An individual shall only be taken into account
as a military spouse under subsection (a) for the taxable year which
includes the date on which such individual began participating in the
eligible defined contribution plan of the employer and the 2 succeeding
taxable years.
``(c) Eligible Small Employer.--For purposes of this section--
``(1) In general.--The term `eligible small employer' means
an eligible employer (as defined in section
408(p)(2)(C)(i)(I)).
``(2) Application of 2-year grace period.--A rule similar
to the rule of section 408(p)(2)(C)(i)(II) shall apply for
purposes of this section.
``(d) Military Spouse.--For purposes of this section--
``(1) In general.--The term `military spouse' means, with
respect to any employer, any individual who is married (within
the meaning of section 7703 as of the first date that the
employee is employed by the employer) to an individual who is a
member of the uniformed services (as defined section 101(a)(5)
of title 10, United States Code). For purposes of this section,
an employer may rely on an employee's certification that such
employee's spouse is a member of the uniformed services if such
certification provides the name, rank, and service branch of
such spouse.
``(2) Exclusion of highly compensated employees.--With
respect to any employer, the term `military spouse' shall not
include any individual if such individual is a highly
compensated employee of such employer (within the meaning of
section 414(q)).
``(e) Eligible Defined Contribution Plan.--For purposes of this
section, the term `eligible defined contribution plan' means, with
respect to any eligible small employer, any defined contribution plan
(as defined in section 414(i)) of such employer if, under the terms of
such plan--
``(1) military spouses employed by such employer are
eligible to participate in such plan not later than the date
which is 2 months after the date on which such individual
begins employment with such employer, and
``(2) military spouses who are eligible to participate in
such plan--
``(A) are immediately eligible to receive an amount
of employer contributions under such plan which is not
less the amount of such contributions that a similarly
situated participant who is not a military spouse would
be eligible to receive under such plan after 2 years of
service, and
``(B) immediately have a nonforfeitable right to
the employee's accrued benefit derived from employer
contributions under such plan.
``(f) Aggregation Rule.--All persons treated as a single employer
under subsection (b), (c), (m), or (o) of section 414 shall be treated
as one employer for purposes of this section.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code is amended by striking ``plus'' at the end of
paragraph (32), by striking the period at the end of paragraph (33) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(34) in the case of an eligible small employer (as
defined in section 45U(c)), the military spouse retirement plan
eligibility credit determined under section 45U(a).''.
(c) Specified Credit for Purposes of Certified Professional
Employer Organizations.--Section 3511(d)(2) of such Code is amended by
redesignating subparagraphs (F), (G), and (H) as subparagraphs (G),
(H), and (I), respectively, and by inserting after subparagraph (E) the
following new subparagraph:
``(F) section 45U (military spouse retirement plan
eligibility credit),''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45U. Military spouse retirement plan eligibility credit for
small employers.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 414. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR CONTRIBUTING TO A
PLAN.
(a) In General.--Subparagraph (A) of section 401(k)(4) of the
Internal Revenue Code of 1986 is amended by inserting ``(other than a
de minimis financial incentive)'' after ``any other benefit''.
(b) Section 403(b) Plans.--Subparagraph (A) of section 403(b)(12)
of such Code, as amended by the preceding provisions of this Act, is
amended by adding at the end the following: ``A plan shall not fail to
satisfy clause (ii) solely by reason of offering a de minimis financial
incentive to employees to elect to have the employer make contributions
pursuant to a salary reduction agreement.''.
(c) Exemption From Prohibited Transaction Rules.--Subsection (d) of
section 4975 of such Code is amended by striking ``or'' at the end of
paragraph (22), by striking the period at the end of paragraph (23) and
inserting ``, or'', and by adding at the end the following new
paragraph:
``(24) the provision of a de minimis financial incentive
described in section 401(k)(4)(A).''.
(d) Amendment of Employee Retirement Income Security Act of 1974.--
Subsection (b) of section 408 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1108(b)) is amended by adding at the
end the following new paragraph:
``(21) The provision of a de minimis financial incentive
described in section 401(k)(4)(A) or section 403(b)(12)(A) of
the Internal Revenue Code of 1986.''.
(e) Effective Date.--The amendments made by this section shall
apply with respect to plan years beginning after the date of enactment
of this Act.
SEC. 415. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE ELECTIVE DEFERRAL
FAILURES.
(a) In General.--Section 414 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(aa) Correcting Automatic Contribution Errors.--
``(1) In general.--Any plan or arrangement shall not fail
to be treated as a plan described in sections 401(a), 403(b),
408, or 457(b), as applicable, solely by reason of a corrected
error.
``(2) Corrected error defined.--For purposes of this
subsection, the term `corrected error' means a reasonable
administrative error in implementing an automatic enrollment or
automatic escalation feature in accordance with the terms of an
eligible automatic contribution arrangement (as defined under
subsection (w)(3)), provided that such implementation error--
``(A) is corrected by the date that is 9\1/2\
months after the end of the plan year during which the
error occurred,
``(B) is corrected in a manner that is favorable to
the participant, and
``(C) is of a type which is so corrected for all
similarly situated participants in a nondiscriminatory
manner.
Such correction may occur before or after the participant has
terminated employment and may occur without regard to whether
the error is identified by the Secretary.
``(3) Regulations and guidance for favorable correction
methods.--The Secretary shall, by regulations or other guidance
of general applicability, specify the correction methods that
are in a manner favorable to the participant for purposes of
paragraph (2)(B).''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to any errors with respect to which the date referred to
in section 414(aa) (as added by this section) is after the date of
enactment of this Act.
SEC. 416. IMPROVING COVERAGE FOR PART-TIME WORKERS.
(a) In General.--Section 202 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1052) is amended by adding at the end
the following new subsection:
``(c) Special Rule for Certain Part-Time Employees.--
``(1) In general.--A pension plan that includes either a
qualified cash or deferred arrangement (as defined in section
401(k) of the Internal Revenue Code of 1986) or a salary
reduction agreement (as described in section 403(b) of such
Code) shall not require, as a condition of participation in the
arrangement or agreement, that an employee complete a period of
service with the employer (or employers) maintaining the plan
extending beyond the close of the earlier of--
``(A) the period permitted under subsection (a)(1)
(determined without regard to subparagraph (B)(i)
thereof); or
``(B) the first 24-month period--
``(i) consisting of 2 consecutive 12-month
periods during each of which the employee has
at least 500 hours of service; and
``(ii) by the close of which the employee
has attained the age of 21.
``(2) Exception.--Paragraph (1)(B) shall not apply to any
employee described in section 410(b)(3) of the Internal Revenue
Code of 1986.
``(3) Coordination with other rules.--
``(A) In general.--In the case of employees who are
eligible to participate in the arrangement or agreement
solely by reason of paragraph (1)(B):
``(i) Exclusions.--An employer may elect to
exclude such employees from the application of
subsections (a)(4), (k)(3), (k)(12), (k)(13),
and (m)(2) of section 401 of the Internal
Revenue Code of 1986 and section 410(b) of such
Code.
``(ii) Nondiscrimination rules.--
Notwithstanding paragraph (1), section
401(k)(15)(B)(i)(I) of such Code shall apply.
``(iii) Time of participation.--The rules
of subsection (a)(4) shall apply to such
employees.
``(B) Top-heavy rules.--An employer may elect to
exclude all employees who are eligible to participate
in a plan maintained by the employer solely by reason
of paragraph (1)(B) from the application of the vesting
and benefit requirements under subsections (b) and (c)
of section 416 of the Internal Revenue Code of 1986.
``(4) 12-month period.--For purposes of this subsection,
12-month periods shall be determined in the same manner as
under the last sentence of subsection (a)(3)(A), except that
12-month periods beginning before January 1, 2023, shall not be
taken into account.''
(b) Vesting.--Section 203(b) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1053(a)) is amended by redesignating
paragraph (4) as paragraph (5) and by inserting after paragraph (3) the
following new paragraph:
``(4) Part-time employees.--For purposes of determining
whether an employee who is eligible to participate in a
qualified cash or deferred arrangement or a salary reduction
agreement under a plan solely by reason of section 202(c)(1)(B)
has a nonforfeitable right to employer contributions--
``(A) except as provided in subparagraph (B), each
12-month period for which the employee has at least 500
hours of service shall be treated as a year of service;
and
``(B) paragraph (3) shall be applied by
substituting `at least 500 hours of service' for `more
than 500 hours of service' in subparagraph (A) thereof.
For purposes of this paragraph, 12-month periods shall be
determined in the same manner as under the last sentence of
section 202(a)(3)(A), except that 12-month periods beginning
before January 1, 2023, shall not be taken into account.''.
(c) Reduction in Period Service Requirement for Qualified Cash and
Deferred Arrangements.--Section 401(k)(2)(D)(ii) of the Internal
Revenue Code of 1986 is amended by striking ``3'' and inserting ``2''.
(d) Pre-2021 Service.--Section 112(b) of the Setting Every
Community Up for Retirement Enhancement Act of 2019 (26 U.S.C. 401
note) is amended by striking ``section 401(k)(2)(D)(ii)'' and inserting
``paragraphs (2)(D)(ii) and (15)(B)(iii) of section 401(k)''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to plan years
beginning after December 31, 2024.
(2) Subsection (d).--The amendment made by subsection (d)
shall take effect as if included in the enactment of section
112 of the Setting Every Community Up for Retirement
Enhancement Act of 2019.
SEC. 417. DEFERRAL OF TAX FOR CERTAIN SALES OF EMPLOYER STOCK TO
EMPLOYEE STOCK OWNERSHIP PLAN SPONSORED BY S CORPORATION.
(a) In General.--Section 1042(c)(1)(A) of the Internal Revenue Code
of 1986 is amended by striking ``domestic C corporation'' and inserting
``domestic corporation''.
(b) 10 Percent Limitation on Application of Gain on Sale of S
Corporation Stock.--Section 1042 of such Code is amended by adding at
the end the following new subsection:
``(h) Application of Section to Sale of Stock in S Corporation.--In
the case of the sale of qualified securities of an S corporation, the
election under subsection (a) may be made with respect to not more than
10 percent of the amount realized on such sale for purposes of
determining the amount of gain not recognized and the extent to which
(if at all) the amount realized on such sale exceeds the cost of
qualified replacement property. The portion of adjusted basis that is
properly allocable to the portion of the amount realized with respect
to which the election is made under this subsection shall be taken into
account for purposes of the preceding sentence.''.
(c) Effective Date.--The amendments made by this section shall
apply to sales after December 31, 2029.
SEC. 418. CERTAIN SECURITIES TREATED AS PUBLICLY TRADED IN CASE OF
EMPLOYEE STOCK OWNERSHIP PLANS.
(a) In General.--Section 401(a)(35) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(I) Esop rules relating to publicly traded
securities.--In the case of an applicable defined
contribution plan which is an employee stock ownership
plan, an employer security shall be treated as
described in subparagraph (G)(v) if--
``(i) the security is the subject of priced
quotations by at least 4 dealers, published and
made continuously available on an interdealer
quotation system (as such term is used in
section 13 of the Securities Exchange Act of
1934) which has made the request described in
section 6(j) of such Act to be treated as an
alternative trading system,
``(ii) the security is not a penny stock
(as defined by section 3(a)(51) of such Act),
``(iii) the security is issued by a
corporation which is not a shell company (as
such term is used in section 4(d)(6) of the
Securities Act of 1933), a blank check company
(as defined in section 7(b)(3) of such Act), or
subject to bankruptcy proceedings,
``(iv) the security has a public float (as
such term is used in section 240.12b-2 of title
17, Code of Federal Regulations) which has a
fair market value of at least $1,000,000 and
constitutes at least 10 percent of the total
shares issued and outstanding.
``(v) in the case of a security issued by a
domestic corporation, the issuer publishes, not
less frequently than annually, financial
statements audited by an independent auditor
registered with the Public Company Accounting
Oversight Board established under the Sarbanes-
Oxley Act of 2002, and
``(vi) in the case of a security issued by
a foreign corporation, the security is
represented by a depositary share (as defined
under section 240.12b-2 of title 17, Code of
Federal Regulations), or is issued by a foreign
corporation incorporated in Canada and readily
tradeable on an established securities market
in Canada, and the issuer--
``(I) is subject to, and in
compliance with, the reporting
requirements of section 13 or 15(d) of
the Securities Exchange Act of 1934 (15
U.S.C. 78m or 78o(d)),
``(II) is subject to, and in
compliance with, the reporting
requirements of section 230.257 of
title 17, Code of Federal Regulations,
or
``(III) is exempt from such
requirements under section 240.12g3-
2(b) of title 17, Code of Federal
Regulations.''.
(b) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2029.
SEC. 419. REMOVE REQUIRED MINIMUM DISTRIBUTION BARRIERS FOR LIFE
ANNUITIES.
(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:
``(J) Certain increases in payments under a
commercial annuity.--Nothing in this section shall
prohibit a commercial annuity (within the meaning of
section 3405(e)(6)) that is issued in connection with
any eligible retirement plan (within the meaning of
section 402(c)(8)(B), other than a defined benefit
plan) from providing one or more of the following types
of payments on or after the annuity starting date:
``(i) annuity payments that increase by a
constant percentage, applied not less
frequently than annually, at a rate that is
less than 5 percent per year,
``(ii) a lump sum payment that--
``(I) results in a shortening of
the payment period with respect to an
annuity or a full or partial
commutation of the future annuity
payments, provided that such lump sum
is determined using reasonable
actuarial methods and assumptions, as
determined in good faith by the issuer
of the contract, or
``(II) accelerates the receipt of
annuity payments that are scheduled to
be received within the ensuing 12
months, regardless of whether such
acceleration shortens the payment
period with respect to the annuity,
reduces the dollar amount of benefits
to be paid under the contract, or
results in a suspension of annuity
payments during the period being
accelerated,
``(iii) an amount which is in the nature of
a dividend or similar distribution, provided
that the issuer of the contract determines such
amount based on a reasonable comparison of the
actuarial factors assumed when calculating the
initial annuity payments and the issuer's
experience with respect to those factors, or
``(iv) a final payment upon death that does
not exceed the excess of the total amount of
the consideration paid for the annuity
payments, less the aggregate amount of prior
distributions or payments from or under the
contract.''.
(b) Effective Date.--This section shall apply to calendar years
ending after the date of the enactment of this Act.
SEC. 420. QUALIFYING LONGEVITY ANNUITY CONTRACTS.
(a) In General.--Not later than the date which is 1 year after the
date of the enactment of this Act, the Secretary of the Treasury or the
Secretary's delegate (hereafter in this section referred to as the
``Secretary'') shall amend the regulation issued by the Department of
the Treasury relating to ``Longevity Annuity Contracts'' (79 Fed. Reg.
37633 (July 2, 2014)), as follows:
(1) Repeal 25-percent premium limit.--The Secretary shall
amend Q&A-17(b)(3) of Treasury Regulation section 1.401(a)(9)-6
and Q&A-12(b)(3) of Treasury Regulation section 1.408-8 to
eliminate the requirement that premiums for qualifying
longevity annuity contracts be limited to a percentage of an
individual's account balance, and to make such corresponding
changes to the regulations and related forms as are necessary
to reflect the elimination of this requirement.
(2) Facilitate joint and survivor benefits.--The Secretary
shall amend Q&A-17(c) of Treasury Regulation section
1.401(a)(9)-6, and make such corresponding changes to the
regulations and related forms as are necessary, to provide
that, in the case of a qualifying longevity annuity contract
which was purchased with joint and survivor annuity benefits
for the individual and the individual's spouse which were
permissible under the regulations at the time the contract was
originally purchased, a divorce occurring after the original
purchase and before the annuity payments commence under the
contract will not affect the permissibility of the joint and
survivor annuity benefits or other benefits under the contract,
or require any adjustment to the amount or duration of benefits
payable under the contract, provided that any qualified
domestic relations order (within the meaning of section 414(p)
of the Internal Revenue Code of 1986) or, in the case of an
arrangement not subject to section 414(p) of such Code or
section 206(d) of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1056(d)), any divorce or separation
instrument (as defined in subsection (b))--
(A) provides that the former spouse is entitled to
the survivor benefits under the contract;
(B) does not modify the treatment of the former
spouse as the beneficiary under the contract who is
entitled to the survivor benefits; or
(C) does not modify the treatment of the former
spouse as the measuring life for the survivor benefits
under the contract.
(3) Permit short free look period.--The Secretary shall
amend Q&A-17(a)(4) of Treasury Regulation section 1.401(a)(9)-6
to ensure that such Q&A does not preclude a contract from
including a provision under which an employee may rescind the
purchase of the contract within a period not exceeding 90 days
from the date of purchase.
(b) Divorce or Separation Instrument.--For purposes of subsection
(a)(2), the term ``divorce or separation instrument'' means--
(1) a decree of divorce or separate maintenance or a
written instrument incident to such a decree,
(2) a written separation agreement, or
(3) a decree (not described in paragraph (1)) requiring a
spouse to make payments for the support or maintenance of the
other spouse.
(c) Effective Dates, Enforcement, and Interpretations.--
(1) Effective dates.--
(A) Paragraph (1) of subsection (a) shall be
effective with respect to contracts purchased or
received in an exchange on or after the date of the
enactment of this Act.
(B) Paragraphs (2) and (3) of subsection (a) shall
be effective with respect to contracts purchased or
received in an exchange on or after July 2, 2016.
(2) Enforcement and interpretations.--Prior to the date on
which the Secretary issues final regulations pursuant to
subsection (a)--
(A) the Secretary (or delegate) shall administer
and enforce the law in accordance with subsection (a)
and the effective dates in paragraph (1) of this
subsection; and
(B) taxpayers may rely upon their reasonable good
faith interpretations of subsection (a).
(d) Regulatory Successor Provision.--Any reference to a regulation
under this section shall be treated as including a reference to any
successor regulation thereto.
SEC. 421. INSURANCE-DEDICATED EXCHANGE-TRADED FUNDS.
(a) In General.--Not later than the date which is 7 years after the
date of the enactment of this Act, the Secretary of the Treasury (or
the Secretary's delegate) shall amend the regulation issued by the
Department of the Treasury relating to ``Income Tax; Diversification
Requirements for Variable Annuity, Endowment, and Life Insurance
Contracts'', 54 Fed. Reg. 8728 (March 2, 1989), and make any necessary
corresponding amendments to other regulations, in order to facilitate
the use of exchange-traded funds as investment options under variable
contracts within the meaning of section 817(d) of the Internal Revenue
Code of 1986, in accordance with subsections (b) and (c) of this
section.
(b) Designate Certain Authorized Participants and Market Makers as
Eligible Investors.--The Secretary of the Treasury (or the Secretary's
delegate) shall amend Treasury Regulation section 1.817-5(f)(3) to
provide that satisfaction of the requirements in Treasury Regulation
section 1.817-5(f)(2)(i) with respect to an exchange-traded fund shall
not be prevented by reason of beneficial interests in such a fund being
held by 1 or more authorized participants or market makers.
(c) Define Relevant Terms.--In amending Treasury Regulation section
1.817-5(f)(3) in accordance with subsections (b) of this section, the
Secretary of the Treasury (or the Secretary's delegate) shall provide
definitions consistent with the following:
(1) Exchange-traded fund.--The term ``exchange-traded
fund'' means a regulated investment company, partnership, or
trust--
(A) that is registered with the Securities and
Exchange Commission as an open-end investment company
or a unit investment trust;
(B) the shares of which can be purchased or
redeemed directly from the fund only by an authorized
participant; and
(C) the shares of which are traded throughout the
day on a national stock exchange at market prices that
may or may not be the same as the net asset value of
the shares.
(2) Authorized participant.--The term ``authorized
participant'' means a financial institution that is a member or
participant of a clearing agency registered under section
17A(b) of the Securities Exchange Act of 1934 that enters into
a contractual relationship with an exchange-traded fund
pursuant to which the financial institution is permitted to
purchase and redeem shares directly from the fund and to sell
such shares to third parties, but only if the contractual
arrangement or applicable law precludes the financial
institution from--
(A) purchasing the shares for its own investment
purposes rather than for the exclusive purpose of
creating and redeeming such shares on behalf of third
parties; and
(B) selling the shares to third parties who are not
market makers or otherwise described in paragraphs (2)
and (3) of Treasury Regulation section 1.817-5(f).
(3) Market maker.--The term ``market maker'' means a
financial institution that is a registered broker or dealer
under section 15(b) of the Securities Exchange Act of 1934 that
maintains liquidity for an exchange-traded fund on a national
stock exchange by being always ready to buy and sell shares of
such fund on the market, but only if the financial institution
is contractually or legally precluded from selling or buying
such shares to or from persons who are not authorized
participants or otherwise described in paragraphs (2) and (3)
of Treasury Regulations section 1.817-5(f).
(d) Effective Date.--Subsections (b) and (c) shall apply to
segregated asset account investments made on or after the date that is
7 years after the date of the enactment of this Act.
SEC. 422. RECOVERY OF RETIREMENT PLAN OVERPAYMENTS.
(a) Overpayments Under ERISA.--Section 206 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1056) is amended by
adding at the end the following new subsection:
``(h) Special Rules Applicable to Benefit Overpayments.--
``(1) General rule.--In the case of an inadvertent benefit
overpayment by any pension plan, the responsible plan fiduciary
shall not be considered to have failed to comply with the
requirements of this title merely because such fiduciary
determines, in the exercise of its fiduciary discretion, not to
seek recovery of all or part of such overpayment from--
``(A) any participant or beneficiary,
``(B) any plan sponsor of, or contributing employer
to--
``(i) an individual account plan, provided
that the amount needed to prevent or restore
any impermissible forfeiture from any
participant's or beneficiary's account arising
in connection with the overpayment is,
separately from and independently of the
overpayment, allocated to such account pursuant
to the nonforfeitability requirements of
section 203 (for example, out of the plan's
forfeiture account, additional employer
contributions, or recoveries from those
responsible for the overpayment), or
``(ii) a defined benefit pension plan
subject to the funding rules in part 3 of this
subtitle B, unless the responsible plan
fiduciary determines, in the exercise of its
fiduciary discretion, that failure to recover
all or part of the overpayment faster than
required under such funding rules would
materially affect the plan's ability to pay
benefits due to other participants and
beneficiaries, or
``(C) any fiduciary of the plan, other than a
fiduciary (including a plan sponsor or contributing
employer acting in a fiduciary capacity) whose breach
of its fiduciary duties resulted in such overpayment,
provided that if the plan has established prudent
procedures to prevent and minimize overpayment of
benefits and the relevant plan fiduciaries have
followed such procedures, an inadvertent benefit
overpayment will not give rise to a breach of fiduciary
duty.
``(2) Reduction in future benefit payments and recovery
from responsible party.--Paragraph (1) shall not fail to apply
with respect to any inadvertent benefit overpayment merely
because, after discovering such overpayment, the responsible
plan fiduciary--
``(A) reduces future benefit payments to the
correct amount provided for under the terms of the
plan, or
``(B) seeks recovery from the person or persons
responsible for the overpayment.
``(3) Employer funding obligations.--Nothing in this
subsection shall relieve an employer of any obligation imposed
on it to make contributions to a plan to meet the minimum
funding standards under part 3 of this subtitle B or to prevent
or restore an impermissible forfeiture in accordance with
section 203.
``(4) Recoupment from participants and beneficiaries.--If
the responsible plan fiduciary, in the exercise of its
fiduciary discretion, decides to seek recoupment from a
participant or beneficiary of all or part of an inadvertent
benefit overpayment made by the plan to such participant or
beneficiary, it may do so, subject to the following conditions:
``(A) No interest or other additional amounts (such
as collection costs or fees) are sought on overpaid
amounts for any period.
``(B) If the plan seeks to recoup past overpayments
of a non-decreasing periodic benefit by reducing future
benefit payments--
``(i) the reduction ceases after the plan
has recovered the full dollar amount of the
overpayment,
``(ii) the amount recouped each calendar
year does not exceed 10 percent of the full
dollar amount of the overpayment, and
``(iii) future benefit payments are not
reduced to below 90 percent of the periodic
amount otherwise payable under the terms of the
plan.
Alternatively, if the plan seeks to recoup past
overpayments of a non-decreasing periodic benefit
through one or more installment payments, the sum of
such installment payments in any calendar year does not
exceed the sum of the reductions that would be
permitted in such year under the preceding sentence.
``(C) If the plan seeks to recoup past overpayments
of a benefit other than a non-decreasing periodic
benefit, the plan satisfies requirements developed by
the Secretary for purposes of this subparagraph.
``(D) Efforts to recoup overpayments are--
``(i) not accompanied by threats of
litigation, unless the responsible plan
fiduciary reasonably believes it could prevail
in a civil action brought in Federal or State
court to recoup the overpayments, and
``(ii) not made through a collection agency
or similar third party, unless the participant
or beneficiary ignores or rejects efforts to
recoup the overpayment following either a final
judgment in Federal or State court or a
settlement between the participant or
beneficiary and the plan, in either case
authorizing such recoupment.
``(E) Recoupment of past overpayments to a
participant is not sought from any beneficiary of the
participant, including a spouse, surviving spouse,
former spouse, or other beneficiary.
``(F) Recoupment may not be sought if the first
overpayment occurred more than 3 years before the
participant or beneficiary is first notified in writing
of the error.
``(G) A participant or beneficiary from whom
recoupment is sought is entitled to contest all or part
of the recoupment pursuant to the plan's claims
procedures.
``(H) In determining the amount of recoupment to
seek, the responsible plan fiduciary may take into
account the hardship that recoupment likely would
impose on the participant or beneficiary.
``(5) Effect of culpability.--Subparagraphs (A) through (F)
of paragraph (4) shall not apply to protect a participant or
beneficiary who is culpable. For purposes of this paragraph, a
participant or beneficiary is culpable if the individual bears
responsibility for the overpayment (such as through
misrepresentations or omissions that led to the overpayment),
or if the individual knew, or had good reason to know under the
circumstances, that the benefit payment or payments were
materially in excess of the correct amount. Notwithstanding the
preceding sentence, an individual is not culpable merely
because the individual believed the benefit payment or payments
were or might be in excess of the correct amount, if the
individual raised that question with an authorized plan
representative and was told the payment or payments were not in
excess of the correct amount. With respect to a culpable
participant or beneficiary, efforts to recoup overpayments
shall not be made through threats of litigation, unless a
lawyer for the plan could make the representations required
under Rule 11 of the Federal Rules of Civil Procedure if the
litigation were brought in Federal court.''.
(b) Overpayments Under Internal Revenue Code of 1986.--
(1) Qualification requirements.--Section 414 of the
Internal Revenue Code of 1986, as amended by this preceding
provisions of this Act, is amended by adding at the end the
following new subsection:
``(bb) Special Rules Applicable to Benefit Overpayments.--
``(1) In general.--A plan shall not fail to be treated as
described in clause (i), (ii), (iii), or (iv) of section
219(g)(5)(A) (and shall not fail to be treated as satisfying
the requirements of section 401(a) or 403) merely because--
``(A) the plan fails to obtain payment from any
participant, beneficiary, employer, plan sponsor,
fiduciary, or other party on account of any inadvertent
benefit overpayment made by the plan, or
``(B) the plan sponsor amends the plan to increase
past or future benefit payments to affected
participants and beneficiaries in order to adjust for
prior inadvertent benefit overpayments.
``(2) Reduction in future benefit payments and recovery
from responsible party.--Paragraph (1) shall not fail to apply
to a plan merely because, after discovering a benefit
overpayment, such plan--
``(A) reduces future benefit payments to the
correct amount provided for under the terms of the
plan, or
``(B) seeks recovery from the person or persons
responsible for such overpayment.
``(3) Employer funding obligations.--Nothing in this
subsection shall relieve an employer of any obligation imposed
on it to make contributions to a plan to meet the minimum
funding standards under sections 412 and 430 or to prevent or
restore an impermissible forfeiture in accordance with section
411.
``(4) Observance of benefit limitations.--Notwithstanding
paragraph (1), a plan to which paragraph (1) applies shall
observe any limitations imposed on it by section 401(a)(17) or
415. The plan may enforce such limitations using any method
approved by the Secretary of the Treasury for recouping
benefits previously paid or allocations previously made in
excess of such limitations.
``(5) Coordination with other qualification requirements.--
The Secretary of the Treasury may issue regulations or other
guidance of general applicability specifying how benefit
overpayments and their recoupment or non-recoupment from a
participant or beneficiary shall be taken into account for
purposes of satisfying any requirement applicable to a plan to
which paragraph (1) applies.''
(2) Rollovers.--Section 402(c) of such Code is amended by
adding at the end the following new paragraph:
``(12) In the case of an inadvertent benefit overpayment
from a plan to which section 414(bb)(1) applies that is
transferred to an eligible retirement plan by or on behalf of a
participant or beneficiary--
``(A) the portion of such overpayment with respect
to which recoupment is not sought on behalf of the plan
shall be treated as having been paid in an eligible
rollover distribution if the payment would have been an
eligible rollover distribution but for being an
overpayment, and
``(B) the portion of such overpayment with respect
to which recoupment is sought on behalf of the plan
shall be permitted to be returned to such plan and in
such case shall be treated as an eligible rollover
distribution transferred to such plan by the
participant or beneficiary who received such
overpayment (and the plans making and receiving such
transfer shall be treated as permitting such transfer).
In any case in which recoupment is sought on behalf of the plan
but is disputed by the participant or beneficiary who received
such overpayment, such dispute shall be subject to the claims
procedures of the plan that made such overpayment, such plan
shall notify the plan receiving the rollover of such dispute,
and the plan receiving the rollover shall retain such
overpayment on behalf of the participant or beneficiary (and
shall be entitled to treat such overpayment as plan assets)
pending the outcome of such procedures.''.
(c) Effective Date.--The amendments made by this section shall
apply as of the date of the enactment of this Act.
(d) Certain Actions Before Date of Enactment.--Plans, fiduciaries,
employers, and plan sponsors are entitled to rely on--
(1) a good faith interpretation of then existing
administrative guidance for inadvertent benefit overpayment
recoupments and recoveries that commenced before the date of
enactment of this Act, and
(2) determinations made before the date of enactment of
this Act by the responsible plan fiduciary, in the exercise of
its fiduciary discretion, not to seek recoupment or recovery of
all or part of an inadvertent benefit overpayment.
In the case of a benefit overpayment that occurred prior to the date of
enactment of this Act, any installment payments by the participant or
beneficiary to the plan or any reduction in periodic benefit payments
to the participant or beneficiary, which were made in recoupment of
such overpayment and which commenced prior to such date, may continue
after such date. Nothing in this subsection shall relieve a fiduciary
from responsibility for an overpayment that resulted from a breach of
its fiduciary duties.
SEC. 423. REDUCTION IN EXCISE TAX ON CERTAIN ACCUMULATIONS IN QUALIFIED
RETIREMENT PLANS.
(a) In General.--Section 4974(a) of the Internal Revenue Code of
1986 is amended by striking ``50 percent'' and inserting ``25
percent''.
(b) Reduction in Excise Tax on Failures To Take Required Minimum
Distributions.--Section 4974 of such Code is amended by adding at the
end the following new subsection:
``(e) Reduction of Tax in Certain Cases.--
``(1) Reduction.--In the case of a taxpayer who--
``(A) corrects, during the correction window, a
shortfall of distributions from an individual
retirement plan which resulted in imposition of a tax
under subsection (a), and
``(B) submits a return, during the correction
window, reflecting such tax (as modified by this
subsection),
the first sentence of subsection (a) shall be applied by
substituting `10 percent' for `25 percent'.
``(2) Correction window.--For purposes of this subsection,
the term `correction window' means the period of time beginning
on the date on which the tax under subsection (a) is imposed
with respect to a shortfall of distributions from an individual
retirement plan, and ending on the earlier of--
``(A) the date on which the Secretary initiates an
audit, or otherwise demands payment, with respect to
the shortfall of distributions, or
``(B) the last day of the second taxable year that
begins after the end of the taxable year in which the
tax under subsection (a) is imposed.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 424. PERFORMANCE BENCHMARKS FOR ASSET ALLOCATION FUNDS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Secretary of Labor shall provide that, in the case of
a designated investment alternative that contains a mix of asset
classes, the administrator of a plan may, but is not required to, use a
benchmark that is a blend of different broad-based securities market
indices if--
(1) the blend is reasonably representative of the asset
class holdings of the designated investment alternative;
(2) for purposes of determining the blend's returns for 1-,
5-, and 10-calendar-year periods (or for the life of the
alternative, if shorter), the blend is modified at least once
per year to reflect changes in the asset class holdings of the
designated investment alternative;
(3) the blend is furnished to participants and
beneficiaries in a manner that is reasonably designed to be
understandable; and
(4) each securities market index that is used for an
associated asset class would separately satisfy the
requirements of such regulation for such asset class.
(b) Study.--Not later than 3 years after the date of enactment of
this Act, the Secretary of Labor shall deliver a report to the
Committees on Finance and Health, Education, Labor, and Pensions of the
Senate and the Committees on Ways and Means and Education and Labor of
the House of Representatives regarding the utilization, effectiveness,
and participants' understanding of the benchmarking requirements under
this section.
SEC. 425. REVIEW AND REPORT TO CONGRESS RELATING TO REPORTING AND
DISCLOSURE REQUIREMENTS.
(a) Study.--As soon as practicable after the date of enactment of
this Act, the Secretary of Labor, the Secretary of the Treasury, and
the Director of the Pension Benefit Guaranty Corporation shall review
the reporting and disclosure requirements as applicable to each such
agency head, of--
(1) the Employee Retirement Income Security Act of 1974
applicable to pension plans (as defined in section 3(2) of such
Act (29 U.S.C. 1002(2)); and
(2) the Internal Revenue Code of 1986 applicable to
qualified retirement plans (as defined in section 4974(c) of
such Code, without regard to paragraphs (4) and (5) of such
section).
(b) Report.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Labor, the Secretary of
the Treasury, and the Director of the Pension Benefit Guaranty
Corporation, jointly, and after consultation with a balanced
group of participant and employer representatives, shall with
respect to plans referenced in subsection (a) report on the
effectiveness of the applicable reporting and disclosure
requirements and make such recommendations as may be
appropriate to the Committee on Education and Labor and the
Committee on Ways and Means of the House of Representatives and
the Committee on Health, Education, Labor, and Pensions and the
Committee on Finance of the Senate to consolidate, simplify,
standardize, and improve such requirements so as to simplify
reporting for such plans and ensure that plans can furnish and
participants and beneficiaries timely receive and better
understand the information they need to monitor their plans,
plan for retirement, and obtain the benefits they have earned.
(2) Analysis of effectiveness.--To assess the effectiveness
of the applicable reporting and disclosure requirements, the
report shall include an analysis, based on plan data, of how
participants and beneficiaries are providing preferred contact
information, the methods by which plan sponsors and plans are
furnishing disclosures, and the rate at which participants and
beneficiaries (grouped by key demographics) are receiving,
accessing, understanding, and retaining disclosures.
(3) Collection of information.--The agencies shall conduct
appropriate surveys and data collection to obtain any needed
information.
SEC. 426. ELIMINATING UNNECESSARY PLAN REQUIREMENTS RELATED TO
UNENROLLED PARTICIPANTS.
(a) Amendment of Employee Retirement Income Security Act of 1974.--
(1) In general.--Part 1 of subtitle B of subchapter I of
the Employee Retirement Income Security Act of 1974 is amended
by redesignating section 111 as section 112 and by inserting
after section 110 the following new section:
``SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIREMENTS RELATED TO
UNENROLLED PARTICIPANTS.
``(a) In General.--Notwithstanding any other provision of this
title, with respect to any individual account plan, no disclosure,
notice, or other plan document (other than the notices and documents
described in paragraphs (1) and (2)) shall be required to be furnished
under this title to any unenrolled participant if the unenrolled
participant receives--
``(1) an annual reminder notice of such participant's
eligibility to participate in such plan and any applicable
election deadlines under the plan; and
``(2) any document requested by such participant that the
participant would be entitled to receive notwithstanding this
section.
``(b) Unenrolled Participant.--For purposes of this section, the
term `unenrolled participant' means an employee who--
``(1) is eligible to participate in an individual account
plan;
``(2) has received--
``(A) the summary plan description pursuant to
section 104(b); and
``(B) any other notices related to eligibility
under the plan required to be furnished under this
title, or the Internal Revenue Code of 1986, in
connection with such participant's initial eligibility
to participate in such plan;
``(3) is not participating in such plan;
``(4) does not have an account balance in the plan; and
``(5) satisfies such other criteria as the Secretary of
Labor may determine appropriate, as prescribed in guidance
issued in consultation with the Secretary of Treasury.
For purposes of this section, any eligibility to participate in the
plan following any period for which such employee was not eligible to
participate shall be treated as initial eligibility.
``(c) Annual Reminder Notice.--For purposes of this section, the
term `annual reminder notice' means a notice provided in accordance
with section 2520.104b-1 of title 29, Code of Federal Regulations (or
any successor regulation), which--
``(1) is furnished in connection with the annual open
season election period with respect to the plan or, if there is
no such period, is furnished within a reasonable period prior
to the beginning of each plan year;
``(2) notifies the unenrolled participant of--
``(A) the unenrolled participant's eligibility to
participate in the plan; and
``(B) the key benefits and rights under the plan,
with a focus on employer contributions and vesting
provisions; and
``(3) provides such information in a prominent manner
calculated to be understood by the average participant.''.
(2) Clerical amendment.--The table of contents in section 1
of the Employee Retirement Income Security Act of 1974 is
amended by striking the item relating to section 111 and by
inserting after the item relating to section 110 the following
new items:
``Sec. 111. Eliminating unnecessary plan requirements related to
unenrolled participants.
``Sec. 112. Repeal and effective date.''.
(b) Amendment of Internal Revenue Code of 1986.--Section 414 of the
Internal Revenue Code of 1986, as amended by the preceding provisions
of this Act, is amended by adding at the end the following new
subsection:
``(cc) Eliminating Unnecessary Plan Requirements Related to
Unenrolled Participants.--
``(1) In general.--Notwithstanding any other provision of
this title, with respect to any defined contribution plan, no
disclosure, notice, or other plan document (other than the
notices and documents described in subparagraphs (A) and (B))
shall be required to be furnished under this title to any
unenrolled participant if the unenrolled participant receives--
``(A) an annual reminder notice of such
participant's eligibility to participate in such plan
and any applicable election deadlines under the plan,
and
``(B) any document requested by such participant
that the participant would be entitled to receive
notwithstanding this subsection.
``(2) Unenrolled participant.--For purposes of this
subsection, the term `unenrolled participant' means an employee
who--
``(A) is eligible to participate in a defined
contribution plan,
``(B) has received--
``(i) the summary plan description pursuant
to section 104(b) of the Employee Retirement
Income Security Act of 1974, and
``(ii) any other notices related to
eligibility under the plan and required to be
furnished under this title, or the Employee
Retirement Income Security Act of 1974, in
connection with such participant's initial
eligibility to participate in such plan,
``(C) is not participating in such plan,
``(D) does not have an account balance in the plan,
and
``(E) satisfies such other criteria as the
Secretary of the Treasury may determine appropriate, as
prescribed in guidance issued in consultation with the
Secretary of Labor.
For purposes of this subsection, any eligibility to participate
in the plan following any period for which such employee was
not eligible to participate shall be treated as initial
eligibility.
``(3) Annual reminder notice.--For purposes of this
subsection, the term `annual reminder notice' means the notice
described in section 111(c) of the Employee Retirement Income
Security Act of 1974.''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2024.
SEC. 427. RETIREMENT SAVINGS LOST AND FOUND.
(a) In General.--
(1) Establishment of retirement savings lost and found.--
Part 5 of title I of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1341 et seq.) is amended by adding at
the end the following:
``SEC. 523. RETIREMENT SAVINGS LOST AND FOUND.
``(a) Establishment.--
``(1) In general.--Not later than 2 years after the date of
the enactment of this section, the Secretary of Labor, in
consultation with the Secretary of the Treasury, shall
establish an online searchable database (to be managed by the
Department of Labor in accordance with this section) to be
known as the `Retirement Savings Lost and Found'. The
Retirement Savings Lost and Found shall--
``(A) allow an individual to search for information
that enables the individual to locate the administrator
of any plan described in paragraph (2) with respect to
which the individual is or was a participant or
beneficiary, and provide contact information for the
administrator of any such plan;
``(B) allow the Department of Labor to assist such
an individual in locating any such plan of the
individual; and
``(C) allow the Department of Labor to make any
necessary changes to contact information on record for
the administrator based on any changes to the plan due
to merger or consolidation of the plan with any other
plan, division of the plan into two or more plans,
bankruptcy, termination, change in name of the plan,
change in name or address of the administrator, or
other causes.
The Retirement Savings Lost and Found established under this
paragraph shall include information reported under this section
and other relevant information obtained by the Department of
Labor.
``(2) Plans described.--A plan described in this paragraph
is a plan to which the vesting standards of section 203 apply.
``(b) Administration.--The Retirement Savings Lost and Found
established under subsection (a) shall provide individuals described in
subsection (a)(1) only with the ability to search for information that
enables the individual to locate the administrator and contact
information for the administrator of any plan with respect to which the
individual is or was a participant or beneficiary, sufficient to allow
the individual to locate the individual's plan in order to recover any
benefit owing to the individual under the plan.
``(c) Safeguarding Participant Privacy and Security.--In
establishing the Retirement Savings Lost and Found under subsection
(a), the Department of Labor shall take all necessary and proper
precautions to ensure that individuals' plan information maintained by
the Retirement Savings Lost and Found is protected.
``(d) Definition of Administrator.--For purposes of this section,
the term `administrator' has the meaning given such term in section
3(16)(A).
``(e) Information Collection From Plans.--Effective with respect to
plan years beginning after the second December 31 occurring after the
date of the enactment of this subsection, the administrator of a plan
to which the vesting standards of section 203 apply shall submit to the
Department of Labor, at such time and in such form and manner as is
prescribed in regulations--
``(1) the information described in paragraphs (1) through
(4) of section 6057(b) of the Internal Revenue Code of 1986;
``(2) the information described in subparagraphs (A) and
(B) of section 6057(a)(2) of such Code;
``(3) the name and taxpayer identifying number of each
participant or former participant in the plan--
``(A) who, during the current plan year or any
previous plan year, was reported under section
6057(a)(2)(C) of such Code, and with respect to whom
the benefits described in clause (ii) thereof were
fully paid during the plan year;
``(B) with respect to whom any amount was
distributed under section 401(a)(31)(B) of such Code
during the plan year; or
``(C) with respect to whom a deferred annuity
contract was distributed during the plan year;
``(4) in the case of a participant or former participant to
whom paragraph (3) applies--
``(A) in the case of a participant described in
subparagraph (B) thereof, the name and address of the
designated trustee or issuer described in section
401(a)(31)(B)(i) of such Code and the account number of
the individual retirement plan to which the amount was
distributed; and
``(B) in the case of a participant described in
subparagraph (C) thereof, the name and address of the
issuer of such annuity contract and the contract or
certificate number; and
``(5) such other information as the Secretary of Labor may
require.
``(f) Information Collection From Federal Agencies.--On request,
the Secretary of Labor may access and receive such information
collected by other Federal agencies as may be necessary and appropriate
to perform work related to the Retirement Savings Lost and Found.
``(g) Program Integrity Audit.--On an annual basis for each of the
first 5 years beginning one year after the establishment of the
database in subsection (a)(1) and every 5 years thereafter, the
Inspector General of the Department of Labor shall conduct an audit of
the administration of the Retirement Savings Lost and Found.''.
(3) Conforming amendment.--The table of contents for the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001
et seq.) is amended by inserting after the item relating to
section 522 the following:
``Sec. 523.Retirement Savings Lost and Found.''.
SEC. 428. UPDATING DOLLAR LIMIT FOR MANDATORY DISTRIBUTIONS.
(a) In General.--Section 203(e)(1) of the Employee Retirement
Income Security Act of 1974 and sections 401(a)(31)(B)(ii) and
411(a)(11)(A) of the Internal Revenue Code of 1986 are each amended by
striking ``$5,000'' and inserting ``$7,000''.
(b) Effective Date.--The amendments made by this section shall
apply to distributions made after December 31, 2024.
SEC. 429. EXPANSION OF EMPLOYEE PLANS COMPLIANCE RESOLUTION SYSTEM.
(a) In General.--Except as otherwise provided in the Internal
Revenue Code of 1986 or regulations prescribed by the Secretary of the
Treasury or the Secretary's delegate (referred to in this section as
the ``Secretary''), any eligible inadvertent failure to comply with the
rules applicable under section 401(a), 403(a), 403(b), 408(p), or
408(k) of such Code may be self-corrected under the Employee Plans
Compliance Resolution System (as described in Revenue Procedure 2021-
30, or any successor guidance, and hereafter in this section referred
to as the ``EPCRS''), except to the extent that such failure was
identified by the Secretary prior to any actions which demonstrate a
commitment to implement a self-correction. Revenue Procedure 2021-30 is
deemed amended as of the date of the enactment of this Act to provide
that the correction period under section 9.02 of such Revenue Procedure
(or any successor guidance) for an eligible inadvertent failure, except
as otherwise provided under such Code or in regulations prescribed by
the Secretary, is indefinite and has no last day, other than with
respect to failures identified by the Secretary prior to any self-
correction as described in the preceding sentence.
(b) Loan Errors.--In the case of an eligible inadvertent failure
relating to a loan from a plan to a participant--
(1) such failure may be self-corrected under subsection (a)
according to the rules of section 6.07 of Revenue Procedure
2021-30 (or any successor guidance), including the provisions
related to whether a deemed distribution must be reported on
Form 1099-R; and
(2) the Secretary of Labor shall treat any such failure
which is so self-corrected under subsection (a) as meeting the
requirements of the Voluntary Fiduciary Correction Program of
the Department of Labor if, with respect to the violation of
the fiduciary standards of the Employee Retirement Income
Security Act of 1974, there is a similar loan error eligible
for correction under EPCRS and the loan error is corrected in
such manner.
(c) EPCRS for IRAS.--The Secretary shall expand the EPCRS to allow
custodians of individual retirement plans (as defined in section
7701(a)(37) of the Internal Revenue Code of 1986) to address eligible
inadvertent failures with respect to an individual retirement plan (as
so defined), including (but not limited to)--
(1) waivers of the excise tax which would otherwise apply
under section 4974 of the Internal Revenue Code of 1986;
(2) under the self-correction component of the EPCRS,
waivers of the 60-day deadline for a rollover where the
deadline is missed for reasons beyond the reasonable control of
the account owner; and
(3) rules permitting a nonspouse beneficiary to return
distributions to an inherited individual retirement plan
described in section 408(d)(3)(C) of the Internal Revenue Code
of 1986 in a case where, due to an inadvertent error by a
service provider, the beneficiary had reason to believe that
the distribution could be rolled over without inclusion in
income of any part of the distributed amount.
(d) Additional Safe Harbors.--The Secretary shall expand the EPCRS
to provide additional safe harbor means of correcting eligible
inadvertent failures described in subsection (a), including safe harbor
means of calculating the earnings which must be restored to a plan in
cases where plan assets have been depleted by reason of an eligible
inadvertent failure.
(e) Eligible Inadvertent Failure.--For purposes of this section--
(1) In general.--Except as provided in paragraph (2), the
term ``eligible inadvertent failure'' means a failure that
occurs despite the existence of practices and procedures
which--
(A) satisfy the standards set forth in section 4.04
of Revenue Procedure 2021-30 (or any successor
guidance); or
(B) satisfy similar standards in the case of an
individual retirement plan.
(2) Exception.--The term ``eligible inadvertent failure''
shall not include any failure which is egregious, relates to
the diversion or misuse of plan assets, or is directly or
indirectly related to an abusive tax avoidance transaction.
(f) Application of Certain Requirements for Correcting Errors.--
This section shall not apply to any failure unless the correction of
such failure under this section is made in conformity with the general
principles that apply to corrections of such failures under the
Internal Revenue Code of 1986, including regulations or other guidance
issued thereunder and including those principles and corrections set
forth in Revenue Procedure 2021-30 (or any successor guidance).
SEC. 430. ELIMINATE THE ``FIRST DAY OF THE MONTH'' REQUIREMENT FOR
GOVERNMENTAL SECTION 457(B) PLANS.
(a) In General.--Section 457(b)(4) of the Internal Revenue Code of
1986 is amended to read as follows:
``(4) which provides that compensation--
``(A) in the case of an eligible employer described
in subsection (e)(1)(A), will be deferred only if an
agreement providing for such deferral has been entered
into before the compensation is currently available to
the individual, and
``(B) in any other case, will be deferred for any
calendar month only if an agreement providing for such
deferral has been entered into before the beginning of
such month,''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 431. ONE-TIME ELECTION FOR QUALIFIED CHARITABLE DISTRIBUTION TO
SPLIT-INTEREST ENTITY; INCREASE IN QUALIFIED CHARITABLE
DISTRIBUTION LIMITATION.
(a) One-Time Election for Qualified Charitable Distribution to
Split-Interest Entity.--Section 408(d)(8) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new subparagraph:
``(F) One-time election for qualified charitable
distribution to split-interest entity.--
``(i) In general.--A taxpayer may for a
taxable year elect under this subparagraph to
treat as meeting the requirement of
subparagraph (B)(i) any distribution from an
individual retirement account which is made
directly by the trustee to a split-interest
entity, but only if--
``(I) an election is not in effect
under this subparagraph for a preceding
taxable year,
``(II) the aggregate amount of
distributions of the taxpayer with
respect to which an election under this
subparagraph is made does not exceed
$50,000, and
``(III) such distribution meets the
requirements of clauses (iii) and (iv).
``(ii) Split-interest entity.--For purposes
of this subparagraph, the term `split-interest
entity' means--
``(I) a charitable remainder
annuity trust (as defined in section
664(d)(1)), but only if such trust is
funded exclusively by qualified
charitable distributions,
``(II) a charitable remainder
unitrust (as defined in section
664(d)(2)), but only if such unitrust
is funded exclusively by qualified
charitable distributions, or
``(III) a charitable gift annuity
(as defined in section 501(m)(5)), but
only if such annuity is funded
exclusively by qualified charitable
distributions and commences fixed
payments of 5 percent or greater not
later than 1 year from the date of
funding.
``(iii) Contributions must be otherwise
deductible.--A distribution meets the
requirement of this clause only if--
``(I) in the case of a distribution
to a charitable remainder annuity trust
or a charitable remainder unitrust, a
deduction for the entire value of the
remainder interest in the distribution
for the benefit of a specified
charitable organization would be
allowable under section 170 (determined
without regard to subsection (b)
thereof and this paragraph), and
``(II) in the case of a charitable
gift annuity, a deduction in an amount
equal to the amount of the distribution
reduced by the value of the annuity
described in section 501(m)(5)(B) would
be allowable under section 170
(determined without regard to
subsection (b) thereof and this
paragraph).
``(iv) Limitation on income interests.--A
distribution meets the requirements of this
clause only if--
``(I) no person holds an income
interest in the split-interest entity
other than the individual for whose
benefit such account is maintained, the
spouse of such individual, or both, and
``(II) the income interest in the
split-interest entity is nonassignable.
``(v) Special rules.--
``(I) Charitable remainder
trusts.--Notwithstanding section
664(b), distributions made from a trust
described in subclause (I) or (II) of
clause (ii) shall be treated as
ordinary income in the hands of the
beneficiary to whom the annuity
described in section 664(d)(1)(A) or
the payment described in section
664(d)(2)(A) is paid.
``(II) Charitable gift annuities.--
Qualified charitable distributions made
to fund a charitable gift annuity shall
not be treated as an investment in the
contract for purposes of section
72(c).''.
(b) Inflation Adjustment.--Section 408(d)(8) of such Code, as
amended by subsection (a), is amended by adding at the end the
following new subparagraph:
``(G) Inflation adjustment.--
``(i) In general.--In the case of any
taxable year beginning after 2022, each of the
dollar amounts in subparagraphs (A) and (F)
shall be increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for the calendar year in which
the taxable year begins, determined by
substituting `calendar year 2021' for
`calendar year 2016' in subparagraph
(A)(ii) thereof.
``(ii) Rounding.--If any dollar amount
increased under clause (i) is not a multiple of
$1,000, such dollar amount shall be rounded to
the nearest multiple of $1,000.''.
(c) Effective Date.--The amendment made by this section shall apply
to distributions made in taxable years ending after the date of the
enactment of this Act.
SEC. 432. DISTRIBUTIONS TO FIREFIGHTERS.
(a) In General.--Subparagraph (A) of section 72(t)(10) of the
Internal Revenue Code of 1986 is amended by striking ``414(d))'' and
inserting ``414(d)) or a distribution from a plan described in clause
(iii), (iv), or (vi) of section 402(c)(8)(B) to an employee who
provides firefighting services''.
(b) Conforming Amendment.--The heading of paragraph (10) of section
72(t) of such Code is amended by striking ``in governmental plans'' and
inserting ``and private sector firefighters''.
(c) Effective Date.--The amendments made by this section shall
apply to distributions made after December 31, 2024.
SEC. 433. EXCLUSION OF CERTAIN DISABILITY-RELATED FIRST RESPONDER
RETIREMENT PAYMENTS.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139B the following new section:
``SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RESPONDER RETIREMENT
PAYMENTS.
``(a) In General.--In the case of an individual who receives
qualified first responder retirement payments for any taxable year,
gross income shall not include so much of such payments as do not
exceed the annualized excludable disability amount with respect to such
individual.
``(b) Qualified First Responder Retirement Payments.--For purposes
of this section, the term `qualified first responder retirement
payments' means, with respect to any taxable year, any pension or
annuity which but for this section would be includible in gross income
for such taxable year and which is received--
``(1) from a plan described in clause (iii), (iv), (v), or
(vi) of section 402(c)(8)(B), and
``(2) in connection with such individual's qualified first
responder service.
``(c) Annualized Excludable Disability Amount.--For purposes of
this section--
``(1) In general.--The term `annualized excludable
disability amount' means, with respect to any individual, the
service-connected excludable disability amounts which are
properly attributable to the 12-month period immediately
preceding the date on which such individual attains retirement
age.
``(2) Service-connected excludable disability amount.--The
term `service-connected excludable disability amount' means
periodic payments received by an individual which--
``(A) are not includible in such individual's gross
income under section 104(a)(1),
``(B) are received in connection with such
individual's qualified first responder service, and
``(C) terminate when such individual attains
retirement age.
``(3) Special rule for partial-year payments.--In the case
of an individual who only receives service-connected excludable
disability amounts properly attributable to a portion of the
12-month period described in paragraph (1), such paragraph
shall be applied by multiplying such amounts by the ratio of
365 to the number of days in such period to which such amounts
were properly attributable.
``(d) Qualified First Responder Service.--For purposes of this
section, the term `qualified first responder service' means service as
a law enforcement officer, firefighter, paramedic, or emergency medical
technician.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by inserting after
the item relating to section 139B the following new item:
``Sec. 139C. Certain disability-related first responder retirement
payments.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts received with respect to taxable years beginning after
December 31, 2029.
SEC. 434. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIMITATIONS FOR EXCISE
TAX ON EXCESS CONTRIBUTIONS AND CERTAIN ACCUMULATIONS.
Section 6501(l) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new paragraph:
``(4) Individual retirement plans.--
``(A) In general.--For purposes of any tax imposed
by section 4973 or 4974 in connection with an
individual retirement plan, the return referred to in
this section shall be the income tax return filed by
the person on whom the tax under such section is
imposed for the year in which the act (or failure to
act) giving rise to the liability for such tax
occurred.
``(B) Rule in case of individuals not required to
file return.--In the case of a person who is not
required to file an income tax return for such year--
``(i) the return referred to in this
section shall be the income tax return that
such person would have been required to file
but for the fact that such person was not
required to file such return, and
``(ii) the 3-year period referred to in
subsection (a) with respect to the return shall
be deemed to begin on the date by which the
return would have been required to be filed
(excluding any extension thereof).''.
SEC. 435. REQUIREMENT TO PROVIDE PAPER STATEMENTS IN CERTAIN CASES.
(a) In General.--Section 105(a)(2) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1025(a)(2)) is amended--
(1) in subparagraph (A)(iv), by inserting ``subject to
subparagraph (E),'' before ``may be delivered''; and
(2) by adding at the end the following:
``(E) Provision of paper statements.--With respect
to at least 1 pension benefit statement furnished for a
calendar year with respect to an individual account
plan under paragraph (1)(A), and with respect to at
least 1 pension benefit statement furnished every 3
calendar years with respect to a defined benefit plan
under paragraph (1)(B), such statement shall be
furnished on paper in written form except--
``(i) in the case of a plan that furnishes
such statement in accordance with section
2520.104b-1(c) of title 29, Code of Federal
Regulations; or
``(ii) in the case of a plan that permits a
participant or beneficiary to request that the
statements referred to in the matter preceding
clause (i) be furnished by electronic delivery,
if the participant or beneficiary requests that
such statements be delivered electronically and
the statements are so delivered.''.
(b) Implementation.--
(1) In general.--The Secretary of Labor shall, not later
than December 31, 2024, update section 2520.104b-1(c) of title
29, Code of Federal Regulations, to provide that a plan may
furnish the statements referred to in subparagraph (E) of
section 105(a)(2) by electronic delivery only if, in addition
to meeting the other requirements under the regulations--
(A) such plan furnishes each participant or
beneficiary, including participants described in
subparagraph (B), a one-time initial notice on paper in
written form, prior to the electronic delivery of any
pension benefit statement, of their right to request
that all documents required to be disclosed under title
I of the Employee Retirement Income Security Act of
1974 be furnished on paper in written form; and
(B) such plan furnishes each participant who is
separated from service with at least 1 pension benefit
statement on paper in written form for each calendar
year, unless, on election of the participant, the
participant receives such statements electronically.
(2) Other guidance.--In implementing the amendment made by
subsection (a) with respect to a plan that discloses required
documents or statements electronically, in accordance with
applicable guidance governing electronic disclosure by the
Department of Labor (with the exception of section 2520.104b-
1(c) of title 29, Code of Federal Regulations), the Secretary
of Labor shall, not later than December 31, 2024, update such
guidance to the extent necessary to ensure that--
(A) a participant or beneficiary under such a plan
is permitted the opportunity to request that any
disclosure required to be delivered on paper under
applicable guidance by the Department of Labor shall be
furnished by electronic delivery;
(B) each paper statement furnished under such a
plan pursuant to the amendment shall include--
(i) an explanation of how to request that
all such statements, and any other document
required to be disclosed under title I of the
Employee Retirement Income Security Act of
1974, be furnished by electronic delivery; and
(ii) contact information for the plan
sponsor, including a telephone number;
(C) the plan may not charge any fee to a
participant or beneficiary for the delivery of any
paper statements;
(D) each paper pension benefit statement shall
identify each plan document required to be disclosed
and shall include information about how a participant
or beneficiary may access each such document;
(E) each document required to be disclosed that is
furnished by electronic delivery under such a plan
shall include an explanation of how to request that all
such documents be furnished on paper in written form;
and
(F) a plan is permitted to furnish a duplicate
electronic statement in any case in which the plan
furnishes a paper pension benefit statement.
(c) Effective Date.--The amendment made by subsection (a) shall
apply with respect to plan years beginning after December 31, 2025.
SEC. 436. SEPARATE APPLICATION OF TOP HEAVY RULES TO DEFINED
CONTRIBUTION PLANS COVERING EXCLUDIBLE EMPLOYEES.
(a) In General.--Section 416(c)(2) of the Internal Revenue Code of
1986 is amended by adding at the end the following:
``(C) Separate application to employees not meeting
age and service requirements.--If employees not meeting
the age or service requirements of section 410(a)(1)
(without regard to subparagraph (B) thereof) are
covered under a plan of the employer which meets the
requirements of subparagraphs (A) and (B) separately
with respect to such employees, such employees may be
excluded from consideration in determining whether any
plan of the employer meets the requirements of
subparagraphs (A) and (B).''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to plan years beginning after the date of the enactment of this
Act.
SEC. 437. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION DISTRIBUTION LIMITED
TO 3 YEARS.
(a) In General.--Section 72(t)(2)(H)(v)(I) of the Internal Revenue
Code of 1986 is amended by striking ``may make'' and inserting ``may,
at any time during the 3-year period beginning on the day after the
date on which such distribution was received, make''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in the enactment of section 113 of the Setting
Every Community Up for Retirement Enhancement Act of 2019.
SEC. 438. EMPLOYER MAY RELY ON EMPLOYEE CERTIFYING THAT DEEMED HARDSHIP
DISTRIBUTION CONDITIONS ARE MET.
(a) Cash or Deferred Arrangements.--Section 401(k)(14) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subparagraph:
``(C) Employee certification.--In determining
whether a distribution is upon the hardship of an
employee, the administrator of the plan may rely on a
certification by the employee that the distribution is
on account of a financial need of a type that is deemed
in regulations prescribed by the Secretary to be an
immediate and heavy financial need and that such
distribution is not in excess of the amount required to
satisfy such financial need.''.
(b) 403(b) Plans.--
(1) Custodial accounts.--Section 403(b)(7) of such Code is
amended by adding at the end the following new subparagraph:
``(D) Employee certification.--In determining
whether a distribution is upon the financial hardship
of an employee, the administrator of the plan may rely
on a certification by the employee that the
distribution is on account of a financial need of a
type that is deemed in regulations prescribed by the
Secretary to be an immediate and heavy financial need
and that such distribution is not in excess of the
amount required to satisfy such financial need.''.
(2) Annuity contracts.--Section 403(b)(11) of such Code is
amended by adding at the end the following: ``In determining
whether a distribution is upon hardship of an employee, the
administrator of the plan may rely on a certification by the
employee that the distribution is on account of a financial
need of a type that is deemed in regulations prescribed by the
Secretary to be an immediate and heavy financial need and that
such distribution is not in excess of the amount required to
satisfy such financial need.''.
(c) 457(b) Plan.--Section 457(d) of such Code is amended by adding
at the end the following new paragraph:
``(4) Participant certification.--In determining whether a
distribution to a participant is made when the participant is
faced with an unforeseeable emergency, the administrator of a
plan maintained by an eligible employer described in subsection
(e)(1)(A) may rely on a certification by the participant that
the distribution is made when the participant is faced with
unforeseeable emergency of a type that is described in
regulations prescribed by the Secretary as an unforeseeable
emergency and that the distribution is not in excess of the
amount reasonably necessary to satisfy the emergency need.''.
(d) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2024.
SEC. 439. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR
INDIVIDUALS IN CASE OF DOMESTIC ABUSE.
(a) In General.--Section 72(t)(2) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(I) Distributions from retirement plans in case
of domestic abuse.--
``(i) In general.--Any eligible
distribution to a domestic abuse victim.
``(ii) Limitation.--The aggregate amount
which may be treated as an eligible
distribution to a domestic abuse victim by any
individual shall not exceed an amount equal to
the lesser of--
``(I) $10,000, or
``(II) 50 percent of the present
value of the nonforfeitable accrued
benefit of the employee under the plan.
``(iii) Eligible distribution to a domestic
abuse victim.--For purposes of this
subparagraph--
``(I) In general.--A distribution
shall be treated as an eligible
distribution to a domestic abuse victim
if such distribution is from an
applicable eligible retirement plan to
an individual and made during the 1-
year period beginning on any date on
which the individual is a victim of
domestic abuse by a spouse or domestic
partner.
``(II) Domestic abuse.--The term
`domestic abuse' means physical,
psychological, sexual, emotional, or
economic abuse, including efforts to
control, isolate, humiliate, or
intimidate the victim, or to undermine
the victim's ability to reason
independently, including by means of
abuse of the victim's child or another
family member living in the household.
``(iv) Treatment of plan distributions.--
``(I) In general.--If a
distribution to an individual would
(without regard to clause (ii)) be an
eligible distribution to a domestic
abuse victim, a plan shall not be
treated as failing to meet any
requirement of this title merely
because the plan treats the
distribution as an eligible
distribution to a domestic abuse
victim, unless the aggregate amount of
such distributions from all plans
maintained by the employer (and any
member of any controlled group which
includes the employer) to such
individual exceeds the limitation under
clause (ii).
``(II) Controlled group.--For
purposes of subclause (I), the term
`controlled group' means any group
treated as a single employer under
subsection (b), (c), (m), or (o) of
section 414.
``(v) Amount distributed may be repaid.--
``(I) In general.--Any individual
who receives a distribution described
in clause (i) may, at any time during
the 3-year period beginning on the day
after the date on which such
distribution was received, make one or
more contributions in an aggregate
amount not to exceed the amount of such
distribution to an applicable eligible
retirement plan of which such
individual is a beneficiary and to
which a rollover contribution of such
distribution could be made under
section 402(c), 403(a)(4), 403(b)(8),
408(d)(3), or 457(e)(16), as the case
may be.
``(II) Limitation on contributions
to applicable eligible retirement plans
other than iras.--The aggregate amount
of contributions made by an individual
under subclause (I) to any applicable
eligible retirement plan which is not
an individual retirement plan shall not
exceed the aggregate amount of eligible
distributions to a domestic abuse
victim which are made from such plan to
such individual. Subclause (I) shall
not apply to contributions to any
applicable eligible retirement plan
which is not an individual retirement
plan unless the individual is eligible
to make contributions (other than those
described in subclause (I)) to such
applicable eligible retirement plan.
``(III) Treatment of repayments of
distributions from applicable eligible
retirement plans other than iras.--If a
contribution is made under subclause
(I) with respect to an eligible
distribution to a domestic abuse victim
from an applicable eligible retirement
plan other than an individual
retirement plan, then the taxpayer
shall, to the extent of the amount of
the contribution, be treated as having
received such distribution in an
eligible rollover distribution (as
defined in section 402(c)(4)) and as
having transferred the amount to the
applicable eligible retirement plan in
a direct trustee to trustee transfer
within 60 days of the distribution.
``(IV) Treatment of repayments for
distributions from iras.--If a
contribution is made under subclause
(I) with respect to an eligible
distribution to a domestic abuse victim
from an individual retirement plan,
then, to the extent of the amount of
the contribution, such distribution
shall be treated as a distribution
described in section 408(d)(3) and as
having been transferred to the
applicable eligible retirement plan in
a direct trustee to trustee transfer
within 60 days of the distribution.
``(vi) Definition and special rules.--For
purposes of this subparagraph:
``(I) Applicable eligible
retirement plan.--The term `applicable
eligible retirement plan' means an
eligible retirement plan (as defined in
section 402(c)(8)(B)) other than a
defined benefit plan.
``(II) Exemption of distributions
from trustee to trustee transfer and
withholding rules.--For purposes of
sections 401(a)(31), 402(f), and 3405,
an eligible distribution to a domestic
abuse victim shall not be treated as an
eligible rollover distribution.
``(III) Distributions treated as
meeting plan distribution requirements;
self-certification.--Any distribution
which the employee or participant
certifies as being an eligible
distribution to a domestic abuse victim
shall be treated as meeting the
requirements of sections
401(k)(2)(B)(i), 403(b)(7)(A)(i),
403(b)(11), and 457(d)(1)(A).''.
(b) Effective Date.--The amendments made by this section shall
apply to distributions made after the date of the enactment of this
Act.
SEC. 440. REFORM OF FAMILY ATTRIBUTION RULES.
(a) Controlled Groups.--Section 414(b) of the Internal Revenue Code
of 1986 is amended--
(1) by striking ``For purposes of'' and inserting the
following:
``(1) In general.--For purposes of'', and
(2) by adding at the end the following new paragraphs:
``(2) Special rules for applying family attribution.--For
purposes of applying the attribution rules under section 1563
with respect to paragraph (1), the following rules apply:
``(A) Community property laws shall be disregarded
for purposes of determining ownership.
``(B) Except as provided by the Secretary, stock of
an individual not attributed under section 1563(e)(5)
to such individual's spouse shall not be attributed to
such spouse by reason of section 1563(e)(6)(A).
``(C) Except as provided by the Secretary, in the
case of stock in different corporations that is
attributed to a child under section 1563(e)(6)(A) from
each parent, and is not attributed to such parents as
spouses under section 1563(e)(5), such attribution to
the child shall not by itself result in such
corporations being members of the same controlled
group.
``(3) Plan shall not fail to be treated as satisfying this
section.--If the application of paragraph (2) causes two or
more entities to be a controlled group, or to no longer be in a
controlled group, such change shall be treated as a transaction
to which section 410(b)(6)(C) applies.''.
(b) Affiliated Service Groups.--Section 414(m)(6)(B) of such Code
is amended--
(1) by striking ``Ownership.--In determining'' and
inserting the following: ``Ownership.--
``(i) In general.--In determining''; and
(2) by adding at the end the following new clauses:
``(ii) Special rules for applying family
attribution.--For purposes of applying the
attribution rules under section 318 with
respect to clause (i), the following rules
apply:
``(I) Community property laws shall
be disregarded for purposes of
determining ownership.
``(II) Except as provided by the
Secretary, stock of an individual not
attributed under section
318(a)(1)(A)(i) to such individual's
spouse shall not be attributed by
reason of section 318(a)(1)(A)(ii) to
such spouse from a child who has not
attained the age of 21 years.
``(III) Except as provided by the
Secretary, in the case of stock in
different corporations that is
attributed under section
318(a)(1)(A)(ii) to a child who has not
attained the age of 21 years from each
parent, and is not attributed to such
parents as spouses under section
318(a)(1)(A)(i), such attribution to
the child shall not by itself result in
such corporations being members of the
same affiliated service group.
``(iii) Plan shall not fail to be treated
as satisfying this section.--If the application
of clause (ii) causes two or more entities to
be an affiliated service group, or to no longer
be in an affiliated service group, such change
shall be treated as a transaction to which
section 410(b)(6)(C) applies.''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning on or after the date of the enactment of
this Act.
SEC. 441. AMENDMENTS TO INCREASE BENEFIT ACCRUALS UNDER PLAN FOR
PREVIOUS PLAN YEAR ALLOWED UNTIL EMPLOYER TAX RETURN DUE
DATE.
(a) In General.--Section 401(b) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(3) Retroactive plan amendments that increase benefit
accruals.--If--
``(A) an employer amends a stock bonus, pension,
profit-sharing, or annuity plan to increase benefits
accrued under the plan effective for the preceding plan
year (other than increasing the amount of matching
contributions (as defined in subsection (m)(4)(A))),
``(B) such amendment would not otherwise cause the
plan to fail to meet any of the requirements of this
subchapter, and
``(C) such amendment is adopted before the time
prescribed by law for filing the return of the employer
for a taxable year (including extensions thereof)
during which such amendment is effective,
the employer may elect to treat such amendment as having been
adopted as of the last day of the plan year in which the
amendment is effective.''.
(b) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2025.
SEC. 442. RETROACTIVE FIRST YEAR ELECTIVE DEFERRALS FOR SOLE
PROPRIETORS.
(a) In General.--Section 401(b)(2) of the Internal Revenue Code of
1986 is amended by adding at the end the following: ``In the case of an
individual who owns the entire interest in an unincorporated trade or
business, and who is the only employee of such trade or business, any
elective deferrals (as defined in section 402(g)(3)) under a qualified
cash or deferred arrangement to which the preceding sentence applies,
which are made by such individual before the time for filing the return
of such individual for the taxable year (determined without regard to
any extensions) ending after or with the end of the plan's first plan
year, shall be treated as having been made before the end of such first
plan year.''.
(b) Effective Date.--The amendment made by this section shall apply
to plan years beginning after the date of the enactment of this Act.
SEC. 443. LIMITING CESSATION OF IRA TREATMENT TO PORTION OF ACCOUNT
INVOLVED IN A PROHIBITED TRANSACTION.
(a) In General.--Section 408(e)(2)(A) of the Internal Revenue Code
of 1986 is amended by striking ``such account ceases to be an
individual retirement account'' and inserting the following: ``the
amount involved (as defined in section 4975(f)(4)) in such transaction
shall be treated as distributed to the individual''.
(b) Conforming Amendments.--
(1) Section 408(e)(2)(B) of such Code is amended to read as
follows:
``(B) Account treated as distributing potion of
assets used in prohibited transaction.--In any case in
which a portion of an individual retirement account is
treated as distributed under subparagraph (A) as of the
first day of any taxable year, paragraph (1) of
subsection (d) applies as if there were a distribution
on such first day in an amount equal to the fair market
value of such portion, determined as of the date on
which the transaction prohibited by section 4975
occurs.''.
(A) by striking ``all its assets.--In any case''
and all that follows through ``by reason of
subparagraph (A)'' and inserting the following:
``portion of assets used in prohibited transaction.--In
any case in which a portion of an individual retirement
account is treated as distributed under subparagraph
(A)''; and
(B) by striking ``all assets in the account'' and
inserting ``such portion''.
(2) Section 4975(c)(3) of such Code is amended by striking
``the account ceases'' and all that follows and inserting the
following: ``the portion of the account used in the transaction
is treated as distributed under paragraph (2)(A) or (4) of
section 408(e).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 444. REVIEW OF PENSION RISK TRANSFER INTERPRETIVE BULLETIN.
Not later than 1 year after the date of enactment of this Act, the
Secretary of Labor shall--
(1) review section 2509.95-1 of title 29, Code of Federal
Regulations (relating to the fiduciary standards under the
Employee Retirement Income Security Act of 1974 when selecting
an annuity provider for a defined benefit pension plan) to
determine whether amendments to such section are warranted; and
(2) report to Congress on the findings of such review,
including an assessment of any risk to participants.
SEC. 445. AMENDMENTS RELATING TO SETTING EVERY COMMUNITY UP FOR
RETIREMENT ENHANCEMENT ACT OF 2019.
(a) Technical Amendments.--
(1) Amendments relating to section 103.--
(A) Section 401(k)(12)(G) of the Internal Revenue
Code of 1986 is amended by striking ``the requirements
under subparagraph (A)(i)'' and inserting ``the
contribution requirements under subparagraph (B) or
(C)''.
(B) Section 401(k)(13)(D)(iv) of such Code is
amended by striking ``and (F)'' and inserting ``and
(G)''.
(C) Section 401(m)(12) of such Code is amended by
striking ``and'' at the end of subparagraph (A), by
redesignating subparagraph (B) as subparagraph (C), and
by inserting after subparagraph (A) (as so amended) the
following new subparagraph:
``(B) meets the notice requirements of subsection
(k)(13)(E), and''.
(2) Amendment relating to section 112.--Section
401(k)(15)(B)(i)(II) of such Code is amended by striking
``subsection (m)(2)'' and inserting ``paragraphs (2), (11), and
(12) of subsection (m)''.
(3) Amendment relating to section 114.--Section
401(a)(9)(C)(iii) of such Code is amended by striking
``employee to whom clause (i)(II) applies'' and inserting
``employee (other than an employee to whom clause (i)(II) does
not apply by reason of clause (ii))''.
(4) Amendment relating to section 116.--Section 4973(b) of
such Code is amended by adding at the end of the flush matter
the following: ``Such term shall not include any designated
nondeductible contribution (as defined in subparagraph (C) of
section 408(o)(2)) which does not exceed the nondeductible
limit under subparagraph (B) thereof by reason of an election
under section 408(o)(5).''.
(5) Effective date.--The amendments made by this subsection
shall take effect as if included in the section of the Setting
Every Community Up for Retirement Enhancement Act of 2019 to
which the amendment relates.
(b) Clerical Amendments.--
(1) Section 408(o)(5)(A) of such Code is amended by
striking ``subsection (b)'' and inserting ``section 219(b)''.
(2) Section 72(t)(2)(H)(vi)(IV) of such Code is amended by
striking ``403(b)(7)(A)(ii)'' and inserting ``
403(b)(7)(A)(i)''.
SEC. 446. PROVISIONS RELATING TO PLAN AMENDMENTS.
(a) In General.--If this section applies to any retirement plan or
contract amendment--
(1) such retirement plan or contract shall be treated as
being operated in accordance with the terms of the plan during
the period described in subsection (b)(2)(A); and
(2) except as provided by the Secretary of the Treasury (or
the Secretary's delegate), such retirement plan shall not fail
to meet the requirements of section 411(d)(6) of the Internal
Revenue Code of 1986 and section 204(g) of the Employee
Retirement Income Security Act of 1974 by reason of such
amendment.
(b) Amendments to Which Section Applies.--
(1) In general.--This section shall apply to any amendment
to any retirement plan or annuity contract which is made--
(A) pursuant to any amendment made by this Act or
pursuant to any regulation issued by the Secretary of
the Treasury or the Secretary of Labor (or a delegate
of either such Secretary) under this Act; and
(B) on or before the last day of the first plan
year beginning on or after January 1, 2026, or such
later date as the Secretary of the Treasury may
prescribe.
In the case of a governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986), or an applicable
collectively bargained plan, this paragraph shall be applied by
substituting ``2028'' for ``2026''. For purposes of the
preceding sentence, the term ``applicable collectively
bargained plan'' means a plan maintained pursuant to 1 or more
collective bargaining agreements between employee
representatives and 1 or more employers ratified before the
date of enactment of this Act.
(2) Conditions.--This section shall not apply to any
amendment unless--
(A) during the period--
(i) beginning on the date the legislative
or regulatory amendment described in paragraph
(1)(A) takes effect (or in the case of a plan
or contract amendment not required by such
legislative or regulatory amendment, the
effective date specified by the plan); and
(ii) ending on the date described in
paragraph (1)(B) (as modified by the second
sentence of paragraph (1)) (or, if earlier, the
date the plan or contract amendment is
adopted),
the plan or contract is operated as if such plan or
contract amendment were in effect; and
(B) such plan or contract amendment applies
retroactively for such period.
(c) Coordination With Other Provisions Relating to Plan
Amendments.--
(1) Secure act.--Section 601(b)(1) of the Setting Every
Community Up for Retirement Enhancement Act of 2019 is
amended--
(A) by striking ``January 1, 2022'' in subparagraph
(B) and inserting ``January 1, 2024'', and
(B) by striking ``substituting `2024' for `2022'.''
in the flush matter at the end and inserting
``substituting `2026' for `2024'.''.
(2) Cares act.--
(A) Special rules for use of retirement funds.--
Section 2202(c)(2)(A) of the CARES Act is amended by
striking ``January 1, 2022'' in clause (ii) and
inserting ``January 1, 2026''.
(B) Temporary waiver of required minimum
distributions rules for certain retirement plans and
accounts.--Section 2203(c)(2)(B)(i) of the CARES Act is
amended--
(i) by striking ``January 1, 2022'' in
subclause (II) and inserting ``January 1,
2026'', and
(ii) by striking ``substituting `2024' for
`2022'.'' in the flush matter at the end and
inserting ``substituting `2028' for `2024'.''.
(C) Taxpayer certainty and disaster tax relief act
of 2020.--Section 302(d)(2)(A) of the Taxpayer
Certainty and Disaster Tax Relief Act of 2020 is
amended by striking ``January 1, 2022'' in clause (ii)
and inserting ``January 1, 2026''.
SEC. 447. SIMPLE AND SEP ROTH IRAS.
(a) In General.--Section 408A of the Internal Revenue Code of 1986
is amended by striking subsection (f).
(b) Rules Relating to Simplified Employee Pensions.--
(1) Contributions.--Section 402(h)(1) of such Code is
amended by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting ``, and'', and by adding at the end the following new
subparagraph:
``(C) in the case of any contributions pursuant to
a simplified employer pension which are made to an
individual retirement plan designated as a Roth IRA,
such contribution shall not be excludable from gross
income.''.
(2) Distributions.--Section 402(h)(3) of such Code is
amended by inserting ``, or section 408A(d) in the case of an
individual retirement plan designated as a Roth IRA'' before
the period at the end.
(3) Election required.--Section 408(k) of such Code is
amended by redesignating paragraphs (7), (8), and (9) as
paragraphs (8), (9), and (10), respectively, and by inserting
the after paragraph (6) the following new paragraph:
``(7) Roth contribution election.--An individual retirement
plan which is designated as a Roth IRA shall not be treated as
a simplified employee pension under this subsection unless the
employee elects for such plan to be so treated (at such time
and in such manner as the Secretary may provide).''.
(c) Rules Relating to Simple Retirement Accounts.--
(1) Election required.--Section 408(p) of such Code is
amended by adding at the end the following new paragraph:
``(11) Roth contribution election.--An individual
retirement plan which is designated as a Roth IRA shall not be
treated as a simple retirement account under this subsection
unless the employee elects for such plan to be so treated (at
such time and in such manner as the Secretary may provide).''.
(2) Rollovers.--Section 408A(e) of such Code is amended by
adding at the end the following new paragraph:
``(3) Simple retirement accounts.--In the case of any
payment or distribution out of a simple retirement account (as
defined in section 408(p)) with respect to which an election
has been made under section 408(p)(11) and to which 72(t)(6)
applies, the term `qualified rollover contribution' shall not
include any payment or distribution paid into an account other
than another simple retirement account (as so defined).''.
(d) Coordination With Roth Contribution Limitation.--Section
408A(c) of such Code is amended by adding at the end the following new
paragraph:
``(7) Coordination with limitation for simple retirement
plans and seps.--In the case of an individual on whose behalf
contributions are made to a simple retirement account or a
simplified employee pension, the amount described in paragraph
(2)(A) shall be increased by an amount equal to the
contributions made on the individual's behalf to such account
or pension for the taxable year, but only to the extent such
contributions--
``(A) in the case of a simplified retirement
account--
``(i) do not exceed the sum of the dollar
amount in effect for the taxable year under
section 408(p)(2)(A)(ii) and the employer
contribution required under subparagraph
(A)(iii) or (B)(i), as the case may be, of
section 408(p)(2), and
``(ii) do not cause the elective deferrals
(as defined in section 402(g)(3)) on behalf of
such individual to exceed the limitation under
section 402(g)(1) (taking into account any
additional elective deferrals permitted under
section 414(v)), or
``(B) in the case of a simplified employee pension,
do not exceed the limitation in effect under section
408(j).''.
(e) Conforming Amendment.--Section 408A(d)(2)(B) of such Code is
amended by inserting ``, or employer in the case of a simple retirement
account (as defined in section 408(p)) or simplified employee pension
(as defined in section 408(k)),'' after ``individual's spouse''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 448. HARDSHIP WITHDRAWAL RULES FOR 403(B) PLANS.
(a) In General.--Section 403(b) of the Internal Revenue Code of
1986, as amended by the preceding provisions of this Act, is amended by
adding at the end the following new paragraph:
``(16) Special rules relating to hardship withdrawals.--For
purposes of paragraphs (7) and (11)--
``(A) Amounts which may be withdrawn.--The
following amounts may be distributed upon hardship of
the employee:
``(i) Contributions made pursuant to a
salary reduction agreement (within the meaning
of section 3121(a)(5)(D)).
``(ii) Qualified nonelective contributions
(as defined in section 401(m)(4)(C)).
``(iii) Qualified matching contributions
described in section 401(k)(3)(D)(ii)(I).
``(iv) Earnings on any contributions
described in clause (i), (ii), or (iii).
``(B) No requirement to take available loan.--A
distribution shall not be treated as failing to be made
upon the hardship of an employee solely because the
employee does not take any available loan under the
plan.''.
(b) Conforming Amendments.--
(1) Section 403(b)(7)(A)(i)(V) of such Code is amended by
striking ``in the case of contributions made pursuant to a
salary reduction agreement (within the meaning of section
3121(a)(5)(D))'' and inserting ``subject to the provisions of
paragraph (16)''.
(2) Paragraph (11) of section 403(b) of such Code, as
amended by the preceding provisions of this Act, is amended--
(A) by striking ``in'' in subparagraph (B) and
inserting ``subject to the provisions of paragraph
(16), in'', and
(B) by striking the penultimate sentence.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2024.
SEC. 449. ELECTIVE DEFERRALS GENERALLY LIMITED TO REGULAR CONTRIBUTION
LIMIT.
(a) Applicable Employer Plans.--Section 414(v)(1) of the Internal
Revenue Code of 1986 is amended by adding at the end the following:
``Except in the case of an applicable employer plan described in
paragraph (6)(A)(iv), the preceding sentence shall only apply if
contributions are designated Roth contributions (as defined in section
402A(c)(1)).''.
(b) Conforming Amendments.--
(1) Section 402(g)(1) of such Code is amended by striking
subparagraph (C).
(2) Section 457(e)(18)(A)(ii) of such Code is amended by
inserting ``the lesser of any designated Roth contributions
made by the participant to the plan or'' before ``the
applicable dollar amount''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 450. OPTIONAL TREATMENT OF EMPLOYER MATCHING CONTRIBUTIONS AS ROTH
CONTRIBUTIONS.
(a) In General.--Section 402A(a) of the Internal Revenue Code of
1986 is amended by redesignating paragraph (2) as paragraph (3), by
striking ``and'' at the end of paragraph (1), and by inserting after
paragraph (1) the following new paragraph:
``(2) any designated Roth contribution which is made by the
employer to the program on the employee's behalf, and on
account of the employee's contribution, elective deferral, or
(subject to the requirements of section 401(m)(13)) qualified
student loan payment, shall be treated as a matching
contribution for purposes of this chapter, except that such
contribution shall not be excludable from gross income, and''.
(b) Matching Included in Qualified Roth Contribution Program.--
Section 402A(b)(1) of such Code is amended--
(1) by inserting ``, or to have made on the employee's
behalf,'' after ``elect to make'', and
(2) by inserting ``, or of matching contributions which may
otherwise be made on the employee's behalf,'' after ``otherwise
eligible to make''.
(c) Designated Roth Matching Contributions.--Section 402A(c)(1) of
such Code is amended by inserting ``or matching contribution'' after
``elective deferral''.
(d) Matching Contribution Defined.--Section 402A(e) of such Code is
amended by adding at the end the following:
``(3) Matching contribution.--The term `matching
contribution' means--
``(A) any matching contribution described in
section 401(m)(4)(A), and
``(B) any contribution to an eligible deferred
compensation plan (as defined in section 457(b)) by an
eligible employer described in section 457(e)(1)(A) on
behalf of an employee and on account of such employee's
elective deferral under such plan.''.
(e) Effective Date.--The amendments made by this section shall
apply to contributions made after the date of the enactment of this
Act.
TITLE V
SEC. 501. BOOTS TO BUSINESS PROGRAM.
Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by
adding at the end the following:
``(h) Boots to Business Program.--
``(1) Covered individual defined.--In this subsection, the
term `covered individual' means--
``(A) a member of the Armed Forces, including the
National Guard or Reserves;
``(B) an individual who is participating in the
Transition Assistance Program established under section
1144 of title 10, United States Code;
``(C) an individual who--
``(i) served on active duty in any branch
of the Armed Forces, including the National
Guard or Reserves; and
``(ii) was discharged or released from such
service under conditions other than
dishonorable; and
``(D) a spouse or dependent of an individual
described in subparagraph (A), (B), or (C).
``(2) Establishment.--During the period beginning on the
date of enactment of this subsection and ending on September
30, 2028, the Administrator shall carry out a program to be
known as the `Boots to Business Program' to provide
entrepreneurship training to covered individuals.
``(3) Goals.--The goals of the Boots to Business Program
are to--
``(A) provide assistance and in-depth training to
covered individuals interested in business ownership;
and
``(B) provide covered individuals with the tools,
skills, and knowledge necessary to identify a business
opportunity, draft a business plan, identify sources of
capital, connect with local resources for small
business concerns, and start up a small business
concern.
``(4) Program components.--
``(A) In general.--The Boots to Business Program
may include--
``(i) a presentation providing exposure to
the considerations involved in self-employment
and ownership of a small business concern;
``(ii) an online, self-study course focused
on the basic skills of entrepreneurship, the
language of business, and the considerations
involved in self-employment and ownership of a
small business concern;
``(iii) an in-person classroom instruction
component providing an introduction to the
foundations of self employment and ownership of
a small business concern; and
``(iv) in-depth training delivered through
online instruction, including an online course
that leads to the creation of a business plan.
``(B) Collaboration.--The Administrator may--
``(i) collaborate with public and private
entities to develop course curricula for the
Boots to Business Program; and
``(ii) modify program components in
coordination with entities participating in a
Warriors in Transition program, as defined in
section 738(e) of the National Defense
Authorization Act for Fiscal Year 2013 (10
U.S.C. 1071 note).
``(C) Use of resource partners and district
offices.--
``(i) In general.--The Administrator
shall--
``(I) ensure that Veteran Business
Outreach Centers regularly participate,
on a nationwide basis, in the Boots to
Business Program; and
``(II) to the maximum extent
practicable, use district offices of
the Administration and a variety of
other resource partners and entities in
administering the Boots to Business
Program.
``(ii) Grant authority.--In carrying out
clause (i), the Administrator may make grants,
subject to the availability of appropriations
in advance, to Veteran Business Outreach
Centers, other resource partners, or other
entities to carry out components of the Boots
to Business Program.
``(D) Availability to department of defense and the
department of labor.--The Administrator shall make
available to the Secretary of Defense and the Secretary
of Labor information regarding the Boots to Business
Program, including all course materials and outreach
materials related to the Boots to Business Program, for
inclusion on the websites of the Department of Defense
and the Department of Labor relating to the Transition
Assistance Program, in the Transition Assistance
Program manual, and in other relevant materials
available for distribution from the Secretary of
Defense and the Secretary of Labor.
``(E) Availability to department of veterans
affairs.--In consultation with the Secretary of
Veterans Affairs, the Administrator shall make
available for distribution and display on the website
of the Department of Veterans Affairs and at local
facilities of the Department of Veterans Affairs
outreach materials regarding the Boots to Business
Program, which shall, at a minimum--
``(i) describe the Boots to Business
Program and the services provided; and
``(ii) include eligibility requirements for
participating in the Boots to Business Program.
``(F) Availability to other participating
agencies.--The Administrator shall ensure information
regarding the Boots to Business program, including all
course materials and outreach materials related to the
Boots to Business Program, is made available to other
participating agencies in the Transition Assistance
Program and upon request of other agencies.
``(5) Competitive bidding procedures.--The Administration
shall use relevant competitive bidding procedures with respect
to any contract or cooperative agreement executed by the
Administration under the Boots to Business Program.
``(6) Publication of notice of funding opportunity.--Not
later than 30 days before the deadline for submitting
applications for any funding opportunity under the Boots to
Business Program, the Administration shall publish a notice of
the funding opportunity.
``(7) Report.--Not later than 180 days after the date of
enactment of this subsection, and not less frequently than
annually thereafter, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of
Representatives a report on the performance and effectiveness
of the Boots to Business Program, which--
``(A) may be included as part of another report
submitted to such committees by the Administrator
related to the Office of Veterans Business Development;
and
``(B) shall summarize available information
relating to--
``(i) grants awarded under paragraph
(4)(C);
``(ii) the total cost of the Boots to
Business Program;
``(iii) the number of program participants
using each component of the Boots to Business
Program;
``(iv) the completion rates for each
component of the Boots to Business Program;
``(v) to the extent possible--
``(I) the demographics of program
participants, to include gender, age,
race, ethnicity, and relationship to
military;
``(II) the number of program
participants that connect with a
district office of the Administration,
a Veteran Business Outreach Center, or
another resource partner of the
Administration;
``(III) the number of program
participants that start a small
business concern;
``(IV) the results of the Boots to
Business and Boots to Business Reboot
course quality surveys conducted by the
Office of Veterans Business Development
before and after attending each of
those courses, including a summary of
any comments received from program
participants;
``(V) the results of the Boots to
Business Program outcome surveys
conducted by the Office of Veterans
Business Development, including a
summary of any comments received from
program participants; and
``(VI) the results of other germane
participant satisfaction surveys;
``(C) an evaluation of the overall effectiveness of
the Boots to Business Program based on each geographic
region covered by the Administration during the most
recent fiscal year;
``(D) an assessment of additional performance
outcome measures for the Boots to Business Program, as
identified by the Administrator;
``(E) any recommendations of the Administrator for
improvement of the Boots to Business Program, which may
include expansion of the types of individuals who are
covered individuals;
``(F) an explanation of how the Boots to Business
Program has been integrated with other transition
programs and related resources of the Administration
and other Federal agencies; and
``(G) any additional information the Administrator
determines necessary.''.
TITLE VI
SEC. 601. INCREASED PUNISHMENT FOR HUMAN TRAFFICKING IN SCHOOL ZONES.
Section 1591 of title 18, United States Code, is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following:
``(e)(1) Whoever violates subsection (a) in a school zone, or on,
or within 1,000 feet of, a premises on which a school-sponsored
activity is taking place, or on, or within 1,000 feet of a premises
owned by an institution of higher education, shall, in addition to the
punishment otherwise provided under this section, be imprisoned for not
more than 5 years.
``(2) In this subsection:
``(A) The term `school zone' has the meaning given such
term in section 921.
``(B) The term `school-sponsored activity' means any
activity that is produced, financed, arranged, supervised, or
coordinated by a school or a State educational agency or local
educational agency or is under the jurisdiction of a State
educational agency or local educational agency.
``(C) The terms `State educational agency' and `local
educational agency' have the meanings given those terms under
section 8101 of the Elementary and Secondary Education Act of
1965.
``(D) The term `institution of higher education' has the
meaning given such term in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001).''.
SEC. 602. INCREASED PUNISHMENT FOR COERCION AND ENTICEMENT IN SCHOOL
ZONES.
Section 2422 of title 18, United States Code, is amended--
(1) in subsection (b), by striking ``individual who has not
attained the age of 18 years'' and inserting ``minor''; and
(2) by adding at the end the following:
``(c)(1) Whoever violates subsection (a) or (b) knowing, or having
reasonable cause to believe, that the violation is committed against a
minor who is enrolled in school and is, at the time of the violation,
in a school zone or on, or within 1,000 feet of, a premises on which a
school-sponsored activity is taking place, or against a person who is
enrolled in an institution of higher education and is, at the time of
the violation on or within 1,000 feet of a premises owned by the
institution of higher education, shall, in addition to the punishment
otherwise provided under this section, be imprisoned for not more than
5 years.
``(2) Paragraph (1) shall not apply in a case in which a minor's
presence on, or within 1,000 feet of, the premises on which a school-
sponsored activity is taking place is not related to such school-
sponsored activity, or the person's presence on or within 1,000 feet of
the premises owned by the institution of higher education is not
related to their enrollment at such institution.
``(d) In this section:
``(1) The term `minor' means an individual who has not
attained 18 years of age.
``(2) The term `school' means a public, parochial, or
private school that provides elementary or secondary education.
``(3) The term `school zone' has the meaning given such
term in section 921.
``(4) The term `school-sponsored activity' means any
activity that is produced, financed, arranged, supervised, or
coordinated by a school or a State educational agency or local
educational agency or is under the jurisdiction of a State
educational agency or local educational agency.
``(5) The terms `State educational agency' and `local
educational agency' have the meanings given those terms under
section 8101 of the Elementary and Secondary Education Act of
1965.
``(6) The term `institution of higher education' has the
meaning given such term in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001).''.
TITLE VII
SEC. 701. ESTABLISHMENT OF COMMISSION.
(a) In General.--There is established the Commission to Study the
Potential Creation of a National Museum of Asian Pacific American
History and Culture (hereafter in this Act referred to as the
``Commission'').
(b) Membership.--The Commission shall be composed of 8 members, of
whom--
(1) 2 members shall be appointed by the majority leader of
the Senate;
(2) 2 members shall be appointed by the Speaker of the
House of Representatives;
(3) 2 members shall be appointed by the minority leader of
the Senate; and
(4) 2 members shall be appointed by the minority leader of
the House of Representatives.
(c) Qualifications.--Members of the Commission shall be appointed
to the Commission from among individuals, or representatives of
institutions or entities, who possess--
(1)(A) a demonstrated commitment to the research, study, or
promotion of Asian Pacific American history, art, political or
economic status, or culture; and
(B)(i) expertise in museum administration;
(ii) expertise in fundraising for nonprofit or
cultural institutions;
(iii) experience in the study and teaching of Asian
Pacific American history;
(iv) experience in studying the issue of the
representation of Asian Pacific Americans in art, life,
history, and culture at the Smithsonian Institution; or
(v) extensive experience in public or elected
service;
(2) experience in the administration of, or the planning
for, the establishment of, museums; or
(3) experience in the planning, design, or construction of
museum facilities.
(d) Deadline for Initial Appointment.--The initial members of the
Commission shall be appointed not later than the date that is 90 days
after the date of enactment of this Act.
(e) Vacancies.--A vacancy in the Commission--
(1) shall not affect the powers of the Commission; and
(2) shall be filled in the same manner as the original
appointment was made.
(f) Chairperson.--The Commission shall, by majority vote of all of
the members, select 1 member of the Commission to serve as the
Chairperson of the Commission.
(g) Prohibition.--No employee of the Federal Government may serve
as a member of the Commission.
SEC. 702. DUTIES OF THE COMMISSION.
(a) Reports.--
(1) Plan of action.--The Commission shall submit to the
President and Congress a report containing the recommendations
of the Commission with respect to a plan of action regarding
the feasibility of establishing and maintaining a National
Museum of Asian Pacific American History and Culture in
Washington, DC, and its environs (hereafter in this Act
referred to as the ``Museum'').
(2) Report on issues.--The Commission shall submit to the
President and Congress a report that addresses the following
issues:
(A) The availability and cost of collections to be
acquired and housed in the Museum.
(B) The impact of the Museum on existing Asian
Pacific American history-related museums.
(C) In consultation with the Smithsonian
Institution, develop criteria for evaluating possible
locations for the Museum in Washington, DC, and its
environs.
(D) The feasibility of the Museum becoming part of
the Smithsonian Institution, taking into account the
Museum's potential impact on the Smithsonian's existing
facilities maintenance backlog, collections storage
needs, and identified construction or renovation costs
for new or existing museums.
(E) The governance and organizational structure
from which the Museum should operate.
(F) Best practices for engaging Asian Pacific
Americans in the development and design of the Museum.
(G) The cost of constructing, operating, and
maintaining the Museum.
(3) Deadline.--The reports required under paragraphs (1)
and (2) shall be submitted not later than the date that is 18
months after the date of the first meeting of the Commission.
(b) Fundraising Plan.--
(1) In general.--The Commission shall develop a fundraising
plan that will address the ability to support the
establishment, operation, and maintenance of the Museum through
contributions from the public.
(2) Considerations.--In developing the fundraising plan
under paragraph (1), the Commission shall consider issues
relating to funding the operations and maintenance of the
Museum in perpetuity without reliance on appropriations of
Federal funds.
(3) Independent review.--The Commission shall obtain an
independent review of the viability of the plan developed under
paragraph (1) and such review shall include an analysis as to
whether the plan is able to achieve the level of resources
necessary to fund the construction of the Museum and the
operations and maintenance of the Museum in perpetuity without
reliance on appropriations of Federal funds.
(4) Submission.--The Commission shall submit the plan
developed under paragraph (1) and the review conducted under
paragraph (3) to the Committees on House Administration,
Natural Resources, and Appropriations of the House of
Representatives and the Committees on Rules and Administration,
Energy and Natural Resources, and Appropriations of the Senate.
(c) Legislation To Carry Out Plan of Action.--Based on the
recommendations contained in the report submitted under paragraphs (1)
and (2) of subsection (a), the Commission shall submit for
consideration to the Committees on House Administration, Natural
Resources, and Appropriations of the House of Representatives and the
Committees on Rules and Administration, Energy and Natural Resources,
and Appropriations of the Senate recommendations for a legislative plan
of action on the feasibility of establishing and constructing the
Museum.
(d) National Conference.--Not later than 18 months after the date
on which the initial members of the Commission are appointed under
section 2, the Commission may, in carrying out the duties of the
Commission under this section, convene a national conference relating
to the Museum, to be comprised of individuals committed to the
advancement of the life, art, history, and culture of Asian Pacific
Americans.
SEC. 703. ADMINISTRATIVE PROVISIONS.
(a) Compensation.--
(1) In general.--A member of the Commission--
(A) shall not be considered to be a Federal
employee for any purpose by reason of service on the
Commission; and
(B) shall serve without pay.
(2) Travel expenses.--A member of the Commission shall be
allowed a per diem allowance for travel expenses, at rates
consistent with those authorized under subchapter I of chapter
57 of title 5, United States Code.
(3) Gifts, bequests, and devises.--The Commission may
solicit, accept, use, and dispose of gifts, bequests, or
devises of money, services, or real or personal property for
the purpose of aiding or facilitating the work of the
Commission.
(4) Federal advisory committee act.--The Commission shall
not be subject to the Federal Advisory Committee Act (5 U.S.C.
App.).
(b) Termination.--The Commission shall terminate on the date that
is 30 days after the date on which the final versions of the reports
required under section 3 are submitted.
(c) Funding.--
(1) In general.--The Commission shall be solely responsible
for acceptance of contributions for, and payment of the
expenses of, the Commission.
(2) Prohibition.--No Federal funds may be obligated to
carry out this Act.
(d) Director and Staff of Commission.--
(1) Director and staff.--
(A) In general.--The Commission may employ and
compensate an executive director and any other
additional personnel that are necessary to enable the
Commission to perform the duties of the Commission.
(B) Rates of pay.--Rates of pay for persons
employed under subparagraph (A) shall be consistent
with the rates of pay allowed for employees of a
temporary organization under section 3161 of title 5,
United States Code.
(2) Not federal employment.--Any individual employed under
this section shall not be considered a Federal employee for the
purpose of any law governing Federal employment.
(3) Technical assistance.--
(A) In general.--Subject to subparagraph (B), on
request of the Commission, the head of a Federal agency
may provide technical assistance to the Commission.
(B) Prohibition.--No Federal employees may be
detailed to the Commission.
TITLE VIII
SEC. 801. SELECTUSA DEFINED.
In this Act, the term ``SelectUSA'' means the SelectUSA program of
the Department of Commerce established by Executive Order No. 13577 (76
Fed. Reg. 35715).
SEC. 802. FINDINGS.
Congress makes the following findings:
(1) Semiconductors underpin the United States and global
economies, including manufacturing sectors. Semiconductors are
also essential to the national security of the United States.
(2) A shortage of semiconductors, brought about by the
COVID-19 pandemic and other complex factors impacting the
overall supply chain, has threatened the economic recovery of
the United States and industries that employ millions of United
States citizens.
(3) Addressing current challenges and building resilience
against future risks requires ensuring a secure and stable
supply chain for semiconductors that will support the economic
and national security needs of the United States and its
allies.
(4) The supply chain for semiconductors is complex and
global. While the United States plays a leading role in certain
segments of the semiconductor industry, securing the supply
chain requires onshoring, reshoring, or diversifying vulnerable
segments, such as for--
(A) fabrication;
(B) advanced packaging; and
(C) materials and equipment used to manufacture
semiconductor products.
(5) The Federal Government can leverage foreign direct
investment and private dollars to grow the domestic
manufacturing and production capacity of the United States for
vulnerable segments of the semiconductor supply chain.
(6) The SelectUSA program of the Department of Commerce, in
coordination with other Federal agencies and State-level
economic development organizations, is positioned to boost
foreign direct investment in domestic manufacturing and to help
secure the semiconductor supply chain of the United States.
SEC. 803. COORDINATION WITH STATE-LEVEL ECONOMIC DEVELOPMENT
ORGANIZATIONS.
Not later than 180 days after the date of the enactment of this
Act, the Executive Director of SelectUSA shall solicit comments from
State-level economic development organizations--
(1) to review--
(A) what efforts the Federal Government can take to
support increased foreign direct investment in any
segment of semiconductor-related production;
(B) what barriers to such investment may exist and
how to amplify State efforts to attract such
investment;
(C) public opportunities those organizations have
identified to attract foreign direct investment to help
increase investment described in subparagraph (A);
(D) resource gaps or other challenges that prevent
those organizations from increasing such investment;
and
(2) to develop recommendations for--
(A) how SelectUSA can increase such investment
independently or through partnership with those
organizations; and
(B) working with countries that are allies or
partners of the United States to ensure that foreign
adversaries (as defined in section 8(c)(2) of the
Secure and Trusted Communications Networks Act of 2019
(47 U.S.C. 1607(c)(2))) do not benefit from United
States efforts to increase such investment.
SEC. 804. REPORT ON INCREASING FOREIGN DIRECT INVESTMENT IN
SEMICONDUCTOR-RELATED MANUFACTURING AND PRODUCTION.
Not later than 2 years after the date of the enactment of this Act,
the Executive Director of SelectUSA, in coordination with the Federal
Interagency Investment Working Group established by Executive Order No.
13577 (76 Fed. Reg. 35,715; relating to establishment of the SelectUSA
Initiative), shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Energy and Commerce
of the House of Representatives a report that includes--
(1) a review of the comments SelectUSA received from State-
level economic development organizations under section 803;
(2) a description of activities SelectUSA is engaged in to
increase foreign direct investment in semiconductor-related
manufacturing and production; and
(3) an assessment of strategies SelectUSA may implement to
achieve an increase in such investment and to help secure the
United States supply chain for semiconductors, including by--
(A) working with other relevant Federal agencies;
and
(B) working with State-level economic development
organizations and implementing any strategies or
recommendations SelectUSA received from those
organizations.
TITLE IX
SEC. 901. APPROVAL OF CERTAIN EQUIPMENT.
(a) In General.--Section 2008 of the Homeland Security Act of 2002
(6 U.S.C. 609) is amended--
(1) in subsection (f)--
(A) by striking ``If an applicant'' and inserting
the following:
``(1) Application requirement.--If an applicant''; and
(B) by adding at the end the following new
paragraphs:
``(2) Review process.--The Administrator shall implement a
uniform process for reviewing applications that, in accordance
with paragraph (1), contain explanations to use grants provided
under section 2003 or 2004 to purchase equipment or systems
that do not meet or exceed any applicable national voluntary
consensus standards developed under section 647 of the Post-
Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 747).
``(3) Factors.--In carrying out the review process under
paragraph (2), the Administrator shall consider the following:
``(A) Current or past use of proposed equipment or
systems by Federal agencies or the Armed Forces.
``(B) The absence of a national voluntary consensus
standard for such equipment or systems.
``(C) The existence of an international consensus
standard for such equipment or systems, and whether
such equipment or systems meets such standard.
``(D) The nature of the capability gap identified
by the applicant and how such equipment or systems will
address such gap.
``(E) The degree to which such equipment or systems
will serve the needs of the applicant better than
equipment or systems that meet or exceed existing
consensus standards.
``(F) Any other factor determined appropriate by
the Administrator.''; and
(2) by adding at the end the following new subsection:
``(g) Review Process.--The Administrator shall implement a uniform
process for reviewing applications to use grants provided under section
2003 or 2004 to purchase equipment or systems not included on the
Authorized Equipment List maintained by the Administrator.''.
(b) Inspector General Report.--Not later than three years after the
date of the enactment of this Act, the Inspector General of the
Department of Homeland Security shall submit to the Committee on
Homeland Security of the House of Representatives and the Committee on
Homeland Security and Governmental Affairs of the Senate a report
assessing the implementation of the review process established under
paragraph (2) of subsection (f) of section 2008 of the Homeland
Security Act of 2002 (as added by subsection (a) of this section),
including information on the following:
(1) The number of requests to purchase equipment or systems
that do not meet or exceed any applicable consensus standard
evaluated under such review process.
(2) The capability gaps identified by applicants and the
number of such requests granted or denied.
(3) The processing time for the review of such requests.
TITLE X
SEC. 1001. FINDINGS.
Congress finds the following:
(1) NASA uses enhanced use leasing to enter into agreements
with private sector entities, State and local governments,
academic institutions, and other Federal agencies for lease of
non-excess, underutilized NASA properties and facilities.
(2) NASA uses enhanced use leasing authority to support
responsible management of its real property, including to
improve the use of underutilized property for activities that
are compatible with NASA's mission and to reduce facility
operating and maintenance costs.
(3) In fiscal year 2019, under its enhanced use lease
authority, NASA leased 65 real properties.
(4) In fiscal year 2019, NASA's use of enhanced use leasing
resulted in the collection of $10,843,025.77 in net revenue.
(5) In fiscal year 2019, NASA used a portion of its
enhanced use leasing revenues for repairs of facility control
systems such as lighting and heating, ventilation, and air
conditioning.
(6) NASA's use of enhanced use leasing authority can
contribute to reducing the rate of increase of the Agency's
overall deferred maintenance cost.
SEC. 1002. EXTENSION OF AUTHORITY TO ENTER INTO LEASES OF NON-EXCESS
PROPERTY OF THE NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION.
Section 20145(h) of title 51, United States Code, is amended by
striking ``December 31, 2032'' and inserting ``December 31, 2033''.
TITLE XI
SEC. 1101. HEARINGS.
(a) In General.--Each standing committee of the House of
Representatives shall hold a hearing on the implementation of this Act
within one year of enactment.
(b) Exercise of Rulemaking Authority.--Subsection (a) is enacted--
(1) as an exercise of rulemaking power of the House of
Representatives, and, as such, shall be considered as part of
the rules of the House, and such rules shall supersede any
other rule of the House only to the extent that rule is
inconsistent therewith; and
(2) with full recognition of the constitutional right of
either House to change such rules (so far as relating to the
procedure in such House) at any time, in the same manner, and
to the same extent as in the case of any other rule of the
House.
TITLE XII
SEC. 1201. CODE OF OFFICIAL CONDUCT.
In rule XXIII of the Rules of the House of Representatives, strike
clause 21 and insert the following:
``21.(a) Except as provided in paragraphs (b) and (c), a Member,
Delegate, Resident Commissioner, officer, or employee of the House
shall not knowingly and willfully disclose publicly the identity of, or
personally identifiable information about, any individual who has
reported allegations of possible wrongdoing, including retaliation,
under processes and protections provided by the Civil Service Reform
Act of 1978, the Whistleblower Protection Act of 1989, the Intelligence
Community Whistleblower Protection Act of 1998, or any other Federal
law that establishes the right for individuals to make protected
disclosures to Congress.
``(b) The limitation in paragraph (a) shall not apply to any
disclosure of an individual's identity or personally identifiable
information if--
``(1) the individual has provided express written consent
prior to such disclosure;
``(2) the individual has already voluntarily and publicly
disclosed their identity; or
``(3) the disclosure is by the chair of a committee after
an affirmative vote by two-thirds of the members of the
committee that such disclosure is in the public interest.
``(c) Nothing in this clause shall prevent--
``(1) an investigation of any allegation of wrongdoing
disclosed by any individual; or
``(2) the public disclosure of substantive information
shared by any individual that is not personally identifiable to
that individual.
``(d) Disclosures made pursuant to paragraph (b)(3) shall be
subject to appropriate safeguards, including that the individual be
provided timely advance notice if possible before their identity or any
personally identifiable information is disclosed prior to the vote
described in paragraph (b)(3), unless such information would jeopardize
the related investigations. When providing such notice to the
individual the committee chair shall send the individual a written
explanation of the reasons for the disclosure.''.
TITLE XIII
SEC. 1301. STUDY ON FOREIGN PORTS.
(a) In General.--Not later than 90 days after the date of enactment
of this Act, the Chairman of the Federal Maritime Commission shall seek
to enter into an agreement with a federally funded research and
development center to evaluate how foreign ownership of marine
terminals at the 15 largest United States container ports affects or
could affect United States economic security.
(b) Contents.--In carrying out the study under subsection (a), the
center selected under such subsection shall--
(1) consider--
(A) changes in ownership of the 15 largest United
States container ports over the past 10 years as well
as announced ownership changes from 2025 and 2026;
(B) instances of ownership in individual marine
terminals and cumulative ownership by Chinese or
Russian entities or nationals;
(C) instances of ownership in individual marine
terminals and cumulative ownership by any foreign
entity;
(D) the amount of--
(i) Port Infrastructure Development Grant
funds since fiscal year 2018 that have gone to
ports and marine terminals that are owned
wholly or partially foreign owned; and
(ii) Port Security Grant funds since fiscal
year 2003 that have gone to ports and marine
terminals that are owned wholly or partially
foreign owned; and
(E) where ownership exists, a detailed description
of foreign operational control including both
affirmative and negative control; and
(2) offer recommendations on--
(A) policies by ports and marine terminal operators
to prevent excessive foreign ownership that could
threaten United States economic security;
(B) whether ownership affords the foreign owner
access to operational technology and information unique
to the United States and otherwise unavailable; and
(C) whether foreign ownership has or could affect
the supply chain and policies related to the
prioritization of certain cargoes.
(c) Report.--Not later than 1 year after the initiation of the
evaluation under subsection (a), the Chairman of the Federal Maritime
Commission shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives the results of such
evaluation.
TITLE XIV
SEC. 1401. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
TITLE XV
SEC. 1501. FREQUENCY OF BOARD OF DIRECTORS MEETINGS.
Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is
amended--
(1) by striking ``monthly'' each place such term appears;
(2) in the matter preceding paragraph (1), by striking
``The board of directors'' and inserting the following:
``(a) In General.--The board of directors'';
(3) in subsection (a) (as so designated), by striking
``shall meet at least once a month and''; and
(4) by adding at the end the following:
``(b) Meetings.--The board of directors of a Federal credit union
shall meet as follows:
``(1) With respect to a de novo Federal credit union, not
less frequently than monthly during each of the first five
years of the existence of such Federal credit union.
``(2) Not less than six times annually, with at least one
meeting held during each fiscal quarter, with respect to a
Federal credit union--
``(A) with composite rating of either 1 or 2 under
the Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system);
and
``(B) with a capability of management rating under
such composite rating of either 1 or 2.
``(3) Not less frequently than once a month, with respect
to a Federal credit union--
``(A) with composite rating of either 3, 4, or 5
under the Uniform Financial Institutions Rating System
(or an equivalent rating under a comparable rating
system); or
``(B) with a capability of management rating under
such composite rating of either 3, 4, or 5.''.
TITLE XVI
SEC. 1601. APPROPRIATIONS.
The following sums are hereby appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2026, and for other purposes, namely:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Resources and Services Administration
rural health
For an additional amount for the Telehealth Resource Center of the
Federal Office of Rural Health Policy of the Office for the Advancement
of Telehealth, to provide assistance with respect to technical, legal,
regulatory service delivery or other related barriers to the
development of telehealth technologies for skilled nursing facilities
(as defined in section 1819 of the Social Security Act) and nursing
facilities (as defined in section 1919 of such Act), $1,000,000 to
remain available through September 30, 2025.
DEPARTMENT OF AGRICULTURE
Executive Operations
office of budget and program analysis
For an additional amount for necessary expenses of the Office of
Budget and Program Analysis, $1,000,000.
DEPARTMENT OF STATE
Capital Investment Fund
For an additional amount for necessary expenses of the Capital
Investment Fund, as authorized, $1,000,000, to remain available until
expended.
DEPARTMENT OF DEFENSE
Operation and Maintenance
operation and maintenance, army
For an additional amount for expenses, not otherwise provided for,
necessary for the operation and maintenance of the Army, as authorized
by law, $1,000,000.
DEPARTMENT OF HOMELAND SECURITY
Departmental Management, Intelligence, Situational Awareness, and
Oversight
management directorate
operations and support
For an additional amount for necessary expenses of the Management
Directorate for operations and support, $1,000,000.
DEPARTMENT OF ENERGY
Energy Programs
energy information administration
For an additional amount for Department of Energy expenses
necessary in carrying out the activities of the Energy Information
Administration, $1,000,000, to remain available until expended.
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