For 2026, small employers with 50 or fewer employees can claim a credit for 100% of qualified retirement-plan startup costs (up to $5,000/year for three years), 50% for 51-100 employees. A separate employer-contribution credit adds up to $1,000 per employee (phasing over five years) and a $500/year auto-enrollment credit runs three years.
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SECURE 2.0 credits cover up to 100% of new retirement-plan startup costs
Why this matters for founders
If you have not offered a 401(k), the combined credits can offset most of the setup cost; launch a plan while you are under 50 employees to capture the full 100% startup credit.
Source: Vestwell
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