Title 26, Internal Revenue CodeRelease 119-110

§45T Auto-enrollment Option for Retirement Savings Options Provided by Small Employers

Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter A — Determination of Tax Liability › PART IV — CREDITS AGAINST TAX › Subpart D — Business Related Credits › § 45T

Last updated Sep 22, 2026|Official source

Summary

Offers a $500 tax credit for each taxable year during a three-taxable-year window that begins the first year an employer adds an "eligible automatic contribution arrangement" to a qualified employer retirement plan. The employer must keep that auto-enrollment feature in the plan for a year to get the credit; after the three years the credit is $0. "Eligible employer" is defined in section 408(p)(2)(C)(i).

Full Legal Text

Title 26, §45T

Internal Revenue Code, Source: USLM XML via OLRC

(a)In general

For purposes of section 38, in the case of an eligible employer, the retirement auto-enrollment credit determined under this section for any taxable year is an amount equal to—

(1)$500 for any taxable year occurring during the credit period, and

(2)zero for any other taxable year.

(b)Credit period

For purposes of subsection (a)—

(1)In general

The credit period with respect to any eligible employer is the 3-taxable-year period beginning with the first taxable year for which the employer includes an eligible automatic contribution arrangement (as defined in section 414(w)(3)) in a qualified employer plan (as defined in section 4972(d)) sponsored by the employer.

(2)Maintenance of arrangement

No taxable year with respect to an employer shall be treated as occurring within the credit period unless the arrangement described in paragraph (1) is included in the plan for such year.

(c)Eligible employer

For purposes of this section, the term “eligible employer” has the meaning given such term in section 408(p)(2)(C)(i).

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to taxable years beginning after Dec. 31, 2019, see section 105(d) of Pub. L. 116–94, set out as an

Effective Date

of 2019 Amendment note under section 38 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 45T

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110