Thanks to the Setting Every Community Up for Retirement Enhancement (SECURE) Act, small business owners have the opportunity to lower their taxes when they start a retirement plan for their employees.
As a small business, you could qualify to earn up to $16,500 in tax credits over a 3 year period by starting a qualified retirement plan with auto-enrollment.
Start-Up credit up to ? Start-up Credit is $250 per non-highly compensated employee but no less than $500 in total and not to exceed $5,000 per year. The credit shall not exceed 50% of total cost per year. The start-up credit is available for the first three years of the plan. x
Auto-enrollment credit up to ? Annual credit of $500 applies to plans who add an automatic-enrollment provision to the 401(k) Plan. x
Total tax credits up to
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This calculator is for illustration purposes only and should not be construed as tax advice. Users should consult a tax professional regarding specific tax needs, credit availability and amount. For further information please visit the IRS website.