Plan Your Golden Years with Confidence: Explore Retirement Insurance Solutions

Employer can receive 100% tax credit for initial plan expenses with a dollar limit of the greater of a or b

• a - $500

• b - $250 times the number of non-highly compensated employees eligible to participate in the plan but no more than $5,000

• The credit is available for the plan's first year and the two years immediately following. 

• An additional $500 credit is available for plans that include an automatic enrollment provision in the plan

The New Tax Credit also includes a five year tax credit for employer contributions made to a new plan.

• A tax credit up to $1,000 per employee will be available for employer contributions to employees who make $100,000 or less

• The credit will phase over five years:

  • Years 1 and 2 have full credit

  • Year 3 is at 75%

  • Year 4 is at 50%

  • Year 5 is at 25%

  • No further credits available in year 6.

  • For employers with more than 50 employees at the end of the plan year, the credit will be reduced by 2% per employee