H.R. 4718

119 HR 4718 IH: Helping Young Americans Save for Retirement Act
 U.S. House of Representatives
 2025-07-23
 text/xml
 EN
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 I  119th CONGRESS  1st Session  H. R. 4718  IN THE HOUSE OF REPRESENTATIVES   July 23, 2025   Ms. Pettersen  (for herself and  Mr. Rulli ) introduced the following bill; which was referred to the  Committee on Ways and Means , and in addition to the Committee on  Education and Workforce , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned   A BILL
To amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 with respect to minimum participation standards for pension plans and qualified trusts.
1.
Short title
This Act may be cited as the   Helping Young Americans Save for Retirement Act  .
2.
Eligibility at age 18 under certain conditions
(a)
ERISA
(1)
Age 18
Subparagraphs (A) and (B) of section 202(c)(1) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1052(c)(1) ) are amended to read as follows:
(A)
the period permitted under subsection (a)(1), determined—
(i)
without regard to subparagraph (B)(i) thereof; and
(ii)
by substituting  18  for  21  in subparagraph (A)(i) thereof; or
(B)
the first 24-month period—
(i)
consisting of 2 consecutive 12-month periods during each of which the employee has at least 500 hours of service; and
(ii)
by the close of which the employee has met the requirement of subsection (a)(1)(A)(i) (without regard to subparagraph (A)(ii) of this paragraph).
 .
(2)
Conforming amendments
Section 202(c) of such Act ( 29 U.S.C. 1052(c) ) is amended—
(A)
in the subsection heading—
(i)
by striking
Special rule   and inserting
Special rules  ; and
(ii)
by adding
and certain younger employees   after
employees  ; and
(B)
in paragraph (3)—
(i)
by striking  paragraph (1)(B)  and inserting  paragraph (1) ; and
(ii)
by striking  section 401(k)(2)(D)(ii)  and inserting  section 401(k)(2)(D) .
(3)
Opinion of independent qualified public accountant
Section 104(a)(2) of such Act ( 29 U.S.C. 1024(a)(2) ) is amended by adding at the end the following:
(C)
For purposes of subparagraph (A) and the last sentence of section 103(a)(3)(A), with respect to a pension plan in which at least one employee participates solely by reason of section 202(c)(1)(A), no employee participating in such plan solely by reason of section 202(c)(1)(A) shall be counted as a participant until the date that is 5 years after the date on which the first such employee first becomes a participant in such plan.
 .
(b)
Internal Revenue Code of 1986
(1)
Age 18
Clauses (i) and (ii) of  section 401(k)(2)(D)  of the Internal Revenue Code of 1986 are amended to read as follows:
(i)
the period permitted under section 410(a)(1), determined—
(I)
without regard to subparagraph (B)(i) thereof, and
(II)
by substituting  18  for  21  in subparagraph (A)(i) thereof, or
(ii)
subject to the provisions of paragraph (15), the first of 2 consecutive 12-month periods during each of which the employee has at least 500 hours of service, provided that the employee has satisfied the requirements of section 410(a)(1)(A)(i) (without regard to clause (i)(II) of this subparagraph).
 .
(2)
Conforming amendments
The Internal Revenue Code of 1986 is amended—
(A)
in section 401(k)(15)—
(i)
in the paragraph heading, by adding
and certain younger workers   after
workers  ; and
(ii)
in subparagraph (B)—
(I)
in clauses (i) and (ii), by striking  (2)(D)(ii)  each place it appears and inserting  (2)(D) ;
(II)
in clause (i), by striking  202(c)(1)(B)  and inserting  202(c)(1) ; and
(III)
in clause (iv), striking  paragraph (2)(D)(ii)  and inserting  clauses (i)(II) and (ii) of paragraph (2)(D) ; and
(B)
in section 403(b)(12)—
(i)
in subparagraph (A), by striking  section 202(c)  and inserting  section 202(c)(1)(B) ; and
(ii)
in subparagraph (D)—
(I)
in the subparagraph heading, by inserting
and certain younger employees   after
employees  ; and
(II)
in clause (i), by striking  202(c)(1)(B)  and adding  202(c)(1) .
(c)
Application
The amendments made by this section shall apply to plan years beginning on or after the date that is 1 year after the date of enactment of this Act.