H.R. 7315 — Advancing Policy Priorities Act

This section extends Livestock Mandatory Reporting through 2025 (from 2024). The program requires packers and other market participants to report pricing, contracting, and supply-demand information on cattle, swine, lambs, and related products to USDA to promote market transparency and competition.

This section expands employment counseling for separating 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 benefit programs such as the Post-9/11 GI Bill that support apprenticeships and on-the-job training).

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 providing searchable and sortable (by occupation and location) information 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 and any costs to veterans, (2) contact information, (3) endorsements by veterans service organizations or veteran-focused nonprofits, (4) whether the program prefers hiring veterans, 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 states the sense of Congress that (1) it is in the best national and homeland security interests of the United States for federal agencies to retain the specialized knowledge and experience of individuals who suffer an injury or illness while serving in a covered position (as defined in this Act); and (2) federal agencies should ensure, to the greatest extent possible, that such individuals reappointed to a non-covered civil service position are placed in the same agency, geographic location, and at a pay level commensurate to their prior position.

This section establishes special retirement service credit rules under both 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" in covered positions (i.e., law enforcement officer, Customs and Border Protection officer, firefighter, air traffic controller, nuclear materials courier, Capitol Police, or Supreme Court Police). (As background, covered positions qualify for enhanced retirement annuities, generally available after 20 years of service at age 50 or 25 years of service at any age, with higher employee contribution rates of 7.5% under CSRS or 4.4% under FERS.) An affected individual is one who (1) suffers an on-duty illness or injury rendering them permanently unable to perform useful service in the covered position, as determined by their agency; and (2) transfers 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 covered position. Unless the individual elects otherwise via procedures set by the Office of Personnel Management, service in the new position counts as covered service for annuity computation and higher contribution withholding (under CSRS §8334 or FERS §8422). (Thus, the individual continues accruing enhanced retirement benefits.) This treatment ends upon transfer to a related supervisory or administrative position or upon reaching age and service triggering mandatory separation as if still in the covered position. The provision does not apply other covered-position pay rules and includes technical and conforming amendments to FERS (§§8414, 8415).

This section establishes automatic enrollment requirements for qualified cash or deferred arrangements (401(k) plans) and salary reduction agreements under section 403(b)(1) annuity contracts (i.e., retirement plans offered by private-sector employers and tax-exempt entities), effective for plan years beginning after December 31, 2025. To satisfy these requirements, such plans must (1) qualify as an eligible automatic contribution arrangement under section 414(w)(3) that permits permissible withdrawals under section 414(w)(2); (2) contribute a uniform percentage of compensation starting at 3-10% in the first year of participation, increasing by 1 percentage point each subsequent plan year to at least 10% and up to 15% (with a temporary cap of 10% for plan years ending before January 1, 2027, for plans not satisfying paragraphs (12) or (13) of section 401(k)(3)); and (3) invest unelected contributions in qualified default investment alternatives under Department of Labor regulations at 29 C.F.R. § 2550.404c-5. The requirements do not apply to SIMPLE plans under section 401(k)(11); 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 for fewer than 3 years; or plans of employers with 10 or fewer employees until 1 year after the first taxable year exceeding that threshold (applied separately for multiple employer plans).

This section modifies the tax credit for small employer pension plan startup costs (Section 45E)—which provides eligible small employers (generally those averaging 100 or fewer employees with at least one plan participant) a credit equal to 50% of qualified startup costs, up to the lesser of $500 per employee or $5,000—for taxable years beginning after December 31, 2024, by (1) increasing the credit percentage to 100% (from 50%) for employers averaging 50 or fewer employees; (2) providing an additional credit for employer contributions (other than elective deferrals) to eligible plans other than defined benefit plans, equal to the applicable percentage (100% for the establishment year and first year thereafter, 75% for the second, 50% for the third, 25% for the fourth, and 0% thereafter) of such contributions up to $1,000 per employee, with the amount phased down for employers averaging more than 50 employees in the prior year (by 2 percentage points per excess employee); and (3) disallowing deductions for startup costs and employer contributions to the extent of the credits allowed under both the original provision and the new additional credit.

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 of 1986 (i.e., a nonrefundable tax credit of up to $1,000 ($2,000 for joint filers) for contributions to qualified retirement savings plans). 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—translated into the 10 most commonly spoken non-English languages in the U.S. (per the most recent American Community Survey)—and distributing such materials to states for participants in state-facilitated retirement savings programs.

This section revises the retirement savings contributions credit (Saver’s Credit)—a nonrefundable credit for qualified contributions to retirement plans such as IRAs or employer plans—for taxable years beginning after December 31, 2028, by (1) setting a uniform credit rate of 50 percent (from tiered applicable percentages of 50 percent, 20 percent, or 10 percent based on income), and (2) restructuring the adjusted gross income phaseout to reduce the credit linearly from a threshold amount of $48,000 to zero after a phaseout range of $35,000 for joint returns or surviving spouses (from tiered phaseout ranges ending at $76,500 for 2024)—with proportional thresholds of $36,000 and $24,000 and phaseout ranges of $26,250 and $17,500 for heads of household and other filers, respectively—and providing for inflation adjustments to the $48,000 and $35,000 amounts for years after 2028 using calendar year 2024 as the base. (Thus, the full 50 percent credit applies up to $48,000 adjusted gross income for joint filers, phasing out fully at $83,000.)

This section expands permissible investments for custodial accounts under section 403(b)(7) of the Internal Revenue Code to include, in addition to regulated investment company stock, group trusts intended to satisfy the requirements of IRS Revenue Ruling 81-100 (or successor guidance). The amendments apply to amounts invested after December 31, 2024. (As background, section 403(b) plans are tax-sheltered retirement savings plans available to employees of public schools, tax-exempt organizations, and churches; this change provides greater investment flexibility for such plans' custodial accounts.)

This section increases the required beginning date for required minimum distributions (RMDs) from qualified retirement plans and IRAs to the applicable age (from age 72), including for spouse beneficiaries and certain plan owners. 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 require annual withdrawals from tax-deferred retirement accounts such as traditional IRAs and 401(k) plans to ensure eventual taxation of earnings.) The changes apply to distributions required after December 31, 2024, for individuals who attain age 72 after that date.

This section indexes the $1,000 individual retirement account (IRA) catch-up contribution limit for taxpayers age 50 and older to the cost-of-living adjustment under section 1(f)(3) of the Internal Revenue Code (using calendar year 2024 as the base year, with amounts rounded down to the next $100), for taxable years beginning after December 31, 2025 (previously not indexed).

This section increases the catch-up contribution limit to $10,000 (from $7,500) under qualified employer-sponsored retirement plans other than SIMPLE plans (e.g., 401(k), 403(b), governmental 457(b)) and to $5,000 (from $3,500) under SIMPLE plans, for eligible participants (age 50 or older) who would attain age 62 but not age 65 before the close of the taxable year (i.e., turning 62, 63, or 64 during the year). It further requires annual cost-of-living adjustments to such amounts (base period: calendar quarter beginning July 1, 2022). The changes apply to taxable years beginning after December 31, 2025.

This section modifies the definition of a pooled employer plan under ERISA to require that the plan designate a named fiduciary (other than an employer in the plan) responsible for collecting contributions to the plan and require such fiduciary to implement written contribution collection procedures that are reasonable, diligent, and systematic (previously, required only to designate such a fiduciary responsible for collections). The changes apply to plan years beginning after December 31, 2024.

This section establishes multiple employer 403(b) plans (i.e., tax-sheltered annuity plans for employees of public schools, tax-exempt section 501(c)(3) organizations, and certain ministers), except for church plans, by adding new IRC §403(b)(15). Such plans satisfy IRC §403(b) requirements despite being maintained by more than one employer and despite any single employer's noncompliance (subject to rules similar to IRC §413(e)(2)); non-governmental plans must also meet rules similar to IRC §413(e)(1)(A) or (B). (Thus, smaller nonprofits may pool resources to offer 403(b) plans with shared administration and costs.) The section further (1) treats such plans as a single plan for annual registration (IRC §6057) and information return (IRC §6058) purposes; (2) amends ERISA §3(43) and conforming provisions to include qualifying 403(b) multiple employer plans (other than governmental plans) within the definitions of multiple employer welfare arrangements and multiple employer pension plans; (3) directs the Treasury Secretary to issue regulations on departing employers that fail plan requirements, modify existing and publish new model plan language to notify participating 501(c)(3) employers of ERISA applicability and their fiduciary duties as plan sponsors, and conduct educational outreach on these matters to such employers; and (4) clarifies that the amendments create no inference as to the treatment of multiple employer church 403(b) plans.

This section authorizes employer matching contributions to defined contribution plans on account of employees' qualified student loan payments, treating such contributions as matching contributions under IRC §401(m)(4)(A)(iii) if the plan applies the same matching rate, eligibility, and vesting rules as for elective 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 for the year (or lesser employee compensation) minus the employee's actual elective deferrals, with employee certification to the employer. The provision specifies nondiscrimination rules (e.g., availability not conditioned on having student debt; optional separate actual deferral percentage testing); permits treating such payments as elective deferrals solely for certain matching and testing requirements; and extends similar matching treatment to SIMPLE retirement accounts under IRC §408(p)(2), subject to the applicable dollar amount under §408(p)(2)(E) (after §414(v) catch-up) minus other elective amounts.

This section revises the small employer pension plan startup cost tax credit under IRC §45E—providing eligible small employers (generally ≤100 employees earning ≥$5,000) 50% of qualified startup costs up to $500 annually for three years—to apply effective with respect to the eligible employer joining an existing plan. (Thus, such employers may claim the credit based on their date of participation rather than the plan's original effective date.)

This section establishes a new general business credit under IRC §45U for eligible small employers (i.e., those qualifying under IRC §408(p)(2)(C)(i)(I), generally with 100 or fewer employees earning at least $5,000) equal to the sum of (1) $250 per military spouse employee eligible to participate in an eligible defined contribution plan during the taxable year, plus (2) employer contributions to such plans for that employee not exceeding $250. The credit applies only for the taxable year in which the military spouse begins participating in the plan and the two succeeding taxable years; a military spouse is an employee married to a uniformed services member (excluding highly compensated employees under IRC §414(q)), with employers permitted to rely on employee certification; and an eligible defined contribution plan is one under which such spouses may participate within two months of hire, immediately receive employer contributions at least equal to those for similarly situated non-spouses after two years of service, and have immediate nonforfeitable rights to employer-derived accrued benefits. The section makes conforming amendments to add the credit to IRC §38(b)(34), designate it under IRC §3511(d)(2) for certified professional employer organizations, and update the table of sections for IRC subpart D; applies to taxable years beginning after enactment.

This section adds a new exemption to ERISA §408(b) (29 U.S.C. 1108(b)) for the provision of a de minimis financial incentive (i.e., a small immediate reward such as a gift card) to encourage employees to elect salary reduction contributions to 401(k) plans or 403(b) plans. (Thus, employers may offer such incentives without violating ERISA prohibited transaction rules in §406.) It makes parallel amendments to (1) IRC §401(k)(4)(A), excluding de minimis financial incentives from nondiscrimination restrictions on employer-provided benefits; (2) IRC §403(b)(12)(A), permitting such incentives without causing plan disqualification; and (3) IRC §4975(d), exempting them from tax code prohibited transaction rules. The amendments apply to plan years beginning after the date of enactment.

This section establishes a safe harbor under new IRC §414(aa) under which qualified retirement plans—including 401(a) plans (e.g., 401(k)s), 403(b) plans, IRAs under §408, and §457(b) plans—do not fail qualification requirements solely due to a reasonable administrative error in implementing an automatic enrollment or automatic escalation feature of an eligible automatic contribution arrangement (EACA), provided the error is corrected (1) within 9½ months after the end of the plan year in which it occurred, (2) in a manner favorable to the participant, and (3) nondiscriminatorily for all similarly situated participants. Corrections may occur before or after participant termination and regardless of identification by the Secretary of the Treasury, who must issue regulations or guidance specifying favorable correction methods. Applies to errors with respect to which the 9½-month correction deadline is after enactment.

This section revises participation, vesting, and related rules under ERISA and the Internal Revenue Code to expand access to qualified cash or deferred arrangements (i.e., 401(k) plans) and 403(b) salary reduction agreements for certain part-time employees. Specifically, it (1) prohibits plans from requiring more than one year of service (or 1,000 hours) or two consecutive 12-month periods of at least 500 hours of service (and attaining age 21), whichever is earlier, for eligibility (reduced from three such periods under prior law); (2) provides a special vesting rule treating each 12-month period of at least 500 hours as a year of service for these employees (with service before 2023 excluded); (3) permits employers to elect exclusion of these employees from certain nondiscrimination, coverage, top-heavy, and other requirements; and (4) reduces from three to two the consecutive low-hour periods that allow exclusion of employees under IRC §401(k)(2)(D). As background, these changes build on the SECURE Act of 2019, which first required plans to cover long-term part-time workers (500+ hours annually) after three years to prevent discrimination against them in employer-sponsored retirement plans covering approximately 60% of private-sector workers. The amendments generally apply to plan years beginning after December 31, 2024 (with a conforming update to SECURE Act provisions effective retroactively).

This section expands eligibility for the tax deferral under IRC §1042 for sales of qualified employer securities to an employee stock ownership plan (ESOP) to include stock issued by domestic S corporations (previously limited to domestic C corporations). (As background, §1042 allows a seller to elect nonrecognition of capital gain to the extent sale proceeds are reinvested in qualified replacement property of equal or greater value.) For sales of S corporation stock, it limits the deferral election to 10% of the amount realized on the sale. The changes apply to sales after December 31, 2029.

This section amends IRC §401(a)(35) to treat employer securities held in an employee stock ownership plan (ESOP) as publicly traded for diversification requirement purposes if quoted by at least four dealers on an interdealer quotation system treated as an alternative trading system, not a penny stock, issued by a non-shell/non-blank-check company not in bankruptcy with a public float of at least $1 million fair market value and 10% of shares outstanding, and subject to specified audited financial reporting (annually for domestic issuers by a PCAOB-registered auditor; for foreign issuers, via depositary shares or Canadian market trading with SEC reporting compliance or exemption). (As background, IRC §401(a)(35) generally requires ESOPs to permit participant diversification of publicly traded employer securities after three years of service.) The provision applies to plan years beginning after December 31, 2029.

This section establishes an exception to the required minimum distribution (RMD) rules under IRC §401(a)(9) for certain increases in payments under a commercial annuity (as defined in IRC §3405(e)(6)) issued in connection with an eligible retirement plan (as defined in IRC §402(c)(8)(B), other than a defined benefit plan), allowing on or after the annuity starting date: (1) annuity payments that increase by a constant percentage of less than 5% per year, applied not less frequently than annually; (2) a lump sum payment that shortens the payment period or fully or partially commutes future annuity payments using reasonable actuarial methods and assumptions or accelerates payments scheduled within the ensuing 12 months; (3) a dividend or similar distribution based on a reasonable comparison of assumed and actual actuarial factors; or (4) a final death benefit payment not exceeding the excess of consideration paid for the annuity over prior distributions. (As background, RMD rules require annual minimum distributions from tax-favored retirement plans beginning at age 73 to prevent indefinite tax deferral.) The provision applies to calendar years ending after the date of enactment.

This section directs the Secretary of the Treasury to amend regulations on qualifying longevity annuity contracts (QLACs)—deferred annuities in individual retirement accounts or qualified retirement plans that postpone required minimum distributions under IRC §401(a)(9)—as follows: (1) repeals the requirement that QLAC premiums be limited to 25% of an individual's account balance, effective for contracts purchased or received in an exchange on or after the date of enactment; (2) provides that a divorce after purchase but before annuity payments commence does not affect the permissibility or amount of joint and survivor benefits if specified conditions are met in a qualified domestic relations order or divorce or separation instrument, 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 according to their effective dates, 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 on diversification requirements for variable annuity, endowment, and life insurance contracts—issued at 54 Fed. Reg. 8728 (March 2, 1989)—to facilitate the use of exchange-traded funds (ETFs) as investment options in such contracts under IRC §817(d). (As background, these diversification rules ensure variable contracts qualify for tax-deferred treatment by preventing policyholders from being treated as directly owning concentrated underlying assets.) Specifically, the section (1) amends Treas. Reg. §1.817-5(f)(3) to exclude beneficial interests in an ETF held by one or more authorized participants or market makers from preventing compliance with Treas. Reg. §1.817-5(f)(2)(i); and (2) defines 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 and precluded from transacting with non-eligible persons). These amendments apply to segregated asset account investments made on or after seven years after enactment.

This section establishes special rules applicable to inadvertent benefit overpayments by pension plans subject to ERISA, permitting the responsible plan fiduciary, in the exercise of fiduciary discretion, not to seek recovery of all or part of such overpayments from (1) participants or beneficiaries; (2) plan sponsors or contributing employers to individual account plans, if the impermissible forfeiture is separately restored (e.g., from forfeitures, additional contributions, or recoveries), or to defined benefit plans unless recovery delay would materially impair funding and benefits for others; or (3) non-culpable plan fiduciaries, if the plan has and follows prudent procedures to minimize overpayments. Such discretion is not lost by reducing future payments to the correct amount or seeking recovery from the party responsible for the overpayment, and employer minimum funding and anti-forfeiture obligations under ERISA remain unchanged. If the fiduciary elects to recoup from a participant or beneficiary, recoupment is subject to conditions including (1) no interest, collection costs, or fees; (2) for non-decreasing periodic benefits, annual recoupment not exceeding 10% of the overpayment or reducing payments below 90% of the correct amount (or equivalent via installments), ceasing upon full recovery; (3) for other benefits, requirements set by the Secretary of Labor; (4) no litigation threats unless likely to prevail and no use of collection agencies unless after court judgment or settlement; (5) no pursuit from participant beneficiaries (e.g., spouses); (6) no recoupment if first overpayment occurred over 3 years before written notice; (7) rights to contest via plan claims procedures; and (8) consideration of hardship. These protections do not apply to culpable participants or beneficiaries (i.e., those responsible via misrepresentation or with actual or constructive knowledge of the overpayment). (Thus, the rules limit aggressive recovery tactics, protecting retirees from undue financial hardship while preserving fiduciary flexibility and plan solvency.)

This section reduces the excise tax on excess accumulations in qualified retirement plans and individual retirement accounts (i.e., failures to take required minimum distributions) from 50% to 25% of the undistributed amount. The section further reduces the tax to 10% (from 25%) for shortfalls of required minimum distributions from an individual retirement account if the taxpayer corrects the shortfall and files an appropriate return during the correction window—beginning on the date the tax is imposed and ending on the earlier of the date the IRS initiates an audit or demands payment with respect to the shortfall, or the last day of the second taxable year after the year of imposition. The changes apply to taxable years beginning after December 31, 2024.

This section requires the Secretary of Labor, not later than one year after the date of enactment, to permit administrators of participant-directed individual account plans (i.e., 401(k) plans) to use a blend of broad-based securities market indices as a performance benchmark for designated investment alternatives containing a mix of asset classes (e.g., target-date funds), provided the blend (1) is reasonably representative of the fund's asset class holdings, (2) is modified at least annually to reflect changes in those holdings when calculating 1-, 5-, and 10-year returns (or the fund's life, if shorter), (3) is furnished to participants in an understandable manner, and (4) uses indices that each satisfy regulatory requirements for their respective asset classes. The section further requires the Secretary, not later than three years after enactment, to 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 participants' 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, reporting and disclosure requirements under the Employee Retirement Income Security Act of 1974 (ERISA) applicable to pension plans (i.e., plans providing retirement income to employees or resulting in income deferral to termination of employment or beyond) and under the Internal Revenue Code applicable to qualified retirement plans. Not later than two years after enactment, the agencies must jointly 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—on the effectiveness of those requirements (including an analysis of participant provision of contact information, disclosure delivery methods, and receipt/access/understanding/retention rates by key demographics, based on plan data and agency surveys) and recommend ways to consolidate, simplify, standardize, and improve them to reduce plan reporting burdens and enhance participant access to plan information for retirement planning and benefit claims.

This section establishes an exemption from most disclosure, notice, and document furnishing requirements under ERISA and the Internal Revenue Code for unenrolled participants in individual account plans (i.e., defined contribution plans such as 401(k)s). (Unenrolled participants are eligible employees who have received initial summary plan descriptions and eligibility notices, are not participating, have no account balance, and meet criteria set by the Secretaries of Labor and Treasury; plans instead must furnish an annual reminder notice—provided during open enrollment or before each plan year—of the participant's eligibility, key benefits and rights (focusing on employer contributions and vesting), and election deadlines, plus any requested documents.) The amendments apply to plan years beginning after December 31, 2024.

This section establishes a "Retirement Savings Lost and Found" online searchable database, to be created by the Department of Labor (in consultation with Treasury) not later than two years after enactment and managed by DOL. (The database covers ERISA-covered pension plans subject to section 203 vesting standards—i.e., defined benefit plans and certain defined contribution plans—and enables individuals to search for and contact plan administrators to locate and recover benefits; it uses plan-reported data, other DOL information, and federal agency data as needed, with privacy safeguards and administrator updates for events such as mergers or terminations.) It requires plan administrators, for plan years beginning after the second December 31 following enactment, to report to DOL specified participant data from IRC §6057 (i.e., deferred vested benefits information), plus names and taxpayer identification numbers of participants with fully paid benefits, rollovers to IRAs under IRC §401(a)(31)(B), or distributed deferred annuity contracts—including trustee/issuer details and account/contract numbers. It further directs annual audits of the database by the DOL Inspector General for the first five years beginning one year after establishment and every five years thereafter, plus a conforming amendment to the ERISA table of contents.

This section increases to $7,000 (from $5,000) 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.

This section expands the Employee Plans Compliance Resolution System (EPCRS, as described in Revenue Procedure 2021-30 or successor guidance) 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 qualified retirement plans under IRC §§401(a), 403(a), 403(b), 408(p), or 408(k), with an indefinite correction period (previously limited) unless identified by the Secretary of the Treasury prior to self-correction. It further (1) allows self-correction of participant loan errors per EPCRS rules, with the Department of Labor treating such corrections as satisfying its Voluntary Fiduciary Correction Program; (2) extends EPCRS to individual retirement account (IRA) custodians for failures including excise tax waivers under IRC §4974, 60-day rollover deadline waivers due to circumstances beyond the account owner's control, and nonspouse beneficiary returns of distributions to inherited IRAs; and (3) adds safe harbors for corrections, including earnings restoration calculations when plan assets are depleted. (Thus, the changes reduce barriers to voluntary compliance for plan sponsors, fiduciaries, and IRA custodians while preserving IRS oversight for non-qualifying failures.)

This section revises the deferral election timing requirement in governmental section 457(b) deferred compensation plans—tax-favored plans allowing employees of state and local governments to defer up to $23,000 of compensation annually (for 2024)—to before the compensation is currently available to the individual (from before the first day of the month). It retains the before-the-beginning-of-the-month requirement for non-governmental section 457(b) plans (i.e., those of tax-exempt organizations). The changes apply to taxable years beginning after enactment.

This section authorizes a one-time election to treat direct distributions 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 meeting QCD requirements under current law (i.e., excludable from gross income for IRA owners aged 70½ or older), provided (1) the distribution otherwise qualifies for a charitable deduction, (2) income interests are limited to and nonassignable by the IRA owner or spouse, and (3) special income tax rules apply to trust or annuity payments. (Thus, this enables IRA owners to fund such entities tax-free once, with remainder interests deductible for specified charities.) The section also establishes inflation adjustment after 2022 for both the standard annual QCD limit of $100,000 and this new $50,000 limit, rounded to the nearest $1,000. The amendments apply to distributions made in taxable years ending after enactment.

This section expands the exception to the 10% additional tax on early distributions from qualified retirement plans under section 72(t)(10) of the Internal Revenue Code to include distributions to private sector firefighters from plans described in clauses (iii), (iv), or (vi) of section 402(c)(8)(B). (As background, the exception permits penalty-free distributions from governmental plans to qualified public safety employees—including firefighters—who separate from service in or after the year they attain age 50 or due to disability.) The amendments apply to distributions made after December 31, 2024.

This section establishes an exclusion from gross income for qualified first responder retirement payments not exceeding an individual's annualized excludable disability amount, for taxable years beginning after December 31, 2029. Qualified first responder retirement payments are pensions or annuities from specified governmental plans (i.e., under IRC §402(c)(8)(B)(iii)-(vi)) received in connection with service as a law enforcement officer, firefighter, paramedic, or emergency medical technician; the annualized excludable disability amount equals service-connected disability payments (excludable under IRC §104(a)(1)) properly attributable to the 12 months preceding retirement age, prorated if partial-year. (Thus, such retirement payments replacing prior excludable disability pay remain nontaxable up to that prior amount.)

This section establishes the statute of limitations for excise taxes imposed by IRC §4973 (on excess contributions) or §4974 (on failures to make required minimum distributions) in connection with an individual retirement plan (i.e., traditional or Roth IRA). For such taxes, the three-year limitations period under IRC §6501(a) applies with reference to 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 (without extensions) of the return they would have filed.

This section requires, for pension benefit statements under ERISA, at least one paper statement per calendar year for individual account plans (e.g., 401(k) plans) and at least one paper statement every three calendar years for defined benefit plans, effective for plan years beginning after December 31, 2025. (Previously, such statements could be delivered electronically if reasonably accessible.) The paper requirement does not apply to plans compliant with DOL regulation section 2520.104b–1(c) or if the participant or beneficiary requests and receives electronic delivery. This section further directs the Secretary of Labor to update that regulation and other electronic disclosure guidance by December 31, 2024, to include (1) a one-time paper notice of the right to request paper documents prior to electronic delivery; (2) annual paper statements for separated participants unless they elect electronic delivery; (3) explanations on paper statements of how to request electronic delivery, with plan contact information and no fees charged; (4) identification of required plan documents and access information; and (5) explanations on electronic documents of how to request paper delivery. (Thus, the changes ensure periodic paper statements for retirement plan participants and beneficiaries while preserving electronic options with enhanced notices and opt-outs.)

This section permits defined contribution plans to exclude employees not meeting the minimum age and service requirements of IRC §410(a)(1) (i.e., excludible employees) from top-heavy determinations if the plan meets top-heavy requirements separately for those employees. (As background, top-heavy rules under IRC §416 generally require minimum contributions for non-key employees in plans where more than 60% of assets or accrued benefits benefit key employees, to prevent discrimination favoring owners and highly compensated employees.) The change applies to plan years beginning after enactment.

This section limits the repayment period for qualified birth or adoption distributions—up to $5,000 in penalty-free withdrawals from certain retirement plans for birth or adoption expenses—to three years beginning the day after receipt (previously, no specified time limit).

This section authorizes plan administrators of 401(k) plans, 403(b) plans, and 457(b) plans to rely on a certification by the employee or participant that a distribution is due to a financial hardship (or unforeseeable emergency, for 457(b) plans) of a type deemed by Treasury regulations to be an immediate and heavy financial need (or unforeseeable emergency) and does not exceed the amount necessary to satisfy that need. (Thus, this reduces administrative verification requirements for such "deemed hardship" distributions from qualified retirement plans serving private-sector workers (401(k)), employees of nonprofits and public schools (403(b)), and state/local government or tax-exempt organization workers (457(b)).) The provision applies to plan years beginning after December 31, 2024.

This section establishes a new exception to the 10% additional tax on early distributions from applicable eligible retirement plans (i.e., eligible retirement plans other than defined benefit plans) for domestic abuse victims. Eligible distributions, limited to the lesser of $10,000 or 50% of the present value of the nonforfeitable accrued benefit under the plan, may be made during the one-year period beginning on the date the individual is a victim of domestic abuse by a spouse or domestic partner (defined as physical, psychological, sexual, emotional, or economic abuse, including efforts to control, isolate, humiliate, intimidate, or undermine the victim's independent reasoning, including through abuse of the victim's child or another household family member). Such distributions are permitted based on self-certification; plans are not penalized for allowing them (subject to controlled group aggregation rules); they are exempt from rollover, withholding, and certain trustee-to-trustee transfer requirements; and recipients may repay the amounts (in whole or part) to an applicable eligible retirement plan within three years, with special tax treatment for such repayments. The provision applies to distributions made after the date of enactment.

This section revises family attribution rules under IRC §414(b) for controlled groups (i.e., entities treated as a single employer for qualified retirement plan coverage and nondiscrimination testing) and under IRC §414(m) for affiliated service groups (i.e., service organizations treated similarly). For both, it (1) disregards community property laws in determining ownership; (2) generally prevents stock not attributed directly to a spouse from being attributed to that spouse through a child; and (3) provides that stock attributed to a child under age 21 from non-spousal parents does not by itself cause separate corporations to be treated as a controlled or affiliated service group. If these rules cause entities to join or leave a controlled or affiliated service group, the change is treated as a transaction under IRC §410(b)(6)(C) (i.e., plans do not fail qualification due to the shift). The amendments apply to plan years beginning on or after enactment.

This section allows employers to elect retroactive treatment for amendments to qualified retirement plans (i.e., stock bonus, pension, profit-sharing, or annuity plans) that increase benefit accruals for the preceding plan year—provided the amendment excludes increases to matching contributions, satisfies all other plan qualification requirements, and is adopted by the employer's federal income tax return due date (with extensions) for the year in which it is effective. (Thus, the amendment is treated as in effect on the last day of the preceding plan year.) The provision 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 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 revises the tax treatment of prohibited transactions (i.e., certain self-dealing or transactions with disqualified persons) involving an individual retirement account (IRA), treating only the amount involved in the transaction (as defined in IRC §4975(f)(4)) as distributed to the account owner (from treating the entire IRA balance as distributed). (Thus, the remainder of the IRA retains its tax-deferred status.) The amendments apply to taxable years beginning after the date of enactment.

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

This section makes technical amendments to IRC provisions enacted by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), including (1) conforming cross-references in 401(k) automatic enrollment safe harbor rules, (2) updating matching contribution nondiscrimination rules to reference notice requirements, (3) clarifying required minimum distribution rules for certain employees, and (4) excluding certain nondeductible IRA contributions from the excess contribution excise tax; it also makes clerical amendments to correct cross-references in IRA and early distribution penalty provisions. The amendments apply as if included in the relevant SECURE Act provisions.

This section establishes plan amendment relief for retirement plans and annuity contracts required to conform to this Act or related Treasury or Labor Department regulations. It deems such plans operated in accordance with their terms—and not in violation of Internal Revenue Code anti-cutback rules (IRC §411(d)(6)) or ERISA §204(g)—during the period from the legislative or regulatory effective date through 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), provided the plan operates as if amended and the amendment applies retroactively. This section also extends conforming amendment deadlines in prior laws as follows: (1) SECURE Act §601(b)(1), to January 1, 2024 (from January 1, 2022) in subparagraph (B), and substituting "2026" for "2024" (previously "2024" for "2022"); (2) CARES Act §2202(c)(2)(A)(ii), to January 1, 2026 (from January 1, 2022); (3) CARES Act §2203(c)(2)(B)(i)(II), to January 1, 2026 (from January 1, 2022), and substituting "2028" for "2024" (previously "2024" for "2022"); and (4) Taxpayer Certainty and Disaster Tax Relief Act of 2020 §302(d)(2)(A)(ii), to January 1, 2026 (from January 1, 2022). (Thus, plans gain additional time to adopt required amendments without interim noncompliance.)

This section repeals the prohibition on employer contributions to Roth IRAs under simplified employee pension (SEP) plans (i.e., employer-funded IRAs that allow tax-deferred contributions up to 25% of compensation or $69,000 in 2024) and SIMPLE retirement accounts (i.e., plans for small employers allowing employee deferrals up to $16,000 in 2024 plus employer matching contributions), effective for taxable years beginning after December 31, 2024. Specifically, the section (1) requires an employee election to designate a Roth IRA as a SEP or SIMPLE account; (2) provides that SEP contributions to a Roth IRA are includible in gross income; (3) coordinates Roth IRA contribution limits by increasing them to account for SEP contributions (up to the SEP limit under IRC §408(j)) and SIMPLE contributions (up to the deferral limit under IRC §408(p)(2)(A)(ii) plus required employer contributions, without exceeding the elective deferral limit under IRC §402(g)); (4) limits distributions from SIMPLE Roth IRAs (subject to the early withdrawal penalty exception under IRC §72(t)(6)) to rollovers only into other SIMPLE accounts; and (5) makes conforming changes to allow employer contributions to Roth IRAs designated as SEP or SIMPLE accounts.

This section revises hardship withdrawal rules for 403(b) plans (i.e., tax-sheltered annuity plans available to employees of public schools and certain tax-exempt organizations) by (1) expanding permissible sources of distributions to include salary reduction contributions, qualified nonelective contributions, qualified matching contributions described in IRC §401(k)(3)(D)(ii)(I), and earnings on such contributions (previously limited to salary reduction contributions); and (2) eliminating the requirement to take an available plan loan prior to a hardship distribution. The changes apply to plan years beginning after December 31, 2024.

This section limits catch-up contributions under applicable employer plans to designated Roth contributions (except for plans described in IRC §414(v)(6)(A)(iv)), effective for taxable years beginning after December 31, 2024. (As background, catch-up contributions allow participants age 50 or older in eligible retirement plans—such as 401(k)s, 403(b)s, and most 457(b) plans—to make elective deferrals exceeding the annual limit, currently $7,500 in addition to the $23,000 limit for 2024.) It also makes conforming amendments to IRC §§402(g)(1)(C) (struck) and 457(e)(18).

This section establishes designated Roth matching contributions under IRC §402A, permitting employers to make after-tax matching contributions (includible in gross income) to qualified Roth contribution programs (i.e., Roth accounts in 401(k), 403(b), and governmental 457(b) plans) on account of an employee's elective deferrals, contributions, or qualified student loan payments (subject to IRC §401(m)(13)). The amendments apply to contributions made after the date of enactment.

This section establishes the Boots to Business Program in 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 from the date of enactment through September 30, 2028. Covered individuals include members of the Armed Forces (including National Guard and Reserves), Transition Assistance Program (TAP) participants, honorably discharged veterans, and their spouses or dependents. (TAP, established under 10 U.S.C. 1144, provides job training and transition counseling to separating service members.) The program requires nationwide participation by Veteran Business Outreach Centers; use of SBA district offices and other resource partners; and grants to such centers, partners, or entities, subject to appropriated funds. SBA must make program information and materials available to the Departments of Defense, Labor, and Veterans Affairs for TAP integration and distribution; collaborate with public and private entities, including Warriors in Transition programs; use competitive bidding for contracts; and submit reports to the Senate Committee on Small Business and Entrepreneurship and House Committee on Small Business within 180 days of enactment and annually thereafter describing grants awarded, program costs, participant numbers by component, and overall effectiveness.

This section establishes an additional penalty of imprisonment for not more than five years, in addition to penalties otherwise provided under the sex trafficking statute, for offenses committed in a school zone (i.e., 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. It defines school-sponsored activity as any activity produced, financed, arranged, supervised, or coordinated by a school or state/local educational agency (with those terms as defined in the Elementary and Secondary Education Act of 1965) or under such an agency's jurisdiction.

This section (1) replaces "individual who has not attained the age of 18 years" with "minor" in 18 U.S.C. 2422(b); and (2) adds subsections (c) and (d) to impose an additional term of imprisonment of not more than 5 years for violations of subsection (a)—which prohibits persuading, inducing, enticing, or coercing any individual to travel in interstate commerce to engage in prostitution or a criminal sexual offense (punishable by up to 20 years)—or subsection (b)—which prohibits the same conduct targeting a minor using interstate facilities (punishable by 10 years to life)—if the offender knows or has reasonable cause to believe the violation is against a minor enrolled in elementary or secondary school who is in a school zone (as defined in 18 U.S.C. 921) or on or within 1,000 feet of a school-sponsored activity premises, or against a person enrolled in an institution of higher education (as defined in the Higher Education Act of 1965) who is on or within 1,000 feet of such institution's premises. Subsection (c)(2) exempts cases where the minor's or person's presence is unrelated to the school-sponsored activity or their enrollment. Subsection (d) defines "minor" (an individual under 18 years of age), "school," "school zone," "school-sponsored activity," and state and local educational agencies (per the Elementary and Secondary Education Act of 1965).

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 of Representatives, (3) 2 by the Senate minority leader, and (4) 2 by the House minority leader. Commission members must possess a demonstrated commitment to Asian Pacific American history, art, political or economic status, or culture, plus expertise or experience in specified areas (e.g., museum administration, fundraising for cultural institutions, teaching Asian Pacific American history, Smithsonian representation issues, public service, or museum planning, design, or construction). Initial appointments must occur within 90 days of enactment; vacancies are filled in the same manner as initial appointments; the Commission selects its chairperson by majority vote; and no federal employees may serve as members.

This section directs the Commission to submit two reports to the President and Congress within 18 months of its first meeting: (1) recommendations for a plan of action on the feasibility of establishing and maintaining a National Museum of Asian Pacific American History and Culture in Washington, DC, and its environs; and (2) analysis of issues including collections availability and cost, impact on existing Asian Pacific American history museums, location criteria developed with the Smithsonian Institution, feasibility of Smithsonian affiliation (considering its facilities maintenance backlog, storage needs, and construction or renovation costs), governance structure, best practices for Asian Pacific American engagement, and construction, operation, and maintenance costs. The section further directs the Commission to (1) develop a fundraising plan relying on public contributions for establishment, operation, and perpetual maintenance without federal funds; (2) obtain an independent review of the plan's viability; (3) submit the plan and review to specified House and Senate committees; and (4) submit legislative recommendations for a plan of action to those committees based on the reports. Additionally, the section authorizes the Commission to convene a national conference on the Museum within 18 months of initial member appointments.

This section establishes administrative provisions for the Commission, including (1) requiring members to serve without pay (but allowing travel per diem under 5 U.S.C. ch. 57, subch. I), deeming members and staff non-federal employees, authorizing acceptance of gifts, and exempting the Commission from the Federal Advisory Committee Act; (2) terminating the Commission 30 days after submission of required reports; (3) prohibiting use of federal funds and requiring self-funding through contributions; and (4) authorizing employment of an executive director and staff at pay rates consistent with those for temporary organizations under 5 U.S.C. § 3161 (i.e., up to the maximum Senior Executive Service rate for executive positions and up to GS-15, or higher in exceptional cases, for other positions), with agencies permitted to provide technical assistance but prohibited from detailing employees.

This section states congressional findings concerning the critical role of semiconductors in the U.S. economy and national security; supply chain shortages exacerbated by the COVID-19 pandemic; the need to onshore, reshore, or diversify vulnerable segments such as fabrication, advanced packaging, and manufacturing materials and equipment; and the potential of the SelectUSA program to attract foreign direct investment to bolster domestic production.

This section directs the Executive Director of SelectUSA—not later than 180 days after enactment—to solicit comments from state-level economic development organizations (1) to review federal efforts to support foreign direct investment in semiconductor-related production, barriers to such investment and ways to amplify state efforts, publicly identified opportunities for such investment, and resource gaps or challenges; and (2) to develop recommendations for SelectUSA to increase such investment independently or in partnership with those organizations and to work with U.S. allies or partners to ensure foreign adversaries (as defined in 47 U.S.C. 1607(c)(2)) do not benefit.

This section directs the Executive Director of SelectUSA, in coordination with the Federal Interagency Investment Working Group, 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 revises subsection (f) of section 2008 of the Homeland Security Act of 2002 to establish a uniform review process and specified factors for the DHS Administrator to approve State Homeland Security Grant Program (SHSGP) or Urban Area Security Initiative (UASI) recipients' purchase of equipment or systems that do not meet or exceed applicable national voluntary consensus standards developed under section 647 of the Post-Katrina Emergency Management Reform Act of 2006 (i.e., standards for emergency communications interoperability). (1) Factors include current or past federal or military use of the equipment, absence of a U.S. standard, existence of an international standard, identified capability gaps and how the equipment addresses them, superiority over compliant alternatives, and other relevant factors. (2) It adds a new subsection (g) requiring a uniform review process for equipment or systems not included on the DHS Authorized Equipment List. This section also 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 states congressional findings regarding NASA's enhanced use leasing authority for non-excess, underutilized real properties and facilities. The findings recognize that NASA uses this authority to enter into leases with private entities, state and local governments, academic institutions, and other federal agencies; to improve property management, mission-compatible uses, and cost reductions; that in FY2019 NASA leased 65 properties and collected $10,843,025.77 in net revenue (a portion of which funded facility repairs such as lighting and HVAC); and that such leasing can help reduce the rate of increase in NASA's deferred maintenance costs.

This section directs each standing committee of the House of Representatives to hold a hearing on the implementation of this Act within one year of enactment.

This section revises clause 21 of rule XXIII of the Rules of the House of Representatives (Code of Official Conduct) to prohibit a Member, Delegate, Resident Commissioner, officer, or employee from knowingly and willfully publicly disclosing the identity or personally identifiable information of an individual who reports allegations of wrongdoing, including retaliation, under the Civil Service Reform Act of 1978, Whistleblower Protection Act of 1989, Intelligence Community Whistleblower Protection Act of 1998, or other federal whistleblower protection laws. The prohibition does not apply if (1) the individual provides express written consent; (2) the individual has voluntarily publicly disclosed their identity; or (3) the committee chair discloses after a two-thirds committee vote that it is in the public interest. The revision also permits investigations of reported wrongdoing and public disclosure of non-personally identifiable substantive information, and it requires safeguards—including timely advance notice and a written explanation—for disclosures under exception (3).

This section directs the Chairman of the Federal Maritime Commission to enter into an agreement with a federally funded research and development center, not later than 90 days after 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 of those ports over the past 10 years and announced changes in 2025-2026; (2) identify instances and cumulative ownership by Chinese or Russian entities or nationals, and by any foreign entities; (3) determine amounts of Port Infrastructure Development Grant funds since FY2018 and Port Security Grant funds since FY2003 awarded to wholly or partially foreign-owned ports and terminals; and (4) describe foreign operational control where ownership exists. It must also provide recommendations on (1) port and terminal operator policies to prevent excessive foreign ownership threatening U.S. economic security; (2) whether such ownership provides access to unique U.S. operational technology and information; and (3) effects on supply chains and cargo prioritization policies. 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 compliance 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 monthly to tiered requirements based on the credit union's status and ratings under the Uniform Financial Institutions Rating System (UFIRS) (i.e., CAMELS ratings assessing capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to risk). The board must meet (1) not less frequently than monthly during the first five years for de novo (newly chartered) credit unions; (2) not less than six times annually, with at least one meeting per fiscal quarter, for credit unions with composite and management capability ratings of 1 or 2; or (3) not less frequently than monthly for credit unions with a composite rating of 3, 4, or 5 or a management capability rating of 3, 4, or 5. (Thus, well-rated credit unions may meet less frequently than under current law.)