S. 1840 · 119th Congress
Retirement Investment in Small Employers Act
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D
HassanSponsor1 cosponsor · 1 R
1 signed on when it was introduced; the rest joined later. Cosponsors who withdrew aren't shown.
This bill increases the federal tax credit limit for startup costs incurred by certain small businesses to establish a qualified retirement plan.
What it does: CRS summary · Introduced in Senate · May 21, 2025
Retirement Investment in Small Employers Act
This bill increases the federal tax credit limit for startup costs incurred by certain small businesses to establish a qualified retirement plan.
As background, a federal tax credit is allowed for 50% of the costs incurred by a small business with no more than 100 qualified employees (or 100% of such costs for a small business with no more than 50 qualified employees) to establish a qualified retirement plan. Under current law, the tax credit is limited to the greater of (1) $500, or (2) the lesser of $250 per eligible employee or $5,000. (Additional limits may apply.)
The bill increases the limit on the tax credit for retirement plan startup costs for employers with no more than 10 employees to the greater of (1) $2,500, or (2) the lesser of $250 per employee or $5,000.
For the increased tax credit limit to apply, the retirement plan established by the business must accept payment of the matching contribution under the Saver’s Match program. Under the Saver's Match program, beginning in 2027, individuals that meet certain requirements are eligible to have a federal matching contribution of up to $1,000 (or $2,000 for married joint filers) deposited into a qualified retirement account.
Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov
About this bill and sources
Official title: Retirement Investment in Small Employers Act
Latest action (May 21, 2025): Read twice and referred to the Committee on Finance.
Policy area: Taxation · Origin: Senate · Introduced: May 21, 2025
Official page on Congress.gov · Bill text (GovInfo) · Status record (XML)
No recorded floor vote found.