Small Business 401k Tax Credits
πββοΈ πββοΈ Who likes free money?? ββ
How 'bout government tax credits for your small business 401k plan? Secure ACT 2.0 did exactly that!
If you would like to discuss how your business can take advantage of these tax credits, click here to Book A Meeting.
Requirements: Have at least 1 full time employee that made less than $150k last year.
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βTax Credit Details & Amountsβ
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1) Start-Up Tax Credit: Get $250 per employee, per year, for 3 years, to help offset the cost of setting up the 401k plan and educating your employees.
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2) Auto-Enrollment Tax Credit: $500 tax credit per year, for 3 years, when you use an eligible βopt-outβ 401k plan. Employees are automatically enrolled in the plan to save for retirement.
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3) Matching Tax Credit: The government will match your contribution to an employee plan up to $1,000, if the employee earned less than $100k. This free money supercharges your 401k savings plan.
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If you are a CA-based business with even 1 employee, you will be required to offer a 401k plan by 2025. Now is a great time to take advantage of these government subsidies.
