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Code · STATUTE-COMPILATIONS · American Rescue Plan Act of 2021 · Sec. 9705

Sec. 9705. EXTENDED AMORTIZATION FOR SINGLE EMPLOYER PLANS

348 words·~2 min read·/statute-compilations/comps-16472/sec-9705

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## SEC. 9705 EXTENDED AMORTIZATION FOR SINGLE EMPLOYER PLANS ###
(a)15-year Amortization Under the Internal Revenue Code of 1986 **[**[26 U.S.C. 430](/us/usc/t26/s430)**]** Section 430(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: > > #### “(8) 15-year amortization > > With respect to plan years beginning after December 31, 2021 (or, at the election of the plan sponsor, plan years beginning after December 31, 2018, December 31, 2019, or December 31, 2020)— > > > ##### “(A) > > the shortfall amortization bases for all plan years preceding the first plan year beginning after December 31, 2021 (or after whichever earlier date is elected pursuant to this paragraph), and all shortfall amortization installments determined with respect to such bases, shall be reduced to zero, and > > > ##### “(B) > > subparagraphs
(A)and
(B)of paragraph
(2)shall each be applied by substituting ‘15-plan-year period’ for ‘7-plan-year period’.” > . ###
(b)15-year Amortization Under the Employee Retirement Income Security Act of 1974 **[**[29 U.S.C. 1083](/us/usc/t29/s1083)**]** Section 303(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)) is amended by adding at the end the following new paragraph: > > #### “(8) 15-year amortization > > With respect to plan years beginning after December 31, 2021 (or, at the election of the plan sponsor, plan years beginning after December 31, 2018, December 31, 2019, or December 31, 2020)— > > > ##### “(A) > > the shortfall amortization bases for all plan years preceding the first plan year beginning after December 31, 2021 (or after whichever earlier date is elected pursuant to this paragraph), and all shortfall amortization installments determined with respect to such bases, shall be reduced to zero, and > > > ##### “(B) > > subparagraphs
(A)and
(B)of paragraph
(2)shall each be applied by substituting ‘15-plan-year period’ for ‘7-plan-year period’.” > . ###
(c)Effective Date **[**[26 U.S.C. 430 note](/us/usc/t26/s430)**]** The amendments made by this section shall apply to plan years beginning after December 31, 2018.
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Sec. 9705
EXTENDED AMORTIZATION FOR SINGLE EMPLOYER PLANS
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