Tax Credits Available
Companies implementing automatic enrollment for their employees in a 401(k) plan may be eligible for a $500 credit.
Despite this auto-enrollment feature, employees have the option to opt out of the plan should they choose not to participate.
Employer’s will recieve $250 per non-highly compensated employee that participates in a plan.
This will allow the business to offset up to 100% of any out of pocket expenses including adminstration and record keepers costs.
Companies have the potential to receive up to $1,000 per employee who earns under $100,000 annually.
This incentive is designed to help businesses offset the costs associated with providing a match or contribution to their employees’ retirement plans.