401(k) Automatic Enrollment Act of 2005 - Amends the Internal Revenue Code and the Employee Retirement Income Security Act (ERISA) to permit 401(k) pension plans to include an automatic enrollment arrangement.
Preempts State laws that would preclude automatic enrollments or automatic rollovers in tax-exempt pension plans.
Limits the duties and liabilities of fiduciaries with respect to automatic rollovers of 401(k) pension plan assets.
Requires notice applicable to alternative methods of meeting nondiscrimination requirements for matching contributions to 401(k) plans semiannually (currently, annually).
Directs the Secretaries of the Treasury and of Labor to report jointly to Congress on low-cost individual retirement plans.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1508 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1508
To amend the Internal Revenue Code of 1986 and the Employee Retirement
Income Security Act of 1974 to facilitate automatic enrollment in
401(k) plans, and for related purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 6, 2005
Mr. Emanuel (for himself, Mr. Cooper, Ms. Harman, Mr. Van Hollen, Ms.
Wasserman Schultz, and Mr. Becerra) introduced the following bill;
which was referred to the Committee on Education and the Workforce, and
in addition to the Committee on Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 and the Employee Retirement
Income Security Act of 1974 to facilitate automatic enrollment in
401(k) plans, and for related purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``401(k) Automatic Enrollment Act of
2005''.
SEC. 2. AUTOMATIC ENROLLMENT ARRANGEMENTS.
(a) In General.--Section 401(k) of such Code is amended by adding
at the end the following new paragraph:
``(13) Automatic enrollment arrangements.--
``(A) In general.--If the requirements of
subparagraphs (B) through (F) are met, a cash or
deferred arrangement shall not fail to be treated as
satisfying the requirements of paragraph (2)(A) merely
because elective deferrals (as defined in section
402(g)(3)) are contributed on behalf of eligible
employees to a trust under the plan of which such
arrangement is a part without an affirmative election
by the employee to make such contributions.
``(B) Election out.--The requirements of this
subparagraph are met if the employee may elect to
receive any future amount of the contributions
described in subparagraph (A) directly in cash in lieu
of such contributions.
``(C) Amount of contributions.--The requirements of
this subparagraph are met if the contributions
described in subparagraph (A) are made in an amount
equal to--
``(i) in the case of an employee with
respect to whom an election is in effect under
subparagraph (B), zero,
``(ii) in the case of an employee who makes
an affirmative election regarding the specific
amount of such contributions (expressed either
as a percentage or as a dollar amount of
compensation), such amount, and
``(iii) in the case of any other employee,
such percentage or dollar amount of
compensation as is specified under the plan for
purposes of this paragraph,
provided that is subparagraphs (A) and (B) apply to
fewer than all eligible employees, the automatic
enrollment arrangement shall be treated as applying to
such employees and to the employees who are described
in clauses (i) and (ii).
``(D) Investment of contributions.--The
requirements of this subparagraph are met if the
contributions described in subparagraph (A) are not
invested in qualifying employer securities (as defined
in section 4975(e)(8)) or qualifying employer real
property (as defined in section 407(d)(4) of the
Employee Retirement Income Security Act of 1974) unless
such investment is affirmatively elected by the
employee.
``(E) Time of contributions.--The requirements of
this subparagraph are met if the contributions
described in subparagraph (A) with respect to any
employee begin not later than the date described in
section 410(a)(4) with respect to such employee.
``(F) Notice.--The requirements of this
subparagraph are met if the employer provides notice,
as follows:
``(i) In general.--The administrator of a
plan which includes an automatic enrollment
arrangement (determined without regard to this
subparagraph) shall, within a reasonable period
before the first day of each plan year, give to
each employee to whom an automatic enrollment
arrangement applies for such plan year notice
of the employee's rights and obligations under
the arrangement which--
``(I) is sufficiently accurate and
comprehensive to apprise the employee
of such rights and obligations, and
``(II) is written in a manner
calculated to be understood by the
average employee to whom the
arrangement applies.
``(ii) Requirements.-- A notice shall not
be treated as meeting the requirements of
clause (i) with respect to an employee unless--
``(I) the notice includes an
explanation of the employee's right
under the arrangement to elect not to
have elective contributions made on the
employee's behalf (or to elect to have
such contributions made at a different
percentage or rate than that specified
as the automatic enrollment
contribution percentage), including how
and when such elections may be made,
``(II) the employee has a
reasonable period of time, after
receipt of the notice and before the
first elective contribution is made on
the employee's behalf pursuant to
automatic enrollment, to make such
election,
``(III) the notice describes any
employer matching contributions or
other employer contributions available
under the arrangement, and
``(IV) the notice explains how
contributions made under the
arrangement will be invested in the
absence of any investment election by
the employee.
``(G) Unwind distributions.--
``(i) In general.--An automatic enrollment
arrangement shall not fail to be treated as a
qualified cash or deferred arrangement merely
because the plan allows an employee to opt out
retroactively to the beginning of the plan year
and make an unwind distribution during such
plan year if such employee is not eligible to
make elective contributions to the plan during
the remainder of the plan year after the date
of such distribution. This clause shall not
apply more than once with respect to any
employee of an employer.
``(ii) Tax treatment of distribution.--An
unwind distribution shall be includible in the
gross income of the employee. No tax shall be
imposed under section 72(t) on any such
distribution.
``(iii) Unwind distribution defined.--For
purposes of this subparagraph, the term `unwind
distribution' means a distribution to a
participant who is not a highly compensated
employee (as defined in section 414(q)) of
contributions described in subparagraph (A)
(and earnings attributable thereto) from an
automatic enrollment arrangement in which the
account balance of the participant immediately
before such distribution does not exceed the
greater of--
``(I) $400, or
``(II) the amount of such
contributions made in connection with
not more than the first 4 payroll
periods following the application of
subparagraph (A) to the participant.
``(iv) Employer matching contributions.--In
the case of any unwind distribution, employer
matching contributions shall be forfeited or
subject to such other treatment as the
Secretary may prescribe through regulations or
other guidance.
``(v) Unwound contributions not taken into
account.--Contributions attributable to an
unwind distribution shall not be taken into
account for purposes of paragraph (3).
``(H) Automatic or affirmatively elected increase
in contribution amounts.--An automatic enrollment
arrangement shall not fail to be treated as a qualified
cash or deferred arrangement merely because the plan--
``(i) permits eligible employees to elect
to have the percentage or dollar amount
described in subparagraph (C)(iii)
automatically increased from time to time in
the future by a specified percentage or dollar
amount of compensation based on such factors as
increases in compensation, passage of time, or
increases in years of service or participation,
or
``(ii) provides for one or more of the
increases described in clause (i) to occur
automatically unless the eligible employee
elects otherwise,
provided that, in the case of either clause (i) or
(ii), the employee may elect to stop such increases
with respect to any future contributions.
``(I) Regulations and reporting.--The Secretary is
authorized to prescribe regulations or other
administrative guidance to carry out this paragraph,
including--
``(i) simplified methods of reporting and
otherwise implementing the unwind of tax
consequences and plan qualification
consequences in order to simplify those
consequences for participants and plan
sponsors, and
``(ii) simplified methods for plan
administrators to implement automatic
enrollment arrangements and any provisions
necessary to prevent abuse in connection with
such arrangements..
``(J) Automatic enrollment arrangement.--For
purposes of this paragraph, the term `automatic
enrollment arrangement' means an arrangement to which
subparagraph (A) applies.''.
(b) Safe Harbor Automatic Enrollment Arrangements Under Simple
Retirement Accounts.--
(1) Clause (i) of section 408(p)(2)(A) of such Code is
amended by adding at the end the following new flush language:
``but only if such arrangement is an automatic
enrollment arrangement (as defined in section
401(k)(13)) that meets the requirements of
subclauses (I), (IV), and (V) of section
401(k)(12)(G)(i) (applied in the case of such
subclause (V) by substituting ``3 percent'' for
``minimum contribution percentage'' therein),
''.
(2) Subsection (p) of section 408 of such Code (relating to
simple retirement accounts) is amended by adding at the end the
following new paragraph:
``(10) Safe harbor automatic enrollment arrangements.--
Under regulations prescribed by the Secretary, rules similar to
the rules of section 401(k)(13) shall apply for purposes of
this subsection, provided that the Secretary may adapt such
rules as he determines to be necessary or advisable to take
into account the differences between the provisions of section
401(k) and this subsection.''.
(c) Automatic Enrollment Arrangements Under 403(b) Plans.--
Subsection (b) of section 403 of such Code (relating to taxability of
beneficiary under annuity purchased by section 501(c)(3) organization
or public school) is amended by adding at the end the following new
paragraph:
``(14) Automatic enrollment arrangements.--Under
regulations prescribed by the Secretary, rules similar to the
rules of section 401(k)(13) shall apply for purposes of this
subsection, provided that the Secretary may adapt such rules as
he determines to be necessary or advisable to take into account
the differences between the provisions of section 401(k) and
this subsection.''.
(d) Automatic Enrollment Arrangements Under Section 457 Plans.--
Subsection (e) of section 457 of such Code is amended by adding at the
end the following new paragraph:
``(19) Automatic enrollment arrangements.--Under
regulations prescribed by the Secretary, rules similar to the
rules of section 401(k)(13) shall apply for purposes of this
section, provided that the Secretary may adapt such rules as he
determines to be necessary or advisable to take into account
the differences between the provisions of section 401(k) and
this section.''.
(e) 401(k) Plan Matching Safe Harbor With Automatic Enrollment.--
(1) In general.--Clause (i) of section 401(k)(12)(B) of
such Code is amended to read as follows:
``(i) In general.--The requirements of this
subparagraph are met if--
``(I) the arrangement is an
automatic enrollment arrangement (as
defined in paragraph (13)) which meets
the requirements of subparagraph (G),
and
``(II) under the arrangement, the
employer makes matching contributions
on behalf of each employee who is not a
highly compensated employee in an
amount equal to 50 percent of the
elective contributions of the employee
to the extent that such elective
contributions do not exceed 6 percent
of the employee's compensation.''.
(2) In general.--Paragraph (12) of section 401(k) of such
Code (relating to alternative methods of meeting
nondiscrimination requirements) is amended by adding at the end
the following new subparagraph:
``(G) Automatic enrollment.--
``(i) In general.--An automatic enrollment
arrangement meets the requirements of this
subparagraph if--
``(I) elective contributions are
made under the arrangement with respect
to each eligible employee (other than
employees with respect to whom an
election is in effect under paragraph
(13)(B)) for such year,
``(II) any election under
subparagraph (B) or (C)(ii) of
paragraph (13) remains in effect with
respect to any employee for a period of
3 years unless the plan provides for a
shorter period or unless the employee
makes a new election thereunder or has
elected an automatic increase in the
employee's contribution percentage,
``(III) 85 percent or more of
eligible employees participated in the
arrangement at any time during the
previous plan year (unless the employer
has reason to know that such time is
not representative of participation
during such year), and
``(IV) the plan specifies a
percentage for purposes of paragraph
(13)(C)(iii) which is equal to the
minimum contribution percentage, which
shall not apply to any employee
described in clause (i) or (ii) of
paragraph (13)(C), and which may be
further increased in accordance with
paragraph (13)(H)(i).
``(ii) Minimum contribution percentage.--
For purposes of this subparagraph, the term
`minimum contribution percentage' means, with
respect to the first plan year for which an
employee was eligible to participate, a
percentage of not less than 3 percent, and with
respect to any subsequent plan year, a
percentage equal to such percentage for the
first plan year increased by either 1 percent
or 2 percent for each subsequent plan year (as
the plan may provide), except as provided in
clauses (iii) and (iv).
``(iii) 9 percent limitation.--The minimum
contribution percentage shall not exceed 9
percent for any plan year.
``(iv) Limitation based on increase in
employee compensation.--With respect to any
plan year beginning after the first plan year
for which such employee was eligible to
participate in the plan, the minimum
contribution percentage with respect to such
employee shall not exceed the sum of the
minimum contribution percentage with respect to
such employee for the prior plan year, plus the
percentage increase in the employee's
compensation with respect to the current plan
year (as determined under the plan and
consistent with such requirements as the
Secretary may provide).
``(v) Regulations.--The Secretary may
provide for alternative or simplified methods
of compliance with any provision of this
subparagraph as the Secretary determines to be
necessary or advisable to simplify plan
administration or prevent abuse, including
simplified methods of administering automatic
enrollment and automatic contribution
percentage increases for employees who are not
newly eligible employees.''.
(f) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to plan
years beginning after December 31, 2005.
(2) Qualifying employer securities and real property.--In
the case of a plan that, as of January 1, 2005, uses an
automatic enrollment arrangement that does not comply with
subparagraph (D) of section 401(k)(13) of the Internal Revenue
Code of 1986, as amended by this section, such subparagraph
shall apply to plan years beginning after December 31, 2006.
(3) Alternative methods of meeting nondiscrimination
requirements.--In the case of a plan to which section
401(k)(12)(B) or section 408(p)(2) (other than subparagraph (B)
thereof) of the Internal Revenue Code of 1986 applies on
January 1, 2005, the amendments made by this section shall
apply to plan years beginning after December 31, 2007.
SEC. 3. PREEMPTION OF STATE LAWS PRECLUDING AUTOMATIC ENROLLMENT OR
AUTOMATIC ROLLOVERS.
(a) In General.--Section 514 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1144(b)) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following new
subsection:
``(d) The provisions of this title shall supersede any and all
State laws insofar as they may preclude, or have the effect of
precluding--
``(1) the establishment or operation of, or making of
contributions to, a pension plan under an automatic enrollment
arrangement (as defined in section 401(k)(13) of the Internal
Revenue Code of 1986), or
``(2) a distribution described in section 401(a)(31)(B) of
such Code or the establishment or operation of an individual
retirement plan (as defined in section 7701(a)(37) of the
Internal Revenue Code of 1986) allowing receipt of such
distributions.''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to actions (described in paragraph (1) or (2) of
section 514(d) of the Employee Retirement Income Security Act of 1974
(added by this section)) taken before, on, or after the date of the
enactment of this Act.
SEC. 4. LIMITATION OF FIDUCIARY RESPONSIBILITIES WITH RESPECT TO
AUTOMATIC ROLLOVER.
(a) In General.--Section 404(c)(3) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1104(c)(3)) is amended to read
as follows:
``(3) In the case of a pension plan which makes a transfer to an
individual retirement account or annuity (described in section 408 of
the Internal Revenue Code of 1986) of a designated trustee or issuer
under section 401(a)(31)(B) of such Code--
``(A) the duties described in subsections (a) and (b) shall
not apply to the assets in the account or annuity except for
the initial investment of such assets in the account or
annuity, and
``(B) a fiduciary of the plan shall have no responsibility
for any losses attributable to such initial investment (or any
other investment in the account or annuity) which occur after--
``(i) the earliest of--
``(I) an affirmative election by the owner
of the account or annuity among investment
options,
``(II) a rollover of all or a portion of
the amount to another individual retirement
account or annuity or to an employer plan or
simple retirement account; or
``(III) 1 year after the transfer is made,
or
``(ii) a transfer which is made in a manner
consistent with guidance provided by the Secretary.''
(b) Effective Date.--The amendment made by this section shall apply
with respect to transactions occurring on or after January 1, 2006.
SEC. 5. AUTOMATIC OR DEFAULT INVESTMENTS.
(a) In General.--Section 404 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1104) is amended by adding at the end
the following new subsection:
``(e)(1) A fiduciary with respect to an individual account plan
shall be deemed to have satisfied the requirements of subsection
(a)(1)(B) with respect to the plan, in connection with any qualifying
automatic investment under the plan, to the extent those requirements
pertain to asset allocation as between equity instruments or
investments and debt instruments or investments and to such further
extent as may be specified by the Secretary in administrative guidance
of general applicability.
``(2) For purposes of this subsection, the term `qualifying
automatic investment' means, in connection with a participant in a
plan, an investment of assets constituting some or all of the
participant's accrued benefit under the plan in a form of investment
specified by the plan, in any case in which--
``(A) such assets--
``(i) are attributable to employer contributions
(and earnings thereon) made pursuant to an automatic
enrollment arrangement (as defined in section
401(k)(13) of the Internal Revenue Code of 1986),
``(ii) are attributable to distributions described
in section 401(a)(31)(B) of such Code, or
``(iii) have been identified by the Secretary as
appropriate for automatic investment,
``(B) the plan provides for investment of such assets in
such form of investment unless, in lieu thereof, alternative
forms of investments, which are also made available to the
participant under the terms of the plan, are selected by the
participant,
``(C) the plan provides, under such form of investment, for
investment of such assets under constraints designed to--
``(i) limit the risk associated with the investment
portfolio to a reasonable level of risk while seeking
to maximize return consistent with that level of risk,
or
``(ii) minimize risk while seeking a reasonable
expected return, and
``(D) the expenses associated with the investment meet the
standards of paragraph (3).
``(3)(A) The expenses associated with an investment meet the
standards of this paragraph if they do not exceed reasonable expenses.
Such expenses shall not be treated as exceeding reasonable expenses
solely because the expenses in any year (excluding expenses for
acquisition of the investment) exceed the investment returns for that
year and cause a reduction in principal.
``(B) For purposes of subparagraph (A), the term `expense' means
any fee, charge, commission, load, or other cost or expense associated
with the investment (including cost of acquisition, establishment,
maintenance, surrender, or termination of the investment and any other
cost of managing or administering the investment) to the extent borne
by participants.
``(C) The expenses associated with an individual retirement plan
(as defined in section 7701(a)(37) of the Internal Revenue Code of
1986) shall not be treated as meeting the standards of this paragraph
if such expenses exceed the expenses normally charged by the trustee or
custodian of a comparable individual retirement plan established to
receive rollover contributions (as defined in section 408(d)(3) of such
Code) which are not distributions described in section 401(a)(31)(B) of
such Code.
``(4) The requirements of paragraph (2)(C) shall be treated as
satisfied with respect to investments provided for by a plan to the
extent such investments consist of--
``(A) a balanced portfolio comprised of both equity
investments and either stable value or fixed income investments
provided by a financial institution (or similar financial
entity) that is regulated by the United States or a State in
any case in which--
``(i) the equity investments are broad-based index
funds or, to the extent permitted by the Secretary
under regulations, guidelines, or other administrative
guidance, actively managed funds that are broadly
diversified so as to minimize the risk of large losses,
and
``(ii) the stable value or fixed income
investments--
``(I) are designed to comprise at least 20
percent of the total (measured in terms of fair
market value), and
``(II) are either diversified to minimize
the risk of large losses or are obligations
(which may include inflation-protected
obligations) issued by the United States, or
``(B) stable value investments.
For purposes of this paragraph, the term `stable value investments'
means investments provided by a financial institution regulated by the
United States or a State that are designed to preserve principal and
provide a reasonable rate of return, whether or not guaranteed, which
may include investments designed to maintain a stable dollar value
equal to the original value of the investment. The Secretary may
prescribe regulations or other administrative guidance prescribing the
manner in which the requirements of paragraph (A)(i) may be applied
taking into account classes of investment determined on the basis of
investment in large, intermediate, or small capitalization funds, funds
of varying styles (such as growth funds or value funds), or funds
consisting of, or not consisting of, foreign or international
securities.
``(5) An investment otherwise described in the preceding provisions
of this subsection shall not be treated as failing to be a qualifying
automatic investment solely by reason of:
``(A) the availability to the participant under the terms
of the plan of alternative forms of investment which meet the
requirements of subsection (c)(1) or are managed by an
independent investment manager;
``(B) the extent to which provisions of the plan are or are
not directed toward limiting the risk of loss of principal
under such investment or promoting long-term capital
appreciation;
``(C) any change or variation in the percentages of equity
and stable value investments included in the investment
portfolio or other aspects of the constituent investments to
the extent such change or variation is based on:
``(i) automatic rebalancing or variable investment
returns prior to periodic rebalancing,
``(ii) the participant's age, or
``(iii) other factors relating to the participant's
situation, such as years until retirement, other
retirement plan coverage, financial situation, or
investment preferences expressed to the plan by the
participant; or
``(D) the extent to which such investment consists of
interests in real estate or real-estate-based investments, if
such interests are broadly diversified and do not comprise more
than 10 percent of the equity portion of the total investment
of plan assets.
``(6)(A) Notwithstanding paragraph (1), the requirements of
subsection (a)(1)(C) shall not be treated as satisfied in connection
with any qualifying automatic investment unless such investment (other
than the stable value portion thereof) is designed so that no more than
0.5 percent of the total fair market value of the assets invested are
invested in securities issued by, or interests in the property of, any
single person.
``(B) For purposes of subparagraph (A), any person and all
affiliates thereof shall be treated as a single person. A corporation
is an affiliate of a person if such corporation is a member of any
controlled group of corporations (as defined in section 1563(a) of the
Internal Revenue Code of 1986, except that `applicable percentage'
shall be substituted for `80 percent' wherever the latter percentage
appears in such section) of which person is a member. For purposes of
the preceding sentence, the term `applicable percentage' means 50
percent, or such lower percentage as the Secretary may prescribe by
regulation. A person other than a corporation shall be treated as an
affiliate of any other person to the extent provided in regulations of
the Secretary. Regulations under this subparagraph shall be prescribed
only after consultation and coordination with the Secretary of the
Treasury.
``(7) The Secretary shall issue regulations or other administrative
guidance specifying the manner in which investments under independent
professional investment management pursuant to sections 402(c)(3) and
403(a)(2) and other qualifying automatic investments may serve as the
default investment arrangement with respect to some or all plan assets
without adversely affecting plan compliance with this part, as governed
by subsection (c)(1) with respect to assets over which participants or
beneficiaries exercise control.
``(8)(A) The Secretary may issue regulations or other
administrative guidance for compliance with the requirements of this
subsection which are consistent with the provisions of this subsection.
Compliance with such regulations or guidance shall be deemed to be
compliance with the requirements of this subsection. Such regulations
or guidance may express compliance in terms of percentages of assets
under management, flat dollar amounts, or other factors.
``(B) The regulations issued pursuant to subparagraph (A) may
include procedures for granting conditional or unconditional exemptions
of investments, classes of investments, investment managers, or classes
of investment managers from all or part of the requirements of this
subsection. Such procedures shall be similar to the procedures
applicable under section 408(a) and subject to the same standards and
limitations as apply under section 408(a). Such exemptions may include,
in the case of qualifying automatic investments, relief from, or
simplified methods of compliance with, the requirements of
subparagraphs (B) and (C) of subsection (a)(1) and the provisions of
subsection (c).''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to investments made on or after January 1, 2005
(irrespective of the extent to which the Secretary of Labor has issued
regulations, guidelines, or other administrative guidance pursuant to
section 404(e) of the Employee Retirement Income Security Act of 1974
(added by this section)).
SEC. 6. MODIFICATION OF NOTICE REQUIREMENTS APPLICABLE TO ALTERNATIVE
METHODS OF MEETING NONDISCRIMINATION REQUIREMENTS FOR
MATCHING CONTRIBUTIONS.
(a) Semi-Annual Notice Requirement.--Subparagraph (D) of section
401(k)(12) of the Internal Revenue Code of 1986 (relating to notice
requirement) is amended by striking ``year,'' and inserting ``year and
during the 6th or 7th month of such year,''.
(b) Notice not Required for Nonelective Contributions.--Clause (ii)
of section 401(k)(12)(A) of such Code (relating to general rule for
alternative methods of meeting nondiscrimination requirements) is
amended by inserting ``in the case of matching contributions described
in subparagraph (B),'' before ``meets''.
(c) Technical Correction.--Section 401(k)(12)(D) of such Code is
amended by striking ``appraise'' and inserting ``apprise''.
(d) Effective Date.--
(1) Notice.--The amendments made by subsection (a) shall
apply to plan years beginning after December 31, 2006.
(2) Nonelective contributions.--The amendments made by
subsection (b) shall apply to plan years beginning after
December 31, 2005.
SEC. 7. REPORT ON LOW-COST INDIVIDUAL RETIREMENT PLANS.
After public comment and appropriate consultation with private
sector representatives, the Secretary of the Treasury and the Secretary
of Labor shall, not later than December 31, 2005, jointly submit to
Congress a report containing their findings and recommendations
regarding the availability of, and means of promoting and encouraging
the provision of, low-cost individual retirement plans (as defined in
section 7701(a)(37) of the Internal Revenue Code of 1986), or similar
retirement savings and investment vehicles, which are suitable for the
preservation and maintenance of smaller retirement benefits or accounts
on a widespread and portable basis and for large numbers of moderate-
and lower-income individuals.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Employer-Employee Relations.
Sponsor introductory remarks on measure. (CR H6179-6180)
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