Small Employer Retirement Savings Auto-Enrollment Credit Act

I 116TH CONGRESS 1ST SESSION H. R. 1938 To amend the Internal Revenue Code of 1986 to provide a credit to small employers providing an eligible automatic contribution arrangement under a retirement savings plan. IN THE HOUSE OF REPRESENTATIVES MARCH 27, 2019 Mrs. TRAHAN (for herself and Mr. KELLY of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide a credit to small employers providing an eligible auto- matic contribution arrangement under a retirement sav- ings plan. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Small Employer Re- 4 tirement Savings Auto-Enrollment Credit Act’’. 5 VerDate Sep 11 2014 18:35 Apr 09, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1938.IH H1938 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 1938 IH SEC. 2. SMALL EMPLOYER RETIREMENT SAVINGS AUTO- 1 MATIC ENROLLMENT CREDIT. 2 (a) IN GENERAL.—Subpart D of part IV of sub- 3 chapter A of chapter 1 of the Internal Revenue Code of 4 1986 is amended by adding at the end the following new 5 section: 6 ‘‘SEC. 45T. AUTO-ENROLLMENT CREDIT FOR RETIREMENT 7 SAVINGS OPTIONS PROVIDED BY SMALL EM- 8 PLOYERS. 9 ‘‘(a) IN GENERAL.—For purposes of section 38, in 10 the case of an eligible employer, the retirement auto-en- 11 rollment credit determined under this section for any tax- 12 able year is an amount equal to— 13 ‘‘(1) $500 for any taxable year occurring during 14 the credit period, and 15 ‘‘(2) zero for any other taxable year. 16 ‘‘(b) CREDIT PERIOD.—For purposes of subsection 17 (a)— 18 ‘‘(1) IN GENERAL.—The credit period with re- 19 spect to any eligible employer is the 3-taxable-year 20 period beginning with the first taxable year for 21 which the employer includes an eligible automatic 22 contribution arrangement (as defined in section 23 414(w)(3)) in a qualified employer plan (as defined 24 in section 4972(d)) sponsored by the employer. 25 VerDate Sep 11 2014 18:35 Apr 09, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1938.IH H1938 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 1938 IH ‘‘(2) MAINTENANCE OF ARRANGEMENT.—No 1 taxable year with respect to an employer shall be 2 treated as occurring within the credit period unless 3 the arrangement described in paragraph (1) is in- 4 cluded in the plan for such year. 5 ‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this 6 section, the term ‘eligible employer’ has the meaning given 7 such term in section 408(p)(2)(C)(i).’’. 8 (b) CREDIT TO BE PART OF GENERAL BUSINESS 9 CREDIT.—Subsection (b) of section 38 of the Internal 10 Revenue Code of 1986 is amended by striking ‘‘plus’’ at 11 the end of paragraph (31), by striking the period at the 12 end of paragraph (32) and inserting ‘‘, plus’’, and by add- 13 ing at the end the following new paragraph: 14 ‘‘(33) in the case of an eligible employer (as de- 15 fined in section 45T(c)), the retirement auto-enroll- 16 ment credit determined under section 45T(a).’’. 17 (c) CLERICAL AMENDMENT.—The table of sections 18 for subpart D of part IV of subchapter A of chapter 1 19 of the Internal Revenue Code of 1986 is amended by in- 20 serting after the item relating to section 45S the following 21 new item: 22 ‘‘Sec. 45T. Auto-enrollment credit for retirement savings options provided by small employers.’’. VerDate Sep 11 2014 18:35 Apr 09, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6211 E:\BILLS\H1938.IH H1938 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 1938 IH (d) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years beginning after 2 December 31, 2019. 3 Æ VerDate Sep 11 2014 18:35 Apr 09, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H1938.IH H1938 pamtmann on DSKBFK8HB2PROD with BILLS