If you run a construction business and don’t yet offer a retirement plan, the IRS is currently handing out one of the easiest tax credits available — worth up to $15,000 over three years — just for setting one up.

Here’s what you need to know:

Who qualifies?

You may be eligible if:1️⃣ You have 100 or fewer employees, each earning at least $5,000, and2️⃣ You have at least one non–highly compensated employee who can participate.

Solo owner-operators don’t count as employees, so even a small crew can qualify.

How the credit works

The IRS will cover 100% of your plan’s qualified start-up costs (capped at $5,000 per year for three years) if you have 50 or fewer employees.

Businesses with 51–100 employees still get 50% of eligible costs covered.

Your credit equals the greater of:

$500, or

$250 per eligible non-highly compensated employee, up to $5,000.

What counts as “qualified start-up costs”?✔️ Plan setup and administration✔️ Employee education related to the plan

You can also deduct any plan costs above the credit as ordinary business expenses.

Construction owners often overlook retirement plans because they seem expensive or complicated. But with SECURE 2.0, the government is essentially paying you to offer one — whether it's a 401(k), SIMPLE IRA, or SEP.

If you joined a multi-employer plan and didn’t claim the credit in prior years, you may even qualify to amend returns and retroactively take it.

Reach out with any question, now through mid-December: https://accountingsolutionsllp.com/appointment/