Sec. 131103. Increase in credit limitation for small employer pension plan startup costs including for automatic contribution plan or arrangement
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Section 45E(b)(1) is amended by striking 2 taxable years and inserting 4 taxable years . 25 or fewer employees Section 45E(a) 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)) Section 45E(d)(2) is amended by inserting (other than a deferral-only arrangement (as defined in section 401(k)(16)(B)) before the period at the end.
Section 45E is amended by adding at the end the following new subsection: 2022 In the case of taxable years beginning after December 31, 2022, no credit shall be allowed under this section for amounts paid or incurred with respect to an eligible employer plan that is not an automatic contribution plan or arrangement (as defined in section 414(aa)). . The amendment made by this section shall apply to taxable years beginning after December 31, 2021.