The Quick Quote calculation provided is for illustrative purposes only. It should not be construed as tax advice. Please consult a tax professional regarding specific tax needs, credit availability and amount. For further information, please visit the IRS Website.
The business has not sponsored a retirement plan (including a SIMPLE IRA or SEP) in the last 3 years
The business has a fixed number of employees, owners, and highly compensated employees during the first three years of your plan
All employees are eligible for the 401(k) plan
Assets in the plan are less than $500,000 for the first three years
Tax credit and deductions calculations consider:
If the business has zero non-highly compensated employees, the business will not qualify for the startup tax credit
If the business has more than 100 employees, it will not qualify for the startup credit, the auto-enrollment credit or the employer contribution credit
The startup tax credit is calculated based on the number of non-highly compensated employees (NHCE) the business has and covers the costs required to set up and administer the plan as well as to educate employees about the plan
The maximum annual credit is the greater of $500 or the lesser of $250 per eligible NHCE or $5,000. If the business has 51 – 100 employees, the credit cannot exceed 50% of the eligible startup costs paid or incurred in a tax year. If the business has 50 or fewer employees, the credit cannot exceed 100% of the eligible startup costs paid or incurred in a tax year
The business pays the monthly per participant Recordkeeping & Plan Administration Fee
For illustration, any remaining plan costs not covered by startup tax credits are assumed to be tax deductible at a rate of 33%. Your actual tax savings depend on your business’s tax rate
Estimated cost after tax credits and deductions:
This is an illustration of how estimated tax credits and deductions may help offset the estimated annual cost of offering a Sallus 401(k) plan for the first three years
Estimated pricing includes:
Fiduciary Oversight Fee
Recordkeeping & Plan Administration Fee
Additionally, a $500 one-time plan setup fee will be applied upon joining. Advisor fees may also apply
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