Representatives Lori Trahan and Mike Kelly Introduce Legislation to Incentivize Retirement Fund Enrollment for Small Business Employees
Washington, DC – Today, Congresswoman Lori Trahan (D-MA-03) and Congressman Mike Kelly (R-PA-16) introduced legislation to bolster automatic enrollment in 401(k) retirement plans for small businesses.
“Small businesses and their employees are the lifeblood of the American economy, and the engine driving growth in cities and towns across Massachusetts. There were 1.5 million Bay Staters employed by small businesses in 2018 – a remarkable 46.1% of the entire private workforce. It is important for Congress to support them and their employees. One of the best ways we can do this is by helping small businesses prepare their employees for retirement. This legislation would offer tax incentives to small businesses that adopt auto-enrollment 401(k) plans so that when the time comes, employees can retire with dignity. Retirement security is a top priority, and I am honored to have this opportunity to make progress on this issue,” said Rep. Trahan.
“One of the best ways we can support U.S. workers is by implementing tax policy that helps them build a stable financial footing. That includes encouraging preparation for their golden years. This legislation is a critical step toward that goal because it creates tax incentives for small businesses that adopt auto-enrollment 401k plans for their employees, a practice that ensures workers don’t lose valuable time investing in their retirement savings. When it comes to preparing for retirement, there is no time to waste!” said Rep. Kelly.
Small employers with up to 100 employees would be eligible for a credit of $500 per year for up to three years for new qualified retirement plans that include auto-enrollment. Small employers would also be eligible for a credit of $500 per year for up to three years if they added auto-enrollment as a feature to an existing plan.