The bill (HR 738) reportedly has 69 co-sponsors, according to Congressman Blunt’s website.
The Blunt/Bentsen bill is designed to simplify the process and reduce the cost and paperwork of establishing and administering employer-sponsored retirement plans and removing current limits on benefits.
The bill would also create a tax credit of up to $6,000 over 5 years to offset start-up and administrative costs. The tax credit would authorize $2,000 for the taxable year in which the qualified small employer retirement plan is adopted and $1,000 for each of the next four years.
The bill would also authorize employer contributions to a plan of not less than 3% and not more than 10% of compensation of all participants in the plan. Discretionary employer contributions could not exceed 15% of compensation.
The bill would require the Treasury secretary to develop a model small-employer retirement plan that meets the requirements of the bill.
The bill has been referred to the House Ways & Means Committee. Action on the bill is not currently scheduled.
A copy of the bill is available