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(A) In this paragraph—(i) the term affected individual means an individual covered under this subchapter who—(I) is performing service in a covered position;(II) while on duty, becomes ill or is injured as a direct result of the performance of such duties before the date on which the individual becomes entitled to an annuity under paragraph (1) of this subsection or subsection (e), (m), or (n), as applicable;(III) because of the illness or injury described in subclause (II), is permanently unable to render useful and efficient service in the employee’s covered position, as determined by the agency in which the individual was serving when such individual incurred the illness or injury; and(IV) is appointed to a position in the civil service that—(aa) is not a covered position; and(bb) is within an agency that regularly appoints individuals to supervisory or administrative positions related to the activities of the former covered position of the individual;(ii) the term covered position means a position as a law enforcement officer, customs and border protection officer, firefighter, air traffic controller, nuclear materials courier, member of the Capitol Police, or member of the Supreme Court Police.(B) Unless an affected individual files an election described in subparagraph (E), creditable service by the affected individual in a position described in subparagraph (A)(i)(IV) shall be treated as creditable service in a covered position for purposes of this chapter and determining the amount to be deducted and withheld from the pay of the affected individual under section 8334.(C) Subparagraph (B) shall only apply if the affected employee transitions to a position described in subparagraph (A)(i)(IV) without a break in service exceeding 3 days.(D) The service of an affected individual shall no longer be eligible for treatment under subparagraph (B) if such service occurs after the individual—(i) is transferred to a supervisory or administrative position related to the activities of the former covered position of the individual; or(ii) meets the age and service requirements that would subject the individual to mandatory separation under section 8335 if such individual had remained in the former covered position.(E) In accordance with procedures established by the Director of the Office of Personnel Management, an affected individual may file an election to have any creditable service performed by the affected individual treated in accordance with this chapter without regard to subparagraph (B).(F) Nothing in this paragraph shall be construed to apply to such affected individual any other pay-related laws or regulations applicable to a covered position.(3)
(A) In this paragraph—(i) the term affected individual means an individual covered under this chapter who—(I) is performing service in a covered position;(II) while on duty, becomes ill or is injured as a direct result of the performance of such duties before the date on which the individual becomes entitled to an annuity under paragraph (1) of this subsection or subsection (e), as applicable;(III) because of the illness or injury described in subclause (II), is permanently unable to render useful and efficient service in the employee’s covered position, as determined by the agency in which the individual was serving when such individual incurred the illness or injury; and(IV) is appointed to a position in the civil service that—(aa) is not a covered position; and(bb) is within an agency that regularly appoints individuals to supervisory or administrative positions related to the activities of the former covered position of the individual;(ii) the term covered position means a position as a law enforcement officer, customs and border protection officer, firefighter, air traffic controller, nuclear materials courier, member of the Capitol Police, or member of the Supreme Court Police.(B) Unless an affected individual files an election described in subparagraph (E), creditable service by the affected individual in a position described in subparagraph (A)(i)(IV) shall be treated as creditable service in a covered position for purposes of this chapter and determining the amount to be deducted and withheld from the pay of the affected individual under section 8422.(C) Subparagraph (B) shall only apply if the affected employee transitions to a position described in subparagraph (A)(i)(IV) without a break in service exceeding 3 days.(D) The service of an affected individual shall no longer be eligible for treatment under subparagraph (B) if such service occurs after the individual—(i) is transferred to a supervisory or administrative position related to the activities of the former covered position of the individual; or(ii) meets the age and service requirements that would subject the individual to mandatory separation under section 8425 if such individual had remained in the former covered position.(E) In accordance with procedures established by the Director of the Office of Personnel Management, an affected individual may file an election to have any creditable service performed by the affected individual treated in accordance with this chapter without regard to subparagraph (B).(F) Nothing in this paragraph shall be construed to apply to such affected individual any other pay-related laws or regulations applicable to a covered position.(2)
(d) Employees disabled on duty
(1) Definitions
In this subsection—(A) the term affected employee means an employee of the Agency covered under subchapter II of chapter 84 of title 5, United States Code, who—(i) is performing service in a position designated under subsection (a);(ii) while on duty in the position designated under subsection (a), becomes ill or is injured as a direct result of the performance of such duties before the date on which the employee becomes entitled to an annuity under section 233 of this Act or section 8412(d)(1) of title 5, United States Code;(iii) because of the illness or injury described in clause (ii), is permanently unable to render useful and efficient service in the employee’s covered position, as determined by the Director; and(iv) is appointed to a position in the civil service that is not a covered position but is within the Agency; and(B) the term covered position means a position as—(i) a law enforcement officer described in section 8331(20) or 8401(17) of title 5, United States Code;(ii) a customs and border protection officer described in section 8331(31) or 8401(36) of title 5, United States Code;(iii) a firefighter described in section 8331(21) or 8401(14) of title 5, United States Code;(iv) an air traffic controller described in section 8331(30) or 8401(35) of title 5, United States Code;(v) a nuclear materials courier described in section 8331(27) or 8401(33) of title 5, United States Code;(vi) a member of the United States Capitol Police;(vii) a member of the Supreme Court Police;(viii) an affected employee; or(ix) a special agent described in section 804(15) of the Foreign Service Act of 1980 (22 U.S.C. 4044(15)).(2) Treatment of service after disability
Unless an affected employee files an election described in paragraph (3), creditable service by the affected employee in a position described in paragraph (1)(A)(iv) shall be treated as creditable service in a covered position for purposes of this Act and chapter 84 of title 5, United States Code, including eligibility for an annuity under section 233 of this Act or 8412(d)(1) of title 5, United States Code, and determining the amount to be deducted and withheld from the pay of the affected employee under section 8422 of title 5, United States Code.(3) Break in service
Paragraph (2) shall only apply if the affected employee transitions to a position described in paragraph (1)(A)(iv) without a break in service exceeding 3 days.(4) Limitation on treatment of service
The service of an affected employee shall no longer be eligible for treatment under paragraph (2) if such service occurs after the employee is transferred to a supervisory or administrative position related to the activities of the former covered position of the employee.(5) Opt out
An affected employee may file an election to have any creditable service performed by the affected employee treated in accordance with chapter 84 of title 5, United States Code, without regard to paragraph (2).
(i) In this subparagraph—(I) the term affected special agent means an individual covered under this subchapter who—(aa) is performing service as a special agent;(bb) while on duty as a special agent, becomes ill or is injured as a direct result of the performance of such duties before the date on which the individual becomes entitled to an annuity under section 811;(cc) because of the illness or injury described in item (bb), is permanently unable to render useful and efficient service in the employee’s covered position, as determined by the Secretary; and(dd) is appointed to a position in the Foreign Service that is not a covered position; and(II) the term covered position means a position as—(aa) a law enforcement officer described in section 8331(20) or 8401(17) of title 5, United States Code;(bb) a customs and border protection officer described in section 8331(31) or 8401(36) of title 5, United States Code;(cc) a firefighter described in section 8331(21) or 8401(14) of title 5, United States Code;(dd) an air traffic controller described in section 8331(30) or 8401(35) of title 5, United States Code;(ee) a nuclear materials courier described in section 8331(27) or 8401(33) of title 5, United States Code;(ff) a member of the United States Capitol Police;(gg) a member of the Supreme Court Police;(hh) an employee of the Agency designated under section 302(a) of the Central Intelligence Agency Retirement Act (50 U.S.C. 2152(a)); or(ii) a special agent.(ii) Unless an affected special agent files an election described in clause (iv), creditable service by the affected special agent in a position described in clause (i)(I)(dd) shall be treated as creditable service as a special agent for purposes of this subchapter, including determining the amount to be deducted and withheld from the pay of the individual under section 805.(iii) Clause (ii) shall only apply if the special agent transitions to a position described in clause (i)(I)(dd) without a break in service exceeding 3 days.(iv) The service of an affected employee shall no longer be eligible for treatment under clause (ii) if such service occurs after the employee is transferred to a supervisory or administrative position related to the activities of the former covered position of the employee.(v) In accordance with procedures established by the Secretary, an affected special agent may file an election to have any creditable service performed by the affected special agent treated in accordance with this subchapter, without regard to clause (ii).(D)
414A. Requirements related to automatic enrollment
(a) In general
Except as otherwise provided in this section—(1) an arrangement shall not be treated as a qualified cash or deferred arrangement described in section 401(k) unless such arrangement meets the automatic enrollment requirements of subsection (b), and(2) an annuity contract otherwise described in section 403(b)(1) which is purchased under a salary reduction agreement shall not be treated as described in such section unless such agreement meets the automatic enrollment requirements of subsection (b).(b) Automatic enrollment requirements
(1) In general
An arrangement or agreement meets the requirements of this subsection if such arrangement or agreement is an eligible automatic contribution arrangement (as defined in section 414(w)(3)) which meets the requirements of paragraphs (2) through (4).(2) Allowance of permissible withdrawals
An eligible automatic contribution arrangement meets the requirements of this paragraph if such arrangement allows employees to make permissible withdrawals (as defined in section 414(w)(2)).(3) Minimum contribution percentage
(A) In general
An eligible automatic contribution arrangement meets the requirements of this paragraph if—(i) the uniform percentage of compensation contributed by the participant under such arrangement during the first year of participation is not less than 3 percent and not more than 10 percent (unless the participant specifically elects not to have such contributions made or to have such contributions made at a different percentage), and(ii) effective for the first day of each plan year starting after each completed year of participation under such arrangement such uniform percentage is increased by 1 percentage point (to at least 10 percent, but not more than 15 percent) unless the participant specifically elects not to have such contributions made or to have such contributions made at a different percentage.(B) Initial reduced ceiling for certain plans
In the case of any eligible automatic contribution arrangement (other than an arrangement that meets the requirements of paragraph (12) or (13) of section 401(k)), for plan years ending before January 1, 2027, subparagraph (A)(ii) shall be applied by substituting “10 percent” for “15 percent”.(4) Investment requirements
An eligible automatic contribution arrangement meets the requirements of this paragraph if amounts contributed pursuant to such arrangement, and for which no investment is elected by the participant, are invested in accordance with the requirements of section 2550.404c-5 of title 29, Code of Federal Regulations (or any successor regulations).(c) Exceptions
For purposes of this section—(1) Simple plans
Subsection (a) shall not apply to any simple plan (within the meaning of section 401(k)(11)).(2) Exception for plans or arrangements established before enactment of section
(A) In general
Subsection (a) shall not apply to—(i) any qualified cash or deferred arrangement established before the date of the enactment of this section, or(ii) any annuity contract purchased under a plan established before the date of the enactment of this section.(B) Post-enactment adoption of multiple employer plan
Subparagraph (A) shall not apply in the case of an employer adopting after such date of enactment a plan maintained by more than one employer, and subsection (a) shall apply with respect to such employer as if such plan were a single plan.(3) Exception for governmental and church plans
Subsection (a) shall not apply to any governmental plan (within the meaning of section 414(d)) or any church plan (within the meaning of section 414(e)).(4) Exception for new and small businesses
(A) New business
Subsection (a) shall not apply to any qualified cash or deferred arrangement, or any annuity contract purchased under a plan, while the employer maintaining such plan (and any predecessor employer) has been in existence for less than 3 years.(B) Small businesses
Subsection (a) shall not apply to any qualified cash or deferred arrangement, or any annuity contract purchased under a plan, earlier than the date that is 1 year after the close of the first taxable year with respect to which the employer maintaining the plan normally employed more than 10 employees.(C) Treatment of multiple employer plans
In the case of a plan maintained by more than 1 employer, subparagraphs (A) and (B) shall be applied separately with respect to each such employer, and all such employers to which subsection (a) applies (after the application of this paragraph) shall be treated as maintaining a separate plan for purposes of this section.
Sec. 414A. Requirements related to automatic enrollment.
(4) Increased credit for certain small employers
In the case of an employer which would be an eligible employer under subsection (c) if section 408(p)(2)(C)(i) was applied by substituting “50 employees” for “100 employees”, subsection (a) shall be applied by substituting “100 percent” for “50 percent”.
(f) Additional credit for employer contributions by certain eligible employers
(1) In general
In the case of an eligible employer, the credit allowed for the taxable year under subsection (a) (determined without regard to this subsection) shall be increased by an amount equal to the applicable percentage of employer contributions (other than any elective deferrals (as defined in section 402(g)(3)) by the employer to an eligible employer plan (other than a defined benefit plan (as defined in section 414(j))).(2) Limitations
(A) Dollar limitation
The amount determined under paragraph (1) (before the application of subparagraph (B)) with respect to any employee of the employer shall not exceed $1,000.(B) Credit phase-in
In the case of any eligible employer which had for the preceding taxable year more than 50 employees, the amount determined under paragraph (1) (without regard to this subparagraph) shall be reduced by an amount equal to the product of—(i) the amount otherwise so determined under paragraph (1), multiplied by(ii) a percentage equal to 2 percentage points for each employee of the employer for the preceding taxable year in excess of 50 employees.(3) Applicable percentage
For purposes of this section, the applicable percentage for the taxable year during which the eligible employer plan is established with respect to the eligible employer shall be 100 percent, and for taxable years thereafter shall be determined under the following table:In the case of the following taxable year beginning after the taxable year during which plan is established with respect to the eligible employer:The applicable percentage shall be:1st100%2nd75%3rd50%4th25%Any taxable year thereafter0%(4) Determination of eligible employer; number of employees
For purposes of this subsection, whether an employer is an eligible employer and the number of employees of an employer shall be determined under the rules of subsection (c), except that paragraph (2) thereof shall only apply to the taxable year during which the eligible employer plan to which this section applies is established with respect to the eligible employer.
(2) Disallowance of deduction
No deduction shall be allowed—(A) for that portion of the qualified startup costs paid or incurred for the taxable year which is equal to so much of the portion of the credit determined under subsection (a) as is properly allocable to such costs, and(B) for that portion of the employer contributions by the employer for the taxable year which is equal to so much of the credit increase determined under subsection (f) as is properly allocable to such contributions.
(b) Limitation
For purposes of this section—(1) In general
The amount of credit allowable under subsection (a) (determined without regard to this subsection) shall be reduced (but not below zero) by an amount which bears the same ratio to the credit otherwise so allowable as—(A) the excess (if any) of—(i) adjusted gross income of the taxpayer, over(ii) the threshold amount, bears to(B) the phaseout amount.(2) Threshold amount
The term threshold amount means—(A) in the case of a joint return or a surviving spouse (as defined in section 2(a)), $48,000,(B) in the case of a head of household, 75 percent of the amount in effect for the taxable year under subparagraph (A), and(C) in the case of any other individual, 50 percent of the amount in effect for the taxable year under subparagraph (A).(3) Phaseout amount
The term phaseout amount means—(A) in the case of a joint return or a surviving spouse (as defined in 2(a)), $35,000,(B) in the case of a head of household (as defined in section 2(b)), 75 percent of the amount in effect for the taxable year under subparagraph (A), and(C) in the case of any other individual, 50 percent of the amount in effect for the taxable year under subparagraph (A).(4) Inflation adjustment
(A) In general
In the case of any taxable year beginning in a calendar year after 2028, the $48,000 dollar amount in paragraph (2) and the $35,000 in paragraph (3) shall each be increased by an amount equal to—(i) such dollar amount, multiplied by(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2024” for “calendar year 2016” in subparagraph (A)(ii) thereof.(B) Rounding
Any increase determined under subparagraph (A) that is not a multiple of $500 shall be rounded to the nearest multiple of $500.
(v) Applicable age
(I) In the case of an individual who attains age 72 after December 31, 2024, and age 73 before January 1, 2032, the applicable age is 73.(II) In the case of an individual who attains age 73 after December 31, 2031, and age 74 before January 1, 2035, the applicable age is 74.(III) In the case of an individual who attains age 74 after December 31, 2034, the applicable age is 75.
(iii) Indexing of catch-up limitation
In the case of any taxable year beginning in a calendar year after 2025, the $1,000 amount under subparagraph (B)(ii) shall be increased by an amount equal to—(I) such dollar amount, multiplied by(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2024” for “calendar year 2016” in subparagraph (A)(ii) thereof.If any amount after adjustment under the preceding sentence is not a multiple of $100, such amount shall be rounded to the next lower multiple of $100.
(ii) designate a named fiduciary (other than an employer in the plan) to be responsible for collecting contributions to the plan and require such fiduciary to implement written contribution collection procedures that are reasonable, diligent, and systematic;
(15) Multiple employer plans
(A) In general
Except in the case of a church plan, this subsection shall not be treated as failing to apply to an annuity contract solely by reason of such contract being purchased under a plan maintained by more than 1 employer.(B) Treatment of employers failing to meet requirements of plan
(i) In general
In the case of a plan maintained by more than 1 employer, this subsection shall not be treated as failing to apply to an annuity contract held under such plan merely because of one or more employers failing to meet the requirements of this subsection if such plan satisfies rules similar to the rules of section 413(e)(2) with respect to any such employer failure.(ii) Additional requirements in case of non-governmental plans
A plan shall not be treated as meeting the requirements of this subparagraph unless the plan satisfies rules similar to the rules of subparagraph (A) or (B) of section 413(e)(1), except in the case of a multiple employer plan maintained solely by any of the following: A State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing.
(g) 403(b) multiple employer plans treated as one plan
In the case of annuity contracts to which this section applies and to which section 403(b) applies by reason of the plan under which such contracts are purchased meeting the requirements of paragraph (15) thereof, such plan shall be treated as a single plan for purposes of this section.
(f) 403(b) multiple employer plans treated as one plan
In the case of annuity contracts to which this section applies and to which section 403(b) applies by reason of the plan under which such contracts are purchased meeting the requirements of paragraph (15) thereof, such plan shall be treated as a single plan for purposes of this section.
(iii) subject to the requirements of paragraph (13), any employer contribution made to a defined contribution plan on behalf of an employee on account of a qualified student loan payment.
(D) Qualified student loan payment
The term qualified student loan payment means a payment made by an employee in repayment of a qualified education loan (as defined section 221(d)(1)) incurred by the employee to pay qualified higher education expenses, but only—(i) to the extent such payments in the aggregate for the year do not exceed an amount equal to—(I) the limitation applicable under section 402(g) for the year (or, if lesser, the employee’s compensation (as defined in section 415(c)(3)) for the year), reduced by(II) the elective deferrals made by the employee for such year, and(ii) if the employee certifies to the employer making the matching contribution under this paragraph that such payment has been made on such loan.For purposes of this subparagraph, the term qualified higher education expenses means the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997) at an eligible educational institution (as defined in section 221(d)(2)).
(13) Matching contributions for qualified student loan payments
(A) In general
For purposes of paragraph (4)(A)(iii), an employer contribution made to a defined contribution plan on account of a qualified student loan payment shall be treated as a matching contribution for purposes of this title if—(i) the plan provides matching contributions on account of elective deferrals at the same rate as contributions on account of qualified student loan payments,(ii) the plan provides matching contributions on account of qualified student loan payments only on behalf of employees otherwise eligible to receive matching contributions on account of elective deferrals,(iii) under the plan, all employees eligible to receive matching contributions on account of elective deferrals are eligible to receive matching contributions on account of qualified student loan payments, and(iv) the plan provides that matching contributions on account of qualified student loan payments vest in the same manner as matching contributions on account of elective deferrals.(B) Treatment for purposes of nondiscrimination rules, etc
(i) Nondiscrimination rules
For purposes of subparagraph (A)(iii), subsection (a)(4), and section 410(b), matching contributions described in paragraph (4)(A)(iii) shall not fail to be treated as available to an employee solely because such employee does not have debt incurred under a qualified education loan (as defined in section 221(d)(1)).(ii) Student loan payments not treated as plan contribution
Except as provided in clause (iii), a qualified student loan payment shall not be treated as a contribution to a plan under this title.(iii) Matching contribution rules
Solely for purposes of meeting the requirements of paragraph (11)(B) or (12) of this subsection, or paragraph (11)(B)(i)(II), (12)(B), or (13)(D) of subsection (k), a plan may treat a qualified student loan payment as an elective deferral or an elective contribution, whichever is applicable.(iv) Actual deferral percentage testing
In determining whether a plan meets the requirements of subsection (k)(3)(A)(ii) for a plan year, the plan may apply the requirements of such subsection separately with respect to all employees who receive matching contributions described in paragraph (4)(A)(iii) for the plan year.(C) Employer may rely on employee certification
The employer may rely on an employee certification of payment under paragraph (4)(D)(ii).
(F) Matching contributions for qualified student loan payments
(i) In general
Subject to the rules of clause (iii), an arrangement shall not fail to be treated as meeting the requirements of subparagraph (A)(iii) solely because under the arrangement, solely for purposes of such subparagraph, qualified student loan payments are treated as amounts elected by the employee under subparagraph (A)(i)(I) to the extent such payments do not exceed—(I) the applicable dollar amount under subparagraph (E) (after application of section 414(v)) for the year (or, if lesser, the employee’s compensation (as defined in section 415(c)(3)) for the year), reduced by(II) any other amounts elected by the employee under subparagraph (A)(i)(I) for the year.(ii) Qualified student loan payment
For purposes of this subparagraph—(I) In general
The term qualified student loan payment means a payment made by an employee in repayment of a qualified education loan (as defined in section 221(d)(1)) incurred by the employee to pay qualified higher education expenses, but only if the employee certifies to the employer making the matching contribution that such payment has been made on such a loan.(II) Qualified higher education expenses
The term qualified higher education expenses has the same meaning as when used in section 401(m)(4)(D).(iii) Applicable rules
Clause (i) shall apply to an arrangement only if, under the arrangement—(I) matching contributions on account of qualified student loan payments are provided only on behalf of employees otherwise eligible to elect contributions under subparagraph (A)(i)(I), and(II) all employees otherwise eligible to participate in the arrangement are eligible to receive matching contributions on account of qualified student loan payments.
45U. Military spouse retirement plan eligibility credit for small employers
(a) In general
For purposes of section 38, in the case of any eligible small employer, the military spouse retirement plan eligibility credit determined under this section for any taxable year is an amount equal to the sum of—(1) $250 with respect to each military spouse who is an employee of such employer and who is eligible to participate in an eligible defined contribution plan of such employer at any time during such taxable year, plus(2) so much of the contributions made by such employer to all such plans with respect to such employee during such taxable year as do not exceed $250.(b) Limitation
An individual shall only be taken into account as a military spouse under subsection (a) for the taxable year which includes the date on which such individual began participating in the eligible defined contribution plan of the employer and the 2 succeeding taxable years.(c) Eligible small employer
For purposes of this section—(1) In general
The term eligible small employer means an eligible employer (as defined in section 408(p)(2)(C)(i)(I)).(2) Application of 2-year grace period
A rule similar to the rule of section 408(p)(2)(C)(i)(II) shall apply for purposes of this section.(d) Military spouse
For purposes of this section—(1) In general
The term military spouse means, with respect to any employer, any individual who is married (within the meaning of section 7703 as of the first date that the employee is employed by the employer) to an individual who is a member of the uniformed services (as defined section 101(a)(5) of title 10, United States Code). For purposes of this section, an employer may rely on an employee’s certification that such employee’s spouse is a member of the uniformed services if such certification provides the name, rank, and service branch of such spouse.(2) Exclusion of highly compensated employees
With respect to any employer, the term military spouse shall not include any individual if such individual is a highly compensated employee of such employer (within the meaning of section 414(q)).(e) Eligible defined contribution plan
For purposes of this section, the term eligible defined contribution plan means, with respect to any eligible small employer, any defined contribution plan (as defined in section 414(i)) of such employer if, under the terms of such plan—(1) military spouses employed by such employer are eligible to participate in such plan not later than the date which is 2 months after the date on which such individual begins employment with such employer, and(2) military spouses who are eligible to participate in such plan—(A) are immediately eligible to receive an amount of employer contributions under such plan which is not less the amount of such contributions that a similarly situated participant who is not a military spouse would be eligible to receive under such plan after 2 years of service, and(B) immediately have a nonforfeitable right to the employee’s accrued benefit derived from employer contributions under such plan.(f) Aggregation rule
All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as one employer for purposes of this section.
(34) in the case of an eligible small employer (as defined in section 45U(c)), the military spouse retirement plan eligibility credit determined under section 45U(a).
(F) section 45U (military spouse retirement plan eligibility credit),
Sec. 45U. Military spouse retirement plan eligibility credit for small employers.
(24) the provision of a de minimis financial incentive described in section 401(k)(4)(A).
(21) The provision of a de minimis financial incentive described in section 401(k)(4)(A) or section 403(b)(12)(A) of the Internal Revenue Code of 1986.
(aa) Correcting automatic contribution errors
(1) In general
Any plan or arrangement shall not fail to be treated as a plan described in sections 401(a), 403(b), 408, or 457(b), as applicable, solely by reason of a corrected error.(2) Corrected error defined
For purposes of this subsection, the term corrected error means a reasonable administrative error in implementing an automatic enrollment or automatic escalation feature in accordance with the terms of an eligible automatic contribution arrangement (as defined under subsection (w)(3)), provided that such implementation error—(A) is corrected by the date that is 9½ months after the end of the plan year during which the error occurred,(B) is corrected in a manner that is favorable to the participant, and(C) is of a type which is so corrected for all similarly situated participants in a nondiscriminatory manner.Such correction may occur before or after the participant has terminated employment and may occur without regard to whether the error is identified by the Secretary.(3) Regulations and guidance for favorable correction methods
The Secretary shall, by regulations or other guidance of general applicability, specify the correction methods that are in a manner favorable to the participant for purposes of paragraph (2)(B).
(c) Special rule for certain part-Time employees
(1) In general
A pension plan that includes either a qualified cash or deferred arrangement (as defined in section 401(k) of the Internal Revenue Code of 1986) or a salary reduction agreement (as described in section 403(b) of such Code) shall not require, as a condition of participation in the arrangement or agreement, that an employee complete a period of service with the employer (or employers) maintaining the plan extending beyond the close of the earlier of—(A) the period permitted under subsection (a)(1) (determined without regard to subparagraph (B)(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 attained the age of 21.(2) Exception
Paragraph (1)(B) shall not apply to any employee described in section 410(b)(3) of the Internal Revenue Code of 1986.(3) Coordination with other rules
(A) In general
In the case of employees who are eligible to participate in the arrangement or agreement solely by reason of paragraph (1)(B):(i) Exclusions
An employer may elect to exclude such employees from the application of subsections (a)(4), (k)(3), (k)(12), (k)(13), and (m)(2) of section 401 of the Internal Revenue Code of 1986 and section 410(b) of such Code.(ii) Nondiscrimination rules
Notwithstanding paragraph (1), section 401(k)(15)(B)(i)(I) of such Code shall apply.(iii) Time of participation
The rules of subsection (a)(4) shall apply to such employees.(B) Top-heavy rules
An employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of paragraph (1)(B) from the application of the vesting and benefit requirements under subsections (b) and (c) of section 416 of the Internal Revenue Code of 1986.(4) 12-month period
For purposes of this subsection, 12-month periods shall be determined in the same manner as under the last sentence of subsection (a)(3)(A), except that 12-month periods beginning before January 1, 2023, shall not be taken into account.
(4) Part-time employees
For purposes of determining whether an employee who is eligible to participate in a qualified cash or deferred arrangement or a salary reduction agreement under a plan solely by reason of section 202(c)(1)(B) has a nonforfeitable right to employer contributions—(A) except as provided in subparagraph (B), each 12-month period for which the employee has at least 500 hours of service shall be treated as a year of service; and(B) paragraph (3) shall be applied by substituting “at least 500 hours of service” for “more than 500 hours of service” in subparagraph (A) thereof.For purposes of this paragraph, 12-month periods shall be determined in the same manner as under the last sentence of section 202(a)(3)(A), except that 12-month periods beginning before January 1, 2023, shall not be taken into account.
(h) Application of section to sale of stock in s corporation
In the case of the sale of qualified securities of an S corporation, the election under subsection (a) may be made with respect to not more than 10 percent of the amount realized on such sale for purposes of determining the amount of gain not recognized and the extent to which (if at all) the amount realized on such sale exceeds the cost of qualified replacement property. The portion of adjusted basis that is properly allocable to the portion of the amount realized with respect to which the election is made under this subsection shall be taken into account for purposes of the preceding sentence.
(I) Esop rules relating to publicly traded securities
In the case of an applicable defined contribution plan which is an employee stock ownership plan, an employer security shall be treated as described in subparagraph (G)(v) if—(i) the security is the subject of priced quotations by at least 4 dealers, published and made continuously available on an interdealer quotation system (as such term is used in section 13 of the Securities Exchange Act of 1934) which has made the request described in section 6(j) of such Act to be treated as an alternative trading system,(ii) the security is not a penny stock (as defined by section 3(a)(51) of such Act),(iii) the security is issued by a corporation which is not a shell company (as such term is used in section 4(d)(6) of the Securities Act of 1933), a blank check company (as defined in section 7(b)(3) of such Act), or subject to bankruptcy proceedings,(iv) the security has a public float (as such term is used in section 240.12b-2 of title 17, Code of Federal Regulations) which has a fair market value of at least $1,000,000 and constitutes at least 10 percent of the total shares issued and outstanding.(v) in the case of a security issued by a domestic corporation, the issuer publishes, not less frequently than annually, financial statements audited by an independent auditor registered with the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002, and(vi) in the case of a security issued by a foreign corporation, the security is represented by a depositary share (as defined under section 240.12b-2 of title 17, Code of Federal Regulations), or is issued by a foreign corporation incorporated in Canada and readily tradeable on an established securities market in Canada, and the issuer—(I) is subject to, and in compliance with, the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)),(II) is subject to, and in compliance with, the reporting requirements of section 230.257 of title 17, Code of Federal Regulations, or(III) is exempt from such requirements under section 240.12g3–2(b) of title 17, Code of Federal Regulations.
(J) Certain increases in payments under a commercial annuity
Nothing in this section shall prohibit a commercial annuity (within the meaning of section 3405(e)(6)) that is issued in connection with any eligible retirement plan (within the meaning of section 402(c)(8)(B), other than a defined benefit plan) from providing one or more of the following types of payments on or after the annuity starting date:(i) annuity payments that increase by a constant percentage, applied not less frequently than annually, at a rate that is less than 5 percent per year,(ii) a lump sum payment that—(I) results in a shortening of the payment period with respect to an annuity or a full or partial commutation of the future annuity payments, provided that such lump sum is determined using reasonable actuarial methods and assumptions, as determined in good faith by the issuer of the contract, or(II) accelerates the receipt of annuity payments that are scheduled to be received within the ensuing 12 months, regardless of whether such acceleration shortens the payment period with respect to the annuity, reduces the dollar amount of benefits to be paid under the contract, or results in a suspension of annuity payments during the period being accelerated,(iii) an amount which is in the nature of a dividend or similar distribution, provided that the issuer of the contract determines such amount based on a reasonable comparison of the actuarial factors assumed when calculating the initial annuity payments and the issuer’s experience with respect to those factors, or(iv) a final payment upon death that does not exceed the excess of the total amount of the consideration paid for the annuity payments, less the aggregate amount of prior distributions or payments from or under the contract.
(h) Special rules applicable to benefit overpayments
(1) General rule
In the case of an inadvertent benefit overpayment by any pension plan, the responsible plan fiduciary shall not be considered to have failed to comply with the requirements of this title merely because such fiduciary determines, in the exercise of its fiduciary discretion, not to seek recovery of all or part of such overpayment from—(A) any participant or beneficiary,(B) any plan sponsor of, or contributing employer to—(i) an individual account plan, provided that the amount needed to prevent or restore any impermissible forfeiture from any participant’s or beneficiary’s account arising in connection with the overpayment is, separately from and independently of the overpayment, allocated to such account pursuant to the nonforfeitability requirements of section 203 (for example, out of the plan’s forfeiture account, additional employer contributions, or recoveries from those responsible for the overpayment), or(ii) a defined benefit pension plan subject to the funding rules in part 3 of this subtitle B, unless the responsible plan fiduciary determines, in the exercise of its fiduciary discretion, that failure to recover all or part of the overpayment faster than required under such funding rules would materially affect the plan’s ability to pay benefits due to other participants and beneficiaries, or(C) any fiduciary of the plan, other than a fiduciary (including a plan sponsor or contributing employer acting in a fiduciary capacity) whose breach of its fiduciary duties resulted in such overpayment, provided that if the plan has established prudent procedures to prevent and minimize overpayment of benefits and the relevant plan fiduciaries have followed such procedures, an inadvertent benefit overpayment will not give rise to a breach of fiduciary duty.(2) Reduction in future benefit payments and recovery from responsible party
Paragraph (1) shall not fail to apply with respect to any inadvertent benefit overpayment merely because, after discovering such overpayment, the responsible plan fiduciary—(A) reduces future benefit payments to the correct amount provided for under the terms of the plan, or(B) seeks recovery from the person or persons responsible for the overpayment.(3) Employer funding obligations
Nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to meet the minimum funding standards under part 3 of this subtitle B or to prevent or restore an impermissible forfeiture in accordance with section 203.(4) Recoupment from participants and beneficiaries
If the responsible plan fiduciary, in the exercise of its fiduciary discretion, decides to seek recoupment from a participant or beneficiary of all or part of an inadvertent benefit overpayment made by the plan to such participant or beneficiary, it may do so, subject to the following conditions:(A) No interest or other additional amounts (such as collection costs or fees) are sought on overpaid amounts for any period.(B) If the plan seeks to recoup past overpayments of a non-decreasing periodic benefit by reducing future benefit payments—(i) the reduction ceases after the plan has recovered the full dollar amount of the overpayment,(ii) the amount recouped each calendar year does not exceed 10 percent of the full dollar amount of the overpayment, and(iii) future benefit payments are not reduced to below 90 percent of the periodic amount otherwise payable under the terms of the plan.Alternatively, if the plan seeks to recoup past overpayments of a non-decreasing periodic benefit through one or more installment payments, the sum of such installment payments in any calendar year does not exceed the sum of the reductions that would be permitted in such year under the preceding sentence.(C) If the plan seeks to recoup past overpayments of a benefit other than a non-decreasing periodic benefit, the plan satisfies requirements developed by the Secretary for purposes of this subparagraph.(D) Efforts to recoup overpayments are—(i) not accompanied by threats of litigation, unless the responsible plan fiduciary reasonably believes it could prevail in a civil action brought in Federal or State court to recoup the overpayments, and(ii) not made through a collection agency or similar third party, unless the participant or beneficiary ignores or rejects efforts to recoup the overpayment following either a final judgment in Federal or State court or a settlement between the participant or beneficiary and the plan, in either case authorizing such recoupment.(E) Recoupment of past overpayments to a participant is not sought from any beneficiary of the participant, including a spouse, surviving spouse, former spouse, or other beneficiary.(F) Recoupment may not be sought if the first overpayment occurred more than 3 years before the participant or beneficiary is first notified in writing of the error.(G) A participant or beneficiary from whom recoupment is sought is entitled to contest all or part of the recoupment pursuant to the plan’s claims procedures.(H) In determining the amount of recoupment to seek, the responsible plan fiduciary may take into account the hardship that recoupment likely would impose on the participant or beneficiary.(5) Effect of culpability
Subparagraphs (A) through (F) of paragraph (4) shall not apply to protect a participant or beneficiary who is culpable. For purposes of this paragraph, a participant or beneficiary is culpable if the individual bears responsibility for the overpayment (such as through misrepresentations or omissions that led to the overpayment), or if the individual knew, or had good reason to know under the circumstances, that the benefit payment or payments were materially in excess of the correct amount. Notwithstanding the preceding sentence, an individual is not culpable merely because the individual believed the benefit payment or payments were or might be in excess of the correct amount, if the individual raised that question with an authorized plan representative and was told the payment or payments were not in excess of the correct amount. With respect to a culpable participant or beneficiary, efforts to recoup overpayments shall not be made through threats of litigation, unless a lawyer for the plan could make the representations required under Rule 11 of the Federal Rules of Civil Procedure if the litigation were brought in Federal court.
(bb) Special rules applicable to benefit overpayments
(1) In general
A plan shall not fail to be treated as described in clause (i), (ii), (iii), or (iv) of section 219(g)(5)(A) (and shall not fail to be treated as satisfying the requirements of section 401(a) or 403) merely because—(A) the plan fails to obtain payment from any participant, beneficiary, employer, plan sponsor, fiduciary, or other party on account of any inadvertent benefit overpayment made by the plan, or(B) the plan sponsor amends the plan to increase past or future benefit payments to affected participants and beneficiaries in order to adjust for prior inadvertent benefit overpayments.(2) Reduction in future benefit payments and recovery from responsible party
Paragraph (1) shall not fail to apply to a plan merely because, after discovering a benefit overpayment, such plan—(A) reduces future benefit payments to the correct amount provided for under the terms of the plan, or(B) seeks recovery from the person or persons responsible for such overpayment.(3) Employer funding obligations
Nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to meet the minimum funding standards under sections 412 and 430 or to prevent or restore an impermissible forfeiture in accordance with section 411.(4) Observance of benefit limitations
Notwithstanding paragraph (1), a plan to which paragraph (1) applies shall observe any limitations imposed on it by section 401(a)(17) or 415. The plan may enforce such limitations using any method approved by the Secretary of the Treasury for recouping benefits previously paid or allocations previously made in excess of such limitations.(5) Coordination with other qualification requirements
The Secretary of the Treasury may issue regulations or other guidance of general applicability specifying how benefit overpayments and their recoupment or non-recoupment from a participant or beneficiary shall be taken into account for purposes of satisfying any requirement applicable to a plan to which paragraph (1) applies.
(12) In the case of an inadvertent benefit overpayment from a plan to which section 414(bb)(1) applies that is transferred to an eligible retirement plan by or on behalf of a participant or beneficiary—(A) the portion of such overpayment with respect to which recoupment is not sought on behalf of the plan shall be treated as having been paid in an eligible rollover distribution if the payment would have been an eligible rollover distribution but for being an overpayment, and(B) the portion of such overpayment with respect to which recoupment is sought on behalf of the plan shall be permitted to be returned to such plan and in such case shall be treated as an eligible rollover distribution transferred to such plan by the participant or beneficiary who received such overpayment (and the plans making and receiving such transfer shall be treated as permitting such transfer).In any case in which recoupment is sought on behalf of the plan but is disputed by the participant or beneficiary who received such overpayment, such dispute shall be subject to the claims procedures of the plan that made such overpayment, such plan shall notify the plan receiving the rollover of such dispute, and the plan receiving the rollover shall retain such overpayment on behalf of the participant or beneficiary (and shall be entitled to treat such overpayment as plan assets) pending the outcome of such procedures.
(e) Reduction of tax in certain cases
(1) Reduction
In the case of a taxpayer who—(A) corrects, during the correction window, a shortfall of distributions from an individual retirement plan which resulted in imposition of a tax under subsection (a), and(B) submits a return, during the correction window, reflecting such tax (as modified by this subsection),the first sentence of subsection (a) shall be applied by substituting “10 percent” for “25 percent”.(2) Correction window
For purposes of this subsection, the term correction window means the period of time beginning on the date on which the tax under subsection (a) is imposed with respect to a shortfall of distributions from an individual retirement plan, and ending on the earlier of—(A) the date on which the Secretary initiates an audit, or otherwise demands payment, with respect to the shortfall of distributions, or(B) the last day of the second taxable year that begins after the end of the taxable year in which the tax under subsection (a) is imposed.
111. Eliminating unnecessary plan requirements related to unenrolled participants
(a) In general
Notwithstanding any other provision of this title, with respect to any individual account plan, no disclosure, notice, or other plan document (other than the notices and documents described in paragraphs (1) and (2)) shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives—(1) an annual reminder notice of such participant’s eligibility to participate in such plan and any applicable election deadlines under the plan; and(2) any document requested by such participant that the participant would be entitled to receive notwithstanding this section.(b) Unenrolled participant
For purposes of this section, the term unenrolled participant means an employee who—(1) is eligible to participate in an individual account plan;(2) has received—(A) the summary plan description pursuant to section 104(b); and(B) any other notices related to eligibility under the plan required to be furnished under this title, or the Internal Revenue Code of 1986, in connection with such participant’s initial eligibility to participate in such plan;(3) is not participating in such plan;(4) does not have an account balance in the plan; and(5) satisfies such other criteria as the Secretary of Labor may determine appropriate, as prescribed in guidance issued in consultation with the Secretary of Treasury.For purposes of this section, any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility.(c) Annual reminder notice
For purposes of this section, the term annual reminder notice means a notice provided in accordance with section 2520.104b–1 of title 29, Code of Federal Regulations (or any successor regulation), which—(1) is furnished in connection with the annual open season election period with respect to the plan or, if there is no such period, is furnished within a reasonable period prior to the beginning of each plan year;(2) notifies the unenrolled participant of—(A) the unenrolled participant’s eligibility to participate in the plan; and(B) the key benefits and rights under the plan, with a focus on employer contributions and vesting provisions; and(3) provides such information in a prominent manner calculated to be understood by the average participant.
Sec. 111. Eliminating unnecessary plan requirements related to unenrolled participants.Sec. 112. Repeal and effective date.
(cc) Eliminating unnecessary plan requirements related to unenrolled participants
(1) In general
Notwithstanding any other provision of this title, with respect to any defined contribution plan, no disclosure, notice, or other plan document (other than the notices and documents described in subparagraphs (A) and (B)) shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives—(A) an annual reminder notice of such participant’s eligibility to participate in such plan and any applicable election deadlines under the plan, and(B) any document requested by such participant that the participant would be entitled to receive notwithstanding this subsection.(2) Unenrolled participant
For purposes of this subsection, the term unenrolled participant means an employee who—(A) is eligible to participate in a defined contribution plan,(B) has received—(i) the summary plan description pursuant to section 104(b) of the Employee Retirement Income Security Act of 1974, and(ii) any other notices related to eligibility under the plan and required to be furnished under this title, or the Employee Retirement Income Security Act of 1974, in connection with such participant’s initial eligibility to participate in such plan,(C) is not participating in such plan,(D) does not have an account balance in the plan, and(E) satisfies such other criteria as the Secretary of the Treasury may determine appropriate, as prescribed in guidance issued in consultation with the Secretary of Labor.For purposes of this subsection, any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility.(3) Annual reminder notice
For purposes of this subsection, the term annual reminder notice means the notice described in section 111(c) of the Employee Retirement Income Security Act of 1974.
523. Retirement savings lost and found
(a) Establishment
(1) In general
Not later than 2 years after the date of the enactment of this section, the Secretary of Labor, in consultation with the Secretary of the Treasury, shall establish an online searchable database (to be managed by the Department of Labor in accordance with this section) to be known as the “Retirement Savings Lost and Found”. The Retirement Savings Lost and Found shall—(A) allow an individual to search for information that enables the individual to locate the administrator of any plan described in paragraph (2) with respect to which the individual is or was a participant or beneficiary, and provide contact information for the administrator of any such plan;(B) allow the Department of Labor to assist such an individual in locating any such plan of the individual; and(C) allow the Department of Labor to make any necessary changes to contact information on record for the administrator based on any changes to the plan due to merger or consolidation of the plan with any other plan, division of the plan into two or more plans, bankruptcy, termination, change in name of the plan, change in name or address of the administrator, or other causes.The Retirement Savings Lost and Found established under this paragraph shall include information reported under this section and other relevant information obtained by the Department of Labor.(2) Plans described
A plan described in this paragraph is a plan to which the vesting standards of section 203 apply.(b) Administration
The Retirement Savings Lost and Found established under subsection (a) shall provide individuals described in subsection (a)(1) only with the ability to search for information that enables the individual to locate the administrator and contact information for the administrator of any plan with respect to which the individual is or was a participant or beneficiary, sufficient to allow the individual to locate the individual’s plan in order to recover any benefit owing to the individual under the plan.(c) Safeguarding participant privacy and security
In establishing the Retirement Savings Lost and Found under subsection (a), the Department of Labor shall take all necessary and proper precautions to ensure that individuals’ plan information maintained by the Retirement Savings Lost and Found is protected.(d) Definition of administrator
For purposes of this section, the term administrator has the meaning given such term in section 3(16)(A).(e) Information collection from plans
Effective with respect to plan years beginning after the second December 31 occurring after the date of the enactment of this subsection, the administrator of a plan to which the vesting standards of section 203 apply shall submit to the Department of Labor, at such time and in such form and manner as is prescribed in regulations—(1) the information described in paragraphs (1) through (4) of section 6057(b) of the Internal Revenue Code of 1986;(2) the information described in subparagraphs (A) and (B) of section 6057(a)(2) of such Code;(3) the name and taxpayer identifying number of each participant or former participant in the plan—(A) who, during the current plan year or any previous plan year, was reported under section 6057(a)(2)(C) of such Code, and with respect to whom the benefits described in clause (ii) thereof were fully paid during the plan year;(B) with respect to whom any amount was distributed under section 401(a)(31)(B) of such Code during the plan year; or(C) with respect to whom a deferred annuity contract was distributed during the plan year;(4) in the case of a participant or former participant to whom paragraph (3) applies—(A) in the case of a participant described in subparagraph (B) thereof, the name and address of the designated trustee or issuer described in section 401(a)(31)(B)(i) of such Code and the account number of the individual retirement plan to which the amount was distributed; and(B) in the case of a participant described in subparagraph (C) thereof, the name and address of the issuer of such annuity contract and the contract or certificate number; and(5) such other information as the Secretary of Labor may require.(f) Information collection from federal agencies
On request, the Secretary of Labor may access and receive such information collected by other Federal agencies as may be necessary and appropriate to perform work related to the Retirement Savings Lost and Found.(g) Program integrity audit
On an annual basis for each of the first 5 years beginning one year after the establishment of the database in subsection (a)(1) and every 5 years thereafter, the Inspector General of the Department of Labor shall conduct an audit of the administration of the Retirement Savings Lost and Found.
Sec. 523.Retirement Savings Lost and Found.
(4) which provides that compensation—(A) in the case of an eligible employer described in subsection (e)(1)(A), will be deferred only if an agreement providing for such deferral has been entered into before the compensation is currently available to the individual, and(B) in any other case, will be deferred for any calendar month only if an agreement providing for such deferral has been entered into before the beginning of such month,
(F) One-time election for qualified charitable distribution to split-interest entity
(i) In general
A taxpayer may for a taxable year elect under this subparagraph to treat as meeting the requirement of subparagraph (B)(i) any distribution from an individual retirement account which is made directly by the trustee to a split-interest entity, but only if—(I) an election is not in effect under this subparagraph for a preceding taxable year,(II) the aggregate amount of distributions of the taxpayer with respect to which an election under this subparagraph is made does not exceed $50,000, and(III) such distribution meets the requirements of clauses (iii) and (iv).(ii) Split-interest entity
For purposes of this subparagraph, the term split-interest entity means—(I) a charitable remainder annuity trust (as defined in section 664(d)(1)), but only if such trust is funded exclusively by qualified charitable distributions,(II) a charitable remainder unitrust (as defined in section 664(d)(2)), but only if such unitrust is funded exclusively by qualified charitable distributions, or(III) a charitable gift annuity (as defined in section 501(m)(5)), but only if such annuity is funded exclusively by qualified charitable distributions and commences fixed payments of 5 percent or greater not later than 1 year from the date of funding.(iii) Contributions must be otherwise deductible
A distribution meets the requirement of this clause only if—(I) in the case of a distribution to a charitable remainder annuity trust or a charitable remainder unitrust, a deduction for the entire value of the remainder interest in the distribution for the benefit of a specified charitable organization would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph), and(II) in the case of a charitable gift annuity, a deduction in an amount equal to the amount of the distribution reduced by the value of the annuity described in section 501(m)(5)(B) would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph).(iv) Limitation on income interests
A distribution meets the requirements of this clause only if—(I) no person holds an income interest in the split-interest entity other than the individual for whose benefit such account is maintained, the spouse of such individual, or both, and(II) the income interest in the split-interest entity is nonassignable.(v) Special rules
(I) Charitable remainder trusts
Notwithstanding section 664(b), distributions made from a trust described in subclause (I) or (II) of clause (ii) shall be treated as ordinary income in the hands of the beneficiary to whom the annuity described in section 664(d)(1)(A) or the payment described in section 664(d)(2)(A) is paid.(II) Charitable gift annuities
Qualified charitable distributions made to fund a charitable gift annuity shall not be treated as an investment in the contract for purposes of section 72(c).
(G) Inflation adjustment
(i) In general
In the case of any taxable year beginning after 2022, each of the dollar amounts in subparagraphs (A) and (F) shall be increased by an amount equal to—(I) such dollar amount, multiplied by(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2021” for “calendar year 2016” in subparagraph (A)(ii) thereof.(ii) Rounding
If any dollar amount increased under clause (i) is not a multiple of $1,000, such dollar amount shall be rounded to the nearest multiple of $1,000.
139C. Certain disability-related first responder retirement payments
(a) In general
In the case of an individual who receives qualified first responder retirement payments for any taxable year, gross income shall not include so much of such payments as do not exceed the annualized excludable disability amount with respect to such individual.(b) Qualified first responder retirement payments
For purposes of this section, the term qualified first responder retirement payments means, with respect to any taxable year, any pension or annuity which but for this section would be includible in gross income for such taxable year and which is received—(1) from a plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B), and(2) in connection with such individual’s qualified first responder service.(c) Annualized excludable disability amount
For purposes of this section—(1) In general
The term annualized excludable disability amount means, with respect to any individual, the service-connected excludable disability amounts which are properly attributable to the 12-month period immediately preceding the date on which such individual attains retirement age.(2) Service-connected excludable disability amount
The term service-connected excludable disability amount means periodic payments received by an individual which—(A) are not includible in such individual’s gross income under section 104(a)(1),(B) are received in connection with such individual’s qualified first responder service, and(C) terminate when such individual attains retirement age.(3) Special rule for partial-year payments
In the case of an individual who only receives service-connected excludable disability amounts properly attributable to a portion of the 12-month period described in paragraph (1), such paragraph shall be applied by multiplying such amounts by the ratio of 365 to the number of days in such period to which such amounts were properly attributable.(d) Qualified first responder service
For purposes of this section, the term qualified first responder service means service as a law enforcement officer, firefighter, paramedic, or emergency medical technician.
Sec. 139C. Certain disability-related first responder retirement payments.
(4) Individual retirement plans
(A) In general
For purposes of any tax imposed by section 4973 or 4974 in connection with an individual retirement plan, the return referred to in this section shall be the income tax return filed by the person on whom the tax under such section is imposed for the year in which the act (or failure to act) giving rise to the liability for such tax occurred.(B) Rule in case of individuals not required to file return
In the case of a person who is not required to file an income tax return for such year—(i) the return referred to in this section shall be the income tax return that such person would have been required to file but for the fact that such person was not required to file such return, and(ii) the 3-year period referred to in subsection (a) with respect to the return shall be deemed to begin on the date by which the return would have been required to be filed (excluding any extension thereof).
(E) Provision of paper statements
With respect to at least 1 pension benefit statement furnished for a calendar year with respect to an individual account plan under paragraph (1)(A), and with respect to at least 1 pension benefit statement furnished every 3 calendar years with respect to a defined benefit plan under paragraph (1)(B), such statement shall be furnished on paper in written form except—(i) in the case of a plan that furnishes such statement in accordance with section 2520.104b–1(c) of title 29, Code of Federal Regulations; or(ii) in the case of a plan that permits a participant or beneficiary to request that the statements referred to in the matter preceding clause (i) be furnished by electronic delivery, if the participant or beneficiary requests that such statements be delivered electronically and the statements are so delivered.
(C) Separate application to employees not meeting age and service requirements
If employees not meeting the age or service requirements of section 410(a)(1) (without regard to subparagraph (B) thereof) are covered under a plan of the employer which meets the requirements of subparagraphs (A) and (B) separately with respect to such employees, such employees may be excluded from consideration in determining whether any plan of the employer meets the requirements of subparagraphs (A) and (B).
(C) Employee certification
In determining whether a distribution is upon the hardship of an employee, the administrator of the plan may rely on a certification by the employee that the distribution is on account of a financial need of a type that is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need and that such distribution is not in excess of the amount required to satisfy such financial need.
(D) Employee certification
In determining whether a distribution is upon the financial hardship of an employee, the administrator of the plan may rely on a certification by the employee that the distribution is on account of a financial need of a type that is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need and that such distribution is not in excess of the amount required to satisfy such financial need.
(4) Participant certification
In determining whether a distribution to a participant is made when the participant is faced with an unforeseeable emergency, the administrator of a plan maintained by an eligible employer described in subsection (e)(1)(A) may rely on a certification by the participant that the distribution is made when the participant is faced with unforeseeable emergency of a type that is described in regulations prescribed by the Secretary as an unforeseeable emergency and that the distribution is not in excess of the amount reasonably necessary to satisfy the emergency need.
(I) Distributions from retirement plans in case of domestic abuse
(i) In general
Any eligible distribution to a domestic abuse victim.(ii) Limitation
The aggregate amount which may be treated as an eligible distribution to a domestic abuse victim by any individual shall not exceed an amount equal to the lesser of—(I) $10,000, or(II) 50 percent of the present value of the nonforfeitable accrued benefit of the employee under the plan.(iii) Eligible distribution to a domestic abuse victim
For purposes of this subparagraph—(I) In general
A distribution shall be treated as an eligible distribution to a domestic abuse victim if such distribution is from an applicable eligible retirement plan to an individual and made during the 1-year period beginning on any date on which the individual is a victim of domestic abuse by a spouse or domestic partner.(II) Domestic abuse
The term domestic abuse means physical, psychological, sexual, emotional, or economic abuse, including efforts to control, isolate, humiliate, or intimidate the victim, or to undermine the victim’s ability to reason independently, including by means of abuse of the victim’s child or another family member living in the household.(iv) Treatment of plan distributions
(I) In general
If a distribution to an individual would (without regard to clause (ii)) be an eligible distribution to a domestic abuse victim, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as an eligible distribution to a domestic abuse victim, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds the limitation under clause (ii).(II) Controlled group
For purposes of subclause (I), the term controlled group means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.(v) Amount distributed may be repaid
(I) In general
Any individual who receives a distribution described in clause (i) may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be.(II) Limitation on contributions to applicable eligible retirement plans other than iras
The aggregate amount of contributions made by an individual under subclause (I) to any applicable eligible retirement plan which is not an individual retirement plan shall not exceed the aggregate amount of eligible distributions to a domestic abuse victim which are made from such plan to such individual. Subclause (I) shall not apply to contributions to any applicable eligible retirement plan which is not an individual retirement plan unless the individual is eligible to make contributions (other than those described in subclause (I)) to such applicable eligible retirement plan.(III) Treatment of repayments of distributions from applicable eligible retirement plans other than iras
If a contribution is made under subclause (I) with respect to an eligible distribution to a domestic abuse victim from an applicable eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received such distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.(IV) Treatment of repayments for distributions from iras
If a contribution is made under subclause (I) with respect to an eligible distribution to a domestic abuse victim from an individual retirement plan, then, to the extent of the amount of the contribution, such distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.(vi) Definition and special rules
For purposes of this subparagraph:(I) Applicable eligible retirement plan
The term applicable eligible retirement plan means an eligible retirement plan (as defined in section 402(c)(8)(B)) other than a defined benefit plan.(II) Exemption of distributions from trustee to trustee transfer and withholding rules
For purposes of sections 401(a)(31), 402(f), and 3405, an eligible distribution to a domestic abuse victim shall not be treated as an eligible rollover distribution.(III) Distributions treated as meeting plan distribution requirements; self-certification
Any distribution which the employee or participant certifies as being an eligible distribution to a domestic abuse victim shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A).
(1) In general
For purposes of
(2) Special rules for applying family attribution
For purposes of applying the attribution rules under section 1563 with respect to paragraph (1), the following rules apply:(A) Community property laws shall be disregarded for purposes of determining ownership.(B) Except as provided by the Secretary, stock of an individual not attributed under section 1563(e)(5) to such individual’s spouse shall not be attributed to such spouse by reason of section 1563(e)(6)(A).(C) Except as provided by the Secretary, in the case of stock in different corporations that is attributed to a child under section 1563(e)(6)(A) from each parent, and is not attributed to such parents as spouses under section 1563(e)(5), such attribution to the child shall not by itself result in such corporations being members of the same controlled group.(3) Plan shall not fail to be treated as satisfying this section
If the application of paragraph (2) causes two or more entities to be a controlled group, or to no longer be in a controlled group, such change shall be treated as a transaction to which section 410(b)(6)(C) applies.
Ownership.—(i) In general
In determining
(ii) Special rules for applying family attribution
For purposes of applying the attribution rules under section 318 with respect to clause (i), the following rules apply:(I) Community property laws shall be disregarded for purposes of determining ownership.(II) Except as provided by the Secretary, stock of an individual not attributed under section 318(a)(1)(A)(i) to such individual’s spouse shall not be attributed by reason of section 318(a)(1)(A)(ii) to such spouse from a child who has not attained the age of 21 years.(III) Except as provided by the Secretary, in the case of stock in different corporations that is attributed under section 318(a)(1)(A)(ii) to a child who has not attained the age of 21 years from each parent, and is not attributed to such parents as spouses under section 318(a)(1)(A)(i), such attribution to the child shall not by itself result in such corporations being members of the same affiliated service group.(iii) Plan shall not fail to be treated as satisfying this section
If the application of clause (ii) causes two or more entities to be an affiliated service group, or to no longer be in an affiliated service group, such change shall be treated as a transaction to which section 410(b)(6)(C) applies.
(3) Retroactive plan amendments that increase benefit accruals
If—(A) an employer amends a stock bonus, pension, profit-sharing, or annuity plan to increase benefits accrued under the plan effective for the preceding plan year (other than increasing the amount of matching contributions (as defined in subsection (m)(4)(A))),(B) such amendment would not otherwise cause the plan to fail to meet any of the requirements of this subchapter, and(C) such amendment is adopted before the time prescribed by law for filing the return of the employer for a taxable year (including extensions thereof) during which such amendment is effective,the employer may elect to treat such amendment as having been adopted as of the last day of the plan year in which the amendment is effective.
(B) Account treated as distributing potion of assets used in prohibited transaction
In any case in which a portion of an individual retirement account is treated as distributed under subparagraph (A) as of the first day of any taxable year, paragraph (1) of subsection (d) applies as if there were a distribution on such first day in an amount equal to the fair market value of such portion, determined as of the date on which the transaction prohibited by section 4975 occurs.
(B) meets the notice requirements of subsection (k)(13)(E), and
(C) in the case of any contributions pursuant to a simplified employer pension which are made to an individual retirement plan designated as a Roth IRA, such contribution shall not be excludable from gross income.
(7) Roth contribution election
An individual retirement plan which is designated as a Roth IRA shall not be treated as a simplified employee pension under this subsection unless the employee elects for such plan to be so treated (at such time and in such manner as the Secretary may provide).
(11) Roth contribution election
An individual retirement plan which is designated as a Roth IRA shall not be treated as a simple retirement account under this subsection unless the employee elects for such plan to be so treated (at such time and in such manner as the Secretary may provide).
(3) Simple retirement accounts
In the case of any payment or distribution out of a simple retirement account (as defined in section 408(p)) with respect to which an election has been made under section 408(p)(11) and to which 72(t)(6) applies, the term qualified rollover contribution shall not include any payment or distribution paid into an account other than another simple retirement account (as so defined).
(7) Coordination with limitation for simple retirement plans and seps
In the case of an individual on whose behalf contributions are made to a simple retirement account or a simplified employee pension, the amount described in paragraph (2)(A) shall be increased by an amount equal to the contributions made on the individual’s behalf to such account or pension for the taxable year, but only to the extent such contributions—(A) in the case of a simplified retirement account—(i) do not exceed the sum of the dollar amount in effect for the taxable year under section 408(p)(2)(A)(ii) and the employer contribution required under subparagraph (A)(iii) or (B)(i), as the case may be, of section 408(p)(2), and(ii) do not cause the elective deferrals (as defined in section 402(g)(3)) on behalf of such individual to exceed the limitation under section 402(g)(1) (taking into account any additional elective deferrals permitted under section 414(v)), or(B) in the case of a simplified employee pension, do not exceed the limitation in effect under section 408(j).
(16) Special rules relating to hardship withdrawals
For purposes of paragraphs (7) and (11)—(A) Amounts which may be withdrawn
The following amounts may be distributed upon hardship of the employee:(i) Contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)).(ii) Qualified nonelective contributions (as defined in section 401(m)(4)(C)).(iii) Qualified matching contributions described in section 401(k)(3)(D)(ii)(I).(iv) Earnings on any contributions described in clause (i), (ii), or (iii).(B) No requirement to take available loan
A distribution shall not be treated as failing to be made upon the hardship of an employee solely because the employee does not take any available loan under the plan.
(2) any designated Roth contribution which is made by the employer to the program on the employee’s behalf, and on account of the employee’s contribution, elective deferral, or (subject to the requirements of section 401(m)(13)) qualified student loan payment, shall be treated as a matching contribution for purposes of this chapter, except that such contribution shall not be excludable from gross income, and
(3) Matching contribution
The term matching contribution means—(A) any matching contribution described in section 401(m)(4)(A), and(B) any contribution to an eligible deferred compensation plan (as defined in section 457(b)) by an eligible employer described in section 457(e)(1)(A) on behalf of an employee and on account of such employee’s elective deferral under such plan.
(h) Boots to business program
(1) Covered individual defined
In this subsection, the term covered individual means—(A) a member of the Armed Forces, including the National Guard or Reserves;(B) an individual who is participating in the Transition Assistance Program established under section 1144 of title 10, United States Code;(C) an individual who—(i) served on active duty in any branch of the Armed Forces, including the National Guard or Reserves; and(ii) was discharged or released from such service under conditions other than dishonorable; and(D) a spouse or dependent of an individual described in subparagraph (A), (B), or (C).(2) Establishment
During the period beginning on the date of enactment of this subsection and ending on September 30, 2028, the Administrator shall carry out a program to be known as the “Boots to Business Program” to provide entrepreneurship training to covered individuals.(3) Goals
The goals of the Boots to Business Program are to—(A) provide assistance and in-depth training to covered individuals interested in business ownership; and(B) provide covered individuals with the tools, skills, and knowledge necessary to identify a business opportunity, draft a business plan, identify sources of capital, connect with local resources for small business concerns, and start up a small business concern.(4) Program components
(A) In general
The Boots to Business Program may include—(i) a presentation providing exposure to the considerations involved in self-employment and ownership of a small business concern;(ii) an online, self-study course focused on the basic skills of entrepreneurship, the language of business, and the considerations involved in self-employment and ownership of a small business concern;(iii) an in-person classroom instruction component providing an introduction to the foundations of self employment and ownership of a small business concern; and(iv) in-depth training delivered through online instruction, including an online course that leads to the creation of a business plan.(B) Collaboration
The Administrator may—(i) collaborate with public and private entities to develop course curricula for the Boots to Business Program; and(ii) modify program components in coordination with entities participating in a Warriors in Transition program, as defined in section 738(e) of the National Defense Authorization Act for Fiscal Year 2013 (10 U.S.C. 1071 note).(C) Use of resource partners and district offices
(i) In general
The Administrator shall—(I) ensure that Veteran Business Outreach Centers regularly participate, on a nationwide basis, in the Boots to Business Program; and(II) to the maximum extent practicable, use district offices of the Administration and a variety of other resource partners and entities in administering the Boots to Business Program.(ii) Grant authority
In carrying out clause (i), the Administrator may make grants, subject to the availability of appropriations in advance, to Veteran Business Outreach Centers, other resource partners, or other entities to carry out components of the Boots to Business Program.(D) Availability to department of defense and the department of labor
The Administrator shall make available to the Secretary of Defense and the Secretary of Labor information regarding the Boots to Business Program, including all course materials and outreach materials related to the Boots to Business Program, for inclusion on the websites of the Department of Defense and the Department of Labor relating to the Transition Assistance Program, in the Transition Assistance Program manual, and in other relevant materials available for distribution from the Secretary of Defense and the Secretary of Labor.(E) Availability to department of veterans affairs
In consultation with the Secretary of Veterans Affairs, the Administrator shall make available for distribution and display on the website of the Department of Veterans Affairs and at local facilities of the Department of Veterans Affairs outreach materials regarding the Boots to Business Program, which shall, at a minimum—(i) describe the Boots to Business Program and the services provided; and(ii) include eligibility requirements for participating in the Boots to Business Program.(F) Availability to other participating agencies
The Administrator shall ensure information regarding the Boots to Business program, including all course materials and outreach materials related to the Boots to Business Program, is made available to other participating agencies in the Transition Assistance Program and upon request of other agencies.(5) Competitive bidding procedures
The Administration shall use relevant competitive bidding procedures with respect to any contract or cooperative agreement executed by the Administration under the Boots to Business Program.(6) Publication of notice of funding opportunity
Not later than 30 days before the deadline for submitting applications for any funding opportunity under the Boots to Business Program, the Administration shall publish a notice of the funding opportunity.(7) Report
Not later than 180 days after the date of enactment of this subsection, and not less frequently than annually thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the performance and effectiveness of the Boots to Business Program, which—(A) may be included as part of another report submitted to such committees by the Administrator related to the Office of Veterans Business Development; and(B) shall summarize available information relating to—(i) grants awarded under paragraph (4)(C);(ii) the total cost of the Boots to Business Program;(iii) the number of program participants using each component of the Boots to Business Program;(iv) the completion rates for each component of the Boots to Business Program;(v) to the extent possible—(I) the demographics of program participants, to include gender, age, race, ethnicity, and relationship to military;(II) the number of program participants that connect with a district office of the Administration, a Veteran Business Outreach Center, or another resource partner of the Administration;(III) the number of program participants that start a small business concern;(IV) the results of the Boots to Business and Boots to Business Reboot course quality surveys conducted by the Office of Veterans Business Development before and after attending each of those courses, including a summary of any comments received from program participants;(V) the results of the Boots to Business Program outcome surveys conducted by the Office of Veterans Business Development, including a summary of any comments received from program participants; and(VI) the results of other germane participant satisfaction surveys;(C) an evaluation of the overall effectiveness of the Boots to Business Program based on each geographic region covered by the Administration during the most recent fiscal year;(D) an assessment of additional performance outcome measures for the Boots to Business Program, as identified by the Administrator;(E) any recommendations of the Administrator for improvement of the Boots to Business Program, which may include expansion of the types of individuals who are covered individuals;(F) an explanation of how the Boots to Business Program has been integrated with other transition programs and related resources of the Administration and other Federal agencies; and(G) any additional information the Administrator determines necessary.
(1) Whoever violates subsection (a) in a school zone, or on, or within 1,000 feet of, a premises on which a school-sponsored activity is taking place, or on, or within 1,000 feet of a premises owned by an institution of higher education, shall, in addition to the punishment otherwise provided under this section, be imprisoned for not more than 5 years.(2) In this subsection:(A) The term school zone has the meaning given such term in section 921.(B) The term school-sponsored activity means any activity that is produced, financed, arranged, supervised, or coordinated by a school or a State educational agency or local educational agency or is under the jurisdiction of a State educational agency or local educational agency.(C) The terms State educational agency and local educational agency have the meanings given those terms under section 8101 of the Elementary and Secondary Education Act of 1965.(D) The term institution of higher education has the meaning given such term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).(e)
(1) Whoever violates subsection (a) or (b) knowing, or having reasonable cause to believe, that the violation is committed against a minor who is enrolled in school and is, at the time of the violation, in a school zone or on, or within 1,000 feet of, a premises on which a school-sponsored activity is taking place, or against a person who is enrolled in an institution of higher education and is, at the time of the violation on or within 1,000 feet of a premises owned by the institution of higher education, shall, in addition to the punishment otherwise provided under this section, be imprisoned for not more than 5 years.(2) Paragraph (1) shall not apply in a case in which a minor’s presence on, or within 1,000 feet of, the premises on which a school-sponsored activity is taking place is not related to such school-sponsored activity, or the person’s presence on or within 1,000 feet of the premises owned by the institution of higher education is not related to their enrollment at such institution.(c)(d) In this section:(1) The term minor means an individual who has not attained 18 years of age.(2) The term school means a public, parochial, or private school that provides elementary or secondary education.(3) The term school zone has the meaning given such term in section 921.(4) The term school-sponsored activity means any activity that is produced, financed, arranged, supervised, or coordinated by a school or a State educational agency or local educational agency or is under the jurisdiction of a State educational agency or local educational agency.(5) The terms State educational agency and local educational agency have the meanings given those terms under section 8101 of the Elementary and Secondary Education Act of 1965.(6) The term institution of higher education has the meaning given such term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
(1) Application requirement
If an applicant
(2) Review process
The Administrator shall implement a uniform process for reviewing applications that, in accordance with paragraph (1), contain explanations to use grants provided under section 2003 or 2004 to purchase equipment or systems that do not meet or exceed any applicable national voluntary consensus standards developed under section 647 of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 747).(3) Factors
In carrying out the review process under paragraph (2), the Administrator shall consider the following:(A) Current or past use of proposed equipment or systems by Federal agencies or the Armed Forces.(B) The absence of a national voluntary consensus standard for such equipment or systems.(C) The existence of an international consensus standard for such equipment or systems, and whether such equipment or systems meets such standard.(D) The nature of the capability gap identified by the applicant and how such equipment or systems will address such gap.(E) The degree to which such equipment or systems will serve the needs of the applicant better than equipment or systems that meet or exceed existing consensus standards.(F) Any other factor determined appropriate by the Administrator.
(g) Review process
The Administrator shall implement a uniform process for reviewing applications to use grants provided under section 2003 or 2004 to purchase equipment or systems not included on the Authorized Equipment List maintained by the Administrator.
Except as provided in paragraphs (b) and (c), a Member, Delegate, Resident Commissioner, officer, or employee of the House shall not knowingly and willfully disclose publicly the identity of, or personally identifiable information about, any individual who has reported allegations of possible wrongdoing, including retaliation, under processes and protections provided by the Civil Service Reform Act of 1978, the Whistleblower Protection Act of 1989, the Intelligence Community Whistleblower Protection Act of 1998, or any other Federal law that establishes the right for individuals to make protected disclosures to Congress.The limitation in paragraph (a) shall not apply to any disclosure of an individual’s identity or personally identifiable information if—the individual has provided express written consent prior to such disclosure;the individual has already voluntarily and publicly disclosed their identity; orthe disclosure is by the chair of a committee after an affirmative vote by two-thirds of the members of the committee that such disclosure is in the public interest.Nothing in this clause shall prevent—an investigation of any allegation of wrongdoing disclosed by any individual; orthe public disclosure of substantive information shared by any individual that is not personally identifiable to that individual.Disclosures made pursuant to paragraph (b)(3) shall be subject to appropriate safeguards, including that the individual be provided timely advance notice if possible before their identity or any personally identifiable information is disclosed prior to the vote described in paragraph (b)(3), unless such information would jeopardize the related investigations. When providing such notice to the individual the committee chair shall send the individual a written explanation of the reasons for the disclosure.
(a) In general
The board of directors
(b) Meetings
The board of directors of a Federal credit union shall meet as follows:(1) With respect to a de novo Federal credit union, not less frequently than monthly during each of the first five years of the existence of such Federal credit union.(2) Not less than six times annually, with at least one meeting held during each fiscal quarter, with respect to a Federal credit union—(A) with composite rating of either 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and(B) with a capability of management rating under such composite rating of either 1 or 2.(3) Not less frequently than once a month, with respect to a Federal credit union—(A) with composite rating of either 3, 4, or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); or(B) with a capability of management rating under such composite rating of either 3, 4, or 5.