Share tax news
with your clients
As a result of the Setting Every Community Up for Retirement Enhancement (SECURE) Act, effective Jan 1, 2020 the tax credit for small employers starting a new retirement plan increased from $500 annually up to a maximum of $5,000 annually for each of the first three years1.
The tax credit cannot exceed 50% of the qualified startup costs paid or incurred by the small employer.
Qualified startup costs are defined by the IRS as ordinary and necessary costs to setup, administer and educate employees about a new retirement plan.
Your clients can claim the credit for three years – starting the year before the plan is effective.
What’s more, certain other expenses can be claimed as a tax deduction (but no double-dipping – they can’t claim the same expense as a tax credit and a tax deduction):
Every business is unique – share the good tax news with clients, but suggest they talk with a tax advisor.