United StatesSenate Bill 1840S 1840
Retirement Investment in Small Employers Act
Taxation
2 pages
- senate
- house
- president
Last progress May 21, 2025 (6 months ago)
Introduced on May 21, 2025 by Margaret Wood Hassan
Sponsors (2)
Last progress May 21, 2025 (6 months ago)
Introduced on May 21, 2025 by Margaret Wood Hassan
Read twice and referred to the Committee on Finance.
This bill boosts the tax credit for the tiniest employers that start a retirement plan for their workers. For “microemployers,” the startup credit would cover 100% of eligible costs instead of 50%, and it raises a key per‑employee limit from $500 to $2,500. To qualify, the plan must be able to accept the federal matching contribution for savers described in section 6433. The change would apply to tax years starting after December 31, 2024 .
| Key point | What it means |
|---|---|
| Who is affected | Very small employers (“microemployers”) that start a retirement plan able to accept the federal saver’s match |
| What changes | Startup credit increases to 100% of costs; per‑employee limit rises from $500 to $2,500 |
| When it starts | Applies to tax years beginning after Dec. 31, 2024 |
For workers, this could mean more small businesses offering retirement plans. For owners, it lowers the cost of getting a plan up and running .