SECURE Act 2.0 Tax Credit Estimator (Years 1–5)

Use this estimator to explore potential SECURE 2.0 tax credits for a new retirement plan. Review results with your advisor or CPA to confirm eligibility and final credit amounts.

Educational estimate of three potential credits: start-up costs, auto-enrollment, and employer contributions. Confirm eligibility and final credit amounts with a qualified tax advisor.

Inputs

Some credits apply only up to 100 employees, and phase down above 50.
Annual start-up cap: max($500, min($250×NHCE, $5,000)).
Models $500/year for Years 1–3 if applicable.
This estimator does not evaluate wage/eligibility rules—confirm with your advisor or CPA.
Creditable amount capped at $1,000 per eligible employee.
Assumptions & calculation notes
  • Start-up credit rate: 100% for 1–50 employees; 50% for 51–100; not modeled beyond 100.
  • Start-up annual cap: max($500, min($250×NHCE, $5,000)).
  • Auto-enrollment credit: $500/year for up to 3 years (modeled as Years 1–3 when checked).
  • Employer contributions credit: (eligibleReceivers × min(avgContrib, $1,000)) × applicablePct × phaseDownPct.
  • ApplicablePct schedule (Years 1–5): 100%, 100%, 75%, 50%, 25%.
  • Phase-down above 50 employees: reduce by 2% per employee over 50 (multiplier cannot go below 0).

Important: This tool does not assess controlled group rules, employee definition nuances, or plan-design qualification details.