diff --git a/compiler/testData/diagnostics/testsWithJsStdLibAndBackendCompilation/unsupportedFeatures/annotations.kt b/compiler/testData/diagnostics/testsWithJsStdLibAndBackendCompilation/unsupportedFeatures/annotations.kt
index 57ac900a942..2a0f2f7eb42 100644
--- a/compiler/testData/diagnostics/testsWithJsStdLibAndBackendCompilation/unsupportedFeatures/annotations.kt
+++ b/compiler/testData/diagnostics/testsWithJsStdLibAndBackendCompilation/unsupportedFeatures/annotations.kt
@@ -1,3 +1,4 @@
+// !LANGUAGE: -RestrictRetentionForExpressionAnnotations
 // !DIAGNOSTICS: -UNUSED_PARAMETER
 
 package foo
diff --git a/compiler/tests-common/tests/org/jetbrains/kotlin/checkers/AbstractDiagnosticsTestWithJsStdLib.kt b/compiler/tests-common/tests/org/jetbrains/kotlin/checkers/AbstractDiagnosticsTestWithJsStdLib.kt
index 8ea2f1d15ed..a9024cc985b 100644
--- a/compiler/tests-common/tests/org/jetbrains/kotlin/checkers/AbstractDiagnosticsTestWithJsStdLib.kt
+++ b/compiler/tests-common/tests/org/jetbrains/kotlin/checkers/AbstractDiagnosticsTestWithJsStdLib.kt
@@ -10,6 +10,7 @@ import org.jetbrains.kotlin.cli.jvm.compiler.EnvironmentConfigFiles
 import org.jetbrains.kotlin.config.CommonConfigurationKeys
 import org.jetbrains.kotlin.config.JvmTarget
 import org.jetbrains.kotlin.config.LanguageVersionSettings
+import org.jetbrains.kotlin.config.languageVersionSettings
 import org.jetbrains.kotlin.context.ModuleContext
 import org.jetbrains.kotlin.descriptors.ModuleDescriptor
 import org.jetbrains.kotlin.descriptors.impl.ModuleDescriptorImpl
@@ -45,15 +46,16 @@ abstract class AbstractDiagnosticsTestWithJsStdLib : AbstractDiagnosticsTest() {
     override fun getEnvironmentConfigFiles(): EnvironmentConfigFiles = EnvironmentConfigFiles.JS_CONFIG_FILES
 
     override fun analyzeModuleContents(
-            moduleContext: ModuleContext,
-            files: List<KtFile>,
-            moduleTrace: BindingTrace,
-            languageVersionSettings: LanguageVersionSettings,
-            separateModules: Boolean,
-            jvmTarget: JvmTarget
+        moduleContext: ModuleContext,
+        files: List<KtFile>,
+        moduleTrace: BindingTrace,
+        languageVersionSettings: LanguageVersionSettings,
+        separateModules: Boolean,
+        jvmTarget: JvmTarget
     ): JsAnalysisResult {
         // TODO: support LANGUAGE directive in JS diagnostic tests
         moduleTrace.record<ModuleDescriptor, ModuleKind>(MODULE_KIND, moduleContext.module, getModuleKind(files))
+        config.configuration.languageVersionSettings = languageVersionSettings
         return TopDownAnalyzerFacadeForJS.analyzeFilesWithGivenTrace(files, moduleTrace, moduleContext, config.configuration)
     }
 
@@ -82,7 +84,7 @@ abstract class AbstractDiagnosticsTestWithJsStdLib : AbstractDiagnosticsTest() {
     override fun shouldSkipJvmSignatureDiagnostics(groupedByModule: Map<TestModule?, List<TestFile>>): Boolean = true
 
     override fun createModule(moduleName: String, storageManager: StorageManager): ModuleDescriptorImpl =
-            ModuleDescriptorImpl(Name.special("<$moduleName>"), storageManager, JsPlatform.builtIns)
+        ModuleDescriptorImpl(Name.special("<$moduleName>"), storageManager, JsPlatform.builtIns)
 
     override fun createSealedModule(storageManager: StorageManager): ModuleDescriptorImpl {
         val module = createModule("kotlin-js-test-module", storageManager)