{"format":1,"id":"117-hr-2954","congress":117,"number":"H.R. 2954","kind":"bill","group":"bills","title":"Securing a Strong Retirement Act of 2022","title_source":"Short Title(s) as Passed House","official_title":"To increase retirement savings, simplify and clarify retirement plan rules, and for other purposes.","titles":[{"type":"Official Title as Introduced","title":"To increase retirement savings, simplify and clarify retirement plan rules, and for other purposes."},{"type":"Short Titles from RFS (Referred to Senate) bill text","title":"Securing a Strong Retirement Act of 2022"},{"type":"Display Title","title":"Securing a Strong Retirement Act of 2022"},{"type":"Short Title(s) as Passed House","title":"Securing a Strong Retirement Act of 2022"},{"type":"Short Title(s) as Reported to House","title":"Securing a Strong Retirement Act of 2021"},{"type":"Short Title(s) as Introduced","title":"Securing a Strong Retirement Act of 2021"}],"outcome":"passed_house","law_number":null,"introduced":"2021-05-04","chambers":{"house":{"status":"roll_call","date":"2022-03-29","vote":{"id":"117-2022-h86","question":"On Motion to Suspend the Rules and Pass, as Amended","title":"Securing a Strong Retirement Act of 2022","result":"Passed","yea":414,"nay":5,"present":0,"not_voting":12,"source":"https://clerk.house.gov/evs/2022/roll086.xml"}},"senate":{"status":"na","date":null,"vote":null}},"president":{"status":"na","date":null},"vice_president_tie_breaker":null,"latest_action":{"text":"Received in the Senate and Read twice and referred to the Committee on Finance.","date":"2022-03-30"},"nominees":null,"amendments":[],"other_votes":[],"crs_summary":{"date":"2022-03-29","stage":"Passed House","blocks":[{"k":"h","t":"Securing a Strong Retirement Act of 2022"},{"k":"p","t":"This bill makes various changes with respect to employer-sponsored retirement plans, including providing for the automatic enrollment of employees in certain plans and increasing the age at which participants are required to begin receiving mandatory distributions."}],"words":43},"summary":{"main_subject":{"text":"Amends the Internal Revenue Code and the Employee Retirement Income Security Act of 1974 to change rules for employer-sponsored retirement plans, individual retirement accounts, and related tax credits, distributions, and plan administration.","cites":[{"label":"Title I","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H1D30219A7385403D86DB150CAFAAABAC"},{"label":"Title II","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H8B8B2511270349F4871A9C935246245E"},{"label":"Title III","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HE648E27675714DD1BF19A2B80D6047F3"},{"label":"Title VI","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H3ADBCCD20FF24ABEBA30AE54DF9AA350"}]},"core_areas":["Automatic enrollment in 401(k) and 403(b) plans","Tax credits for small employer retirement plans and the Saver's Credit","Required minimum distribution ages and excise tax","Catch-up contribution limits","Penalty-free and hardship withdrawals from retirement plans","Annuities and longevity annuity contracts","Retirement plan correction, overpayment recovery, and disclosure rules","Roth treatment of contributions"],"what_it_does":[{"text":"Provides that a new 401(k) or 403(b) arrangement must automatically enroll employees at a contribution rate of not less than 3 percent and not more than 10 percent, with annual 1 percentage point increases, with listed exceptions such as plans established before enactment.","cite":{"label":"Sec. 101","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HF25B4979A66D41BCAB6C28568BF2606B"}},{"text":"Increases the small employer pension plan startup credit percentage from 50 percent to 100 percent for employers with up to 50 employees, and adds a credit for employer contributions of up to $1,000 per employee.","cite":{"label":"Sec. 102","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H319429B3A1374A0B85BA3B4891DEE6A5"}},{"text":"Replaces the Saver's Credit rate with a 50 percent rate and sets adjusted gross income phaseouts, with a $48,000 threshold for joint returns, for taxable years beginning after December 31, 2026.","cite":{"label":"Sec. 104","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HB58FC8FA057641FD916765A2FB990B0E"}},{"text":"Raises the age for required beginning of mandatory distributions from 72 to 73, then 74, then 75, depending on when an individual attains the listed ages.","cite":{"label":"Sec. 106","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HB9B18B5F05D04C1F8F7B67AC535C6314"}},{"text":"Allows a higher catch-up contribution limit of $10,000 ($5,000 for simple plans) for participants who would attain age 62, but not age 65, in the taxable year, and indexes the IRA catch-up amount.","cite":{"label":"Sec. 108","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HE9318EDAD96E4C1481FDFEABFCFBD3BD"}},{"text":"Allows employer matching contributions on an employee's qualified student loan payments to be treated like matching contributions on elective deferrals.","cite":{"label":"Sec. 111","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H575D3A0CE96D418C8DB2884DC8646B9D"}},{"text":"Sets rules for plans seeking or not seeking to recover inadvertent benefit overpayments, including limits on recoupment from participants and beneficiaries.","cite":{"label":"Sec. 301","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H588C13A6B1E3491A9414DF89E946E7EE"}},{"text":"Reduces the excise tax on certain accumulations in qualified retirement plans from 50 percent to 25 percent, and to 10 percent if corrected within a correction window.","cite":{"label":"Sec. 302","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H4B17264516D54196A93A15078E39B79F"}},{"text":"Raises the dollar limit for mandatory distributions from $5,000 to $7,000.","cite":{"label":"Sec. 307","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H2961BB1EE86F4D30A752878F8869EA53"}},{"text":"Allows distributions of up to the lesser of $10,000 or 50 percent of the nonforfeitable accrued benefit without the early distribution additional tax for victims of domestic abuse by a spouse or domestic partner.","cite":{"label":"Sec. 318","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H4E0AA7CD3E2C4CBABCCE2263788688C7"}}],"unexpected":[{"category":"off_subject","items":[{"cite":{"label":"Sec. 109","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HB4DB452E39FF44659ED4E32C05E6B88F"},"heading":"Pooled employer plans modification","effect":"Changes the ERISA definition of a pooled employer plan to require a named fiduciary, other than a participating employer, to collect contributions under written procedures.","amount":null,"quote":"designate a named fiduciary (other than an employer in the plan) to be responsible for collecting contributions to the plan"},{"cite":{"label":"Sec. 110","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H983120570B9E4ADEAC9D64B51ED42308"},"heading":"Multiple employer 403(b) plans","effect":"Allows 403(b) annuity contracts to be purchased under plans maintained by more than one employer, excludes church plans from this rule, and adds related filing, ERISA and model-plan provisions.","amount":null,"quote":"Except in the case of a church plan, this subsection shall not be treated as failing to apply to an annuity contract solely by reason of such contract being purchased under a plan maintained by more than 1 employer."},{"cite":{"label":"Sec. 111","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H575D3A0CE96D418C8DB2884DC8646B9D"},"heading":"Treatment of student loan payments as elective deferrals for purposes of matching contributions","effect":"Lets employers treat qualified student loan payments by employees as elective deferrals for purposes of employer matching contributions in 401(k), 403(b), 457(b) and SIMPLE plans.","amount":null,"quote":"any employer contribution made to a defined contribution plan on behalf of an employee on account of a qualified student loan payment."},{"cite":{"label":"Sec. 116","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H81C152232BBA401F815C6DA5D49925DF"},"heading":"Improving coverage for part-time workers","effect":"Limits the service period a 401(k) or 403(b) plan may require of part-time employees before participation to two consecutive 12-month periods of at least 500 hours, with related vesting and testing rules.","amount":null,"quote":"shall not require, as a condition of participation in the arrangement or agreement, that an employee complete a period of service with the employer"},{"cite":{"label":"Sec. 117","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H6C2D73E4326C4415BE3510CD51FD5E81"},"heading":"Deferral of tax for certain sales of employer stock to employee stock ownership plan sponsored by S corporation","effect":"Extends deferral of tax on gain from sales of employer stock to employee stock ownership plans to S corporation stock, limited to 10 percent of the amount realized, for sales after December 31, 2027.","amount":null,"quote":"the election under subsection (a) may be made with respect to not more than 10 percent of the amount realized on such sale"},{"cite":{"label":"Sec. 118","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HAF27F5681DC44E72BB0C4385CB443D43"},"heading":"Certain securities treated as publicly traded in case of employee stock ownership plans","effect":"Treats certain employer securities held by employee stock ownership plans as publicly traded if they meet listed quotation, float, auditing and issuer criteria.","amount":null,"quote":"In the case of an applicable defined contribution plan which is an employee stock ownership plan, an employer security shall be treated as described in subparagraph (G)(v)"},{"cite":{"label":"Sec. 203","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HF2AF95D27743442FA343A8D31CAC81B6"},"heading":"Insurance-dedicated exchange-traded funds","effect":"Directs the Treasury to amend diversification regulations within 7 years so exchange-traded funds can be investment options under variable contracts, and defines authorized participants and market makers.","amount":null,"quote":"in order to facilitate the use of exchange-traded funds as investment options under variable contracts within the meaning of section 817(d)"},{"cite":{"label":"Sec. 306","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H46C268094A4C49338D05C42DC07E582D"},"heading":"Retirement savings lost and found","effect":"Directs the Department of Labor to create an online searchable database for locating plan administrators and requires plan administrators to submit participant and plan information to it.","amount":null,"quote":"shall establish an online searchable database (to be managed by the Department of Labor in accordance with this section) to be known as the “Retirement Savings Lost and Found”"},{"cite":{"label":"Sec. 307","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H2961BB1EE86F4D30A752878F8869EA53"},"heading":"Updating dollar limit for mandatory distributions","effect":"Raises the dollar limit for mandatory plan distributions from $5,000 to $7,000 in ERISA and the Internal Revenue Code, for distributions after December 31, 2022.","amount":null,"quote":"are each amended by striking “$5,000” and inserting “$7,000”."},{"cite":{"label":"Sec. 309","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H2363283C5DFA4D9E9C63D8773DB8510B"},"heading":"Eliminate the first day of the month requirement for governmental section 457(b) plans","effect":"Rewrites the 457(b) deferral-agreement timing rule so governmental employers may defer compensation under an agreement made before the compensation is available, while other employers keep the start-of-month rule.","amount":null,"quote":"in the case of an eligible employer described in subsection (e)(1)(A), will be deferred only if an agreement providing for such deferral has been entered into before the compensation is currently available to the individual"},{"cite":{"label":"Sec. 310","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H73701D20A6F0485799F641608E78B2E7"},"heading":"One-time election for qualified charitable distribution to split-interest entity; increase in qualified charitable distribution limitation","effect":"Allows a one-time election to treat IRA distributions made directly to certain split-interest charitable entities as qualified charitable distributions, up to $50,000, with inflation adjustment.","amount":"$50,000","quote":"the aggregate amount of distributions of the taxpayer with respect to which an election under this subparagraph is made does not exceed $50,000"},{"cite":{"label":"Sec. 312","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H101EC04C0CA74565B8A529FD2662CDE0"},"heading":"Exclusion of certain disability-related first responder retirement payments","effect":"Excludes from gross income certain retirement pension or annuity payments to law enforcement officers, firefighters, paramedics and emergency medical technicians, up to an annualized disability amount, for taxable years after 2027.","amount":null,"quote":"gross income shall not include so much of such payments as do not exceed the annualized excludable disability amount with respect to such individual"},{"cite":{"label":"Sec. 315","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H24844CE33FEF4D7E84D72F910647A1E8"},"heading":"Separate application of top heavy rules to defined contribution plans covering excludible employees","effect":"Lets employers exclude employees who do not meet age or service requirements from top-heavy rule testing if they are covered under a separate plan that meets the requirements.","amount":null,"quote":"such employees may be excluded from consideration in determining whether any plan of the employer meets the requirements of subparagraphs (A) and (B)."},{"cite":{"label":"Sec. 319","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HB24D74C0929F4DF9B6F674ECE0E5ED6F"},"heading":"Reform of family attribution rules","effect":"Changes how family stock ownership is attributed when deciding whether companies form a controlled group or affiliated service group, including disregarding community property laws.","amount":null,"quote":"Community property laws shall be disregarded for purposes of determining ownership."},{"cite":{"label":"Sec. 322","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HD5A9D096FCCA4DB4A8BCFE76EC465E63"},"heading":"Limiting cessation of IRA treatment to portion of account involved in a prohibited transaction","effect":"Provides that when an IRA owner engages in a prohibited transaction, only the amount involved is treated as distributed, rather than the whole account ceasing to be an IRA.","amount":null,"quote":"the amount involved (as defined in section 4975(f)(4)) in such transaction shall be treated as distributed to the individual"},{"cite":{"label":"Sec. 323","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H691D686AC9854A91A86A987DC4D7AB87"},"heading":"Review of pension risk transfer interpretive bulletin","effect":"Requires the Secretary of Labor, within 1 year, to review a pension risk transfer interpretive bulletin on selecting an annuity provider and report findings to Congress.","amount":null,"quote":"review section 2509.95–1 of title 29, Code of Federal Regulations (relating to the fiduciary standards under the Employee Retirement Income Security Act of 1974"},{"cite":{"label":"Sec. 701","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H952FB608F2444D17A5E6F6A03B6ED4F5"},"heading":"Determination of budgetary effects","effect":"Directs that the budgetary effects of the Act under the Statutory Pay-As-You-Go Act of 2010 be determined by the latest PAYGO statement printed in the Congressional Record by the House Budget Committee Chairman.","amount":null,"quote":"shall be determined by reference to the latest statement titled “Budgetary Effects of PAYGO Legislation” for this Act"},{"cite":{"label":"Sec. 303","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H770418D6B54647D68CC723E6824F97D3"},"heading":"Performance benchmarks for asset allocation funds","effect":"Directs the Secretary of Labor to allow plan administrators to use a blended index benchmark for investment alternatives holding a mix of asset classes, and to report on its use.","amount":null,"quote":"the administrator of a plan may, but is not required to, use a benchmark that is a blend of different broad-based securities market indices"}]},{"category":"narrow_beneficiary","items":[{"cite":{"label":"Sec. 321","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H1563EF246A234140B1E27A1FAA69757F"},"heading":"Retroactive first year elective deferrals for sole proprietors","effect":"Lets a sole proprietor with no other employees treat elective deferrals made before the tax return filing date as made in the plan's first plan year.","amount":null,"quote":"In the case of an individual who owns the entire interest in an unincorporated trade or business, and who is the only employee of such trade or business"}]},{"category":"place_specific_amount","items":[{"cite":{"label":"Sec. 113","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H385BB6F00EBA49078A93EEBE88DC5620"},"heading":"Military spouse retirement plan eligibility credit for small employers","effect":"Creates a business tax credit for eligible small employers of $250 per military spouse employee eligible for a defined contribution plan, plus employer contributions up to $250 for that employee, for up to three taxable years.","amount":"$250","quote":"$250 with respect to each military spouse who is an employee of such employer and who is eligible to participate in an eligible defined contribution plan of such employer at any time during such taxable year, plus"}]},{"category":"selective_carve_out","items":[{"cite":{"label":"Sec. 101","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HF25B4979A66D41BCAB6C28568BF2606B"},"heading":"Expanding automatic enrollment in retirement plans","effect":"Adds an automatic enrollment requirement for 401(k) and 403(b) arrangements, with exceptions for plans established before enactment, governmental and church plans, businesses in existence under 3 years, and employers with 10 or fewer employees.","amount":null,"quote":"Subsection (a) shall not apply to any governmental plan (within the meaning of section 414(d)) or any church plan (within the meaning of section 414(e))."},{"cite":{"label":"Sec. 311","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H1209283F465C41449362A0B8624F5C0A"},"heading":"Distributions to firefighters","effect":"Extends the exception to the additional tax on early distributions to certain plan distributions made to employees who provide firefighting services.","amount":null,"quote":"a distribution from a plan described in clause (iii), (iv), or (vi) of section 402(c)(8)(B) to an employee who provides firefighting services"},{"cite":{"label":"Sec. 501","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H9F144D4D46DD4210B44555CD5E9A5FBF"},"heading":"Provisions relating to plan amendments","effect":"Sets a later plan amendment deadline, 2026 instead of 2024, for governmental plans and collectively bargained plans.","amount":null,"quote":"In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), or an applicable collectively bargained plan, this paragraph shall be applied by substituting “2026” for “2024”."}]},{"category":"process_change","items":[{"cite":{"label":"Sec. 313","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-HCF64167607A84B8B958169109A22B301"},"heading":"Individual retirement plan statute of limitations for excise tax on excess contributions and certain accumulations","effect":"Specifies which income tax return starts the statute of limitations for excise taxes on excess IRA contributions and certain accumulations, including for people not required to file a return.","amount":null,"quote":"the return referred to in this section shall be the income tax return filed by the person on whom the tax under such section is imposed"},{"cite":{"label":"Sec. 320","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh#toc-H63E60FAA5C944414853C6FBBE8441197"},"heading":"Amendments to increase benefit accruals under plan for previous plan year allowed until employer tax return due date","effect":"Lets an employer treat a plan amendment that increases accrued benefits as adopted on the last day of the prior plan year, if adopted before the employer's tax return due date.","amount":null,"quote":"the employer may elect to treat such amendment as having been adopted as of the last day of the plan year in which the amendment is effective."}]}],"version":{"type":"Engrossed in House","date":"2022-03-29","rule":"passed","href":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text/eh"},"current":true,"model":"claude-sonnet-5-5","approved":"2026-10-15","approved_by":"checks"},"sources":{"congress_gov":"https://www.congress.gov/bill/117th-congress/house-bill/2954","text":"https://www.congress.gov/bill/117th-congress/house-bill/2954/text"},"card":{"image":"card/item/117-hr-2954.png","v":"34931282f926","alt":"Votes on Record. H.R. 2954, 117th Congress: Securing a Strong Retirement Act of 2022. House: 414 Yea, 5 Nay. Outcome: Passed House, 29 Mar 2022."}}