Under the SECURE Act, small businesses can receive a tax credit for the first 3 years for implementing a retirement plan.
For taxable years beginning 1/1/20 and beyond, employers with fewer than 100 employees who implement a retirement plan could be eligible for a credit up to $5,000. Previously this credit was capped at $500.
The credit, which is limited by 50% of eligible start up costs, is the greater of:
1. $500 or
2. The lessor of $250 for each eligible non-highly compensated employee or $5,000 For more information on how your business could benefit from implementing a retirement plan, please contact Amanda Ramos at ARamos@largeandgilbert.com