For business owners

The IRS helps pay to start your team's retirement plan.

A brand-new small-business retirement plan can earn a startup credit of up to five thousand dollars a year, covering much of the cost to set it up and run it.

Watch the quick version

See how it works through one simple example.

Is this you?

You are starting a new retirement plan for a small team.
The credit is aimed at smaller employers launching their first plan.

Here is the idea, in plain words

A new small-business retirement plan earns a startup credit of up to five thousand dollars a year.

That credit can cover much of the cost of setting the plan up and running it.

In effect, the government helps pay to get your team's retirement plan off the ground.

What this could be worth

Up to $5,000 a year in credits to offset the cost of starting a plan.
  • 1Confirm you are an eligible small employer starting a new plan.
  • 2Set up a qualifying retirement plan.
  • 3Claim the startup credit for the first years.

Educational guidance, not tax advice. We confirm every figure and your eligibility before you act.

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What to watch out for

The honest version.

  • The credit is for new plans, not ones you already had.
  • Employer size and other rules affect eligibility.
  • Credits offset specific startup and contribution costs.

Common questions

How much is it?

Up to five thousand dollars a year for the first years of a new plan.

Who qualifies?

Eligible small employers starting their first qualifying retirement plan.

What does it cover?

Much of the cost of setting up and administering the plan.

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