Sec. 301. Allowance of delay in making 2020 retirement contributions
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/bill/116/s/4537/is/section-301·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
An eligible participant in 1 or more applicable retirement plans may make additional contributions to such plans for any taxable year beginning in 2021 or 2022 in an aggregate amount not exceeding the participant's unused 2020 contribution amount. For purposes of the Internal Revenue Code of 1986— In the case of any additional contribution to which subsection
(a)applies— such contribution shall not, with respect to such taxable year— be subject to any otherwise applicable limitation contained in sections 401(a)(30), 402(h), 408, and 415(c), or be taken into account in applying such limitations to other contributions or benefits under such plan or any other such plan, and except as provided in paragraph (2)(B), such plan shall not be treated as failing to meet the requirements of section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416 by reason of the making (or the right to make) such contribution. An applicable employer plan shall not be treated as failing to meet any requirement of such Code, or failing to be operated in accordance with the terms of the plan, solely because the plan— permits an eligible participant to make additional contributions described in subsection
(a)for any plan year, or does not make any matching contribution (as defined in section 401(m)(4) of such Code) with respect to additional contributions described in subsection
(a)for any plan year. The rules of section 414(v)(4) of such Code shall apply for purposes of this section. For purposes of this section— The term applicable retirement plan means any plan— which is— a plan, arrangement, or contract to which an elective deferral (as defined in section 401(g)(3) of the Internal Revenue Code of 1986) may be made, or an individual retirement plan (as defined in section 7701(a)(37) of such Code), and which allows additional contributions under this section to be made to such plan. The term eligible participant means, with respect to any taxable year beginning in 2021 or 2022, a participant in a plan— who has an unused 2020 contribution amount, and with respect to whom no other elective deferrals (or in the case of an individual retirement plan, no other contributions) may, without regard to this section, be made to the plan for such taxable year by reason of any applicable limitation described in subsection (b)(1)(A)(i) or any comparable limitation or restriction contained in the terms of the plan. In determining whether a participant is an eligible participant, the administrator of an applicable retirement plan may rely on a participant’s certification that the participant satisfies the requirements of this paragraph. The term unused 2020 contribution amount means, with respect to any applicable participant, the excess (if any) for the participant's last taxable year beginning in 2020 of— in the case of— the applicable retirement plans described in paragraph (1)(A)(i) of such participant, the applicable limitations described in subsection (b)(1)(A)(i) on aggregate contributions to such plans for such taxable year, and the individual retirement plans of such participant, the applicable limitations described in subsection (b)(1)(A)(i) on aggregate contributions to such plans for such taxable year, over the aggregate contributions to such applicable retirement plans or individual retirement plans, whichever is applicable, for such taxable year (other than rollover contributions not taken into account in applying such limitations under such Code). The unused 2020 contribution amount for any taxable year beginning in 2021 or 2022 shall be reduced by the portion of such amount taken into account under this section for all preceding taxable years. The Secretary of the Treasury (or the Secretary's delegate) shall include, with returns of Federal individual income tax (or accompanying forms or instructions) for taxable years beginning in 2020 and 2021, forms or other materials which will assist participants in simply computing their unused 2020 contribution amount for each taxable year beginning in 2021 or 2022. This section shall apply for years beginning after December 31, 2020. If this paragraph applies to any plan or contract amendment— such plan or contract shall not fail to be treated as being operated in accordance with the terms of the plan during the period described in subparagraph (B)(ii) solely because the plan operates in accordance with this section, and except as provided by the Secretary of the Treasury (or the Secretary’s delegate), such plan or contract shall not fail to meet the requirements of section 411(d)(6) of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 by reason of such amendment. This paragraph shall apply to any amendment to any plan or annuity contract which— is made pursuant to the provisions of this section, and is made on or before the last day of the first plan year beginning on or after January 1, 2022. In the case of a governmental plan, subclause
(II)shall be applied by substituting 2024 for 2022 . This paragraph shall not apply to any amendment unless during the period beginning on the effective date of the amendment and ending on December 31, 2022, the plan or contract is operated as if such plan or contract amendment were in effect.