A companion Senate bill (S.4398) to the RISE Act introduced last fall in the House (H.R.6007) has been introduced. The RISE Act expands the tax credit available for starting retirement savings plans for very small businesses.
The Retirement Investment in Small Employers (RISE) Act is bipartisan. It was introduced in the Senate on May 23 by Sens. Maggie Hassan (D-NH) and Ted Budd (R-NC). It was introduced in the House last October by Reps. Claudia Tenney (R-NY) and Dan Kildee (D-MI). Both the House and Senate versions of the bill build on the SECURE 2.0 start-up tax credit by providing businesses with fewer than ten employees an increase to $2,500 in the start-up credit. The credit is applicable to administrative costs associated with establishing a retirement plan.
Generally, the RISE Act tax credit is calculated by adjusting the SECURE 2.0 per-employee formula used to figure the credit for larger employers. The measure would also require employers that claim the RISE Act start-up credit to accept Saver’s Matches.
Prospects: This bill is a likely candidate for inclusion in the next retirement savings package—something lawmakers are working on but do not expect to be ready to move any time soon. But it is bipartisan, so its prospects are good if and when a vehicle to carry it can be identified and if the revenue cost of the bill is not “too high.”
NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.