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H.R. 2943House117th Congress (2021-2023)In Committee

To amend the Internal Revenue Code of 1986 to allow retroactive elective deferrals for owners of unincorporated businesses in the case of a plan adopted after the close of the taxable year and before the time for filing the return of tax.

Sponsored by David SchweikertRep. David Schweikert (R-AZ)
Introduced April 30, 2021

AI-Generated Summary

Updated February 8, 2026 at 2:33 AM UTC

The bill changes the tax code to let owners of unincorporated businesses (sole proprietors who are the only employee) make a retirement‑plan contribution retroactively. If they adopt a qualified plan after the tax year ends but before filing their return, the contribution is treated as if it were made before the end of the plan’s first year. This applies to plan years that start after December 31, 2021, affecting individual sole‑proprietor taxpayers.

Key Provisions

  • Amends IRC §401(b) to allow a sole proprietor’s elective deferral made before filing the tax return to be treated as made before the end of the plan’s first year.
  • Limits the rule to owners who own 100% of an unincorporated trade or business and are the only employee.
  • Effective for plan years beginning after December 31, 2021.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 30, 2021

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HouseIntro Referral

Introduced in House

April 30, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 30, 2021

Bill Text

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Introduced in HouseIssued April 30, 2021

I

117th CONGRESS

1st Session

H. R. 2943

IN THE HOUSE OF REPRESENTATIVES

April 30, 2021

Mr. Schweikert introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow retroactive elective deferrals for owners of unincorporated businesses in the case of a plan adopted after the close of the taxable year and before the time for filing the return of tax.

1.

Retroactive first year elective deferrals for sole proprietors

(a)

In general

Section 401(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following: In the case of an individual who owns the entire interest in an unincorporated trade or business, and who is the only employee of such trade or business, any elective deferral (as defined in section 402(g)(3)) under a plan to which the preceding sentence applies which is made by such individual before the time for filing the return of such individual for the taxable year (determined without regard to any extensions) shall be treated as having been made before the end of the plan’s first plan year..

(b)

Effective date

The amendment made by this section shall apply to plan years beginning after December 31, 2021.