Mikerbpm Posted January 10, 2023 Posted January 10, 2023 I had this question posed to me the other day. For the new tax credits for 2023, can we start a new plan even though we already have a 401(k) plan. Freeze the existing plan and merge into the new plan but yet take advantage of the new credits including the $1,000 credit for matching. This is a small 6 person plan.
C. B. Zeller Posted January 10, 2023 Posted January 10, 2023 No. To qualify for the credit the employer can not have maintained any other qualified plan during the past 3 years. See IRC 45E(c)(2) Lou S., Luke Bailey, CuseFan and 1 other 4 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
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