(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.

(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:

(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).

(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.

(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

(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

(f) Effective date; applicability

The amendments made by this Act—

(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:

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:

(c) Effective date

The amendments made by this section shall apply to plan years beginning after December 31, 2025.

(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 taxable year beginning after the taxable year during which plan is established with respect to the eligible employer:	The applicable percentage shall be:
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.

(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

(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.

(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.

(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.

(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.

(a) In general

(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.

(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.

(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

(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

(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

(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—

(h) Effective date

The amendments made by this section shall apply to contributions made for plan years beginning after December 31, 2024.

(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.

(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:

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:

(e) Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(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.

(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 9½ 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.

(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

(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.

(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.

(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.

(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:

(b) Divorce or separation instrument

For purposes of subsection (a)(2), the term divorce or separation instrument means—

(c) Effective dates, enforcement, and interpretations

(d) Regulatory successor provision

Any reference to a regulation under this section shall be treated as including a reference to any successor regulation thereto.

(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:

(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.

(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

(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—

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.

(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.

(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—

(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.

(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—

(b) Report

(a) Amendment of employee retirement income security act of 1974

(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.

(a) In general

(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.

(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—

(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)—

(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—

(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).

(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.

(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.

(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.

(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:

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:

(c) Effective date

The amendments made by this section shall apply to amounts received with respect to taxable years beginning after December 31, 2029.

(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—

(b) Implementation

(c) Effective date

The amendment made by subsection (a) shall apply with respect to plan years beginning after December 31, 2025.

(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.

(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.

(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

(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.

(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.

(a) Controlled groups

Section 414(b) of the Internal Revenue Code of 1986 is amended—

(b) Affiliated service groups

Section 414(m)(6)(B) of such Code is amended—

(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.

(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.

(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.

(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

(c) Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(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.

(a) Technical amendments

(b) Clerical amendments

(a) In general

If this section applies to any retirement plan or contract amendment—

(b) Amendments to which section applies

(c) Coordination with other provisions relating to plan amendments

(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

(c) Rules relating to simple retirement accounts

(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.

(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

(c) Effective date

The amendments made by this section shall apply to plan years beginning after December 31, 2024.

(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

(c) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.

(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—

(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.

(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).

(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).

(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—

(c) Qualifications

Members of the Commission shall be appointed to the Commission from among individuals, or representatives of institutions or entities, who possess—

(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—

(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.

(a) Reports

(b) Fundraising plan

(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.

(a) Compensation

(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

(d) Director and staff of commission

(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—

(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.

(1)

to review—

(2)

to develop recommendations for—

(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) In general

Section 2008 of the Homeland Security Act of 2002 (6 U.S.C. 609) is amended—

(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)

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.

(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—

(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—

(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.

(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.