H.R. 2023

119th CONGRESS 1st Session

To amend the Employee Retirement Income Security Act of 1974 to provide for greater spousal protection under defined contribution plans, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · March 11, 2025 · Sponsor: Ms. Underwood

H.R. 2023
- Sec. 205A. Additional spousal consent requirements.

(a) In general
- Each individual account plan to which section 205 does not apply shall provide that, except as provided in subsections (c) and (d), no distribution may be made under the plan unless the spousal consent requirements of subsection (e) are met.
(b) Coordination with section 205
- Nothing in this section shall be construed to exempt an individual account plan from the requirements of section 205 with respect to any participant.
(c) Exceptions for certain distributions
- Subsection (a) shall not apply to—
  - any distribution that is—
    - a minimum required distribution described in of the Internal Revenue Code of 1986; section 4974(b)
    - permitted under section 203(e)(1) to be made without the consent of the participant; or
    - in an amount that is less than 25 percent of the account balance, but not more than once per account;
  - any distribution in the form of a qualified joint and survivor annuity (as defined in section 205(d)(1)), a qualified optional survivor annuity (as defined in section 205(d)(2)), a qualified preretirement survivor annuity (as defined in section 205(e)), or a series of substantially equal periodic payments (not less frequently than annually) made for the joint lives (or life expectancies) of the participant and the participant's spouse; or
  - in the case of a participant who does not elect a form of benefit described in paragraph (2) under the plan or who is participating in a plan that does not provide such a form of benefit, any distribution of the participant's entire nonforfeitable accrued benefit if 50 percent of such accrued benefit is transferred to an individual retirement plan (as defined in of the Internal Revenue Code of 1986) of the spouse of the participant. section 7701(a)(37)
- A transfer described in paragraph (3) to an individual retirement plan shall be treated in the same manner as a transfer under of the Internal Revenue Code of 1986. section 408(d)(6)
(d) Exceptions for certain rollover contributions
- Subsection (a) shall not apply to any distribution, involving a participant who has a spouse, that is an eligible rollover distribution (as defined in of the Internal Revenue Code of 1986) made in the form of a direct trustee-to-trustee transfer within the meaning of of the Internal Revenue Code of 1986— section 402(f)(2)(A); section 401(a)(31)
  - to a plan to which this section or section 205 applies; or
  - to an individual retirement plan (as defined in of the Internal Revenue Code of 1986) if— section 7701(a)(37)
    - the beneficiary of such plan is the spouse of the participant, or the spousal consent requirements of subsection (e) are met with respect to any designation of 1 or more other beneficiaries; and
    - under the terms of the individual retirement plan, the beneficiary of such plan (whether the spouse or other beneficiary designated under paragraph (1)) may not be changed unless—
      - (i) the spousal consent requirements of subsection (e) are met with respect to any such change, or
      - (ii) the spousal consent under subparagraph (A) to the designation of a beneficiary other than the spouse expressly permits such designation to be changed without the further consent of the spouse.
(e) Spousal consent requirements
- (1) In general
  - For purposes of this section, except as provided in paragraph (2), the spousal consent requirements of this subsection are met with respect to any distribution or any designation or change of beneficiary if—
    - the plan provides to each participant, within a reasonable period of time before such distribution or designation or change of beneficiary is made and consistent with such regulations as the Secretary of the Treasury may prescribe, a written explanation of the rights of the participant and the participant's spouse under this section;
    - the spouse of the participant consents in writing to the distribution or designation or change of beneficiary;
    - in the case of a distribution, the written consent under subparagraph (B) is made during the consent period; and
    - the written consent under subparagraph (B)—
      - (i) acknowledges the effect of such distribution or designation or change of beneficiary; and
      - (ii) is witnessed by a plan representative or a notary public.
- (2) Exceptions under section 205 to apply
  - The requirements of paragraph (1) (other than subparagraph (A) thereof) shall not apply with respect to any distribution or designation or change of beneficiary if a participant establishes to the satisfaction of the plan administrator that—
    - there is no spouse;
    - the participant and the participant's spouse have not been married for at least 1 year as of the date of the distribution or designation or change of beneficiary; or
    - such consent cannot be obtained because—
      - (i) the spouse cannot be located; or
      - (ii) of such other circumstances as the Secretary of the Treasury, in consultation with the Secretary of Labor, may by regulations prescribe.
- (3) Consent limited to spouse and event
  - Any written consent by a spouse under paragraph (1), or the establishment by a participant that an exception under paragraph (2) (other than subparagraph (A) thereof) applies with respect to a spouse, shall be effective only with respect to that spouse and to the distribution or designation or change of beneficiary to which it relates.
- (4) Consent period
  - For purposes of this subsection, the term consent period means, with respect to any distribution—
    - the 90-day period immediately preceding the date of such distribution; or
    - such other period as the Secretary of the Treasury may provide.
(f) Discharge of plan from liability
- Rules similar to the rules of section 205(c)(6) shall apply for purposes of this section.

H.R. 2023

Table of contents

Sec. 205A. Additional spousal consent requirements.