You could qualify to claim this credit if:
You had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year.
You had at least one plan participant who was a non-highly compensated employee (NHCE). A highly compensated employee is an individual that has owned more than 5% of “the interest in the business” during the year or the year prior or was compensated more than $130,000 the preceding year and was in the top 20% of employees ranked by compensation. A non-highly compensated employee is an individual that does not meet either of the aforementioned requirements.
In the three tax years before the first year you’re eligible for the credit, your employees weren’t substantially the same employees who received contributions or accrued benefits in another plan sponsored by you, a member of a controlled group that includes you, or a predecessor of either.
This calculator was built in conjunction with the IRS guidelines. This calculator is for demonstration purposes only and is not tax advice.