Plan Adoption Tax Credits for Nonprofits Proposed

Representative Vern Buchanan (R-FL) and several co-sponsors have introduced H.R. 4548, the Small Nonprofit Retirement Security Act. According to a press release, the bill would provide up to $5,000 per year in tax credits to help nonprofits launch retirement plans. The bill would provide an additional $500 annually for those that adopt automatic enrollment. To ensure nonprofit organizations can fully benefit, the credits can be applied directly to their payroll tax liability. The credit would be available for three taxable years beginning with the year the plan is established and each of the two taxable years immediately following.