Tax Savings Maximizer.

Avoid missing out on free money from the government

THE PROBLEM

You could miss out on valuable tax credits because the IRS puts the burden of filing on business owners.

Your business could qualify for up to $16,500 in tax credits to reduce or even eliminate initial plan costs over the first three years, with the potential for thousands in additional credits if you offer an employer match. While these tax credits directly reduce tax liability, the onus is on business owners to file for them. IRS forms can be difficult to file—assuming you’re even aware of the tax credits in the first place.

OUR SOLUTION

Human Interest simplifies claiming tax credits, which may reduce or fully cover 401(k) plan costs.

We’re the only 401(k) provider to offer an embedded Tax Savings Maximizer that makes it easier to claim your tax credits. We provide data inputs to IRS Form 8881 that you can share with your CPA, and reminders of when and where to file—so you don’t miss out on major financial savings. More than 80% of Human Interest customers were eligible for tax credits in 2023, with the majority of clients eligible for credits covering 100% of employer costs.1

This service is available for customers on our Concierge package only.

How it works

Download data inputs to IRS Form 8881

Access all data inputs and calculations for Form 8881 straight from your Human Interest Admin Dashboard.

Share the document with your CPA for review

You can pass this document directly to your CPA for assistance in filing your tax credit.

Receive reminders to file

We send notifications as the tax deadline approaches so you don’t miss out on 401(k) tax credits.

Human Interest Inc. does not provide tax, legal, or accounting advice. Plan Sponsors should take independent steps to validate the tax, legal, or accounting considerations of hiring any service provider for the Plan, obtaining guidance on any Plan document (or amendment thereto), and for any issues pertaining to design, implementation, or operation of a Plan.

Frequently asked questions

What tax credits are available for starting a new plan?

With SECURE Act 2.0, small businesses with up to 50 employees may be eligible for a tax credit to cover 100% of plan start-up costs, capped annually at $5,000/employer for three years.

Businesses with 51-100 employees may be eligible for the original credits equal to 50% of administrative costs, capped annually at $5,000/employee for three years. Additionally, auto-enrollment provides a $500 tax credit. Together, these tax credits can add up to $16,500.

Employers can also receive a credit for matching contributions made to employee accounts. Employers with 1-50 employees can get an annual credit of up to $1,000 per employee who makes less than $100,000 a year. Businesses with 51 to 100 employees also qualify for this credit, but the amount is smaller.

Learn more about the Employer tax advantages of a 401(k)

Will I automatically receive tax credits for starting a new retirement plan?

In order to receive the SECURE Act Retirement Plan Startup Cost Tax Credit, you must file Form 8881 with the IRS. Human Interest makes this easy for you by offering an embedded Tax Savings Maximizer tool that gives you the calculations and data inputs you need.2 We also remind you to file the form so you don’t miss out on this valuable tax incentive.

Does Human Interest prepare or file Form 8881 on behalf of my plan?

No. Human Interest does not prepare or file IRS Form 8881 on behalf of plan sponsors. However, we provide a resource to help you and your CPA complete the form. Please consult your CPA or tax advisor to validate all information before filing your taxes.

What if there is a discrepancy with the inputs in the Tax Savings Maximizer?

The inputs generated in the Tax Savings Maximizer are based on Human Interest data. We may not have all of the data required to complete Form 8881, so we make it easy for you to review what we have with your CPA and (if needed) edit the data behind the calculations.

Notes

1

Human Interest internal data as of February 28, 2024. Tax credit information is based on customer information with an average contract value (ACV) of 5k. ACV includes costs paid by the plan that are not included when calculating the tax credit. Actual tax savings may differ. Plan sponsors are responsible for calculating and claiming tax credits.

2

Tax Savings Maximizer data is for informational purposes only. Please consult your own CPA or tax advisor to validate all information before filing your taxes.