Vestwell | Tax Credit Calculator

Secure Act 2.0 Tax Credit Calculator

With the recent passing of Secure Act 2.0, new tax credits may be available to you, making a 401(k) plan with Vestwell even more affordable.

Let's see your potential savings!

If you start a qualified retirement plan with auto-enrollment, you may qualify to earn tax credits of $15,000 or more depending on the size and eligibility of your business.

Do you currently have a 401(k) plan?

What year was it started?

If the plan is more than five years old, it may not be eligible for tax credits. But you may still be eligible for a $500 auto-enrollment credit!

How many employees (including owners) were paid more than $5,000 in W-2 wages last year?

If there are more than 100 employees, only the auto-enrollment credit may be applied.

How many of those 10 employees will earn more than $100,000 this year?

Please enter number equal to or less than your total employee count.

How many of those 10 employees are classified as owners (as defined by the IRS)?

Who will pay the monthly employee fees?

Which plan type?

The maximum number of employees for a Solo plan is 1. Please adjust for accurate results.

Calculate Savings

With tax credits, your plan will cost $0 over the plan's first three years!

Yearly Cost Breakdown

Year Total Recordkeeping Fees Setup Fee Employee Fee (optional) Total Tax Credits Up To
Year 1 $2,900 $500 $960 $7,750
Year 2 $2,400 $0 $960 $6,500
Year 3 $2,400 $0 $960 $5,250
Total $7,700 $500 $2,880 $19,500

› Start-up credit

› Auto-enrollment credit

› Matching contributions

You're eligible for $11,250 in tax credits from matching contributions over the plan's first three years!

Please note: this calculator is for illustration purposes only. It should not be construed as tax advice. Please consult a tax professional regarding specific tax needs. For further information please visit the IRS website. The tax credits available to your company may change based on the number of HCEs. Also, the definition of HCE may change based on IRS rules.

* Please note, this number does not take into account the total amount the employer would be contributing, just the possible tax credit they can receive. For example, if the average salary is $50,000 and there's a 3% match, that's a $1,500/yr contribution from the employer. If there's less than 50 employees, this tax credit would cover the first $1,000, leaving the employer with a $500 net contribution per employee.

The tax credit calculator is meant to be an estimate and provided for informational purposes only. It is based on credits that may be available to your business based on the current version of the Internal Revenue Code in effect and does not take into account potential changes to the tax credits that may be available to you that are currently under consideration. This calculator also does not take into account any other aspect of your business that may entitle your business to greater or fewer tax credits from starting or offering a new or existing retirement plan nor does it reflect any other fees or expenses associated with your plan. The tax credits that the Internal Revenue Service determines are available to your business could be materially different from the output of the tax credit calculator.