Representatives Blake Moore, Vern Buchanan, Jimmy Panetta, and Brad Schneider have introduced the Small Nonprofit Retirement Security Act in a bipartisan effort to assist small nonprofit organizations in offering retirement plans. Senators James Lankford and Catherine Cortez Masto introduced a companion bill in the Senate.
“Small, local non-profit organizations are often on the frontlines of serving our communities. This is especially true in Utah, where the vast majority of nonprofits have fewer than 50 employees,” said Rep. Blake Moore. “Allowing these organizations access to the same retirement credits as small businesses will help them recruit and retain employees and ultimately continue to serve Utahns.”
Currently, tax-exempt organizations cannot access the SECURE Act’s small business retirement plan start-up credit due to their tax status. The new legislation aims to allow nonprofits to apply tax credits against payroll tax liability, similar to for-profit entities.
Rep. Buchanan emphasized that “every American deserves the opportunity to save for retirement,” adding that his bill provides nonprofits with tools comparable to those available for small businesses.
Rep. Panetta noted that nonprofits face challenges offering retirement plans due to costs but believes this bill can provide necessary incentives.
Senator Lankford stated that Oklahoma’s nonprofits play crucial roles but often struggle with costs related to retirement plans. Senator Cortez Masto highlighted that this legislation would reduce barriers for Nevada’s nonprofit sector workers planning for retirement.
Brian Graff from the American Retirement Association praised the bipartisan leadership behind this initiative aimed at extending SECURE 2.0 benefits to nonprofits.
