A bill to amend the Internal Revenue Code of 1986 to provide for a microemployer pension plan startup credit.

Bill 118 s 4398, also known as the "Microemployer Pension Plan Startup Credit Act," aims to amend the Internal Revenue Code of 1986 in order to provide a tax credit for microemployers who start a pension plan for their employees.

The bill specifically targets small businesses with fewer than 100 employees, known as microemployers, who may not have the resources to offer traditional pension plans. The proposed tax credit would incentivize these small businesses to establish retirement savings options for their employees by providing a credit for startup costs associated with setting up a pension plan.

The credit would be equal to 50% of the startup costs incurred by the microemployer, up to a maximum of $5,000 per year for the first three years of the plan's existence. This would help offset the financial burden of establishing a pension plan and encourage more small businesses to offer retirement benefits to their employees. Overall, the Microemployer Pension Plan Startup Credit Act aims to promote retirement savings and financial security for employees of small businesses by providing a tax incentive for microemployers to establish pension plans. This bipartisan bill seeks to support small businesses and their employees in planning for a secure financial future.