Retirement Plan Tax Credit Calculator

The Tax-Savvy Benefits of a DB/ DC, Cash Balance/ Profit Sharing 401k Retirement Plan

Business owners and plan sponsors who adopt Defined Benefit (DB), Cash Balance, or Combo Plans unlock a powerful opportunity: investing in their own future and their team’s retirement instead of sending those dollars to Uncle Sam. These plan designs allow for significantly higher pre-tax contributions than traditional 401(k)s, reducing taxable income while building long-term wealth for both owners and employees.

Use our Tax Credit Calculator to see how much you can save by choosing a plan that works as hard as you do.

Tax Credit Calculator

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Startup Tax Credit

up to $5,000

Up to $5,000/year for the first 3 years of the Plan. (Credit will depend on # of Employees & actual start-up costs.)

Automatic Enrollment Tax Credit

$500

$500/yr

Employer Contribution Tax Credit

up to $1,000/employee

Up to $1,000 per employee earning less than $100,000 annually. (Credit is reduced if more than 50 employees and in subsequent years.)

How many Employees are employed by the employer?

How many employees will be eligible to participate in your Plan?

Of the employees eligible to participate, how many non-owner employees received less than $135,000 last year?

What is the estimated annual cost of start-up & administration of your Plan?

Conditions

Automatic enrollment

Employer Contribution

What is your estimated budget for the employer contribution?

Of the employees eligible to participate, how many employees earned less than $100,000 last year?

Average Employer Contribution per Employee

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Summary

Tax Year 1

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Startup Credit

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Automatic Enrollment Credit

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Employer Contribution Tax Credit

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Tax Year 2

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Startup Credit

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Automatic Enrollment Credit

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Employer Contribution Tax Credit

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Tax Year 3

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Startup Credit

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Automatic Enrollment Credit

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Employer Contribution Tax Credit

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Tax Year 4

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Employer Contribution Tax Credit

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Tax Year 5

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Employer Contribution Tax Credit

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Subtotal

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Startup

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Automatic Enrollment

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Employer Contribution

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Total

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Tax Credit

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$/year

If you are human, leave this field blank.

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Retirement Plan Tax Credit Calculator

The Tax-Savvy Benefits of a DB/ DC, Cash Balance/ Profit Sharing 401k Retirement Plan

Input

Summary

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