Washington, D.C. – U.S. Senators Catherine Cortez Masto (D-Nev.) and James Lankford (R-Okla.) and Congressman Vern Buchanan (R-Fla.-13) introduced the bipartisan, bicameral Small Nonprofit Retirement Security Act. The bill would help small nonprofit organizations offer retirement plans by extending federal tax incentives currently only available to for-profit employers.
“The Nevadans who have spent their entire lives giving back to their communities by working in the nonprofit sector should be able to count on stability when they retire,” said Senator Cortez Masto. “This bipartisan legislation will reduce the barriers that nonprofits face in creating retirement accounts for their employees, leveling the playing field between nonprofit and for-profit organizations.”
Under current law, tax-exempt organizations are not eligible for small business retirement plan start-up credits because they do not pay federal income taxes. This creates a barrier for many nonprofits, which employ nearly ten percent of the U.S. workforce and contribute an estimated $65 billion annually in payroll taxes. The Small Nonprofit Retirement Security Act would allow nonprofits to apply small business retirement plan start-up credits against their payroll tax liability, giving them access to the same retirement incentives already available to for-profit organizations. This legislation provides up to $5,000 per year in tax credits to help nonprofits launch retirement plans, with an additional $500 annually for those that adopt automatic enrollment.
Senator Cortez Masto has consistently worked support Nevada’s retired population – protecting Social Security and Medicare, lowering costs, and ensuring Nevada seniors can retire with dignity. She helped pass the Inflation Reduction Act, allowing Medicare to negotiate lower drug prices and capping the cost of insulin at $35-a-month for Medicare recipients. Cortez Masto has also introduced bipartisan legislation to improve the transparency of Medicare Advantage plans.
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