UStax_creditflat_per_unit
Small Employer Pension Plan Startup Costs Credit
US-PENSION-STARTUP · United States (Federal)
Summary
Credit for eligible startup costs of establishing a new qualified retirement plan (401(k), SIMPLE IRA, SEP, or pension plan). Up to $5,000/year for 3 consecutive years. Small employer size test: ≤100 employees who earned ≥$5,000 compensation in prior year. SECURE 2.0 expanded eligibility. Form 8881.
Benefit
- Percentage
- —
- Flat
- —
- Duration
- —
- Max annual
- — (taxpayer)
- Max total
- — (taxpayer)
- Carryforward
- —
Program metadata
- Distribution
- taxpayer_earned
- Claimant subject
- business
- Refund/transfer election
- —
- Program family
- —
- Effective
- —
- Sunset
- —
- Application deadline
- —
- Transfer discount
- —
Hard requirements (1)
- max_existing_employeesEmployer must have ≤100 employees who earned ≥$5,000 compensation in prior year
Preference / tiering rules (0)
None.
NAICS industries (0)
Any.
Geo zones (0)
Statewide / none specified.
Tags (4)
- filing_form: Form 8881 (Credit for Small Employer Pension Plan Startup Costs)
- max_benefit_annual: 5000.00
- benefit_duration_years: 3
- eligible_plan_types: Traditional/Roth IRA, SIMPLE IRA, SEP IRA, Solo 401(k), 401(k), Defined Benefit Pension
Tax bases
- corporate_income_taxprimary
Source
IRC §45E; Form 8881 (Credit for Small Employer Pension Plan Startup Costs); SECURE 2.0
Last verified: 2026-04-22