Do not ignore this potentially significant TAX SAVINGS. A business that starts a retirement plan may be entitled to a Federal Tax Credit for the startup and administrative costs for 3 years. The credit is claimed using IRS Form 8881, “Credit for Small Employer Pension Plan Startup Costs”. The credit, which until now has been limited to $500 per year for 3 years, has been increased to a maximum of $5,000 per year beginning with the 2020 tax year.
