Bipartisan invoice to speed up entry to retirement profit plans for army spouses was pending
A non-partisan law was reintroduced in the Senate on Wednesday encouraging small employers to give military spouses expedited access to retirement plans, employer contributions and vesting.
Under the Military Spouse Retirement Act, employers with 100 or fewer employees are entitled to a tax credit of up to $ 500 per year for each military spouse. The balance would be available for three years and the amount would be $ 200 for each military spouse plus 100% of all employer contributions for that spouse up to $ 300. This comes from a press release from the bill’s sponsors: Sens. Susan Collins, R-Maine, Maggie Hassan, DN.H., James Lankford, R-Okla. And Michael Bennet, D-Colo.
Ms. Collins and Ms. Hassan presented the bill back in July 2020.
To receive credit, small employers must qualify a military spouse for retirement within two months of being hired. In addition, in order to be eligible for the plan, a military spouse must be eligible for an equivalent or non-elected contribution available to a similarly located employee with at least two years of service and must immediately receive 100% of all employer contributions.
“Given the frequency with which many military families move into our country, saving for retirement can often be a difficult task,” Ms. Hassan said in the press release. “Our bipartisan legislation is taking important steps to help military spouses save for a comfortable retirement, and I look forward to working on the aisle to advance this sensible bill.”
Mr Lankford said in the same press release that military families make great sacrifices. “Every effort and effort affects a family and too often it can mean sacrificing access to retirement benefits,” he said. “This legislation encourages companies to make it easier for military spouses to participate in retirement plans and to ease the burden of moving every few years. This is an easy way for us to honor their victims, facilitate their service lives, and help prepare them for retirement. “