H.R. 185 — Responsible Legislating Act

This section extends the Livestock Mandatory Reporting program through 2025 (from 2024). The program requires livestock packers and other market participants to report to USDA on pricing, contracting for purchase, and supply and demand conditions for cattle, swine, lambs, and related products to improve price reporting and competition in livestock markets.

This section expands pre-separation employment counseling for members of the armed forces to explicitly include apprenticeship programs registered under the National Apprenticeship Act and approved under chapters 30 through 36 of title 38 (i.e., VA education benefits programs such as the GI Bill).

This section directs the Assistant Secretary of Labor for Veterans’ Employment and Training, in coordination with the Secretary of Veterans Affairs, to establish or update a public website with searchable and sortable information—by occupation and location—on apprenticeship programs registered under the National Apprenticeship Act and approved for VA education benefits under 38 U.S.C. chapters 30-36. For each program, the website must include (1) a description with any costs to veterans, (2) contact information, (3) endorsements by veterans service organizations or veteran-focused nonprofits, (4) veteran hiring preferences, and (5) certifications or degrees earned upon completion. This section further requires the Assistant Secretary to update apprenticeship.gov (or successor website) with the same information for veterans' programs.

This section expresses the sense of Congress that (1) federal agencies should retain the specialized knowledge and experience of individuals injured or ill while serving in a covered position; and (2) such agencies should, to the greatest extent possible, reappoint those individuals unable to continue in a covered position to a civil service position in the same agency, geographic location, and at a pay level commensurate with their prior position.

This section amends retirement eligibility provisions under the Civil Service Retirement System (CSRS, 5 U.S.C. 8336(c)) and Federal Employees Retirement System (FERS, 5 U.S.C. 8412(d)) for "affected individuals" injured on duty in a covered position (i.e., law enforcement officer, Customs and Border Protection officer, firefighter, air traffic controller, nuclear materials courier, Capitol Police, or Supreme Court Police) who, due to the injury, are permanently unable to perform useful service in that position (as determined by their agency) and are reassigned without a break in service exceeding three days to a non-covered civil service position within an agency that regularly fills supervisory or administrative roles related to the former position. (Covered positions qualify for enhanced retirement benefits, including earlier annuity eligibility—such as age 50 with 20 years of service or 25 years any age—and higher employee contribution rates of 1.7%-7.5% depending on position and system.) Unless the individual elects otherwise per Office of Personnel Management procedures, service in the new position counts as covered-position service for annuity computation and contribution withholding rates under CSRS (5 U.S.C. 8334) or FERS (5 U.S.C. 8422), ending upon transfer to a supervisory or administrative role or attainment of mandatory separation age and service requirements applicable to the former covered position. (Thus, this preserves enhanced retirement benefits for employees disabled from frontline duties but able to perform related administrative work.) The section makes conforming amendments to FERS provisions, including redesignating paragraphs in 5 U.S.C. 8412(d), 8414(b)(3), and 8415.

This section establishes automatic enrollment requirements for qualified cash or deferred arrangements under section 401(k) (i.e., employer-sponsored retirement plans allowing employee pre-tax or Roth deferrals) and salary reduction agreements for section 403(b) annuity contracts (i.e., retirement plans for employees of nonprofits, schools, and certain tax-exempt organizations), effective for plan years beginning after December 31, 2025. The requirements apply to eligible automatic contribution arrangements and include (1) allowing permissible withdrawals, (2) an initial uniform contribution percentage of 3-10% of compensation (unless elected otherwise), increasing by 1 percentage point each subsequent plan year to at least 10% but not more than 15%, and (3) default investment of unelected contributions in qualified default investment alternatives under DOL regulations (29 C.F.R. § 2550.404c-5). The requirements do not apply to SIMPLE plans; plans or annuity contracts established before enactment (except for post-enactment adoption of multiple employer plans); governmental or church plans; plans of employers in existence less than 3 years; or plans of employers with 10 or fewer employees in their first taxable year (until 1 year after that year ends). For multiple employer plans, exceptions apply separately per employer.

This section modifies the tax credit for small employer pension plan startup costs under IRC §45E (i.e., up to 50% of qualified startup costs, not to exceed $500 per employee, for eligible employers—generally those averaging no more than 100 employees eligible to participate—establishing certain retirement plans such as SIMPLE IRAs or safe harbor 401(k)s) as follows: (1) increases the credit percentage to 100% (from 50%) for employers that qualify as eligible with a 50-employee limit (instead of 100); (2) establishes an additional credit increase equal to the applicable percentage of qualified employer contributions (excluding elective deferrals) to an eligible employer plan (other than a defined benefit plan), up to $1,000 per employee—phased down for employers averaging more than 50 employees in the prior year (by 2 percentage points per employee over 50), with the applicable percentage at 100% for the establishment year and the first year thereafter, 75% for the second, 50% for the third, 25% for the fourth, and 0% thereafter; and (3) expands the deduction disallowance to cover both startup costs offset by the basic credit and employer contributions offset by the additional credit. The changes apply to taxable years beginning after December 31, 2024.

This section directs the Secretary of the Treasury to increase public awareness of the Saver's Credit under section 25B of the Internal Revenue Code (i.e., a nonrefundable tax credit of up to $1,000, or $2,000 for joint filers, for low- and moderate-income taxpayers' contributions to retirement plans such as IRAs and 401(k)s). It requires the Secretary to submit a report to Congress within 90 days of enactment summarizing anticipated promotion efforts, including plans for developing and distributing digital and print materials to states for participants in state-facilitated retirement savings programs and translating such materials into the 10 most commonly spoken non-English languages in the United States (as determined by the most recent American Community Survey).

This section modifies the Saver’s Credit—providing a nonrefundable tax credit equal to a percentage of qualified retirement savings contributions (up to $2,000 for individuals or $4,000 for joint filers)—for taxable years beginning after December 31, 2028, by (1) setting the credit rate at 50% (from tiered applicable percentages of 50%, 20%, or 10% based on adjusted gross income (AGI)), and (2) revising the AGI phaseout range to begin at a threshold amount of $48,000 for joint returns or surviving spouses ($36,000 for heads of household, and $24,000 for others), phasing out to zero over a $35,000 range ($26,250 for heads of household, and $17,500 for others). (Thus, for joint filers, the full credit is available up to $48,000 AGI and reduced to zero at $83,000 AGI.) The $48,000 and $35,000 base amounts are subject to cost-of-living adjustments for taxable years beginning after 2028, using calendar year 2024 as the base year and rounding to the nearest $500.

This section expands permissible investments for custodial accounts in 403(b) plans (i.e., tax-sheltered retirement plans for employees of public schools, tax-exempt organizations, and churches) to include group trusts intended to satisfy IRS Rev. Rul. 81-100 (or successor guidance), in addition to regulated investment company stock (previously, only regulated investment company stock was permitted). The change applies to amounts invested after December 31, 2024, and includes a conforming amendment to the paragraph heading.

This section increases the required beginning date for required minimum distributions (RMDs) from qualified retirement plans and IRAs to an "applicable age" of 73, 74, or 75 (from age 72), depending on when an individual attains those ages. Specifically, the applicable age is (1) 73 for individuals who attain age 72 after December 31, 2024, and age 73 before January 1, 2032; (2) 74 for individuals who attain age 73 after December 31, 2031, and age 74 before January 1, 2035; and (3) 75 for individuals who attain age 74 after December 31, 2034. (RMDs are mandatory annual withdrawals from tax-deferred retirement accounts, including 401(k)s and IRAs, intended to ensure the eventual taxation of account earnings.) The changes apply to distributions required after December 31, 2024, for individuals who attain age 72 after that date, with conforming amendments for spouse beneficiaries, plan owners, and IRAs.

This section indexes the $1,000 catch-up contribution limit for individual retirement accounts (IRAs)—available to taxpayers age 50 or older—for inflation beginning with taxable years after December 31, 2025. The annual adjustment equals the limitation amount multiplied by the cost-of-living adjustment under IRC §1(f)(3), using calendar year 2024 as the base year (instead of 2016), with the result rounded down to the nearest $100.

This section increases the catch-up contribution limit to $10,000 for participants age 50 and older in qualified employer-sponsored retirement plans (other than SIMPLE plans) who attain age 62, 63, or 64 during the taxable year, and to $5,000 for SIMPLE plans (from the standard indexed limits of $7,500 and $3,500, respectively, for 2024), for taxable years beginning after December 31, 2025. (Catch-up contributions allow individuals age 50 and older to contribute additional amounts, beyond the regular annual limits, to plans such as 401(k)s and 403(b)s.) It further requires annual cost-of-living adjustments to the $10,000 and $5,000 amounts for years after 2023, using calendar quarter data beginning July 1, 2022.

This section revises a plan document requirement for pooled employer plans—defined in ERISA section 3(43) as certain multiple employer retirement plans enabling unrelated employers to participate jointly—by requiring designation of a named fiduciary (other than a participating employer) responsible for collecting contributions to the plan and requiring such fiduciary to implement written contribution collection procedures that are reasonable, diligent, and systematic (previously, only designation of such a fiduciary was required). The amendment applies to plan years beginning after December 31, 2024.

This section establishes multiple employer plans (MEPs) under section 403(b) of the Internal Revenue Code for annuity contracts purchased for employees of tax-exempt organizations (other than church plans), provided the plans satisfy rules similar to those under section 413(e) for handling noncompliant employers (with additional requirements under section 413(e)(1) for nongovernmental plans, except those maintained solely by governmental entities). (As background, section 403(b) plans are tax-favored retirement savings arrangements available to employees of public schools, 501(c)(3) nonprofits, and certain other tax-exempt employers.) It further (1) treats such 403(b) MEPs as single plans for annual registration (under section 6057) and information return (under section 6058) purposes; (2) amends the Employee Retirement Income Security Act of 1974 (ERISA) to include qualifying 403(b) MEPs within the definitions of multiple employer welfare arrangements and multiple employer pension plans, generally subjecting them to ERISA; (3) directs the Secretary of the Treasury to issue regulations clarifying treatment of departing employers that fail MEP requirements, modify and publish model plan language notifying 501(c)(3) employers of their ERISA fiduciary duties as plan sponsors, and conduct educational outreach to such employers; and (4) specifies that the amendments create no inference regarding church plan MEPs.

This section permits employers to make matching contributions to defined contribution plans (i.e., 401(k) plans) and SIMPLE IRAs on behalf of employees who make qualified student loan payments, treating such payments as elective deferrals for matching purposes subject to the same matching rates, eligibility, vesting, and nondiscrimination rules as salary deferrals. A qualified student loan payment is an employee's repayment of a qualified education loan (as defined in IRC §221(d)(1)) for qualified higher education expenses (i.e., cost of attendance at an eligible institution), limited to the IRC §402(g) elective deferral limit (or lesser employee compensation) minus actual deferrals and certified by the employee; employers may rely on such certification. (Thus, student loan repayments—currently ineligible to trigger matches—enable retirement savings for indebted employees without reducing take-home pay, while plans may test actual deferral percentages separately for these matching recipients.)

This section extends the small employer pension plan startup cost tax credit to employers joining an existing plan by amending IRC Section 45E(d)(3)(A) to read "effective with respect to the eligible employer" (from "effective").

This section establishes a new general business credit under new IRC §45U for eligible small employers (i.e., those qualifying under IRC §408(p)(2)(C)(i)(I) for SIMPLE IRA purposes, generally with 100 or fewer employees) equal to the sum of $250 per qualifying military spouse employee eligible to participate in an eligible defined contribution plan, plus employer contributions to such plans for that employee not exceeding $250, for the taxable year of initial plan participation and the next two taxable years. (A military spouse is an employee married to a uniformed services member who is not highly compensated; an eligible defined contribution plan permits such spouses to join within two months of hire, with immediate employer contributions at least equal to those for similarly situated non-spouses after two years of service and immediate vesting of employer contributions.) It makes conforming amendments to the general business credit listing under IRC §38(b), certified professional employer organization provisions under IRC §3511(d)(2), and the table of sections for IRC subpart D, with the changes applying to taxable years beginning after enactment.

This section permits de minimis financial incentives (i.e., small immediate rewards such as gift cards) to encourage employees to contribute to 401(k) or 403(b) plans—previously restricted under nondiscrimination and prohibited transaction rules—by (1) excluding such incentives from nondiscrimination requirements under IRC §401(k)(4)(A) and §403(b)(12)(A), (2) exempting them from prohibited transactions under new IRC §4975(d)(24), and (3) exempting them under new ERISA §408(b)(21) (29 U.S.C. 1108(b)(21)). The amendments apply to plan years beginning after the date of enactment. (Thus, employers may offer low-value signup bonuses without violating rules against favoring highly compensated employees or self-dealing by parties in interest.)

This section establishes a safe harbor under which qualified retirement plans (i.e., those described in IRC §§401(a), 403(b), 408, or 457(b)) do not fail plan qualification due to a reasonable administrative error in implementing an automatic enrollment or automatic escalation feature of an eligible automatic contribution arrangement (as defined in IRC §414(w)(3)), if the error is corrected within 9½ months after the end of the plan year during which it occurred, in a manner favorable to the participant and nondiscriminatorily for all similarly situated participants. The Secretary of the Treasury must issue regulations or guidance specifying favorable correction methods. Applies to errors for which the correction deadline is after enactment.

This section reduces the service requirement for part-time employee eligibility in qualified cash or deferred arrangements (i.e., 401(k) plans, as defined in IRC §401(k)) and salary reduction agreements (i.e., 403(b) plans) from 3 consecutive 12-month periods of at least 500 hours of service (under IRC §401(k)(2)(D)(ii) and §401(k)(15)) to the earlier of the plan's general eligibility period or 2 such consecutive periods (and attainment of age 21), with parallel amendments to ERISA §§202 and 203 (29 USC §§1052, 1053) governing minimum participation and vesting standards, applicable to plan years beginning after December 31, 2024 (except for a conforming amendment to SECURE Act §112(b), effective retroactively). It further (1) permits employers to exclude such part-time employees from specified nondiscrimination testing (IRC §§401(a)(4), (k)(3), (k)(12), (k)(13), (m)(2), 410(b)), top-heavy vesting and benefit rules (IRC §416(b), (c)), and certain coverage rules while preserving universal availability requirements (IRC §401(k)(15)(B)(i)(I)); (2) treats each 12-month period of at least 500 hours as a year of service for vesting such employees (with 500 hours, rather than more than 500, counting toward the 3-year cliff or 6-year graded vesting schedule under ERISA §203(b)(3)); and (3) disregards pre-2023 service periods in all computations. (Thus, the changes expand access to tax-favored retirement savings for long-term part-time workers while providing employer flexibility to limit plan testing burdens.)

This section expands the tax deferral for sales of qualified employer securities to an employee stock ownership plan (ESOP) under IRC §1042—which allows nonrecognition of gain if sale proceeds are reinvested in qualified replacement property—to include stock of domestic S corporations (previously limited to domestic C corporations) and limits the deferral election for S corporation stock to 10% of the amount realized on the sale (with corresponding basis allocation). The changes apply to sales after December 31, 2029.

This section adds a new subparagraph (I) to IRC §401(a)(35) to treat employer securities held in an applicable defined contribution plan that is an employee stock ownership plan (ESOP) as publicly traded employer securities under subparagraph (G)(v)—which exempts such securities from certain participant diversification rights—if the following criteria are met: (1) the security has priced quotations from at least four dealers continuously available on an interdealer quotation system that has requested alternative trading system status under Securities Exchange Act §13; (2) it is not a penny stock; (3) it is issued by a corporation that is not a shell company, blank check company, or subject to bankruptcy proceedings; (4) it has a public float with a fair market value of at least $1 million that constitutes at least 10% of total shares issued and outstanding; (5) for domestic corporations, the issuer publishes annual financial statements audited by a PCAOB-registered independent auditor; and (6) for foreign corporations, the security is a depositary share, or issued by a Canadian corporation readily tradable on a Canadian market, and the issuer complies with (or is exempt from) SEC reporting requirements under Exchange Act §§13 or 15(d), Regulation S-K §257, or Rule 12g3-2(b). The amendments apply to plan years beginning after December 31, 2029.

This section amends the required minimum distribution (RMD) requirements under IRC §401(a)(9) to permit specified increases in payments under a commercial annuity issued in connection with an eligible retirement plan (other than a defined benefit plan). (RMDs require annual distributions from qualified retirement plans and IRAs beginning at age 73 to ensure timely taxation of deferred amounts.) Permitted payments on or after the annuity starting date include (1) annuity payments increasing by a constant percentage of less than 5% per year (applied not less frequently than annually), (2) lump sums that shorten the payment period using reasonable actuarial assumptions or accelerate payments scheduled within the next 12 months, (3) dividends or similar distributions based on the issuer's experience relative to initial actuarial assumptions, and (4) a final death benefit not exceeding premiums paid less prior distributions. The provision applies to calendar years ending after enactment.

This section directs the Secretary of the Treasury to amend 2014 regulations on qualifying longevity annuity contracts (QLACs)—annuities purchased within individual retirement accounts or qualified retirement plans that may be excluded from required minimum distribution calculations—as follows: (1) eliminates the requirement that QLAC premiums be limited to 25% of an individual's account balance (previously capped at the lesser of $125,000 or 25%), effective for contracts purchased or received in an exchange on or after the date of enactment; (2) provides that a divorce after QLAC purchase but before annuity payments commence does not affect the permissibility of joint and survivor benefits or require benefit adjustments if a qualified domestic relations order or divorce or separation instrument meets specified conditions preserving the former spouse's survivor rights (e.g., no modification of beneficiary status or measuring life), effective for contracts purchased or received in an exchange on or after July 2, 2016; and (3) permits a rescission (free look) period of up to 90 days from purchase, effective for contracts purchased or received in an exchange on or after July 2, 2016. Prior to final regulations, the Secretary must administer and enforce these changes accordingly, and taxpayers may rely on reasonable good faith interpretations.

This section directs the Secretary of the Treasury, not later than seven years after enactment, to amend Treasury regulations—including Treas. Reg. §1.817-5(f)(3) on diversification requirements for variable annuity, endowment, and life insurance contracts—to facilitate the use of exchange-traded funds (ETFs) as investment options in segregated asset accounts under IRC §817(h). (As background, such contracts receive favorable tax treatment if the assets are adequately diversified and policyholders lack investor control, per Treas. Reg. §1.817-5.) Specifically, the amendments (1) exclude beneficial interests in an ETF held by authorized participants or market makers from counting against diversification requirements at Treas. Reg. §1.817-5(f)(2)(i), and (2) define relevant terms including ETF (a registered open-end investment company or unit investment trust with shares purchased/redeemed only by authorized participants and traded on a national exchange), authorized participant (a financial institution contractually limited to creating/redeeming shares for third parties), and market maker (a registered broker-dealer maintaining exchange liquidity under similar restrictions). The amendments apply to segregated asset account investments made on or after that date.

This section adds a new subsection (h) to ERISA Section 206 (29 U.S.C. 1056) establishing special rules for inadvertent benefit overpayments by pension plans. Under the general rule, a responsible plan fiduciary does not violate ERISA merely by exercising discretion not to recover all or part of such an overpayment from (1) participants or beneficiaries; (2) plan sponsors or contributing employers to individual account plans (if any impermissible forfeiture is corrected separately) or defined benefit plans (unless recovery delay would materially impair funding for other benefits); or (3) non-culpable plan fiduciaries, if prudent procedures were followed. Recovery efforts may include reducing future benefits to the correct amount or seeking reimbursement from responsible parties without violating the rule, and employer minimum funding obligations remain unchanged. If recoupment is pursued from participants or beneficiaries, it is subject to conditions including (1) no interest or fees; (2) for non-decreasing periodic benefits, annual recoupment not exceeding 10% of the overpayment, ceasing after full recovery, and not reducing payments below 90% of the correct amount (or equivalent installment limits); (3) no litigation threats unless likely to prevail and no use of collection agencies except post-judgment; (4) no pursuit from participant beneficiaries; (5) a 3-year limit from first overpayment notice; (6) rights to contest via plan claims procedures; and (7) consideration of hardship; these protections do not apply to culpable recipients (i.e., those responsible for or aware of the overpayment). (Thus, the provision grants fiduciaries flexibility to forgo or limit overpayment recovery, protecting retirees from excessive repayment burdens while preserving plan solvency.)

This section (1) reduces the excise tax on excess accumulations in qualified retirement plans and IRAs due to failure to take required minimum distributions to 25% of the excess amount (from 50%), and (2) for shortfalls from an individual retirement plan (i.e., IRA), further reduces the tax to 10% if the taxpayer corrects the distribution shortfall and submits a return reflecting the reduced tax during the correction window—beginning on the date the tax is imposed and ending on the earlier of the date the Secretary of the Treasury initiates an audit or demands payment with respect to the shortfall, or the last day of the second taxable year after the taxable year of imposition. The changes apply to taxable years beginning after December 31, 2024.

This section directs the Secretary of Labor, not later than one year after enactment, to permit—but not require—plan administrators to use a blended benchmark of broad-based securities market indices for designated investment alternatives containing a mix of asset classes (i.e., asset allocation funds such as target-date funds in participant-directed retirement plans), provided the blend (1) is reasonably representative of the fund's asset class holdings, (2) is updated at least annually to reflect changes for calculating 1-, 5-, and 10-year returns (or the fund's life, if shorter), (3) is presented understandably to participants and beneficiaries, and (4) uses indices that each satisfy regulatory requirements for their asset class. Not later than three years after enactment, the Secretary must report to the Senate Committees on Finance and Health, Education, Labor, and Pensions and the House Committees on Ways and Means and Education and Labor on the utilization, effectiveness, and participant understanding of these benchmarking provisions.

This section directs the Secretary of Labor, the Secretary of the Treasury, and the Director of the Pension Benefit Guaranty Corporation to review, as soon as practicable after enactment, the reporting and disclosure requirements under the Employee Retirement Income Security Act of 1974 applicable to pension plans (i.e., plans providing retirement income or deferring income to termination of employment or beyond, as defined in 29 U.S.C. 1002(2)) and under the Internal Revenue Code of 1986 applicable to qualified retirement plans (as defined in IRC §4974(c), disregarding paragraphs (4) and (5)). Not later than two years after enactment, the agencies must jointly submit a report to the House Committees on Education and Labor and Ways and Means and the Senate Committees on Health, Education, Labor, and Pensions and Finance—after consulting a balanced group of participant and employer representatives—assessing the effectiveness of those requirements based on plan data (including participant provision of preferred contact information, disclosure furnishing methods, and rates of participant receipt, access, understanding, and retention of disclosures by key demographics) and recommending ways to consolidate, simplify, standardize, and improve them to reduce plan reporting burdens and enhance participant access to understandable information for monitoring plans and retirement planning. The agencies must conduct necessary surveys and data collection.

This section establishes, for plan years beginning after December 31, 2024, an exemption from most disclosure, notice, and document requirements under ERISA and the Internal Revenue Code for unenrolled participants in individual account plans (e.g., 401(k) plans) and defined contribution plans, respectively. An unenrolled participant is an eligible employee who has received the initial summary plan description and eligibility notices, is not participating, has no account balance in the plan, and meets criteria prescribed by the Secretaries of Labor and Treasury (with subsequent eligibility periods treated as initial eligibility). Plans must continue furnishing to such participants (1) an annual reminder notice—provided during the open enrollment period or reasonably before each plan year—describing eligibility, election deadlines, and key benefits (emphasizing employer contributions and vesting); and (2) any requested documents to which the participant is otherwise entitled.

This section establishes a "Retirement Savings Lost and Found" online searchable database within the Department of Labor (DOL), to be created not later than two years after enactment in consultation with Treasury, to enable individuals to locate administrators (and contact information) of ERISA-covered pension plans (i.e., those subject to ERISA section 203 vesting standards) where they are or were participants or beneficiaries in order to recover owed benefits. (DOL may assist individuals, update administrator information for events such as plan mergers or terminations, access relevant data from other federal agencies, and safeguard privacy and security.) Effective for plan years beginning after the second December 31 following enactment, plan administrators must submit to DOL specified participant information required under IRC section 6057 (i.e., deferred vested benefits data), plus names and taxpayer identification numbers of participants or former participants who received full benefit payouts, rollovers to IRAs under IRC section 401(a)(31)(B), or deferred annuity contracts—along with trustee/issuer details and account or contract numbers. The DOL Inspector General must audit database administration annually for the first five years beginning one year after establishment and every five years thereafter.

This section increases from $5,000 to $7,000 the account balance threshold below which qualified retirement plans may involuntarily distribute benefits without participant consent, amending ERISA §203(e)(1) and IRC §§401(a)(31)(B)(ii) and 411(a)(11)(A). The change applies to distributions made after December 31, 2024. (Thus, plans may force out balances up to $7,000 (previously up to $5,000) without consent.)

This section expands the Employee Plans Compliance Resolution System (EPCRS)—an IRS program allowing voluntary correction of inadvertent operational failures in qualified retirement plans—to permit self-correction of eligible inadvertent failures (i.e., non-egregious errors despite established compliance practices, excluding asset diversion or abusive tax transactions) in plans under IRC §§401(a), 403(a), 403(b), 408(p), or 408(k), with an indefinite correction period under Revenue Procedure 2021-30 (previously time-limited). It further (1) allows self-correction of participant loan errors per EPCRS rules, with the Department of Labor deeming such corrections compliant with its Voluntary Fiduciary Correction Program; (2) extends EPCRS to individual retirement account (IRA) custodians for failures such as waiving the IRC §4974 excise tax, the 60-day rollover deadline (if missed due to factors beyond the account owner's control), or permitting nonspouse beneficiaries to return certain erroneous distributions to inherited IRAs; and (3) directs additional safe harbors, including for restoring depleted plan earnings.

This section eliminates, for governmental section 457(b) deferred compensation plans (i.e., eligible deferred compensation plans for employees of state and local governments), the requirement that deferral agreements be entered into before the beginning of the calendar month in which compensation is deferred, requiring instead that such agreements be entered into before the compensation is currently available to the employee (non-governmental plans retain the monthly requirement). The change applies to taxable years beginning after the date of enactment.

This section establishes a one-time election allowing an individual to treat a direct distribution from an individual retirement account (IRA) of up to $50,000 to a split-interest entity—defined as a charitable remainder annuity trust, charitable remainder unitrust, or charitable gift annuity funded exclusively by such qualified charitable distributions (QCDs)—as a QCD meeting existing requirements (i.e., excludable from gross income and counting toward required minimum distributions for those age 70½ or older), provided (1) the remainder interest is fully deductible under IRC §170, (2) income interests are held solely by the IRA owner, spouse, or both and are nonassignable, and (3) special income tax rules apply to distributions from the entity. (Thus, IRA owners may fund these charitable vehicles once without income inclusion on the transfer, preserving the charitable deduction value while limiting noncharitable benefits.) The section further provides for inflation adjustment after 2022 of both the existing $100,000 annual QCD limit under IRC §408(d)(8)(A) and the new $50,000 limit, using the cost-of-living adjustment under IRC §1(f)(3) with "calendar year 2021" substituted for "calendar year 2016" as the base year (rounded to the nearest $1,000). The changes apply to distributions made in taxable years ending after the date of enactment.

This section expands the exception to the 10% additional tax on early distributions from qualified retirement plans under IRC §72(t)(10)—currently available to public safety employees (e.g., firefighters) in governmental plans upon separation from service after age 50 (or 25 years of service)—to also cover distributions to employees providing firefighting services from plans described in clauses (iii), (iv), or (vi) of IRC §402(c)(8)(B) (i.e., certain private defined benefit plans for firefighters). (Thus, private sector firefighters may take penalty-free early distributions from qualifying plans.) The changes apply to distributions made after December 31, 2024, and include a conforming update to the paragraph heading.

This section establishes a new exclusion from gross income for qualified first responder retirement payments (i.e., pensions or annuities from specified governmental plans received in connection with service as a law enforcement officer, firefighter, paramedic, or emergency medical technician), limited to the recipient's annualized excludable disability amount (i.e., service-connected disability pay excludable under section 104(a)(1) received in the 12 months before retirement age, annualized pro rata for partial years). (Thus, when such disability pay terminates at retirement age and converts to otherwise taxable retirement pay, the equivalent amount remains excludable.) The provision applies to taxable years beginning after December 31, 2029.

This section establishes a three-year statute of limitations for excise taxes imposed by IRC §4973 (excess contributions) or §4974 (prohibited accumulations) in connection with an individual retirement plan (i.e., traditional or Roth IRA). The limitations period begins on the due date of the taxpayer's income tax return for the year of the relevant act or failure to act (or, for taxpayers not required to file a return, the due date of the return they would have been required to file).

This section requires administrators of individual account plans to furnish at least one paper pension benefit statement each calendar year (subject to exceptions) and defined benefit plans at least one every three calendar years (subject to exceptions), limiting the prior option for fully electronic delivery under ERISA (29 U.S.C. 1025(a)(2)(A)(iv)). (Pension benefit statements inform participants and beneficiaries of total accrued benefits, nonforfeitable benefits, account investment values in individual account plans (e.g., 401(k)s), and related explanations.) It directs the Secretary of Labor to update electronic disclosure regulations by December 31, 2024—including requiring a one-time initial paper notice of the right to request paper documents and at least one annual paper statement for separated participants (unless they elect electronic)—and to issue related guidance ensuring opt-out rights to paper, no fees for paper delivery, and specified notices on statements. The requirements apply to plan years beginning after December 31, 2025.

This section permits the separate application of top-heavy rules under IRC §416(c)(2) to defined contribution plans covering excludible employees (i.e., those not meeting the minimum age and service requirements of §410(a)(1)(A)). (Thus, if the plan satisfies minimum contribution requirements separately for such employees under §416(c)(2)(A)-(B), they may be excluded from the top-heavy determination for other employees.) The amendment applies to plan years beginning after enactment.

This section limits the repayment period for a qualified birth or adoption distribution—i.e., a penalty-free retirement plan distribution of up to $5,000 per child taken for qualified birth or adoption expenses—to three years beginning the day after receipt (from previously unlimited). (Thus, after three years, such distributions remain taxable income and cannot be repaid as a rollover.)

This section permits administrators of 401(k) plans, 403(b) plans (i.e., tax-sheltered annuities for employees of public schools and certain tax-exempt organizations), and governmental 457(b) plans to rely on employee or participant certifications that hardship distributions—or, for 457(b) plans, unforeseeable emergency distributions—are for a financial need deemed by Treasury regulations to be an immediate and heavy financial need (or unforeseeable emergency) and are not in excess of the amount required to satisfy the need. (Thus, plan administrators need not obtain additional substantiation.) The amendments apply to plan years beginning after December 31, 2024.

This section establishes an exception to the 10% additional tax on early distributions from eligible retirement plans (other than defined benefit plans) for domestic abuse victims. Eligible distributions, which a victim may self-certify, are limited to the lesser of $10,000 or 50% of the victim's nonforfeitable accrued benefit under the plan (in aggregate across controlled group plans) and must be made during the one-year period beginning on the date of domestic abuse (i.e., physical, psychological, sexual, emotional, or economic abuse, including efforts to control, isolate, humiliate, intimidate, or undermine reasoning independence, by a spouse or domestic partner). Victims may repay the full amount distributed to an eligible retirement plan within three years, treated as a tax-free rollover. The provision applies to distributions made after the date of enactment.

This section revises family attribution rules under the Internal Revenue Code for purposes of determining (1) controlled groups of corporations under §414(b), which are treated as a single employer for qualified retirement plan coverage and nondiscrimination requirements, and (2) affiliated service groups under §414(m), which aggregate service organizations (e.g., law, medical, or accounting firms) with related entities for similar plan purposes. For controlled groups, it disregards community property laws; limits spousal attribution of stock not otherwise attributed between spouses and attribution from minor children; and provides that stock attributed to a child from non-spousal parents does not by itself aggregate corporations into a controlled group. (Thus, plans are relieved from failing qualification if these rules cause a change in controlled group status, treated as a §410(b)(6)(C) transaction.) For affiliated service groups, it applies parallel rules using §318 attribution standards, limited to stock of minor children (under age 21). (Thus, plans are similarly relieved if these rules cause a change in affiliated service group status.) The changes apply to plan years beginning on or after the date of enactment.

This section permits employers to elect retroactive treatment for plan amendments increasing benefit accruals under qualified stock bonus, pension, profit-sharing, or annuity plans (other than matching contributions) for the preceding plan year, provided the amendment (1) does not cause plan disqualification, and (2) is adopted by the employer's tax return due date (including extensions) for the taxable year in which effective. (Thus, the amendment is treated as adopted on the last day of the preceding plan year.) Applies to plan years beginning after December 31, 2025.

This section permits an individual who owns the entire interest in an unincorporated trade or business and is its only employee to treat elective deferrals (as defined in IRC §402(g)(3)) to a qualified cash or deferred arrangement (i.e., 401(k) plan) as made by the end of the plan's first plan year if contributed before the individual's tax return filing deadline (without extensions) for the taxable year ending after or with that plan year. The provision applies to plan years beginning after the date of enactment.

This section limits the disqualification of an individual retirement account (IRA) resulting from a prohibited transaction to only the portion of the account involved in the transaction (i.e., the amount involved as defined in IRC §4975(f)(4)), rather than the entire account. (Thus, only that portion is treated as distributed to the account owner, preserving tax-advantaged status for the remainder.) It makes conforming amendments to related Code provisions and applies to taxable years beginning after enactment.

This section directs the Secretary of Labor, not later than one year after enactment, to review 29 CFR 2509.95-1—Interpretive Bulletin 95-1 relating to fiduciary standards under the Employee Retirement Income Security Act of 1974 (ERISA) for selecting annuity providers in defined benefit pension plans (i.e., pension risk transfers)—to determine whether amendments are warranted and to report to Congress on the findings, including an assessment of risks to participants.

This section makes technical and clerical amendments to several Internal Revenue Code provisions relating to retirement plans, as amended by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), effective as if included in such Act.

This section establishes relief from the anti-cutback rules of IRC §411(d)(6) and ERISA §204(g) for retirement plan or annuity contract amendments made pursuant to this Act or related Treasury or Labor Department regulations, provided the amendments are adopted by the last day of the first plan year beginning after January 1, 2026 (or after January 1, 2028, for governmental plans or applicable collectively bargained plans ratified before enactment), the plan is operated as if the amendment were in effect during the interim period beginning on the legislative or regulatory effective date, and the amendment applies retroactively for that period. (As background, IRC §411(d)(6) and ERISA §204(g) generally prohibit reductions in accrued benefits or elimination of optional forms of benefit; thus, this relief permits sponsors of tax-qualified defined benefit, defined contribution, and other retirement plans to conform to new requirements without violating those protections.) This section also coordinates with prior law by making the following amendments to extend delayed-amendment relief periods: (1) SECURE Act §601(b)(1): changes the general deadline to January 1, 2024 (from January 1, 2022), and the governmental/collectively bargained plan deadline substitution to "2026" for "2024" (previously "2024" for "2022"); (2) CARES Act §2202(c)(2)(A): changes the deadline to January 1, 2026 (from January 1, 2022); (3) CARES Act §2203(c)(2)(B)(i): changes the general deadline to January 1, 2026 (from January 1, 2022), and the governmental plan deadline substitution to "2028" for "2024" (previously "2024" for "2022"); and (4) Taxpayer Certainty and Disaster Tax Relief Act of 2020 §302(d)(2)(A): changes the deadline to January 1, 2026 (from January 1, 2022).

This section strikes the prohibition on designating Roth individual retirement accounts (Roth IRAs) as simplified employee pensions (SEPs, i.e., employer-funded IRAs) or SIMPLE retirement accounts (i.e., Salary Incentive Match Plans for Employees) and establishes related rules (effective for taxable years beginning after December 31, 2024). Specifically, it (1) requires employee elections for such designations; (2) provides that employer contributions to Roth-designated SEPs or SIMPLE accounts are includible in gross income; (3) increases annual Roth IRA contribution limits by the amount of SEP or SIMPLE contributions made on an individual's behalf (not to exceed SEP limits under IRC §408(j) or SIMPLE limits under IRC §408(p)(2)); (4) for Roth-designated SIMPLE accounts, limits qualified rollover contributions during the two-year period under IRC §72(t)(6) to other SIMPLE accounts; and (5) makes conforming changes to distribution and rollover rules.

This section modifies the hardship withdrawal rules applicable to 403(b) plans (i.e., tax-sheltered annuity plans for employees of public schools and certain tax-exempt organizations) by permitting distributions upon employee hardship of (1) salary reduction contributions, (2) qualified nonelective contributions, (3) qualified matching contributions, and (4) earnings on such contributions (previously limited to salary reduction contributions only). It further provides that a hardship distribution is not treated as failing to qualify solely because the employee did not take an available plan loan. The changes apply to plan years beginning after December 31, 2024.

This section limits catch-up contributions under IRC §414(v)—which permit individuals age 50 or older to make elective deferrals exceeding the annual limit—to designated Roth contributions only for applicable employer plans other than those described in §414(v)(6)(A)(iv) (e.g., certain public safety employee plans). It makes conforming amendments to the elective deferral limits under §§402(g)(1)(C) and 457(e)(18) and applies to taxable years beginning after December 31, 2024.

This section permits employers to treat certain matching contributions—made on account of an employee's elective deferrals, contributions, or qualified student loan payments—as designated Roth contributions under IRC §402A (i.e., after-tax contributions to Roth accounts in 401(k), 403(b), and governmental 457(b) plans), which are includible in the employee's gross income. (Thus, such Roth matching contributions grow and may be distributed tax-free, subject to plan qualification rules.) The amendments apply to contributions made after the date of enactment.

This section establishes the Boots to Business Program within the Small Business Administration (SBA) to provide entrepreneurship training—including presentations, online self-study courses, in-person instruction, and business plan development—to covered individuals (i.e., Armed Forces members including National Guard and Reserves, Transition Assistance Program participants, honorably discharged veterans, and their spouses or dependents) through September 30, 2028. The program requires nationwide participation by Veteran Business Outreach Centers, use of SBA district offices and other resource partners (with grant authority subject to appropriations), collaboration with public and private entities including Warriors in Transition programs, and provision of course and outreach materials to the Departments of Defense, Labor, and Veterans Affairs for integration into the Transition Assistance Program (TAP). (TAP assists transitioning service members with civilian employment, education, and entrepreneurship.) This section further mandates competitive bidding for contracts or agreements, publication of funding opportunity notices at least 30 days before application deadlines, and annual reports to the Senate Committee on Small Business and Entrepreneurship and House Committee on Small Business—beginning 180 days after enactment—on grants awarded, program costs, participant numbers, and effectiveness.

This section establishes an enhanced penalty of imprisonment for not more than 5 years, in addition to penalties otherwise provided under the sex trafficking statute (18 U.S.C. 1591), for violations committed in a school zone (as defined in 18 U.S.C. 921), on or within 1,000 feet of premises where a school-sponsored activity is taking place, or on or within 1,000 feet of premises owned by an institution of higher education. (Thus, offenders face up to 5 additional years beyond the existing mandatory minimums of 10 years or 15 years to life, depending on use of force or the victim's age.)

This section (1) replaces "individual who has not attained the age of 18 years" with "minor" in 18 U.S.C. 2422(b), which prohibits using interstate commerce to persuade, induce, entice, or coerce minors less than 18 years old to engage in prostitution or any criminal sexual activity (with penalties of 10 years to life); and (2) adds subsections (c) and (d) to establish an additional penalty of imprisonment for not more than five years—in addition to penalties under subsections (a) or (b)—for such violations committed against a minor enrolled in elementary or secondary school who is, at the time, in a school zone (as defined in 18 U.S.C. 921), or on or within 1,000 feet of premises where a school-sponsored activity is occurring, or against a person enrolled in an institution of higher education who is, at the time, on or within 1,000 feet of such institution's premises, if the offender knows or has reasonable cause to believe those facts. Subsection (c)(2) exempts cases where the minor's or student's presence is unrelated to the school-sponsored activity or their enrollment. Subsection (d) defines "minor," "school," "school zone," "school-sponsored activity," "State educational agency," "local educational agency," and "institution of higher education."

This section establishes the Commission to Study the Potential Creation of a National Museum of Asian Pacific American History and Culture, composed of 8 members appointed as follows: (1) 2 by the Senate majority leader; (2) 2 by the Speaker of the House; (3) 2 by the Senate minority leader; and (4) 2 by the House minority leader. Members must possess a demonstrated commitment to Asian Pacific American history, art, political or economic status, or culture, plus expertise in areas such as museum administration, nonprofit fundraising, teaching Asian Pacific American history, Smithsonian representation issues, or public service; or experience in museum administration or planning; or experience in museum facility planning, design, or construction. Initial appointments must occur within 90 days of enactment; vacancies are filled in the same manner as original appointments; the Commission elects its chairperson by majority vote; and no federal employees may serve as members.

This section directs the Commission to (1) submit to the President and Congress, within 18 months of its first meeting, reports containing recommendations on a plan of action for establishing and maintaining the National Museum of Asian Pacific American History and Culture in Washington, DC, and its environs (hereafter the “Museum”) and addressing specified issues, including the availability and cost of collections, impacts on existing Asian Pacific American history museums, location criteria developed with the Smithsonian Institution, feasibility of Smithsonian integration (considering its facilities backlog, storage needs, and construction/renovation costs), governance structure, best practices for Asian Pacific American engagement, and Museum construction/operation/maintenance costs; (2) develop a fundraising plan relying on public contributions for the Museum's establishment, operation, and perpetual maintenance without federal funds, obtain an independent review of its viability, and submit both to the House Committees on House Administration, Natural Resources, and Appropriations and the Senate Committees on Rules and Administration, Energy and Natural Resources, and Appropriations; (3) submit legislative recommendations based on the reports to those committees; and (4) convene, by 18 months after initial member appointments, a national conference on the Museum with individuals committed to advancing Asian Pacific American life, art, history, and culture.

This section establishes administrative provisions for the Commission, including (1) providing that members are not federal employees, serve without pay, and receive travel per diem; allowing the Commission to accept gifts; and exempting the Commission from the Federal Advisory Committee Act; (2) directing Commission termination 30 days after submission of required reports; (3) prohibiting use of federal funds and requiring the Commission to raise funds privately; and (4) authorizing employment of an executive director and staff at rates consistent with 5 U.S.C. 3161 for temporary organizations (i.e., up to the maximum Senior Executive Service rate for executive positions and GS-15 for others), designating such staff as non-federal employees, allowing technical assistance from federal agencies, and prohibiting federal employee details.

This section states congressional findings on the critical role of semiconductors in the U.S. economy, manufacturing, and national security; the economic threats posed by shortages exacerbated by the COVID-19 pandemic; the need for a secure supply chain through onshoring, reshoring, or diversifying vulnerable segments such as fabrication, advanced packaging, and manufacturing materials and equipment; and the potential of the SelectUSA program to leverage foreign direct investment for domestic production.

This section requires the Executive Director of SelectUSA—a Department of Commerce program that promotes foreign direct investment in the United States—not later than 180 days after enactment, to solicit comments from state-level economic development organizations (1) to review federal efforts and barriers to increasing foreign direct investment in semiconductor-related production, publicly identified opportunities for such investment, and resource gaps faced by those organizations; and (2) to develop recommendations for SelectUSA to increase such investment independently or in partnership and to coordinate with U.S. allies or partners to prevent benefits to foreign adversaries (as defined in 47 U.S.C. 1607(c)(2)).

This section directs the Executive Director of SelectUSA—in coordination with the Federal Interagency Investment Working Group established by Executive Order No. 13577—to submit to the Senate Committee on Commerce, Science, and Transportation and the House Committee on Energy and Commerce, not later than two years after enactment, a report that includes (1) a review of comments received from state-level economic development organizations under section 803; (2) a description of SelectUSA activities to increase foreign direct investment in semiconductor-related manufacturing and production; and (3) an assessment of strategies SelectUSA may implement to increase such investment and secure the U.S. semiconductor supply chain, including by coordinating with other federal agencies and state-level economic development organizations.

This section amends the permitted uses of Homeland Security Grants (6 U.S.C. 609(f) and (g))—which fund state, local, tribal, and territorial efforts to prevent, protect against, respond to, and recover from terrorism and other hazards—to (1) require the FEMA Administrator to implement a uniform review process for applications to purchase equipment or systems not meeting or exceeding applicable national voluntary consensus standards (under 6 U.S.C. 747), considering factors such as federal or military use of the equipment, absence of standards, international standards, identified capability gaps, superior performance relative to standard equipment, and other relevant factors; and (2) require a uniform review process for equipment or systems not on the DHS Authorized Equipment List. This section further requires the DHS Inspector General to report to the House and Senate Homeland Security Committees within three years of enactment assessing implementation of the consensus standards review process, including the number of requests, identified capability gaps and approval/denial rates, and average processing times.

This section declares congressional findings regarding NASA's enhanced use leasing authority, including that NASA uses it to lease non-excess, underutilized properties to private entities, state and local governments, academic institutions, and other federal agencies; that it supports responsible real property management, mission-compatible activities, and reduced operating costs; that in FY2019, NASA leased 65 properties and collected $10,843,025.77 in net revenue; and that such leasing can reduce the rate of increase in NASA's deferred maintenance costs.

This section requires each standing committee of the House of Representatives to hold a hearing on the implementation of this Act within one year of enactment. The provision is enacted as an exercise of the House's rulemaking authority and is considered part of the rules of the House.

This section revises clause 21 of Rule XXIII of the House Rules to prohibit Members, Delegates, Resident Commissioners, officers, or employees from knowingly and willfully publicly disclosing the identity or personally identifiable information of individuals reporting allegations of wrongdoing under whistleblower protection laws (i.e., Civil Service Reform Act of 1978, Whistleblower Protection Act of 1989, Intelligence Community Whistleblower Protection Act of 1998, or similar federal laws). Exceptions apply if (1) the individual provides express written consent, (2) the individual has voluntarily publicly disclosed their identity, or (3) a committee chair discloses after an affirmative two-thirds committee vote that it is in the public interest. The revision permits investigations of reported allegations and public disclosure of non-personally identifiable substantive information and requires safeguards for disclosures under the committee vote exception, including timely advance notice to the individual where possible.

This section directs the Chairman of the Federal Maritime Commission to enter into an agreement with a federally funded research and development center within 90 days of enactment to evaluate how foreign ownership of marine terminals at the 15 largest U.S. container ports affects or could affect U.S. economic security. The study must (1) assess changes in ownership over the past 10 years and announced changes for 2025-2026; (2) instances and cumulative ownership by Chinese or Russian entities or nationals, and by any foreign entities; (3) Port Infrastructure Development Grant funds since FY2018 and Port Security Grant funds since FY2003 awarded to wholly or partially foreign-owned ports or terminals; and (4) foreign operational control where ownership exists; and (2) recommend policies to prevent excessive foreign ownership threatening U.S. economic security, evaluate foreign access to unique U.S. operational technology and information, and assess supply chain or cargo prioritization effects. Not later than one year after initiating the study, the Chairman must submit the results to the Senate Committee on Commerce, Science, and Transportation and the House Committee on Transportation and Infrastructure.

This section specifies that the budgetary effects of this Act for purposes of complying with the Statutory Pay-As-You-Go Act of 2010 are determined by reference to the latest statement titled “Budgetary Effects of PAYGO Legislation” submitted for printing in the Congressional Record by the Chairman of the House Budget Committee prior to the vote on passage.

This section revises the required frequency of board of directors meetings for federal credit unions from at least once a month (for all) to tiered requirements based on the credit union's status and ratings under the Uniform Financial Institutions Rating System (UFIRS; i.e., composite ratings of 1 [strongest] to 5 [weakest], including the capability of management component). Specifically, it requires (1) de novo federal credit unions to meet not less frequently than monthly during each of their first five years; (2) credit unions with a composite rating of 1 or 2 and management capability rating of 1 or 2 to meet not less than six times annually, with at least one meeting per fiscal quarter; and (3) credit unions with a composite rating of 3, 4, or 5 or management capability rating of 3, 4, or 5 to meet not less frequently than monthly. (Thus, well-rated credit unions may reduce meetings from 12 to 6 annually.)