Credit for Small Employer Pension Plan Startup Costs, Auto-Enrollment, and Military Spouse Participation

Qualified small employers use Form 8881 to request a credit for start up costs related to eligible retirement plans. Form 8881 implements section 45E, which provides a credit based on costs incurred by an employer in establishing or administering an eligible employer plan or for the retirement related education of employees with respect to the plan. The credit is 50% of the qualified costs for the tax year, up to a maximum credit of $500 for the first tax year and each of the two subsequent tax years.

The latest form for Credit for Small Employer Pension Plan Startup Costs, Auto-Enrollment, and Military Spouse Participation expires 2022-03-31 and can be found here.