Repeals the nonrefundable credit for elective deferrals and IRA contributions.
Imposes a tax on any failure by an employer that does not have a qualified plan or arrangement for a calendar year to permit its employees access to salary reduction contributions to individual retirement plans. Makes an exception for certain small employers. Permits a tax credit for small employers that maintain salary reduction arrangements.
Allows a tax credit for a duration of three years for pension plan contributions of small employers.