Which of the following statements is false regarding the Military Spouse Retirement Plan Eligibility Credit for Small Employers under the SECURE Act 2.0?

The statement regarding the applicability of the tax credit to highly compensated employees is inaccurate, making it the false option. Under the provisions of the Military Spouse Retirement Plan Eligibility Credit, the credit is designed to incentivize small businesses to facilitate retirement plan participation for military spouses. A fundamental aspect of such tax credits is to target assistance toward promoting inclusive employment practices, especially for demographics that may face unique challenges in the workforce, such as military spouses.

The SECURE Act 2.0 specifies that the credit is intended for military spouses who are not considered highly compensated employees. This means that businesses receiving the credit should primarily focus on helping those at lower salary brackets, rather than highly compensated individuals, ensuring equitable access to retirement benefits.

The other statements highlight correct aspects of the policy: the credit per military spouse stands at $200, the total maximum credit can reach $500, and the credit duration for each military spouse can extend for three years, all reinforcing the intended support for businesses engaging military spouses in their retirement plans. Understanding these details helps clarify the objectives of the SECURE Act 2.0 in promoting financial security for military families.