In a Web announcement, U.S. Representative Ron Kind (D-Wisconsin) said the Small Businesses Add Value for Employees (SAVE) Act of 2008 (H.R. 5160) would:
- offer newly participating employers a tax credit for 50% of the plan start-up costs and a one-time $25 tax credit for every employee who is enrolled in the savings program,
- create voluntary automatic IRAs for employers,
- remove the higher penalty on early SIMPLE IRA distributions,
- raise the annual contribution limit for SIMPLE plans to the same level as 401(k) plans, and
- allow SIMPLE plan participants to roll over their retirement assets.
“A comfortable retirement is something everyone seeks to achieve – whether they work for a big corporation or a small business,” Kind said, in the news release. “But the majority of small businesses don’t offer any retirement savings plans to employees because it is often a complicated, costly, and a somewhat risky endeavor. This bill will actually incentivize small businesses to offer savings plans, allowing workers to accumulate retirement savings and helping small businesses attract and retain employees.”
A fact sheet on the bill is located here.