Offering a company-sponsored 401(k) plan can introduce several tax advantages, such as tax deductions for certain expenses and employer contributions. With the increasing focus on retirement legislation—particularly the passage of SECURE 2.0—many businesses are now eligible for various tax credits: Startup Tax Credit: provides businesses with less than 100 employees a three-year tax credit for up to 50% of the plan’s start-up costs. Employer Contribution Credit: employers with fewer than 50 employees can receive up to $1,000 for each eligible employee (those earning less than $100,000) when they offer a match contribution. Automatic Enrollment Credit: $500 tax credit for employers who add automatic enrollment.