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.

Sign in to begin
Calendar Heart Guava

Get your first 3 years free

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

Paperwork Ginger

Generate your form in minutes

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

Add Employee ST2

Gain an experienced partner

This service is exclusive to Guideline, who offers a range of plans to meet your needs.

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.

Calendar Date

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.

Trusted by more than 300,000 businesses and their teams

gold stargold stargold stargold stargold star half

4.6 Rating

Software Advice | 3,850 reviews

Trophy

#1 Best Software for Small Business

G2 | 2024

Trophy

#1 Payroll Software

U.S. News | 2024