Small employer pension plan startup credit
Tax credit
Agency: Internal Revenue Service. Agency source
This directory is not tax advice. Confirm eligibility, tax-year rules, deadlines and filing requirements with a tax professional.
Check program requirements [IRS retirement plan startup credit]
- Who qualifies
- Employers with 100 or fewer employees paid at least $5,000 in the preceding year, at least one non-highly compensated participant, and no substantially overlapping employer plan in the prior three tax years. [IRS retirement plan startup credit]
- What it’s worth
- For 1–50 qualifying employees, 100% of eligible startup costs; for 51–100, 50%. Annual cap: the greater of $500 or the lesser of $250 per eligible non-highly compensated employee and $5,000. [IRS retirement plan startup credit]
- How to claim
- Claim qualifying SEP, SIMPLE IRA or qualified-plan startup costs with Form 8881. The same startup costs cannot also be deducted. [IRS retirement plan startup credit]
- Deadlines and application windows
- Startup credit available for three years. [IRS retirement plan startup credit]
Amounts are subject to the conditions in each listing. A source review does not mean applications are open or that a business qualifies.
Official sources
Listing reviewed