(WNY News Now) – Congressman Dan Kildee (MI-8) has introduced the Retirement Investment in Small Employers Act (RISE Act), a bipartisan effort to incentivize micro-businesses with fewer than 10 employees to adopt retirement plans, ultimately helping more workers save for their retirement.
Washington D.C. – In a move aimed at bolstering retirement savings opportunities for employees of micro-sized businesses, Congressman Dan Kildee from Michigan’s 8th district introduced the Retirement Investment in Small Employers Act (RISE Act). The legislation is designed to offer tax incentives and support to small businesses with fewer than 10 employees, encouraging them to provide retirement plans to their workforce. The RISE Act seeks to address a gap left by the SECURE 2.0 Act of 2022, which primarily benefited slightly larger small businesses.
Under the SECURE 2.0 Act, small businesses with fewer than 50 employees were granted the opportunity to receive tax credits covering 100 percent of retirement plan administrative and startup costs, up to $5,000 per year. However, the law retained the same formula for determining the amount of tax credits for retirement plan startups. This left the smallest micro-businesses and their employees unable to fully capitalize on the tax credits designed to promote retirement savings.
The RISE Act aims to rectify this issue by ensuring that micro-businesses with under 10 employees receive a more equitable share of the tax credits, mirroring the benefits enjoyed by larger businesses. Congressman Kildee, in partnership with Congresswoman Tenney, introduced this legislation with the intent of enabling micro-businesses, not only in Michigan but across the nation, to provide their employees with robust retirement plans, thus empowering them to save for the future.
Congresswoman Tenney shared her perspective on the matter, stating, “Congress must empower and reaffirm our commitment to small businesses across the country by taking steps to grant them a competitive edge in our economy.” She further emphasized her commitment to advocating for tax policies that support small businesses and their employees.
Congressman Kildee echoed this sentiment, highlighting the vital role played by small businesses in supporting local economies and creating jobs. “In mid-Michigan, small businesses support thousands of good-paying jobs and fuel our local economy,” he said. “I am proud to work with Congresswoman Tenney to help more employers set up retirement plans, ensuring more Michigan workers can save for retirement. This bipartisan bill is a win for small business owners and workers alike.”
The RISE Act has garnered support from a variety of sectors, including businesses, with Michael Majors, Paychex Vice President of HR Solutions, expressing his endorsement. He emphasized the importance of providing all businesses, regardless of size, with equal opportunities and access to tax credits to help offset the costs of offering retirement plans to their employees.
Majors stated, “All businesses, regardless of size, deserve the same opportunity and access to tax credits to help offset the costs of offering a retirement plan to their employees. Paychex is proud to endorse Rep. Claudia Tenney’s and Rep. Dan Kildee’s legislation to expand tax credits for micro-sized businesses, which give incentives to offer retirement plans to help their employees save for the future.”