Wellthbuilder Tax Calculator

Let's see your potential savings!

If you start a qualified retirement plan with auto-enrollment, you may qualify to earn tax credits of $15,000 or more depending on the size and eligibility of your business.

Do you currently have a 401(k) plan?

Yes No

What year was it started?

If the plan is more than five years old, it may not be eligible for tax credits. But you may still be eligible for a $500 auto-enrollment credit!

How many employees (including owners) were paid more than $5,000 in W-2 wages last year?

If there are more than 100 employees, only the auto-enrollment credit may be applied.

How many of those employees will earn more than $100,000 this year?

Please enter number equal to or less than your total employee count.

How many of those employees are classified as owners (as defined by the IRS)?

Who will pay the monthly employee fees?

Employer Employee

Which plan type?

The maximum number of employees for a Solo plan is 1. Please adjust for accurate results.

Calculate Savings

Year 1

Year 2

Year 3

Total

Total recordkeeping fees

› Annual recordkeeping fees

› Setup fee

› Employee fee (optional)

Total tax credits up to

› Start-up credit

› Auto-enrollment credit

› Matching contributions*

Please note: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal and accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transaction. For further information, please visit the IRS website. The tax credits available to your company may change based upon the number of HCEs. Also, the definition of HCE may change based on IRS rules and guidance.

Auto-enroll: Annual credit of $500 applies to plans who add an automatic-enrollment provision to the 401(k) Plan. For purposes of this illustration, we are assuming the employer is opting into an auto-enroll plan.

Matching Contributions: For employer matching contributions, up to $1,000 per year in tax credits, per employee, for up to 50 employees. In Years 1 and 2 of a plan, the credit is 100%, decreasing to 75% and 50% in Years 3 and 4, respectively. Starting with the 51st employee, the credit is reduced by 2% for each additional employee. For example, the tax credit percentage for matching contributions for 99 employees is only 2%.

* Please note, this number does not take into account the total amount the employer would be contributing, just the possible tax credit they can receive. For example, if the average salary is $50,000 and there's a 3% match, that's a $1,500/yr contribution from the employer. If there's less than 50 employees, this tax credit would cover the first $1,000, leaving the employer with a $500 net contribution per employee.

Vestwell.com is owned and operated by Vestwell Holdings, Inc. and its subsidiaries. ("Vestwell"), located in New York, NY. Investment-related content is provided for general information purposes by Vestwell Advisors, LLC, an SEC-registered investment adviser, and is not intended to be construed as investment advice. Investments involve risk are not guaranteed.

The tax credit calculator is meant to be an estimate and provided for informational purposes only. It is based on credits that may be available to your business based on the current version of the Internal Revenue Code in effect and does not take into account potential changes to the tax credits that may be available to you that are currently under consideration. This calculator also does not take into account any other aspect of your business that may entitle your business to greater or fewer tax credits from starting or offering a new or existing retirement plan nor does it reflect any other fees or expenses associated with your plan. The tax credits that the Internal Revenue Service determines are available to your business could be materially different from the output of the tax credit calculator.

Secure Act 2.0 Tax Credit Calculator