summary
Introduced
02/04/2019
02/04/2019
In Committee
02/04/2019
02/04/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
A bill to amend the Internal Revenue Code of 1986 to modify safe harbor requirements applicable to automatic contribution arrangements, and for other purposes. This bill modifies various requirements and tax credits for employer-provided retirement plans. The bill modifies the qualification requirements for certain multiple employer plans with pooled providers. The bill applies to defined contribution plans that (1) are maintained by employers that have a common interest other than having adopted the plan, or (2) have a pooled plan provider. Such a plan that meets specified requirements may not be disqualified or otherwise lose its tax-favored status because a participating employer fails to take actions required with respect to the plan. The bill also (1) permits pooled employer plans that meet certain requirements to be treated under the Employee Retirement Income Security Act of 1974 (ERISA) as a single employee pension benefit plan or single pension plan that is a multiple employer plan, and (2) modifies reporting requirements for pooled employer and multiple employer plans. With respect to 401(k) retirement plans, the bill (1) modifies requirements related to default rates for elective deferrals under automatic enrollment plans, the election of safe harbor 401(k) status, and nondiscrimination rules; (2) allows a business-related safe harbor adoption tax credit for small employers, and (3) requires the Department of the Treasury to simplify regulations regarding the timing of participant notices. The bill also (1) increases the limit on the amount of the tax credit for small employer pension plan startup costs, and (2) allows a business-related tax credit for small employers who include and maintain an automatic contribution arrangement in an employer-sponsored retirement plan.
AI Summary
This bill modifies various requirements and tax credits for employer-provided retirement plans. The key provisions of the bill are:
1. It allows pooled multiple employer plans that meet certain requirements to be treated as a single employee pension benefit plan or single pension plan under the Employee Retirement Income Security Act (ERISA), and designates a "pooled plan provider" to be responsible for administering the plan and ensuring it meets legal requirements.
2. It increases the limit on the amount of the tax credit for small employer pension plan startup costs and creates a new tax credit for small employers that include an automatic enrollment feature in their retirement plans.
3. It modifies requirements related to default rates for elective deferrals under automatic enrollment plans, the election of safe harbor 401(k) status, and nondiscrimination rules.
4. It requires the Department of the Treasury to simplify regulations regarding the timing of participant notices and the automatic escalation rules for employers with multiple payroll and administrative systems.
The overall purpose of the bill is to make it easier for small businesses to offer retirement plans to their employees by reducing administrative burdens and providing tax incentives.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S834-835) (on 02/04/2019)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/senate-bill/321/all-info |
| BillText | https://www.congress.gov/116/bills/s321/BILLS-116s321is.pdf |
| Bill | https://www.congress.gov/116/bills/s321/BILLS-116s321is.pdf.pdf |
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