S. 1840

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to provide for a microemployer pension plan startup credit.

IN THE SENATE OF THE UNITED STATES · May 21, 2025 · Sponsor: Ms. Hassan · Committee: Committee on Finance

Table of contents

• S. 1840
  • SEC. 1. Short title
  • SEC. 2. Microemployer pension plan startup credit

SEC. 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
  • of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: Section 45E
  • In general
    • (g) Credit for microemployers
      • (1) In general
        • In the case of a qualified microemployer—
        • In general
          • subsection (a) shall be applied by substituting for , and 100 percent 50 percent
          • subsection (b)(1) shall be applied by substituting for in subparagraph (A) thereof. $2,500 $500
      • (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 for , 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. For purposes of this subsection, the term means an employer which would be an eligible employer if section 408(p)(2)(C)(i)(I) were applied by substituting for , 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.