Bipartisan legislation introduced on March 1 by U.S. Rep. Brad Wenstrup (R-OH) would help the spouses of active duty U.S. military service members save for retirement by expanding access to employer-sponsored retirement plans.
“Our nation’s military spouses make countless sacrifices in support of our nation’s warfighters,” Rep. Wenstrup said on Monday. “Our commonsense, bipartisan bill would help military families alleviate some of the stresses they face by providing them with more financial security and stability.”
Rep. Wenstrup is the lead original cosponsor of the Military Spouses Retirement Security Act, H.R. 1453, which is sponsored by U.S. Rep. Jason Crow (D-CO) and 14 other original cosponsors, including U.S. Reps. Don Bacon (R-NE), Brian Fitzpatrick (R-PA), Mike Kelly (R-PA), and Ann Wagner (R-MO).
H.R. 1453 would allow a credit to small employers with respect to each employee who is a military spouse and eligible to participate in a defined contribution plan of the employer, according to the congressional record bill summary.
“With the military lifestyle often requiring families to continuously move from one location to another, these unsung heroes are often asked to put their own goals on hold,” explained Rep. Wenstrup. “Too often, military spouses cannot remain in a job long enough to fully utilize the financial options available to those with longevity at a business or company.”
The bill, if enacted, would make employers having 100 employees or less eligible for a tax credit of up to $500 per year per military spouse, according to a bill summary provided by the congressman’s office. The credit would be available for three years per military spouse.
Additionally, the amount of the credit would be equal to $250 per military spouse plus 100 percent of all employer retirement contributions for that spouse, or up to $250 under the bill, which also would require the employers to make a military spouse immediately eligible for retirement plan participation within two months of hire.
H.R. 1453 has been referred to the U.S. House Ways and Means Committee for consideration.