JOINT COMMITTEE ON TAXATION March 28, 2022 JCX-3-22 ESTIMATED REVENUE EFFECTS OF H.R. 2954, AS AMENDED, THE "SECURING A STRONG RETIREMENT ACT OF 2022," SCHEDULED FOR CONSIDERATION BY THE HOUSE OF REPRESENTATIVES ON MARCH 29, 2022 Fiscal Years 2022 - 2031 [Millions of Dollars]  ProvisionEffective20222023202420252026202720282029203020312022-262022-31              I. Expanding Coverage and Increasing Retirement Savings             1.Expanding automatic enrollment in retirement plans [1].........pyba 12/31/23-------470-606-660-681-685-690-696-703-1,735-5,1912.Modification of credit for small employer pension plan              startup costs.............................................................................tyba 12/31/22----40-135-241-323-370-389-397-402-405-739-2,7023.Promotion of Saver’s credit.....................................................DOE----7-15-23-32-42-53-65-78-93-77-4094.Enhancement of Saver’s credit................................................tyba 12/31/26-------------------1,879-1,915-1,896-1,870----7,5605.Enhancement of 403(b) plans..................................................aia 12/31/22- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -6.Increase in age for required beginning date for mandatory              distributions.............................................................................[2]----654-769-764-849-876-870-853-1,943-2,021-3,036-9,5977.Indexing IRA catch-up limit....................................................tyba 12/31/23----------14-18-18-18-39-36-35-32-1788.Higher catch-up limit to apply at age 62, 63, and 64...............tyba 12/31/23-------9-23-40-58-76-95-114-135-72-5509.Pooled employer plans modification........................................pyba 12/31/22- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -10.Multiple employer 403(b) plans...............................................pyba 12/31/22----4-7-9-14-18-22-27-31-37-34-16911.Treatment of student loan payments as elective              deferrals for purposes of matching contributions [3]...............cmf pyba 12/31/22----66-107-146-211-239-253-269-281-292-530-1,86412.Application of credit for small employer pension plan              startup costs to employers which join an existing plan............[4][5]-5-11-17-21-24-27-29-31-34-54-20013.Military spouse retirement plan eligibility credit for small              employers [6]...........................................................................tyba DOE----18-18-19-21-22-23-24-24-25-76-19414.Small immediate financial incentives for contributing to              a plan.......................................................................................pyba DOE- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -15.Safe harbor for corrections of employee elective deferral              failures.....................................................................................[7]3153555860626466687125758816.Improving coverage for part-time workers [8].........................[9]-2-10-13-15-20-25-27-30-33-37-61-21317.Deferral of tax for certain sales of employer stock to              employee stock ownership plan sponsored by S              corporation...............................................................................sa 12/31/27 ----------------142-308-440-613----1,50418.Certain securities treated as publicly traded in case of              employee stock ownership plans.............................................pyba 12/31/27-------------------61-173-283-409----926Total of Expanding Coverage and Increasing Retirement Savings…...........................29-750-1,499-1,819-2,150-2,310-4,461-4,848-6,222-6,639-6,188-30,669 Page 2     ProvisionEffective20222023202420252026202720282029203020312022-262022-31  AI. Preservation of Income 1. Remove required minimum distribution barriers for life  annuities...................................................................................cyea DOE-37-108-151-169-183-158-10341294603-648292.Qualifying longevity annuity contracts....................................[10]-3-1-3-5-10-7-1-10-8-12-22-603.Insurance-dedicated exchange-traded funds............................[11]----------------------71-167-283----521Total of Preservation of Income…...................................................................................-40-109-155-173-193-165-104-40120308-670-552III. Simplification and Clarification of Retirement Plan Rules             1.Recovery of retirement plan overpayments..............................DOE13011050105020-30-70-80-903501002.Reduction in excise tax on certain accumulations in              qualified retirement plans........................................................tyba 12/31/22----7-8-8-8-8-9-9-9-9-31-753.Performance benchmarks for asset allocation funds................DOE- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -4.Review and report to Congress relating to reporting and              disclosure requirements...........................................................DOE- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -5.Eliminating unnecessary plan requirements related to              unenrolled participants.............................................................pyba 12/31/22- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -6.Retirement savings lost and found [13]...................................DOE------[12]112357102297.Updating dollar limit for mandatory distributions....................dma 12/31/22- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -8.Expansion of Employee Plans Compliance Resolution              System [14]..............................................................................DOE-3-5-5-5-6-6-6-6-6-6-25-559.Eliminate the ‘‘first day of the month’’ requirement for              governmental section 457(b) plans..........................................tyba DOE- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -10.One-time election for qualified charitable distribution to              split-interest entity; increase in qualified charitable              distribution limitation..............................................................dmi tyea DOE-213-880-492-119-65-61-57-53-48-43-1,769-2,03111.Distributions to firefighters......................................................dma 12/31/22---[12][12][12][12][12][5][5][5]-1[5]-112.Exclusion of certain disability-related first responder              retirement payments.................................................................arwrt tyba 12/31/27-------------------340-545-579-615----2,07913. Individual retirement plan statute of limitations for excise tax on excess contributions and certain20. Amendments to increase benefit accruals under plan for previous plan year allowed until employer tax return due accumulations..........................................................................DOE-2-2-3-2-2-2-2-2-2-2-11-2114.Requirement to provide paper statements in certain              cases........................................................................................pyba 12/31/23- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -15.Separate application of top heavy rules to defined              contribution plans covering excludible employees..................pyba DOE1931333537404345495215638416.Repayment of qualified birth or adoption distribution              limited to 3 years.....................................................................[15]- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -17.Employer may rely on employee certifying that deemed              hardship distribution conditions are met..................................pyba 12/31/22---21313542444539312113030918.Penalty-free withdrawals from retirement plans for              individuals in case of domestic abuse......................................dma DOE-5-8-8-8-7-7-7-6-6-6-37-6919.Reform of family attribution rule [16].....................................pybo/a DOE-4-33-50-68-94-117-137-157-175-194-249-1,030 date..........................................................................................pyba 12/31/23- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 3  ProvisionEffective20222023202420252026202720282029203020312022-262022-31                                     21. Retroactive first year elective deferrals for sole                                   proprietors...............................................................................pyba DOE- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -22. Limiting cessation of IRA treatment to portion of                                   account involved in a prohibited transaction...........................tyba DOE-1 -3 -3 -3 -3 -4 -4 -4-4-4-13-3323. Review of pension risk transfer interpretive bulletin...............DOE- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Total of Simplification and Clarification of Retirement Plan Rules….........................-79 -776-454-132-57-99-501-762-824-888-1,498-4,572 IV. Technical Amendments…..............................................................[17]---------------- - -------------- - -------Negligible Revenue Effect - ----------------- - ---------------- V. Administrative Provisions…..........................................................DOE---------------- - -------------- - -------Negligible Revenue Effect - ----------------- - ---------------- VI. Revenue Provisions                                   1.  Simple and SEP Roth IRAs.....................................................tyba 12/31/22--- 1732456275921111361571567272.  Hardship withdrawal rules for 403(b) plans............................pyba 12/31/22---922354556687275761104583.  Elective deferrals generally limited to regular                                   contribution limit.....................................................................tyba 12/31/22---2,3793,0942,914 3,078 2,9762,335 2,003 1,890 1,689 11,465 22,358 4.  Optional treatment of employer matching contributions                                   as Roth contributions...............................................................cma DOE---5169281,4121,917 2,083 1,666 1,912 1,1477624,77312,343 Total of Revenue Provisions….........................................................................................--- 2,921 4,076 4,406 5,102 5,190 4,1614,098 3,248 2,684 16,504 35,886                        NET TOTAL ….................……………………………………………………………………-911,287 1,968 2,281 2,703 2,616 -905-1,553 -3,678 -4,534 8,148 93                                     Joint Committee on Taxation                                   --------------------------------------                                   NOTE: Details may not add to totals due to rounding. The date of enactment is assumed to be May 1, 2022. Revenue provisions as submitted in draft SJP_046.                Legend for "Effective" column:                                   aia = amounts invested after cyea = calendar years ending after               pyba = plan years beginning after  arwrt = amounts received with respect to dma = distributions made after               pybo/a = plan years beginning on or aftercma = contributions made after dmi = distributions made in               sa = sales after    cmf = contributions made for DOE = date of enactment                  tyba = taxable years beginning after  [1] Estimate includes the following budget effects:  2022  2023  2024 2025 2026 2027 2028 2029 2030 2031 2022-26 2022-31                                     Total Revenue Effect........................................................................................................... ---  ---  -470  -606-660-681-685-690-696-703-1,735-5,191 On-budget effects...........................................................................................................--- --- -429 -552 -607 -629 -635-641-648-656-1,589-4,797 Off-budget effects..........................................................................................................--- --- -40 -53 -52 -51 -51 -50 -49 -48 -146 -394 [2] Effective for distributions made after December 31, 2022 with respect to individuals who attain age 72 after such date.                         [3] Estimate includes the following budget effects:  2022  2023  2024 2025 2026 2027 2028 2029 2030 2031 2022-26 2022-31                                     Total Revenue Effect........................................................................................................... ---  -66  -107  -146  -211  -239  -253  -269  -281-292-530-1,864 On-budget effects...........................................................................................................--- -52 -84 -114 -169 -192 -203 -216 -226 -235 -419-1491Off-budget effects..........................................................................................................--- -14 -23 -32 -42 -47 -50 -53 -55 -57 -111 -373    [Footnotes for JCX-3-22 continue on the following page] Page 4        Footnotes for JCX-3-22 continued: [4] Effective as if included in the enactment of section 104 of the SECURE Act of 2019. [5] Loss of less than $500,000. [6]Estimate includes the following budget effects:2022 2023 20242025202620272028202920302031 2022-26 2022-31 Total Revenue Effect...........................................................................................................--- -18 -18 -19 -21 -22 -23 -24 -24 -25 -76 -194 On-budget effects...........................................................................................................--- -17-17-18-20-21-22-23-23-24 -72-185 Off-budget effects..........................................................................................................--- -1-1-1-1-1-1-1-1-1 -4 -9[7]Effective with respect to any errors with respect to which the date referred to in section 414(aa) (as added by this section) is after the date of enactment of this Act.          [8]Estimate includes the following budget effects:2022 2023 20242025202620272028202920302031 2022-26 2022-31 Total Revenue Effect...........................................................................................................-2 -10 -13 -15 -20 -25 -27 -30 -33 -37 -61 -213 On-budget effects...........................................................................................................-2 -9-12-14-18-22-25-27-30-33-55-193 Off-budget effects..........................................................................................................--- -1-1-1-2-2-3-3-3-4 -5 -20[9] Generally effective for plan years beginning after December 31, 2022. Subsection (d) effective as if included in the enactment of section 112 of the SECURE Act of 2019. [10] Paragraph (1) of subsection (a) is effective with respect to contracts purchased or received in an exchange on or after the date of the enactment of this Act. Paragraphs (2) and (3) of subsection (a) are effective with respect to contracts purchased or received in an exchange on or after July 2, 2014.[11] Subsection (a) of section 203 of the Act is effective on the date of enactment. Subsections (b) and (c) of section 203 of the Act are applicable to segregated asset account investments made on or after the date that is 7 years after the date of the enactment of the Act.[12] Gain of less than $500,000. [13] Estimate does not include spending effects estimated by the Congressional Budget Office. [14]Estimate includes the following budget effects:2022 2023 20242025202620272028 202920302031 2022-26 2022-31  Total Revenue Effect...........................................................................................................--- -4 -7 -9 -14 -18 -22 -27 -31 -37 -34 -169  On-budget effects...........................................................................................................--- -4 -6-8-13-16-20 -24-28-33-31-152  Off-budget effects..........................................................................................................--- --- -1-1-1-2-2 -3-3-4 -3 -17 [15]Effective as if included in the enactment of Section 113 of the SECURE Act of 2019.  2023 20242025202620272028 202920302031 2022-26 2022-31 [16]Estimate includes the following budget effects:2022                                            Total Revenue Effect...........................................................................................................-4 -33 -50 -68 -94 -117 -137 -157 -175 -194 -249-1,030  On-budget effects...........................................................................................................-3 -28 -42-58-81-101-118 -134-149-163 -213-877  Off-budget effects..........................................................................................................-1 -5 -7-10-13-16-20 -23-27-31 -36 -152 [17]Subsection (a) is effective as if included in the section of the SECURE Act of 2019 to which the amendment relates.Subsection (b) is effective on date of enactment.           

<p>The Securing a Strong Retirement Act of 2022 (<a href="/research/federal/legislative-documents/proposed-legislation/h.r.-2954---securing-a-strong-retirement-act-of-2022/7db1g" resolve="/7db1g">H.R. 2954</a>), as amended, would raise $93 million from 2022-2031, according to estimates (JCX-3-22) released by the Joint Committee on Taxation on March 28.</p> <p>Provisions to expand retirement coverage and savings would cost $30.7 billion over the 10-year period. Provisions related to the preservation of income would cost $552 million, the JCT estimated. Provisions to simplify and clarify retirement plan rules would cost $4.6 billion. Revenue provisions, such as related to Roth accounts, section 403(b) plans, and elective deferrals, would raise $35.9 billion, the JCT said.</p>

JCT Releases Estimated Revenue Effects for Retirement Bill 

The Securing a Strong Retirement Act of 2022 (H.R. 2954), as amended, would raise $93 million from 2022-2031, according to estimates (JCX-3-22) released by the Joint Committee on Taxation on March 28. Provisions to expand retirement coverage and savings would cost $30.7 billion over the 10-year period. Provisions related to the preservation of income would cost $552 million, the JCT estimated. Provisions to simplify and clarify retirement plan rules would cost $4.6 billion. Revenue provisions, such as related to Roth accounts, section 403(b) plans, and elective deferrals, would raise $35.9 billion, the JCT said.