IRS Form: Draft Instruction for Small Employer Pension Plan Startup Costs, Auto-Enrollment (IRC §45E)

Draft instructions for Form 8881, Credit for Small Employer Pension Plan Startup Costs and Auto-Enrollment, released November 10 to reflect the Further Consolidated Appropriations Act, 2020, which created a new credit for small employers with an auto-enrollment option for retirement savings and increased the credit limit for small employer pension plan startup costs. Additionally, Form 8881 now has two parts: (1) used to claim the credit for small employer pension plan startup costs and (2) used to claim the credit for small employer auto-enrollment in retirement savings. [Draft Instructions for IRS Form 8881 (Dec. 2020)]

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