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Retirement Investment in Small Employers Act
To amend the Internal Revenue Code of 1986 to provide for a microemployer pension plan startup credit.
Summary
This bill amends the Internal Revenue Code to provide enhanced tax credits to encourage very small employers to establish retirement plans for their employees. The bill creates a new tax credit for microemployers with 10 or fewer employees, doubling the existing pension plan startup credit from 50 percent to 100 percent of eligible costs and increasing the maximum annual credit from $500 to $2,500. The expanded credit applies to employers that establish or maintain an eligible retirement plan and accept matching contributions under the plan. The credit is effective for tax years beginning after December 31, 2024.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
1 cosponsor
- Sen. Budd, Ted [R-NC] (R-NC)
Actions (2)
- May 21, 2025 Read twice and referred to the Committee on Finance. · senate
- May 21, 2025 Introduced in Senate
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE SENATE OF THE UNITED STATES
May 21, 2025
Ms. Hassan (for herself and Mr. Budd) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide for a microemployer pension plan startup credit.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Retirement Investment in Small Employers Act”.
SEC. 2. MICROEMPLOYER PENSION PLAN STARTUP CREDIT.
(a) In General.—Section 45E of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
“(g) Credit for Microemployers.—
“(1) In general.—In the case of a qualified microemployer—
“(A) subsection (a) shall be applied by substituting ‘100 percent’ for ‘50 percent’, and
“(B) subsection (b)(1) shall be applied by substituting ‘$2,500’ for ‘$500’ in subparagraph (A) thereof.
“(2) Qualified microemployer.—For purposes of this subsection, the term ‘qualified microemployer’ means an employer which would be an eligible employer if section 408(p)(2)(C)(i)(I) were applied by substituting ‘10’ for ‘100’, but only if the eligible employer plan established or maintained by such employer, under the terms of the plan, accepts payment of the matching contribution under section 6433.”.
(b) Effective Date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2024. <all>
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