HR 4718
Helping Young Americans Save for Retirement Act
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Bill overview
This bill, the Helping Young Americans Save for Retirement Act, changes rules within the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code to allow 18-year-olds to participate in certain retirement plans. Specifically, it lowers the age requirement for participation from 21 to 18, with adjusted criteria for calculating qualifying periods of service. The bill also includes provisions to address the accounting of participants in these plans and ensure consistent application of the rules.
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119th CONGRESS — 1st Session
H. R. 4718
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 with respect to minimum participation standards for pension plans and qualified trusts.
This Act may be cited as the Helping Young Americans Save for Retirement Act
.
Subparagraphs (A) and (B) of section 202(c)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1052(c)(1)) are amended to read as follows:
the period permitted under subsection (a)(1), determined—
without regard to subparagraph (B)(i) thereof; and
by substituting 18
for 21
in subparagraph (A)(i) thereof; or
the first 24-month period—
consisting of 2 consecutive 12-month periods during each of which the employee has at least 500 hours of service; and
by the close of which the employee has met the requirement of subsection (a)(1)(A)(i) (without regard to subparagraph (A)(ii) of this paragraph).
Section 202(c) of such Act (29 U.S.C. 1052(c)) is amended—
in the subsection heading—
Special ruleand inserting
Special rules; and
by adding and certain younger employees
after employees
; and
paragraph (1)(B)and inserting
paragraph (1); and
by striking section 401(k)(2)(D)(ii)
and inserting section 401(k)(2)(D)
.
Section 104(a)(2) of such Act (29 U.S.C. 1024(a)(2)) is amended by adding at the end the following:
For purposes of subparagraph (A) and the last sentence of section 103(a)(3)(A), with respect to a pension plan in which at least one employee participates solely by reason of section 202(c)(1)(A), no employee participating in such plan solely by reason of section 202(c)(1)(A) shall be counted as a participant until the date that is 5 years after the date on which the first such employee first becomes a participant in such plan.
Clauses (i) and (ii) of section 401(k)(2)(D) of the Internal Revenue Code of 1986 are amended to read as follows:
the period permitted under section 410(a)(1), determined—
without regard to subparagraph (B)(i) thereof, and
by substituting 18
for 21
in subparagraph (A)(i) thereof, or
subject to the provisions of paragraph (15), the first of 2 consecutive 12-month periods during each of which the employee has at least 500 hours of service, provided that the employee has satisfied the requirements of section 410(a)(1)(A)(i) (without regard to clause (i)(II) of this subparagraph).
The Internal Revenue Code of 1986 is amended—
in section 401(k)(15)—
and certain younger workersafter
workers; and
(2)(D)(ii)each place it appears and inserting
(2)(D);
202(c)(1)(B)and inserting
202(c)(1); and
in clause (iv), striking paragraph (2)(D)(ii)
and inserting clauses (i)(II) and (ii) of paragraph (2)(D)
; and
in section 403(b)(12)—
section 202(c)and inserting
section 202(c)(1)(B); and
in the subparagraph heading, by inserting and certain younger employees
after employees
; and
202(c)(1)(B)and adding
202(c)(1).
The amendments made by this section shall apply to plan years beginning on or after the date that is 1 year after the date of enactment of this Act.