Start-up Credit SECURE

If an employer has a SIMPLE IRA plan and starts a 401k are they eligible for the start-up credit?  I wouldn't think so, but i can't seem to get any fine print information... 

This was part of an ASPPA Q&A on the credit.

Q25: Does the start-up credit apply to a SEP?     

A25: Yes, it applies to a SEP. The credit is not limited to qualified plans. IRC Section 45E refers to IRC Section 4972(d) for the definition of a plan. That section includes qualified plans, 403(b) plans, SEPs and SIMPLE IRAs or 401(k)s.

While it doesn't specifically address your question, I think it answers it.

Without looking it up, I'm pretty sure that if you have a plan of any kind, including a SIMPLE, already, you are not eligible.  I think that cross-references to the old law, or rather, the new law only changed the amount but not the rules.  All that off the top of my head.

58 minutes ago, Bill Presson said:

This was part of an ASPPA Q&A on the credit.

Thanks!  I agree, Bill it stands to reason if the plan is eligible for the credit in the first place, then you would not get the credit for setting up a different kind of a plan.

Can you tell me more specifically where I can find that Q&A?  What notice number was it, or whatever they call it.  I am a card-carrying member so I can get into the website...

20 minutes ago, austin3515 said:

Thanks!  I agree, Bill it stands to reason if the plan is eligible for the credit in the first place, then you would not get the credit for setting up a different kind of a plan.

Can you tell me more specifically where I can find that Q&A?  What notice number was it, or whatever they call it.  I am a card-carrying member so I can get into the website...

https://www.napa-net.org/secure-act-tax-credit-qas

Technically it was NAPA. But no membership required.

7 minutes ago, Bill Presson said:

Technically it was NAPA. But no membership required.

28 minutes ago, austin3515 said:

Thanks!  I agree, Bill it stands to reason if the plan is eligible for the credit in the first place, then you would not get the credit for setting up a different kind of a plan.

Can you tell me more specifically where I can find that Q&A?  What notice number was it, or whatever they call it.  I am a card-carrying member so I can get into the website...

NAPA site is also a little easier to navigate for stuff like this.  From the home page, go to Industry Intel --> Hot Topics

https://araadvocacy.org/  is a good if you are looking for comment letters and such