[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1453 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1453
To amend the Internal Revenue Code of 1986 to allow a credit to small
employers with respect to each employee who is a military spouse and
eligible to participate in a defined contribution plan of the employer.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 1, 2021
Mr. Crow (for himself, Mr. Wenstrup, Mr. Bacon, Mr. Carter of Texas,
Mr. Crist, Mr. Fitzpatrick, Ms. Houlahan, Mr. Kelly of Pennsylvania,
Mr. Kelly of Mississippi, Mr. Panetta, Mr. Perlmutter, Mr. Stewart, Mr.
Taylor, Ms. Titus, Mrs. Wagner, and Mrs. Walorski) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow a credit to small
employers with respect to each employee who is a military spouse and
eligible to participate in a defined contribution plan of the employer.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Military Spouses Retirement Security
Act''.
SEC. 2. MILITARY SPOUSE RETIREMENT PLAN ELIGIBILITY CREDIT FOR SMALL
EMPLOYERS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGIBILITY CREDIT FOR
SMALL EMPLOYERS.
``(a) In General.--For purposes of section 38, in the case of any
eligible small employer, the military spouse retirement plan
eligibility credit determined under this section for any taxable year
is an amount equal to the sum of--
``(1) $250 with respect to each military spouse who is an
employee of such employer and who is eligible to participate in
an eligible defined contribution plan of such employer at any
time during such taxable year, plus
``(2) so much of the contributions made by such employer to
all such plans with respect to such employee during such
taxable year as do not exceed $250.
``(b) Limitation.--An individual shall only be taken into account
as a military spouse under subsection (a) for the taxable year which
includes the date on which such individual began participating in the
eligible defined contribution plan of the employer and the 2 succeeding
taxable years.
``(c) Eligible Small Employer.--For purposes of this section--
``(1) In general.--The term `eligible small employer' means
an eligible employer (as defined in section
408(p)(2)(C)(i)(I)).
``(2) Application of 2-year grace period.--A rule similar
to the rule of section 408(p)(2)(C)(i)(II) shall apply for
purposes of this section.
``(d) Military Spouse.--For purposes of this section--
``(1) In general.--The term `military spouse' means, with
respect to any employer, any individual who is married (within
the meaning of section 7703 as of the first date that the
employee is employed by the employer) to an individual who is a
member of the uniformed services (as defined in section
101(a)(5) of title 10, United States Code). For purposes of
this section, an employer may rely on an employee's
certification that such employee's spouse is a member of the
uniformed services if such certification provides the name,
rank, and service branch of such spouse.
``(2) Exclusion of highly compensated employees.--With
respect to any employer, the term `military spouse' shall not
include any individual if such individual is a highly
compensated employee of such employer (within the meaning of
section 414(q)).
``(e) Eligible Defined Contribution Plan.--For purposes of this
section, the term `eligible defined contribution plan' means, with
respect to any eligible small employer, any defined contribution plan
(as defined in section 414(i)) of such employer if, under the terms of
such plan--
``(1) military spouses employed by such employer are
eligible to participate in such plan not later than the date
which is 2 months after the date on which such individual
begins employment with such employer, and
``(2) military spouses who are eligible to participate in
such plan--
``(A) are immediately eligible to receive an amount
of employer contributions under such plan which is not
less than the amount of such contributions that a
similarly situated participant who is not a military
spouse would be eligible to receive under such plan
after 2 years of service, and
``(B) immediately have a nonforfeitable right to
the employee's accrued benefit derived from employer
contributions under such plan.
``(f) Aggregation Rule.--All persons treated as a single employer
under subsection (b), (c), (m), or (o) of section 414 shall be treated
as one employer for purposes of this section.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code 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:
``(34) in the case of an eligible small employer (as
defined in section 45U(c)), the military spouse retirement plan
eligibility credit determined under section 45U(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45U. Military spouse retirement plan eligibility credit for
small employers.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>