Introduced in Senate — S. 1840

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.

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.