NEWSLETTERS

Small employers, defined as having no more than 100 employees, will receive a tax credit for a portion of the costs associated with setting up a new retirement plan (401(k), profit sharing, defined benefit, Safe Harbor and Simple plans) for plans beginning after December 31, 2001.

The tax credit equals 50% of the start-up costs incurred, with a maximum of a $500 credit per year. The credit can be claimed for three years beginning with the year the plan is set-up. The costs incurred cannot be claimed as a tax credit and deducted as a business expense.

©2002 Administrative Retirement Services, Inc.

© Administrative Retirement Services, Inc.  2002
Published by Administrative Retirement Services, Inc., Copyright 2002 by Administrative Retirement Services, Inc. Reproduction in whole or in part is prohibited except by written permission. All rights are reserved.  Information has been obtained by Administrative Retirement Services, Inc. from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Administrative Retirement Services, Inc. or others, Administrative Retirement Services, Inc. does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the result obtained from the use of such information.  Readers should seek specific advice before acting with regard to the subjects mentioned here.

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