Retirement Investment in Small Employers Act

119 S1840 IS: Retirement Investment in Small Employers Act U.S. Senate 2025-05-21 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. II 119th CONGRESS 1st Session S. 1840 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. 1. Short title This Act may be cited as the Retirement Investment in Small Employers Act . 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.