Senators push legislation to help micro-businesses offer retirement benefits
A new bill introduced in the Senate could pave the way for more employees at small businesses across the country to get workplace retirement benefits.
Senators Ted Budd and Maggie Hassan have introduced the Retirement Investment in Small Employers Act, aiming to assist small businesses in offering retirement plans through substantial tax credits.
The bipartisan bill is designed to provide small employers, including micro-sized businesses with fewer than 10 employees, with significant financial support to kickstart retirement plans for their workforce.
The proposed RISE Act seeks to amend the Internal Revenue Code of 1986 to include a microemployer pension plan startup credit.
Under the proposed legislation, eligible small businesses, including those with fewer than 10 employees, can claim start-up tax credits ranging from $2,500 to $5,000 annually, building upon provisions initially set out in the SECURE Act 2.0.
Eligible microemployers would benefit from a 100 percent tax credit for qualified retirement plan startup costs, a significant increase from the current 50 percent, which would make it easier for the country’s smallest businesses offer retirement benefits comparable to larger firms.
In a statement, Senator Budd, who represents the Republican party in North Carolina, emphasized the importance of the bill for small businesses in his home state and beyond.
“Offering additional tax incentives to small businesses will make it easier for North Carolina’s Main Street shops to offer secure retirement plans for their employees,” said Budd, who’s also at the forefront of a bipartisan coalition of legislators that have spoken out against the DOL fiduciary rule.
The bill has garnered broad support from various
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