Sec. 131104. Credit for certain small employer automatic retirement arrangements
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/bill/117/hr/5376/rh/section-131104·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: For purposes of section 38, in the case of an eligible employer, the small employer automatic retirement arrangement credit determined under this section for any taxable year in the credit period is $500. For purposes of this section— The term eligible employer means, with respect to the calendar year in which the taxable year begins, an employer which— participates in an automatic IRA arrangement (as defined in section 414(aa)(8)), or an arrangement described in 4980J(a)(2)(A), or maintains a deferral-only arrangement (as defined in section 401(k)(16)), is described in 408(p)(2)(C)(i), and did not maintain an eligible employer plan during the portion of the calendar year preceding the commencement of such arrangement, or adoption of such deferral-only arrangement, and the 2 preceding calendar years.
The term credit period means the first 4 calendar years beginning after the date of the enactment of this section in which the eligible employer participates in the arrangement or maintains the deferral-only arrangement. The term eligible employer plan means a qualified employer plan within the meaning of section 4972(d). For purposes of this section, the rules of section 45E(e) shall apply. . Section 38(b) of is amended by striking plus at the end of paragraph (32), by striking the period at the end of paragraph
(33)and inserting , plus , and by adding at the end the following new paragraph: the small employer automatic retirement arrangement credit determined under section 45U(a). . The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: Sec. 45U. Credit for certain small employer automatic retirement arrangements. . The amendments made by this section shall apply to taxable years beginning after December 31, 2021.