Tax credits

[Guest R. Daestrom]

Not sure if this is the right folder for this question, but here goes:

Company with 5 employees (4 family HCE's, 1 non-HCE's) with a 6/30 fiscal year. The adopt a SEP with an initial PYE of 6/30/02. They are considering adopting a PS plan, effective either for PYE 6/30/03 or 6/30/04, and doing away with the SEP.

If they adopt the PS plan, is the $500 (max) tax credit available to them for either 6/30/03 or 6/30/04 plan year, possibly both? Does the SEP interfere with them taking advantage of this credit? If they wait until 7/1/03 to adopt the PS plan (630/04 PYE), can they take advantage of any of this tax credit for SEP admin costs (if there are any) for 6/30/03 Plan year?

Thanks for any help.