Retirement Plans Startup Costs Tax Credit
Amount
- 50% of the cost to establish and administer a qualified plan
- Up to $500 per year for the first 3 plan years
Eligibility
- 100 or fewer employees
- At least one non-highly compensated employee (NHCE)
- No other plan providing benefits to employees in the last 3 years
Note: you can't claim the credit and deduct the same expenses.
Qualified employers may claim the credit with Form 8881,
Credit for Small Employer Pension Plan Startup Costs.
Retirement Savings Contributions Credit (Saver's Credit)
Maximum Amount
- $1,000; $2,000 for married couples
- Based on contribution amount and credit rate
Eligibility
- Low-to-moderate income worker below the applicable limits (see below)
- Contribute elective deferrals to a qualified plan
- At least 18 years of age
- Cannot be a full-time student
- Cannot be claimed as a dependent on another person's tax return
Income Limits (tax year 2016)
- Married Filing Jointly = $ 61,500
- Head of Household = $ 46,125
- Single = $ 30,750
Qualified individuals may claim the credit with Form 8880,
Credit for Qualified Retirement Savings Contributions.
Click here to find out if you qualify for the Saver's Credit.
For more tax information for retirement plans, visit irs.gov/retirement-plans.
The information provided above is for information purposes only. Blueprint Retirement Services, LLC does not provide tax advice. Consult with your accountant or tax professional for additional information or questions regarding retirement plan tax credits or deductions.