Did you get your retirement tax credit?

Get a tax credit to offer your employees a retirement plan.

Under 2022’s SECURE 2.0 Act, companies with up to 50 employees that do not currently have a retirement plan can receive a tax credit for 100% of the plan’s startup costs for the first three years.

Your business qualifies if it has at least one employee who is a non-highly compensated employee (NHCE); an NHCE is a person who made less than $135,000 in the prior year with the business and is not the business owner. This credit is based on the greater of $500 OR $250 per NHCE (capped at $5,000), applied to 100% of the costs incurred.

That could mean a total of $15,000 in tax credits by year three. And your credit can grow to $16,500 over three years if you add automatic enrollment, which offers a credit of $500/year for three years.

I can help you create a retirement plan that works for your employees and your business. Let’s talk about it.

^{Source: SECURE 2.0 Act of 2022 Makes Sweeping Changes to Retirement Savings | SPARK Blog | ADP}

^{Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.}

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