Budget & Taxes (Pensions · Small Business)

The RISE Act introduces tax incentives to encourage small businesses to offer pension plans to their employees. It increases the startup tax credit for microemployers, allowing them to claim a larger credit for establishing a retirement plan starting in 2027. Additionally, the bill permits service providers who help set up these plans to receive a tax credit for the fees they waive to make the plans affordable. To prevent fraud, the law requires employers to certify that they have not previously received similar credits for the same group of workers. These changes aim to lower the financial barriers for small employers and their service partners to create retirement savings options.