Plan Sponsor Tool
SECURE 2.0 tax credit calculator
Determine and track the SECURE Act 2.0 tax credits available to your small business across a 5-year timeline — including startup administration cost credits, auto-enrollment incentives and employer contribution credits.
Back to Plan Sponsor & Participant ToolsBusiness profile
Business size category
≤ 50 employees — full credit
Annual financial inputs
TPA fees, recordkeeping, setup and education costs.
Triggers a $500 annual auto-enrollment tax credit (Years 1–3).
Total match or profit-sharing paid specifically to employees earning $100k or less. Capped at $1,000 per NHCE.
Total 3-year tax credits
$54,750
Combined startup, auto-enrollment and employer contribution credits over the first three years.
Total 5-year tax credits
$66,000
Full five-year projection including the declining contribution credit schedule.
Out-of-pocket net cost to business owner
$29,000
Total 5-year admin costs + employer contributions ($95,000) minus total 5-year tax credits ($66,000).
Annual startup credit
$4,000
Years 1–3 only
Auto-enroll credit
$500
Years 1–3 only
Max eligible contributions
$15,000
Capped at $1,000 / NHCE
5-year tax credit timeline
Stacked credits by year — startup cost credit, auto-enrollment credit and employer contribution credit.
- Startup Cost Credit
- Auto-Enroll Credit
- Contribution Credit
Year-by-year breakdown
| Year | Startup | Auto-enroll | Contribution | Total |
|---|---|---|---|---|
| Year 1 | $4,000 | $500 | $15,000 | $19,500 |
| Year 2 | $4,000 | $500 | $15,000 | $19,500 |
| Year 3 | $4,000 | $500 | $11,250 | $15,750 |
| Year 4 | $0 | $0 | $7,500 | $7,500 |
| Year 5 | $0 | $0 | $3,750 | $3,750 |
Save this configuration to model the difference between keeping headcount under 50 vs expanding up to 100.
How to compare scaling scenarios
- 1.Set your inputs to the first configuration you want to evaluate.
- 2.Click Save to log that scaling scenario to the history table below.
- 3.Adjust one input at a time (for example, bump your contribution rate or headcount), then save again.
- 4.Repeat for each variation. Every saved row appears side-by-side so you can compare results at a glance.
Scaling scenario comparison
A running log of the configurations you've modeled. Compare 3-year and 5-year credits and net out-of-pocket cost across headcount scenarios.
| Company | Employees | NHCEs | EACA | Size category | 3-yr credits | 5-yr credits | Net cost | |
|---|---|---|---|---|---|---|---|---|
| Untitled | 35 | 30 | Yes | ≤ 50 | $54,750 | $66,000 | $29,000 |
This calculator is provided strictly for educational purposes and is not tax advice or a recommendation from an advisor. SECURE 2.0 credit rules, eligibility thresholds and phaseout schedules are subject to IRS guidance and change over time. Results are estimates based on the inputs you provide. Speak with a Cognis advisor and your tax professional for guidance tailored to your practice.