401(k) Tax Credit

You could save thousands with the 401(k) tax credit.

We’ve helped businesses find $150 million in tax credits. The 401(k) tax credit is a win-win: Provide a better financial future for your team, and save big – just another reason to create a Gusto account.

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Businesses may lower 401(k) administration expenses to $0 for the first 3 years.

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Most of your info is already in our system. We can generate your tax form right away.

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What is the 401(k) tax credit?

Technically called the Credit for Small Employer Pension Plan Startup Costs, the 401(k) tax credit can reduce the amount of taxes you owe on a dollar-for-dollar basis. Eligible employers may be able to claim up to $5,000 for 3 years for the necessary costs of starting an SEP, SIMPLE IRA, or other 401(k) plan, with additional credits available for auto-enrolling and employer contributions. If you qualify, Gusto can quickly generate your form 8881 for you.

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Employees using Gusto are 40% less likely to leave in the first year when offered 401(k) retirement benefits.1

Want to learn more about the 401(k) tax credit? We’ve got you covered.

Ready to unlock your 401(k) tax credit?

1According to Gusto’s report, One Secret to Retaining Top Talent? Offering Retirement Benefits.

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