Sec. 16. Small employer plans

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Paragraph

(11)of section 401(k) of the Internal Revenue Code of 1986 is amended by adding the following at the end thereof: In the case of a plan described in clause (ii)— the amount described in subparagraph (B)(i)(I) shall be $10,000, in lieu of the amount in effect under section 408(p)(2)(A)(ii), such $10,000 amount shall, in the case years beginning after December 31, 2016, be adjusted as described in section 408(p)(2)(E)(ii) except that the base period taken into account shall be the calendar quarter beginning July 1, 2015, subclause

(II)of subparagraph (B)(i) and clause

(ii)of subparagraph

(B)shall not apply, and section 414(v) shall not apply. A plan is described in this clause if the plan satisfies the following requirements: Such plan satisfies the requirements of this paragraph, as modified by clause (i). The plan includes a qualified automatic contribution arrangement, as defined in paragraph (13), except that subparagraph

(D)of paragraph

(13)shall not apply and the qualified percentage shall be determined by reference to subclauses (I), (II), (III), and

(IV)of paragraph (13)(C)(iii). The plan does not permit any participant or beneficiary to receive or maintain a loan from the plan. The plan does not permit hardship distributions described in paragraph (2)(B)(i)(IV) except to the extent any such distribution is deemed, under regulations prescribed by the Secretary, to be on account of an immediate and heavy financial need of the employee and necessary to satisfy an immediate and heavy financial need of the employee. The plan is maintained pursuant to a model plan document published by the Secretary. . Within one year of the date of the enactment of this Act, the Secretary of the Treasury shall publish a model plan that may be used to satisfy the requirement of subclause

(V)of section 401(k)(11)(E)(ii) of the Internal Revenue Code of 1986. Within 120 days of the date of the enactment of this Act, the Secretary of Labor shall amend Department of Labor Regulation section 2550.404c–5(e)(4)(iv)(B) so that, in the case of a plan described in section 401(k)(11)(E) of such Code four years shall be substituted for 120 days . Within one year of the date of the enactment of this Act, the Secretary of Labor shall— publish rules clarifying the extent to which the fiduciary duties, if any, of a participating employer fiduciary with respect to a plan described in section 413(c) of such Code are limited to— the selection and monitoring of the named fiduciary, and the investment and management of the portion of the plan’s assets attributable to employees of the employer to the extent not otherwise delegated to another fiduciary, and prescribe interim final regulations providing simplified means by which plans described in section 413(c) of such Code may satisfy the requirements of sections 102, 103, and 105 of the Employee Retirement Income Security Act of 1974. For purposes of this paragraph, the term participating employer fiduciary means the participating employer, any employee of such participating employer that serves as fiduciary, any committee of such employees, and any other person whose fiduciaries duties with respect to the plan relate solely to the participating employer and not to the operation of the plan with respect to all participating employers. Not later than one year after the date of the enactment of this Act, the Secretary of the Treasury shall prescribe final regulations under which a plan described in section 413(c) of such Code may be treated as satisfying the qualification requirements of section 401(a) of such Code despite the violation of such requirements with respect to one or more participating employers without regard to whether such violation continues. Solely for this purpose, a plan shall be treated as violating the qualification requirements of section 401(a) of such Code with respect to a participating employer if such employer has failed to provide the plan sponsor with the information needed to comply with such requirements and such failure has continued over a period of time that clearly demonstrates a lack of commitment to compliance. Such rules may require that the portion of the plan attributable to such participating employers be spun off to plans maintained by such employers. Except as provided in paragraph (2), the amendments made by this section shall apply to years beginning after December 31, 2015. Subsection

(b)shall apply as of the date of the enactment of this Act.