Independent Retirement Fairness Act

This bill amends the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 to allow independent workers to participate in retirement plans, and to simplify auditing requirements for certain plans. It also establishes pilot programs to encourage retirement savings for independent workers.

Sec. 2, Pooled employer plans for independent workers: This section allows independent workers to be enrolled in a pooled employer plan as if they were employees. Trade associations may also participate as employers to enroll independent workers. Data sharing is permitted to facilitate plan administration. Participation in such a plan does not change the independent worker's employment status under any law.

Sec. 3, Simplified employee pensions for independent workers: This section allows employers to treat independent workers as employees for simplified employee pension (SEP) purposes. Employers may exclude independent workers from participation requirements, treat them separately from employees, and not count them for employer size rules. Independent workers may elect to contribute cash bonuses to their SEP instead of receiving them. Contributions may be deposited into a suspension account temporarily.

Sec. 4, Simplification of auditing requirements for groups of plans: This section amends auditing rules so that a single audit opinion for a group of plans must relate only to those plans and be based on accounting principles for pooled employer plans, considering that plans in the group may have separate trusts.

Sec. 5, Simplification of auditing for pooled employer plans: This section provides that any audit opinion required for a pooled employer plan shall relate only to the portions attributable to a participating employer, as if that portion were a separate single-employer plan.

Sec. 6, Pilot programs for the gig economy: The Secretaries of Treasury and Labor must establish pilot programs to encourage independent workers to save for retirement. One program allows rounding down compensation to the nearest dollar and automatically contributing the excess. Another allows automatic deductions from compensation at a designated frequency. Contributions go to a pooled employer plan, solo 401(k), or suspension account. These programs may use safe harbor plans without causing them to fail requirements.