Small Employer Credit

Notice 2024-2 and/or Notice 2020-68 included guidance for the four available tax credits for small employers.

For small employer retirement plans, a tax credit of up to 50% of the first $1,000 in “eligible start up costs” may be available to offset establishment and administration costs.

A $500 tax credit is available for each of the first 3 years of a new plan that is established by a small business.