Helping Young Americans Save for Retirement Act
This bill lowers the age for participation in tax-exempt pension plans from 21 to 18.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9281 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9281
To amend the Employee Retirement Income Security Act of 1974 and the
Internal Revenue Code of 1986 with respect to minimum participation
standards for pension plans and qualified trusts.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 2, 2024
Ms. Pettersen (for herself and Mr. Walberg) introduced the following
bill; which was referred to the Committee on Ways and Means, and in
addition to the Committee on Education and the Workforce, 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 Employee Retirement Income Security Act of 1974 and the
Internal Revenue Code of 1986 with respect to minimum participation
standards for pension plans and qualified trusts.
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 ``Helping Young Americans Save for
Retirement Act''.
SEC. 2. ELIGIBILITY AT AGE 18 UNDER CERTAIN CONDITIONS.
(a) ERISA.--
(1) Age 18.--Subparagraphs (A) and (B) of section 202(c)(1)
of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1052(c)(1)) are amended to read as follows:
``(A) the period determined under subsection (a)(1)
determined--
``(i) without regard to subparagraph (B)(i)
thereof; and
``(ii) by substituting `18' for `21' in
subparagraph (A)(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 met the requirement of subsection
(a)(1)(A)(i) (without regard to subparagraph
(A)(ii) of this paragraph).''.
(2) Conforming amendments.--Section 202(c) of such Act (29
U.S.C. 1052(c)) is amended--
(A) in the subsection heading--
(i) by striking ``Special Rule'' and
inserting ``Special Rules''; and
(ii) by adding ``and Certain Younger
Employees'' after ``Employees''; and
(B) in paragraph (3)--
(i) by striking ``Paragraph (1)(B)'' and
inserting ``Paragraph (1)'', and
(ii) by striking ``section
401(k)(2)(D)(ii)'' and inserting ``section
401(k)(2)(D)''.
(3) Opinion of independent qualified public accountant.--
Section 104(a)(2) of such Act (29 U.S.C. 1024(a)(2)) is amended
by adding at the end the following:
``(C) For purposes of this paragraph and the last sentence of
section 103(a)(3)(A), with respect to a pension plan in which at least
one employee participates solely by reason of section 202(c)(1)(A), no
employee participating in such plan solely by reason of section
202(c)(1)(A) shall be treated as a participant until the date that is 5
years after the date on which the first such employee first becomes a
participant in such plan.''.
(b) Internal Revenue Code of 1986.--
(1) Age 18.--Clauses (i) and (ii) of section 401(k)(2)(D)
of the Internal Revenue Code of 1986 are amended to read as
follows:
``(i) the period permitted under section
410(a)(1), determined--
``(I) without regard to
subparagraph (B)(i) thereof, and
``(II) by substituting `18' for
`21' in subparagraph (A)(i) thereof, or
``(ii) subject to the provisions of
paragraph (15), the first of 2 consecutive 12-
month periods during each of which the employee
has at least 500 hours of service, provided
that the employee has satisfied the
requirements of section 410(a)(1)(A)(i)
(without regard to clause (i)(II) of this
subparagraph).''.
(2) Conforming amendments.--The Internal Revenue Code of
1986 is amended--
(A) in section 401(k)(15)--
(i) in the paragraph heading, by adding
``and certain younger workers'' after
``workers''; and
(ii) in subparagraph (B)--
(I) in clauses (i) and (ii), by
striking ``(2)(D)(ii)'' each place it
appears and inserting ``(2)(D)'';
(II) in clause (i), by striking
``202(c)(1)(B)'' and inserting
``202(c)(1)''; and
(III) in clause (iv), striking
``paragraph (2)(D)(ii)'' and inserting
``clauses (i)(II) and (ii) of paragraph
(2)(D)''; and
(B) in section 403(b)(12)--
(i) in subparagraph (A), by striking
``section 202(c)'' and inserting ``section
202(c)(1)(B)''; and
(ii) in subparagraph (D)--
(I) in the subparagraph heading, by
inserting ``and certain younger
employees'' after ``employees''; and
(II) in clause (i), by striking
``202(c)(1)(B)'' and adding
``202(c)(1)''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2025.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, 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 Ways and Means, and in addition to the Committee on Education and the Workforce, 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.
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