The Secure Act created a new small employer automatic enrollment credit of up to $500 per year to employers to defray startup costs for new 401(k) plans and SIMPLE IRA plans that include automatic enrollment.<\/p>\n\n\n\n
The new credit applies to taxable years beginning after Dec. 31, 2019.<\/p>\n\n\n\n
The Internet Revenue Service just opined that<\/em> the tax credit applies separately to each eligible employer that participates in a multiple employer plan (MEP) under Section 413(c). So each eligible employer generally would qualify for the credit for the three-year credit period beginning with the first taxable year in which the eligible employer\u2019s participating employees are first covered by an eligible automatic contribution arrangement (EACA) under the MEP.<\/p>\n\n\n\n The IRS also advised that an eligible employer may not receive credit with respect to taxable years in more than one 3-year credit period. The Notice explains that an eligible employer may receive credit for taxable years only during a single 3-year credit period that begins when the employer first includes an EACA in any qualified employer plan.<\/p>\n <\/span><\/p>","protected":false},"excerpt":{"rendered":" The Secure Act created a new small employer automatic enrollment credit of up to $500 per year to employers to defray startup costs for new 401(k) plans and SIMPLE IRA plans that include automatic enrollment. The new credit applies to … Continue reading