Retirement Investment in Small Employers Act
Sponsored By: Senator Hassan, Margaret Wood [D-NH]
Introduced
Summary
This bill would create a _100% startup credit for qualified microemployers_ to help very small employers cover the cost of starting matching retirement plans and to strengthen the link between the credit and plan designs that accept matching contributions.
Show full summary
- Very small employers: Would raise the Section 45E credit from 50% to 100% of eligible plan startup contributions and increase the annual cap from $500 to $2,500 for qualifying microemployers.
- Eligibility rules: Would define a "qualified microemployer" by using a 10-employee threshold instead of 100 and require that the employer’s plan accept matching contributions under Section 6433.
- Timing: Would apply to taxable years beginning after December 31, 2024.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Larger retirement credit for tiny employers
This bill would create a new Section 45E "Credit for Microemployers." If enacted, qualified microemployers could claim a 100% tax credit for qualifying employer retirement contributions or startup costs (up from 50%). The yearly credit cap would increase to $2,500 (up from $500). To qualify, an employer must meet a 10-employee size test (substituting 10 for 100) and the employer's retirement plan must accept matching payments under section 6433. The change would apply to tax years beginning after December 31, 2024.
Sponsors & CoSponsors
Sponsor
Hassan, Margaret Wood [D-NH]
NH • D
Cosponsors
Sen. Budd, Ted [R-NC]
NC • R
Sponsored 5/21/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov