The Employee Retirement Income Security Act of 1974, referred to in text, is Pub. L. 93–406,
The date of the enactment of this paragraph, referred to in subsec. (d)(16)(B), is the date of enactment of Pub. L. 108–357, which was approved
The Investment Company Act of 1940, referred to in subsecs. (e)(8) and (g), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, which is classified generally to subchapter I (§ 80a–1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80a–51 of Title 15 and Tables.
The Investment Advisers Act of 1940, referred to in subsec. (f)(8)(J)(i)(I), is title II of act Aug. 22, 1940, ch. 686, 54 Stat. 847, which is classified generally to subchapter II (§ 80b–1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80b–20 of Title 15 and Tables.
The Securities Exchange Act of 1934, referred to in subsec. (f)(8)(J)(i)(IV), (10)(A)(i), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. Section 6 of the Act is classified to section 78f of Title 15. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables.
2022—Subsec. (d)(24). Pub. L. 117–328, § 113(c), added par. (24).
Subsec. (d)(25). Pub. L. 117–328, § 120(a), added par. (25).
Subsec. (f)(12). Pub. L. 117–328, § 120(b), added par. (12).
2019—Subsec. (c)(7). Pub. L. 116–94 added par. (7).
2018—Subsec. (d)(3). Pub. L. 115–141, § 401(a)(229), substituted “a leveraged” for “an leveraged” in introductory provisions.
Subsec. (d)(16)(A). Pub. L. 115–141, § 401(a)(190), substituted “1813(w)(1))),” for “1813(w)(1)),”.
Subsec. (d)(17). Pub. L. 115–141, § 401(a)(230), substituted “any transaction” for “Any transaction” in introductory provisions.
Subsec. (d)(21). Pub. L. 115–141, § 401(a)(231), substituted “person” for “person person” in introductory provisions.
Subsec. (f)(8)(C)(iv)(II). Pub. L. 115–141, § 401(a)(232), inserted “subsection” before “(d)(17)(A)(ii)”.
Subsec. (f)(8)(F)(i)(I). Pub. L. 115–141, § 401(a)(233), struck out comma after “adviser”.
Subsec. (f)(8)(F)(i)(V). Pub. L. 115–141, § 401(a)(234), inserted “of” before “the manner”.
2008—Subsec. (d)(17). Pub. L. 110–458, § 106(a)(2)(A), substituted “that permits” for “and that permits” in introductory provisions.
Subsec. (d)(18). Pub. L. 110–458, § 106(b)(2)(A), in introductory provisions, substituted “disqualified person” for “party in interest” and “subsection (e)(3)” for “subsection (e)(3)(B)”.
Subsec. (d)(19) to (21). Pub. L. 110–458, § 106(b)(2)(B), substituted “disqualified person” for “party in interest” wherever appearing.
Subsec. (d)(21)(C). Pub. L. 110–458, § 106(b)(2)(C), struck out “or less” before “than 3 percent”.
Subsec. (f)(8)(A). Pub. L. 110–458, § 106(a)(2)(B)(i), substituted “subsection (d)(17)” for “subsection (b)(14)”.
Subsec. (f)(8)(C)(iv)(II). Pub. L. 110–458, § 106(a)(2)(B)(ii), substituted “(d)(17)(A)(ii)” for “subsection (b)(14)(B)(ii)”.
Subsec. (f)(8)(F)(i)(I). Pub. L. 110–458, § 106(a)(2)(B)(iii), substituted “fiduciary adviser,” for “financial adviser”.
Subsec. (f)(8)(I). Pub. L. 110–458, § 106(a)(2)(B)(iv), substituted “subsection (c)” for “section 406”.
Subsec. (f)(8)(J)(i). Pub. L. 110–458, § 106(a)(2)(B)(v), substituted “a participant” for “the participant” in introductory provisions and concluding provisions, inserted “referred to in subsection (e)(3)(B)” after “investment advice” in introductory provisions, and substituted “subsection (d)(4)” for “section 408(b)(4)” in subcl. (II).
Subsec. (f)(11)(B)(i). Pub. L. 110–458, § 106(c), inserted “of the Employee Retirement Income Security Act of 1974” after “section 407(d)(1)” and “of such Act” after “section 407(d)(2)”.
2006—Subsec. (d)(17). Pub. L. 109–280, § 601(b)(1), added par. (17).
Subsec. (d)(18). Pub. L. 109–280, § 611(a)(2)(A), added par. (18).
Subsec. (d)(19). Pub. L. 109–280, § 611(c)(2), added par. (19).
Subsec. (d)(20). Pub. L. 109–280, § 611(d)(2)(A), added par. (20).
Subsec. (d)(21). Pub. L. 109–280, § 611(e)(2), added par. (21).
Subsec. (d)(22). Pub. L. 109–280, § 611(g)(2), added par. (22).
Subsec. (d)(23). Pub. L. 109–280, § 612(b)(1), added par. (23).
Subsec. (f)(8). Pub. L. 109–280, § 601(b)(2), added par. (8).
Subsec. (f)(9). Pub. L. 109–280, § 611(a)(2)(B), added par. (9).
Subsec. (f)(10). Pub. L. 109–280, § 611(d)(2)(B), added par. (10).
Subsec. (f)(11). Pub. L. 109–280, § 612(b)(2), added par. (11).
2005—Subsec. (d)(16)(A). Pub. L. 109–135, § 413(a)(2)(A), inserted “or a depository institution holding company (as defined in section 3(w)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1))” after “a bank (as defined in section 581)”.
Subsec. (d)(16)(C). Pub. L. 109–135, § 413(a)(2)(B), inserted “or company” after “such bank”.
2004—Subsec. (d)(16). Pub. L. 108–357, § 233(c), added par. (16).
Subsec. (f)(7). Pub. L. 108–357, § 240(a), added par. (7).
2003—Subsec. (c)(6). Pub. L. 108–173, § 1201(f)(1), added par. (6).
Subsec. (e)(1)(E) to (G). Pub. L. 108–173, § 1201(f)(2), added subpar. (E) and redesignated former subpars. (E) and (F) as (F) and (G), respectively.
2001—Subsec. (c)(5). Pub. L. 107–22, § 1(b)(1)(D), (3)(D), in heading, substituted “Coverdell education savings” for “education individual retirement” and in text, substituted “a Coverdell education savings” for “an education individual retirement”.
Subsec. (e)(1)(E). Pub. L. 107–22, § 1(b)(1)(D), substituted “a Coverdell education savings” for “an education individual retirement”.
Subsec. (e)(7). Pub. L. 107–16, § 656(b), inserted “, section 409(p),” after “409(n)” in concluding provisions.
Subsec. (f)(6)(B)(iii). Pub. L. 107–16, § 612(a), added cl. (iii).
2000—Subsec. (c)(4). Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(10)], substituted “an Archer” for “a Archer”.
Pub. L. 106–554, § 1(a)(7) [title II, § 202(a)(7), (b)(7)], substituted “Archer MSAs” for “medical savings accounts” in heading and “Archer MSA” for “medical savings account” in text.
Subsec. (e)(1)(D). Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(10)], substituted “an Archer” for “a Archer”.
Pub. L. 106–554, § 1(a)(7) [title II, § 202(a)(7)], substituted “Archer MSA” for “medical savings account”.
1998—Subsec. (c)(3). Pub. L. 105–206, § 6023(19)(A), substituted “exempt from the tax” for “exempt for the tax”.
Subsec. (i). Pub. L. 105–206, § 6023(19)(B), substituted “Secretary of the Treasury” for “Secretary of Treasury”.
1997—Subsec. (a). Pub. L. 105–34, § 1074(a), substituted “15 percent” for “10 percent”.
Subsec. (c)(4). Pub. L. 105–34, § 1602(a)(5), substituted “if section 220(e)(2) applies to such transaction.” for “if, with respect to such transaction, the account ceases to be a medical savings account by reason of the application of section 220(e)(2) to such account.”
Subsec. (c)(5). Pub. L. 105–34, § 213(b)(2), added par. (5).
Subsec. (d). Pub. L. 105–34, § 1506(b)(1)(B)(ii), struck out concluding provisions which read as follows: “The exemptions provided by this subsection (other than paragraphs (9) and (12)) shall not apply to any transaction with respect to a trust described in section 401(a) which is part of a plan providing contributions or benefits for employees some or all of whom are owner-employees (as defined in section 401(c)(3)) in which a plan directly or indirectly lends any part of the corpus or income of the plan to, pays any compensation for personal services rendered to the plan to, or acquires for the plan any property from or sells any property to, any such owner-employee, a member of the family (as defined in section 267(c)(4)) of any such owner-employee, or a corporation controlled by any such owner-employee through the ownership, directly or indirectly, of 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation. For purposes of the preceding sentence, a shareholder-employee (as defined in section 1379, as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982), a participant or beneficiary of an individual retirement account or an individual retirement annuity (as defined in section 408), and an employer or association of employees which establishes such an account or annuity under section 408(c) shall be deemed to be an owner-employee.”
Pub. L. 105–34, § 1506(b)(1)(B)(i), substituted “Except as provided in subsection (f)(6), the prohibitions” for “The prohibitions” in introductory provisions.
Subsec. (e)(1)(D) to (F). Pub. L. 105–34, § 213(b)(1), struck out “or” at end of subpar. (D), added subpar. (E), and redesignated former subpar. (E) as (F).
Subsec. (e)(7). Pub. L. 105–34, § 1530(c)(10), inserted “and section 664(g)” after “section 409(n)” in concluding provisions.
Subsec. (f)(6). Pub. L. 105–34, § 1506(b)(1)(A), added par. (6).
1996—Subsec. (a). Pub. L. 104–188, § 1453(a), substituted “10 percent” for “5 percent”.
Subsec. (c)(4). Pub. L. 104–191, § 301(f)(1), added par. (4).
Subsec. (d)(13). Pub. L. 104–188, § 1702(g)(3), substituted “408(b)(12)” for “408(b)”.
Subsec. (e)(1). Pub. L. 104–191, § 301(f)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this section, the term ‘plan’ means a trust described in section 401(a) which forms a part of a plan, or a plan described in section 403(a), which trust or plan is exempt from tax under section 501(a), an individual retirement account described in section 408(a) or an individual retirement annuity described in section 408(b) (or a trust, plan, account, or annuity which, at any time, has been determined by the Secretary to be such a trust, plan, or account).”
1990—Subsec. (d)(13). Pub. L. 101–508 inserted before semicolon at end “or which is exempt from section 406 of such Act by reason of section 408(b) of such Act”.
1986—Subsec. (d). Pub. L. 99–514, § 1899A(51), inserted a closing parenthesis after “and (12)” in second sentence.
Subsec. (d)(1)(B). Pub. L. 99–514, § 1114(b)(15)(A), substituted “highly compensated employees (within the meaning of section 414(q))” for “highly compensated employees, officers, or shareholders”.
Subsec. (e)(7). Pub. L. 99–514, § 1854(f)(3)(A), inserted “, section 409(o), and, if applicable, section 409(n)” in last sentence.
1984—Subsec. (d). Pub. L. 98–369, § 491(d)(45), substituted in provision following par. (15) “or an individual retirement annuity (as defined in section 408)” for “, individual retirement annuity, or an individual retirement bond (as defined in section 408 or 409)”.
Subsec. (e)(1). Pub. L. 98–369, § 491(d)(46), struck out “or 405(a)” after “section 403(a)” and “or a retirement bond described in section 409” after “section 408(b)”, and substituted “or annuity” for “annuity, or bond” and “or account” for “account, or bond”.
Subsec. (e)(7). Pub. L. 98–369, § 491(e)(7), substituted “section 409(h)” for “section 409A(h)”, “section 409(e)(4)” for “section 409A(e)(4)”, and “section 409(e)” for “section 409A(e)”.
Subsec. (e)(8). Pub. L. 98–369, § 491(e)(8), substituted “section 409(l)” for “section 409A(l)”.
1983—Subsec. (d). Pub. L. 97–448 inserted “, as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982” after “section 1379” in last sentence.
1980—Subsec. (b). Pub. L. 96–596, § 2(a)(1)(K), substituted “taxable period” for “correction period”.
Subsec. (d)(14), (15). Pub. L. 96–364, § 208(b), added pars. (14) and (15).
Subsec. (e)(7). Pub. L. 96–222, § 101(a)(7)(K), (L)(iv)(III), (v)(XI), substituted references to an employee stock ownership plan, for references to a leveraged employee stock ownership plan wherever appearing therein, and substituted provisions relating to treatment of a plan as an employee stock ownership plan, for provisions relating to treatment of a plan as a leveraged employee stock ownership plan.
Subsec. (e)(8). Pub. L. 96–222, § 101(a)(7)(C), substituted provisions defining “qualifying employer security” within the meaning of section 409A(l), for provisions defining such term as stock, or otherwise an equity security, or within the meaning of section 503(e)(1) to (3).
Subsec. (e)(9). Pub. L. 96–364, § 209(b), added par. (9).
Subsec. (f)(2)(B), (C). Pub. L. 96–596, § 2(a)(2)(I), added subpar. (B) and redesignated former subpar. (B) as (C).
Subsec. (f)(4)(B). Pub. L. 96–596, § 2(a)(1)(L), substituted “taxable period” for “correction period”.
Subsec. (f)(6). Pub. L. 96–596, § 2(a)(3)(F), struck out par. (6), which defined correction period, with respect to a prohibited transaction, as the period beginning on the date on which the prohibited transaction occurs and ending 90 days after the date of mailing of a notice of deficiency with respect to the tax imposed by subsec. (b) of this section under section 6212 of this title, extended by any period in which a deficiency cannot be assessed under section 6213(a) of this title and any other period which the Secretary determines is reasonable and necessary to bring about the correction of the prohibited transaction.
1978—Subsec. (d)(3). Pub. L. 95–600, § 141(f)(6), substituted “leveraged employee” for “employee”.
Subsec. (e)(7). Pub. L. 95–600, § 141(f)(5), substituted in heading “Leveraged employee” for “Employee”, and in text, “leveraged employee” for “employee” and inserted provision that a plan not be treated as a leveraged employee stock ownership plan unless it meet the requirements of section 409A(e) and (h).
1976—Subsecs. (c) to (f). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.
Amendment by section 113(c) of Pub. L. 117–328 applicable with respect to plan years beginning after
Pub. L. 117–328, div. T, title I, § 120(e),
Amendment by Pub. L. 110–458 effective as if included in the provisions of Pub. L. 109–280 to which the amendment relates, except as otherwise provided, see section 112 of Pub. L. 110–458, set out as a note under section 72 of this title.
Pub. L. 109–280, title VI, § 601(b)(4),
Pub. L. 109–280, title VI, § 611(h), “(1) Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 1002, 1108, and 1112 of Title 29, Labor] shall apply to transactions occurring after the date of the enactment of this Act [“(2) The amendments made by subsection (b) [amending section 1112 of Title 29] shall apply to plan years beginning after such date.”
Pub. L. 109–280, title VI, § 612(c),
Amendment by Pub. L. 109–135 effective as if included in the provision of the American Jobs Creation Act of 2004, Pub. L. 108–357, to which such amendment relates, see section 413(d) of Pub. L. 109–135, set out as a note under section 1361 of this title.
Amendment by section 233(c) of Pub. L. 108–357 effective
Pub. L. 108–357, title II, § 240(b),
Amendment by Pub. L. 108–173 applicable to taxable years beginning after
Amendment by Pub. L. 107–22 effective
Pub. L. 107–16, title VI, § 612(c),
Amendment by section 656(b) of Pub. L. 107–16 applicable to plan years beginning after
Amendment by section 213(b) of Pub. L. 105–34 applicable to taxable years beginning after
Pub. L. 105–34, title X, § 1074(b),
Amendment by section 1506(b)(1) of Pub. L. 105–34 applicable to taxable years beginning after
Amendment by section 1530(c)(10) of Pub. L. 105–34 applicable to transfers made by trusts to, or for the use of, an employee stock ownership plan after
Amendment by section 1602(a)(5) of Pub. L. 105–34 effective as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996, Pub. L. 104–191, to which such amendment relates, see section 1602(i) of Pub. L. 105–34, set out as a note under section 26 of this title.
Amendment by Pub. L. 104–191 applicable to taxable years beginning after
Pub. L. 104–188, title I, § 1453(b),
Amendment by section 1702(g)(3) of Pub. L. 104–188 effective, except as otherwise expressly provided, as if included in the provision of the Revenue Reconciliation Act of 1990, Pub. L. 101–508, title XI, to which such amendment relates, see section 1702(i) of Pub. L. 104–188, set out as a note under section 38 of this title.
Amendment by Pub. L. 101–508 effective, except as otherwise provided, as if included in the provision of the Revenue Reconciliation Act of 1989, Pub. L. 101–239, title VII, to which such amendment relates, see section 11701(n) of Pub. L. 101–508, set out as a note under section 42 of this title.
Amendment by section 1114(b)(15)(A) of Pub. L. 99–514 applicable to years beginning after
Amendment by section 1854(f)(3)(A) of Pub. L. 99–514 effective
Amendment by section 491(d)(45), (46) of Pub. L. 98–369 applicable to obligations issued after
Amendment by section 491(e)(7), (8) of Pub. L. 98–369 effective
Amendment by Pub. L. 97–448 effective on date of enactment of Subchapter S Revision Act of 1982 [
For effective date of amendment by Pub. L. 96–596 with respect to any first tier tax and to any second tier tax, see section 2(d) of Pub. L. 96–596, set out as an Effective Date note under section 4961 of this title.
Amendment by section 208(b) of Pub. L. 96–364 effective
Amendment by section 209(b) of Pub. L. 96–364 applicable to taxable years ending after
Pub. L. 96–222, title I, § 101(b)(1)(C),
Amendment by section 101(a)(7)(K), (L)(iv)(III), (v)(XI) of Pub. L. 96–222 effective, except as otherwise provided, as if it had been included in the provision of the Revenue Act of 1978, Pub. L. 95–600, to which such amendment relates, see section 201 of Pub. L. 96–222, set out as a note under section 32 of this title.
Pub. L. 95–600, title I, § 141(h), as added by Pub. L. 96–222, title I, § 101(a)(7)(B), “(1) insofar as they make the requirements of subsections (e) and (h)(1)(B) of section 409A [now section 409] of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] applicable to section 4975 of such Code, to stock acquired after “(2) insofar as they make paragraphs (1)(A) and (2) of section 409A(h) [now section 409(h)] of such Code applicable to such section 4975, to distributions after
Pub. L. 93–406, title II, § 2003(c), “(1)(A) The amendments made by this section [enacting this section and amending section 503 of this title] shall take effect on “(B) If, before the amendments made by this section [enacting this section and amending section 503 of this title] take effect, an organization described in section 401(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] is denied exemption under section 501(a) of such Code by reason of section 503 of such Code, the denial of such exemption shall not apply if the disqualified person elects (in such manner and at such time as the Secretary or his delegate shall by regulations prescribe) to pay, with respect to the prohibited transaction (within the meaning of section 503(b) or (g)) which resulted in such denial of exemption, a tax in the amount and in the manner provided with respect to the tax imposed under section 4975 of such Code. An election made under this subparagraph, once made, shall be irrevocable. The Secretary of the Treasury or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this subparagraph.“(2) Section 4975 of the Internal Revenue Code of 1986 (relating to tax on prohibited transactions) shall not apply to—“(A) a loan of money or other extension of credit between a plan and a disqualified person under a binding contract in effect on “(B) a lease of joint use of property involving the plan and a disqualified person pursuant to a binding contract in effect on “(C) the sale, exchange, or other disposition of property described in subparagraph (B) between a plan and a disqualified person before “(i) in the case of a sale, exchange, or other disposition of the property by the plan to the disqualified person, the plan receives an amount which is not less than the fair market value of the property at the time of such disposition; and“(ii) in the case of the acquisition of the property by the plan, the plan pays an amount which is not in excess of the fair market value of the property at the time of such acquisition:“(D) Until “(E) the sale, exchange, or other disposition of property which is owned by a plan on For the purposes of this paragraph, the term ‘disqualified person’ has the meaning provided by section 4975(e)(2) of the Internal Revenue Code of 1986.”
Pub. L. 117–328, div. T, title I, § 120(c), “Not later than 12 months after the date of the enactment of this Act [“(1) require an automatic portability provider to provide a notice to individuals on whose behalf the individual retirement plan described in paragraph (12)(A)(i)(I) of section 4975(f) of the Internal Revenue Code of 1986, as added by this section, is established in advance of the notices specified in paragraph (12)(B)(v) of such section, as so added,“(2) require an automatic portability provider to disclose to plans described in paragraph (12)(A)(i)(II) of section 4975(f) of the Internal Revenue Code of 1986, as added by this section, information required to be provided by a covered service provider pursuant to section 2550.408b–2(c) of title 29, Code of Federal Regulations,“(3) require a plan described in such paragraph (12)(A)(i)(II), as so added, to fully disclose fees related to an automatic portability transaction in its summary plan description or summary of material modifications, as relevant,“(4) require a plan described in such paragraph, as so added, to invest amounts received on behalf of a participant pursuant to an automatic portability transaction in the participant’s current investment election under the plan or, if no election is made or permitted, in the plan’s qualified default investment alternative (within the meaning of section 2550.404c–5 of title 29, Code of Federal Regulations) or another investment selected by a fiduciary with respect to such plan,“(5) prohibit or restrict the receipt or payment of third party compensation (other than a direct fee paid by a plan sponsor which is in lieu of a fee imposed on an individual retirement plan owner) by an automatic portability provider in connection with an automatic portability transaction,“(6) prohibit exculpatory provisions in an automatic portability provider’s contracts or communications with individuals disclaiming or limiting its liability in the event that an automatic portability transaction results in an improper transfer,“(7) require an automatic portability provider to take actions necessary to reasonably ensure that participant and beneficiary data is current and accurate,“(8) limit the use of data related to automatic portability transactions for any purpose other than the execution of such transactions or locating missing participants, except as permitted by the Secretary of Labor,“(9) provide for corrections procedures in the event an auditor determines the automatic portability provider was not in compliance with this provision and related regulations as specified in paragraph (12)(B)(ix)(II) [probably should be “(12)(B)(xi)(II)”] of section 4975(f) of such Code, as so added, including deadlines, supplemental audits, and corrective actions which may include a temporary prohibition from relying on the exemption provided by paragraph (25) of section 4975(d) of such Code, as added by this section,“(10) ensure that the appropriate participants and beneficiaries, in fact, receive all the required notices and disclosures, and“(11) make clear that the exemption provided by paragraph (25) of section 4975(d) of such Code, as added by this section, applies solely to the automatic portability transactions described therein, and, to the extent the Secretary deems necessary or advisable, specify how the application of the exemption relates to or coordinates with the application of other statutory provisions, regulations, administrative guidance, or exemptions.Any term used in this subsection which is used in paragraph (12) of section 4975(f) of such Code, as added by this section, has the same meaning as when used in such paragraph.”
Secretary of the Treasury or his delegate to issue before
Pub. L. 116–94, div. P, title XIII, § 1302(c),
Pub. L. 117–328, div. T, title I, § 120(d), “(1) Not later than 2 years after the date of the first audit report received by the Secretary of Labor from any automatic portability provider, and every 3 years thereafter, the Secretary of Labor shall report to the Committees on Health, Education, Labor and Pensions and Finance of the Senate and the Committees on Education and Labor [now Committee on Education and the Workforce] and Ways and Means of the House of Representatives on—“(A) the effectiveness of automatic portability transactions under the exemption provided by paragraph (25) of section 4975(d) of the Internal Revenue Code of 1986, as added by this section, detailing—“(i) the number of automatic cash outs from qualified plans to individual retirement plans described in section 4975(f)(12)(A)(i)(I) of such Code,“(ii) the number of completed automatic portability transactions to employer-sponsored retirement plans described in section 4975(f)(12)(A)(i)(II) of such Code,“(iii) the number of individual retirement plans described in section 4975(f)(12)(A)(i)(I) of such Code which have been transferred to designated beneficiaries,“(iv) the number of individual retirement plans described in section 4975(f)(12)(A)(i)(I) of such Code for which the automatic portability provider is searching for next of kin due to a deceased account holder without a designated beneficiary, and“(v) the number of accounts that were reduced to a zero balance while in the automatic portability provider’s custody;“(B) a summary of any consumer complaints submitted to the Employee Benefits Security Administration regarding automatic portability transactions;“(C) a summary of compliance issues found in the annual audit described in section 4975(f)(12)(B)(xiii)(II) [probably should be “4975(f)(12)(B)(xi)(II)”] of such Code, if any, and their corrections;“(D) a summary of the fees individuals are charged in connection with automatic portability transactions, including whether those fees have increased since the last report;“(E) recommendations of any necessary statutory changes to this exemption to improve the effectiveness of automatic portability transactions, including repeal of this provision in the event of a pattern of noncompliance; and“(F) any other information the Secretary of Labor deems important.The report required by this subsection shall be made publicly available.“(2) Not later than 2 years after the date of the enactment of this Act [
Pub. L. 109–280, title VI, § 601(b)(3), “(A) As soon as practicable after the date of the enactment of this Act [“(i) solicit information as to the feasibility of the application of computer model investment advice programs for plans described in subparagraphs (B) through (F) (and so much of subparagraph (G) as relates to such subparagraphs) of section 4975(e)(1) of the Internal Revenue Code of 1986, including soliciting information from—“(I) at least the top 50 trustees of such plans, determined on the basis of assets held by such trustees, and“(II) other persons offering computer model investment advice programs based on nonproprietary products, and“(ii) shall on the basis of such information make the determination under subparagraph (B).The information solicited by the Secretary of Labor under clause (i) from persons described in subclauses (I) and (II) of clause (i) shall include information on computer modeling capabilities of such persons with respect to the current year and preceding year, including such capabilities for investment accounts maintained by such persons.“(B) The Secretary of Labor, in consultation with the Secretary of the Treasury, shall, on the basis of information received under subparagraph (A), determine whether there is any computer model investment advice program which may be utilized by a plan described in subparagraph (A)(i) to provide investment advice to the account beneficiary of the plan which—“(i) utilizes relevant information about the account beneficiary, which may include age, life expectancy, retirement age, risk tolerance, other assets or sources of income, and preferences as to certain types of investments,“(ii) takes into account the full range of investments, including equities and bonds, in determining the options for the investment portfolio of the account beneficiary, and“(iii) allows the account beneficiary, in directing the investment of assets, sufficient flexibility in obtaining advice to evaluate and select investment options.The Secretary of Labor shall report the results of such determination to the committees of Congress referred to in subparagraph (D)(ii) not later than “(C) “(i) “(I) Subclause (II) of section 4975(f)(8)(B)(i) of the Internal Revenue Code of 1986 shall not apply to a plan described in subparagraph (A)(i).“(II) If the Secretary of Labor determines under subparagraph (B) or (D) that there is a computer model investment advice program described in subparagraph (B), subclause (I) shall cease to apply as of the date of such determination.“(ii) If the Secretary of Labor determines under subparagraph (B) that there is no computer model investment advice program described in subparagraph (B), the Secretary of Labor shall grant a class exemption from treatment as a prohibited transaction under section 4975(c) of the Internal Revenue Code of 1986 to any transaction described in section 4975(d)(17)(A) of such Code with respect to plans described in subparagraph (A)(i), subject to such conditions as set forth in such exemption as are in the interests of the plan and its account beneficiary and protective of the rights of the account beneficiary and as are necessary to—“(I) ensure the requirements of sections 4975(d)(17) and 4975(f)(8) (other than subparagraph (C) thereof) of the Internal Revenue Code of 1986 are met, and“(II) ensure the investment advice provided under the investment advice program utilizes prescribed objective criteria to provide asset allocation portfolios comprised of securities or other property available as investments under the plan.If the Secretary of Labor solicits any information under subparagraph (A) from a person and such person does not provide such information within 60 days after the solicitation, then, unless such failure was due to reasonable cause and not wilful neglect, such person shall not be entitled to utilize the class exemption under this clause.“(D) “(i) If the Secretary of Labor initially makes a determination described in subparagraph (C)(ii), the Secretary may subsequently determine that there is a computer model investment advice program described in subparagraph (B). If the Secretary makes such subsequent determination, then the class exemption described in subparagraph (C)(ii) shall cease to apply after the later of—“(I) the date which is 2 years after such subsequent determination, or“(II) the date which is 3 years after the first date on which such exemption took effect.“(ii) Any person may request the Secretary of Labor to make a determination under this subparagraph with respect to any computer model investment advice program, and the Secretary of Labor shall make a determination with respect to such request within 90 days. If the Secretary of Labor makes a determination that such program is not described in subparagraph (B), the Secretary shall, within 10 days of such determination, notify the Committee on Ways and Means and the Committee on Education and the Workforce of the House of Representatives and the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate of such determination and the reasons for such determination.“(E) The provisions of this paragraph shall take effect on the date of the enactment of this Act [
Pub. L. 109–280, title VI, § 601(c),
For provisions directing that if any amendments made by subtitle D [§§ 1401–1465] of title I of Pub. L. 104–188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after
Pub. L. 94–455, title VIII, § 803(h),