Fill in the answers, then click Calculate.
Result
| Plan year | Setup | Auto-enrol | Contribution | Credit |
|---|
What it does, and what it leaves to you
- Covers: the setup and administration credit (100% up to 50 employees, 50% for 51 to 100, capped at the greater of $500 or $250 per eligible non-highly-compensated employee, never over $5,000), the employer-contribution credit with its five-year phase-down and the 51-100 employee phase-out, and the auto-enrollment credit.
- Gives: the credit for each of the first five plan years, the five-year total, and the after-tax benefit once the lost deduction is netted out.
- Not decided: which employees count as highly compensated, controlled-group aggregation, claiming the credit a year early, tax-exempt employers, and anything that changed after this page was written. Your plan provider or CPA decides these.
Common questions
How much is the SECURE 2.0 retirement plan startup credit?
Employers with 50 or fewer employees can claim 100% of ordinary setup and administration costs, up to $5,000 a year for the first 3 years. Employers with 51 to 100 employees get 50%. On top of that, an employer-contribution credit of up to $1,000 per employee is available for 5 years (100%, 100%, 75%, 50%, 25%), and a $500 yearly credit applies for 3 years if the plan auto-enrolls employees.
Who qualifies for the startup credit?
Employers with 100 or fewer employees who earned $5,000 or more last year, who have at least one non-highly-compensated employee in the plan, and who did not have a plan covering substantially the same employees in the prior 3 years.
How do I claim it?
On IRS Form 8881, as part of the general business credit. Your deduction for the same costs is reduced by the credit, so the net benefit is the credit less the tax value of the deduction you give up.
Is my data uploaded anywhere?
No. Everything is calculated in your browser and nothing is sent.