Sec. 8. Increase in credit limitation for small employer pension plan startup costs
221 words·~1 min read·
/bill/115/hr/4523/ih/section-8·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Paragraph
(1)of section 45E(b) of the Internal Revenue Code of 1986 is amended to read as follows: for the first credit year and each of the 4 taxable years immediately following the first credit year, the greater of— $500, or the lesser of— $250 for each employee of the eligible employer who is not a highly compensated employee (as defined in section 414(q)) and who is eligible to participate in the eligible employer plan maintained by the eligible employer, or $5,000, and . Subsection
(a)of section 45E of such Code is amended by inserting before the period at the end the following: (100 percent of such costs in the case of an eligible employer with 25 or fewer employees, as determined by substituting . 25 for 100 in section 408(p)(2)(C)(i)) Paragraph
(2)of section 45E(d) of such Code is amended by striking a qualified employer plan within the meaning of section 4972(d) and inserting an automatic contribution plan within the meaning of section 414(aa) . Paragraph
(2)of section 45E(d) of such Code is amended by adding at the end thereof the following: For purposes of this section, the term . qualified employer plan has the meaning given such term under section 4972(d). The amendment made by this section shall apply to taxable years beginning after December 31, 2017.