What is the maximum amount that Tom can claim for the Retirement Plans Startup Costs Tax Credit for his new Guideline Core plan with auto-enrollment?

The maximum amount that Tom can claim for the Retirement Plans Startup Costs Tax Credit for establishing a new retirement plan, such as his Guideline Core plan with auto-enrollment, is set at $500. This tax credit is designed to encourage small businesses to offer retirement plans to their employees by relieving some of the initial costs associated with setting up those plans.

In this case, the $500 credit is available for eligible startup costs, which can include expenses related to plan creation, preparation of required documents, and employee education about the retirement plan. If Tom's business meets certain criteria, this financial incentive can significantly reduce his upfront investment, thereby promoting retirement savings options for his employees.

Understanding the details of this tax credit is crucial for small business owners like Tom, as it can make retirement plans much more accessible and financially feasible, ultimately encouraging widespread participation in saving for retirement.