SMALL IMMEDIATE FINANCIAL INCENTIVES FOR CONTRIBUTING TO A PLAN.

SEC. 113. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR CONTRIBUTING TO A PLAN.(a) In General.—Subparagraph (A) of section 401(k)(4) is amended by inserting “(other than a de minimis financial incentive (not paid for with plan assets) provided to employees who elect to have the employer make contributions under the arrangement in lieu of receiving cash)” after “any other benefit”. (b) Section 403(b) Plans.—Subparagraph (A) of section 403(b)(12), as amended by the preceding provisions of this Act, is further amended by adding at the end the following: “A plan shall not fail to satisfy clause (ii) solely by reason of offering a de minimis financial incentive (not derived from plan assets) to employees to elect to have the employer make contributions pursuant to a salary reduction agreement.”. (c) Exemption From Prohibited Transaction Rules.—Subsection (d) of section 4975 is amended by striking “or” at the end of paragraph (22), by striking the period at the end of paragraph (23) and inserting “, or”, and by adding at the end the following new paragraph:“(24) the provision of a de minimis financial incentive described in section 401(k)(4)(A).” .136 STAT. 5296 (d) Amendment of Employee Retirement Income Security Act of 1974.—Subsection (b) of section 408 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)) is amended by adding at the end the following new paragraph:“(21) The provision of a de minimis financial incentive described in section 401(k)(4)(A) or section 403(b)(12)(A) of the Internal Revenue Code of 1986.” . (e) Effective Date.—The amendments made by this section shall apply with respect to plan years beginning after the date of enactment of this Act.