26 USC 45AA - Military spouse retirement plan eligibility credit for small employers

U.S Code last checked for updates: Feb 22, 2025

§ 45AA.

Military spouse retirement plan eligibility credit for small employers

(a)

In general

For purposes of section 38, in the case of any eligible small employer, the military spouse retirement plan eligibility credit determined under this section for any taxable year is an amount equal to the sum of—

(1)

$200 with respect to each military spouse who is an employee of such employer and who participates in an eligible defined contribution plan of such employer at any time during such taxable year, plus

(2)

so much of the contributions made by such employer (other than an elective deferral (as defined in section 402(g)(3)) 1

 So in original. Probably should be followed by another closing parenthesis.

to all such plans with respect to such employee during such taxable year as do not exceed $300.

(b)

Limitation

(c)

Eligible small employer

(d)

Military spouse

For purposes of this section—

(1)

In general

(2)

Exclusion of highly compensated employees

(e)

Eligible defined contribution plan

For purposes of this section, the term “eligible defined contribution plan” means, with respect to any eligible small employer, any defined contribution plan (as defined in section 414(i)) of such employer if, under the terms of such plan—

(1)

military spouses employed by such employer are eligible to participate in such plan not later than the date which is 2 months after the date on which such individual begins employment with such employer, and

(2)

military spouses who are eligible to participate in such plan—

(A)

are immediately eligible to receive an amount of employer contributions under such plan which is not less the amount of such contributions that a similarly situated participant who is not a military spouse would be eligible to receive under such plan after 2 years of service, and

(B)

immediately have a nonforfeitable right to the employee’s accrued benefit derived from employer contributions under such plan.

(f)

Aggregation rule

(Added Pub. L. 117–328, div. T, title I, § 112(a), Dec. 29, 2022, 136 Stat. 5294.)

cite as: 26 USC 45AA