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 more than $150,000 in tax credits over a three-year period.

Do you currently have a 401(k) plan?

Yes No

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 $5k 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 employees will earn more than $100k this year?

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

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

Who will pay the monthly employee fees?

Employer Employee

Which plan type?

Calculate Savings ›

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

Year 1

Year 2

Year 3

Total

Total recordkeeping fees

› Annual recordkeeping fees

› Setup fee

› Employee fee (optional)

Total tax credits up to

› Start-up credit

› Auto-enrollment credit

› Matching contributions*

You're eligible for 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 up on the number of HCEs. Also, the definition of HCE may change based on IRS rules.

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* 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.

Vestwell.com is owned and operated by Vestwell Holdings, Inc. and its subsidiaries. ("Vestwell"), located in New York, NY. Investment-related content is provided for general information purposes by Vestwell Advisors, LLC, an SEC-registered investment adviser, and is not intended to be construed as investment advice. Investments involve risk are not guaranteed.