article: SECTION 1. NOTICE OF HIGH CONCENTRATION OF PENSION ASSETS IN EMPLOYER SECURITIES. (a) In General.--Section 105 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025) in amended by adding at the end of the following new subsection: ``(e) Notice of High Concentration of Plan Assets In Employer Securities.-- ``(1) In general.--In the case of an individual account plan to which this subsection applies, if the percentage of assets in the individual account that consists of employer securities and employer real property exceeds 50 percent of the total account, the plan administrator shall include with the account statement a notice that the account may be overinvested in employer securities and employer real property. Any determination under this paragraph shall be made as of the most recent valuation date under the plan. ``(2) Exclusion of assets held through pooled investment vehicles.--Employer securities and employer real property held through an investment option of the plan which is not designed to invest primarily in employer securities or employer real property shall not be taken under paragraph (1) is determining the percentage of assets that consist of employer securities and employer real property. ``(3) Application.-- ``(A) In general.--This subsection shall apply to any individual account plan which-- ``(i) holds employer securities which are readily tradable on an established securities market, and ``(ii) permits a participant or beneficiary to exercise control over assets in the individual's account. ``(B) Exception for esops.--This subsection shall not apply to an employee stock ownership plan (as defined in section 4795(e)(7)) of the Internal Revenue Code of 1986) if the plan has no contributions which are subject to section 401 (k) or (m) of such Code. ``(4) Employer securities and real property.--For purposes of this subsection, the terms `employer securities' and `employer real property' have the meanings given such terms by paragraphs (1) and (2) of section 407(d), respectively.'' (b) Penalty.--Section 502 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1132) is amended-- (1) in subsection (a)(6), by striking ``(6), or (7)'' and inserting ``(6), (7), or (8)'', (2) by redesignating paragraph (8) of subsection (c) as paragraph (9), and (3) by inserting after paragraph (7) the following new paragraph: ``(8) The Secretary may assess a civil penalty against a plan administrator of up to $100 a day from the date of the plan administrator's failure or refusal to provide notice to participants and beneficiaries in accordance with section 105(e). For purposes of this paragraph, each violation with respect to any single participant or beneficiary shall be treated as a separate violation.'' (c) Effective Date.--The amendments made by this section shall apply to plan years beginning after December 31, 2002. SEC. 2. TREATMENT OF QUALIFIED RETIREMENT PLANNING SERVICES. (a) In General.--Subsection (m) of section 132 of the Internal Revenue Code of 1986 (defining qualified retirement services) is amended by redesignating paragraphs (2) and (3) as paragraphs (5) and (6), respectively, and by inserting after paragraph (1) the following: ``(2) Limitations.-- ``(A) Dollar limitation.--The aggregate amount which may be excluded with respect to qualified retirement planning services provided to any individual during a taxable year shall not exceed $1,500. ``(B) Adjusted gross income.--No amount may be excluded with respect to qualified retirement planning services provided during a taxable year if the modified adjusted gross income of the taxpayer for such taxable year exceeds $100,000 ($200,000 in the case of married individuals filing a joint return). For purposes of this subparagraph, the term `modified adjusted gross income' means adjusted gross income, determined without regard to this section and sections 911, 931, and 933. ``(3) Cash reimbursements.--For purposes of this subsection the term `qualified retirement planning services' includes a cash reimbursement by an employer to an employee for a benefit described in paragraph (1). ``(4) No constructive receipt.--No amount shall be included in the gross income of any employee solely because the employee may choose between any qualified retirement planning services provided by a qualified investment advisor and compensation which would otherwise be includible in the gross income of such employee. The preceding sentence shall apply to highly compensated employees only if the choice described in such sentence is available on substantially the same terms to each member of the group of employees normally provided education and information regarding the employer's qualified employer plan.'' (b) Conforming Amendments.-- (1) Section 403(b)(3)(B) of such Code is amended by inserting ``132(m)(4),'' after ``132(f)(4),''. (2) Section 414(s)(2) of such Code is amended by inserting ``132(m)(4),'' after ``132(f)(4),''. (3) Section 415(c)(3)(D)(ii) of such Code is amended by inserting ``132(m)(4),'' after ``132(f)(4),''. (c) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2002.
summary: Amends the Employee Retirement Income Security Act of 1974 (ERISA) to provide for information and advice to assist pension plan participants in making decisions regarding the investment of their pension plan assets under defined contribution plans that are individual account plans (IAPs) (401(k) and similar plans) which hold regularly tradable employment securities and permit participants or beneficiaries to exercise control over assets in the account.Requires the plan administrator to include in the account statement a notice that the account may be overinvested in employer securities and real property, whenever assets consisting of employer securities and real property exceed 50 percent of total IAP assets. Excludes from such notice requirement: (1) assets held through pooled investment vehicles; and (2) employee stock ownership plans (ESOPs) that have no contributions subject to section 401 (k) or (m) of the Internal Revenue Code (IRC).Amends IRC to limit to$1,500 the aggregate amount which may be excluded from gross income with respect to qualified retirement planning services (QRPS) provided to any individual during a taxable year. Prohibits exclusion of any such amount if the modified adjusted gross income of the taxpayer exceeds $100,000 ($200,000 for married individuals filing a joint return). Provides that no amount (constructive receipt) shall be included in the gross income of any employee solely because the employee may choose between any QRPS provided by a qualified investment advisor, and compensation which would otherwise be includible in the employee's gross income. Applies such provision to highly compensated employees only if such choice is available on substantially the same terms to each member of the group of employees normally provided education and information regarding the employer's qualified employer plan.