Sec. 4. Establishment; contributions
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There is established in the Treasury the Portable Retirement and Investment Account Fund (in this Act referred to as the Fund ). The Board shall, to the greatest extent practicable and consistent with the requirements of this Act, manage the Fund in the same manner as the Thrift Savings Fund established under section 8437 of title 5, United States Code. For each individual for whom a notification is made under clause
(iv)of section 205(c)(2)(B) of the Social Security Act ( 42 U.S.C. 405(c)(2)(B) ), as added by paragraph (3), or whose name is included on the list submitted under paragraph (4), not later than 90 days after such notification or submission, the Director shall establish, with such individual as the sole beneficiary, a portable retirement and investment account (in this Act referred to as a PRIA Basic Account ) within the Fund. Section 205(c)(2)(B) of the Social Security Act ( 42 U.S.C. 405(c)(2)(B) ) is amended by adding at the end the following: Not later than 60 days after assigning a social security account number to an individual, the Commissioner of Social Security shall notify the Director of the Portable Retirement and Investment Account Board of such assignment. . The amendment made by subparagraph
(A)shall apply with respect to social security account numbers assigned after a certain date, to be designated by the Director, occurring not later than 3 years after the date of the enactment of this Act. Not later than the date designated pursuant to paragraph (3)(B), occurring not later than 3 years after the date of the enactment of this Act, the Commissioner of Social Security shall submit to the Director a list of the name of each living individual who has been assigned a social security account number. In the case of an individual for whom a notification is made under clause
(iv)of section 205(c)(2)(B) of the Social Security Act ( 42 U.S.C. 405(c)(2)(B) ), as added by subsection (a)(3), who is a child of a taxpayer who received a credit against tax under section 32 of the Internal Revenue Code of 1986 for the most recent taxable year ending before the date of the notification under such subsection, the Director shall deposit into the portable retirement and investment account (without regard to whether such account is a PRIA Basic Account or a PRIA Choice Account described in subsection (f)) of the individual an amount determined under paragraph (2). Subject to paragraph (3), the amount determined under this paragraph is— in the case of a taxpayer eligible for the maximum credit applicable to such individual under section 32 of the Internal Revenue Code of 1986, the applicable contribution amount; and in any other case, a lower amount to be determined under regulations issued by the Secretary of the Treasury to reflect a proportional reduction of such amount as the credit under such section decreases. For purposes of this subsection, the term applicable contribution amount means $500. In the case of any taxable year beginning in a calendar year after 2021, the dollar amount in subparagraph
(A)shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code of 1986 for the calendar year in which the taxable year begins, by substituting calendar year 2020 for calendar year 2016 in subparagraph (A)(ii) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $10. If a beneficiary of a PRIA Basic Account (or, in the case of a beneficiary who is under 18 years of age, the parent or guardian of the beneficiary) makes the election under subsection (f), the Director shall provide for a $50 deposit if the beneficiary completes a financial literacy training, as determined appropriate by the Director. Except in the case of an individual who is an active participant (as defined in section 219(g)(5) of the Internal Revenue Code of 1986) for any part of a plan year ending with or within the calendar year, the beneficiary of a PRIA Basic or PRIA Choice Account may contribute additional funds for deposit into such account. Any employer who permits wages to be paid to an employee described in paragraph
(5)by electronic funds transfer shall permit such employee to elect to deposit, by means of electronic funds transfer, a portion of such wages specified by the employee into the employee’s portable retirement and investment account. Any employer may provide that an employee described in paragraph
(5)is treated as having elected to have the employer make contributions in an amount equal to a uniform percentage of compensation disclosed in advance to the employee until the employee specifically elects not to have such contributions made (or specifically elects to have such contributions made at a different percentage). Such uniform percentage of compensation may automatically increase according to a schedule provided by the employer. Paragraph
(3)shall supersede any law of any State (within the meaning of section 514(c)(1) of title 29) which would directly or indirectly prohibit an employer from adopting an arrangement described in paragraph (3). The Director may prescribe regulations which would establish minimum standards that such an arrangement would be required to satisfy in order for this paragraph to apply in the case of such arrangement. An employee described in this paragraph is an individual— whose employer does not maintain a qualified retirement plan (as defined in section 4974(c) of the Internal Revenue Code of 1986); whose employment consists of work (whether or not as an employee) through mobile platforms; or who is not eligible to participate in the qualified retirement plan (as so defined) of the employee’s employer. The aggregate amount of contributions under this subsection for any taxable year to the individual’s PRIA Basis or PRIA Choice Account shall not exceed an amount equal to the lesser of— the deductible amount in effect for the taxable year under subsection
(b)of section 219 of the Internal Revenue Code of 1986; or an amount equal to the compensation (within the meaning of such section) includible in the individual’s gross income for such taxable year. 50 or older In the case of an individual who has attained the age of 50 before the close of the taxable year, the amounts described in paragraph (1)(A) and subsection (c)(4) for such taxable year shall be increased by $1,000. The employer of a beneficiary of a PRIA Basic or PRIA Choice Account may at any time contribute additional funds for deposit into such account, to the extent the total of such contributions under this subsection and subsection
(c)does not exceed the limitation in effect with respect to the individual under subsection
(c)for the taxable year. Any employer that does not maintain a qualified retirement plan (as defined in section 4974(c) of the Internal Revenue Code of 1986) or maintains such a plan eligibility for which is restricted to only certain employees shall provide a mechanism for the direct deposit of funds as described in subsection (c)(2) for each employee of the employer. Any mobile platform through which individuals perform work and receive compensation (whether or not as an employee) shall provide a mechanism for the direct deposit of funds, by means of electronic funds transfer, identified by the individual into the individual's portable retirement and investment account. In the case of any employer that makes contributions to PRIA Basic or PRIA Choice Account on behalf of the employer’s employees, rules similar to the rules applicable to simple retirement accounts under section 2(h) of the Employee Retirement and Income Security Act of 1974 ( 29 U.S.C. 1001(h) ) shall apply. A beneficiary of a PRIA Basic Account (or, in the case of a beneficiary who is under 18 years of age, the parent or guardian of the beneficiary) may elect at any time to transfer the entire amount in such portable retirement and investment account to any PRIA Choice Account (as defined in section 223A of the Internal Revenue Code of 1986) with such beneficiary as the sole beneficiary. Such account shall be held by a custodial entity such as a bank, credit union, trust company or an entity that is licensed and regulated by the Secretary pursuant to requirements consistent with section 1.408–2e of title 26, Code of Federal Regulations. Investments in such accounts are not subject to the limitation to lifecycle funds described in section 3. The Director shall ensure that account statements are delivered to the beneficiary of a portable retirement and investment account by electronic delivery to the extent practicable. When the amount in a portable retirement and investment account first exceeds $15,000 and when the beneficiary of the account attains the age of 18, the Director shall notify the beneficiary of the account of the option under paragraph
(3)to transfer the entire amount in such account to an individual retirement account. A beneficiary of a PRIA Basic or a PRIA Choice Account (or, in the case of a beneficiary who is under 18 years of age, the parent or guardian of the beneficiary) may elect at any time to transfer the entire amount in such account to an individual retirement account (as defined in section 408 of the Internal Revenue Code of 1986) with such beneficiary as the sole beneficiary. For purposes of such Code, such a rollover shall be treated as described in section 408(d)(3) of such Code.
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