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"What exactly is a Pooled Employer Plan (PEP)?" 

Here's the short version: 

  •  It's a retirement plan shared across multiple employers 
  •  You get better pricing and fewer administrative headaches 
  •  It takes the heavy lifting off your shoulders 
  •  You stay compliant (without the scrambling) 

Here are 6 facts to understand PEPs:

  1. Businesses of any size can adopt PEP.
  2. Unrelated businesses can participate in the same PEP.
  3. Each employer chooses which features to offer - matching contributions, loans, vesting schedules, and more.
  4. Businesses in a PEP share the same recordkeeper, administrator, custodian, and investment adviser.
  5. A consolidated audit for the entire PEP delivers substantial cost savings for large employers.
  6. The SECURE Act eliminated the “one bad apple“rule, so one employer’s missteps no longer disqualify the whole plan.

 

All plans include

  • Financial Planning Software

  • Individual Investment Advice

  • Group Education Meetings

  • Expert Plan Design Consulting

  • Ongoing Plan Monitoring

  • Livestream events, business spotlights, community challenge events

Startup Plans Enjoy SECURE 2.0 Tax Credits

The tax credits below are available to companies with 100 or fewer employees and no prior retirement savings plan.

  • $500 for three years

    To add automatic enrollment plan provision.

  • $250 for startup costs in first three years

    Per eligible non-highly compensated employee up to $5,000 each year.

  • $1,000 per employee

    For employer contribution to participants earning up to $100,000. Gradually reduces over five years. See IRS Form 8881.

Tax Credits for New Retirement Plans

Form 8881 Credit Estimator (Small Employer Pension Plan)

Estimate startup, auto-enrollment, and military spouse participation credits, then email yourself a copy. For the 2026 plan year onboarding to Castle Rock PEP.
Estimate only – confirm with your tax advisor

Part I — Credit for Small Employer Pension Plan Startup Costs

Used for general eligibility/context.
Multiplied by $250 and compared to $500 (cap $5,000).
51–100 triggers a proportional reduction on employer-contribution credit.
Exclude elective deferrals; exclude employees >$100k wages; special rules if >$1,000 per employee.
Auto-calculated: Lines 2–5, 6e–6g, and Line 8 total

Part II — Small Employer Auto-Enrollment Credit

Part III — Military Spouse Participation Credit

$200 per participant (Line 12).
Capped at $300 per employee.
 

Estimated Credit Summary

 
 
This estimate applies the mechanics shown on IRS Form 8881 lines and percentages; specific eligibility (including "qualified startup costs," employee count rules, and contribution nuances) can affect your result. Consult your tax professional.

Email me my estimate & next steps

 
By submitting, you agree Castle Rock Investment Company may contact you about your plan and the Castle Rock PEP. You can unsubscribe anytime.
Built for Castle Rock PEP • Form 8881 estimator (Rev. Dec 2023). See IRS Form 8881 for details.