Small Business Tax Credit

[Guest KeithinClev]

If a small company is starting up a 401(k) Plan 1/1/05 (Never had a retirement plan before). Would they receive the tax credit on installation & document expenses that are paid in 2004 for their Tax Year 2004?

If yes, I would assume that would count as year 1 of 3 to take advantage of the credit?

Thank you

[Bird]

The employer can elect to make the year preceding the effective year as the first credit year.

Code Sec 45E(d)(3)(B)