Discover the key tax benefits of SECURE Act 2.0 for small businesses and employers. Start your retirement plan and enjoy full tax credits today. Check below for quick access to retirement plan benefits.
1. Startup Retirement Plan Tax Credit
Small businesses can claim tax credits when setting up a new retirement plan such as a 401(k), SIMPLE IRA, or SEP IRA.
Before: Up to $500 → Now (SECURE Act 2.0): Up to $5,000
Eligibility: Businesses with no retirement plan in the past 3 years.
Example: 3 employees × $250 = $750/year. Max total over 3 years: $15,000.
2. Employer Contribution Tax Credit
Employers who match employee retirement contributions can receive a tax credit of up to $1,000 per employee.
Year 1-2: 100%, Year 3: 75%, Year 4: 50%, Year 5: 25%.
Example: 3 employees matched → $3,000 tax credit.
3. Automatic Enrollment Credit
Implementing automatic enrollment (EACA) earns your business a $500 annual tax credit.
Available through 2025.
4. Real-World Example
A business with 3 employees and a new retirement plan with automatic enrollment:
Startup Credit: $750
Automatic Enrollment Credit: $500
Employer Contribution Credit: $3,000
Total Credit in Year 1: $4,250
5. Why This Is a Great Opportunity
SECURE Act 2.0 gives small businesses a chance to boost employee satisfaction and lower tax burdens.
Now is the best time to start your plan and secure tax savings.
6. Final Tip
Utilize Startup and Employer Contribution Credits.
Add automatic enrollment for an extra $500 credit.
Consult a tax advisor for full benefits and compliance.
