H.R. 4718 — Helping Young Americans Save for Retirement Act

This section revises special participation rules for pension plans under ERISA §202(c)(1) and IRC §401(k)(2)(D) by lowering the age-and-service threshold to age 18 (from 21) and redefining the alternative service threshold as the first 24-month period consisting of two consecutive 12-month periods with at least 500 hours of service each (provided the age requirement of ERISA §202(a)(1)(A)(i) is met without regard to the age substitution). It establishes, in new ERISA §104(a)(2)(C), that for simplified annual reports and related independent accountant opinions, employees participating solely due to ERISA §202(c)(1)(A) are excluded from participant counts until 5 years after the first such employee participates. (Thus, small pension plans qualify for simplified reporting under ERISA §104(a)(2)(A)—available for plans with fewer than 100 participants or certain multiple-employer plans with fewer than 1,000 participants where no employer covers 100 or more—despite newly covering employees age 18 to 20.) The section makes conforming amendments to ERISA §202(c) and IRC §§401(k)(15) and 403(b)(12) and applies to plan years beginning one year after enactment.