SECURE 2.0 & new plan in 2022 / Saver's Credits

Making sure to get this right.

New plan, effective date 1/1/22, adoption date 12/1/22; 2 HCE's & 2 NHCE's.

• Startup costs - Because adopted prior to 12/29/22, they only get 50% of startup cost credit, or $500 in this case/yr, for taxable years 2022-2024. Say startup cost in 2022 was $2,000, then $500 credit in first two years only to equal $1,000, or 50%.
• Contribution credits - plan is still eligible for credits on NHCE PS contributions (< 50 ee's); up to $1,000 at 100% for 2023 (2nd year of plan); 75% for 2024 and so on.