ERISA 3(21) fiduciary
Bonnie serves as an investment-advice fiduciary under ERISA Section 3(21) — legally obligated to put your plan's best interest first in every recommendation.
Pension Maxima Worksheet · 2026
Claim up to $15,000 in federal tax credits when you launch a custom 401(k).
IRS Form 8881 awards $250 per eligible employee, capped at $5,000 per year for 3 consecutive plan years — that is how the $15,000ceiling is reached. A custom 401(k) satisfies your state's mandate at the same time.
- ERISA 3(21) fiduciary
- Form 8881 specialist
- All 11 mandate states
- No card on file
◆ IRS Form 8881 · §45E
Federal small-employer pension startup credit
Maximum recoverable
$15,000
$5,000/yr × 3 consecutive plan years
- $250 per eligible employee, per year
- $5,000 yearly cap (reached at 20 NHCEs)
- 3 consecutive plan years on Form 8881
Filed by
Bonnie Yam, CFP®
Form
IRS 8881
$15,000
Maximum federal credit
10
State mandate jurisdictions
9 of 10
Deadlines already past
25 yrs
Of pension design, one inbox
◆ Live calculator
Pick your state. Set your headcount. See your credit.
The math runs Form 8881 against the deadline data for all 10 mandate states. Numbers update in place — and if your deadline is already past, we add the penalty you would avoid in year one.
Your state10 mandate jurisdictions
Do you already have a retirement plan?
◆ Your Form 8881 estimate
Total credit · 3 years
$15,000
$5,000 per year · capped at $5,000/yr
Credit ceiling reached
Per eligible employee$250
Yearly cap$5,000
Years3
Yearly calculationmin(25 × $250, $5,000)
Federal ceiling$15,000
◆ State exposure today · CA
CalSavers deadline passed 1029 days ago. Peak per-employee penalty: $500/yr. Annual exposure at 25 employees: $12,500.
Year 1 net benefit
$17,500
credit + penalty avoided
Over 3 years
$52,500
credit + 3 yrs avoided penalty
Confirm this with Bonnie · 30 min
Estimate only. Final eligibility verified on the call.
How the cap works: $250 × 20 employees = $5,000, which is the yearly maximum. Above 20 eligible employees, the per-year amount stays at $5,000; over 3 plan years that compounds to the $15,000 ceiling. Eligibility applies to non-highly-compensated employees, confirmed against payroll on the call.
◆ Two options, one decision
The state auto-IRA and a custom 401(k) satisfy the same mandate. Only one returns a credit.
| Dimension | State auto-IRA | Custom 401(k) |
|---|---|---|
| Mandate satisfied | Yes | Yes |
| Contribution types | Roth only | Roth + pre-tax |
| Employer match | Not permitted | Permitted |
| Investment menu | Chosen by state | You choose with a fiduciary |
| Federal tax credit | None | Up to $15,000 |
| Typical fees | ≈ 0.18% state + fund fees | Negotiated fiduciary pricing |
| Plan documents & filings | State handles minimum | Bonnie files 5500 & 8881 |
◆ Is your state on the list?
All 10 mandate states. 9 deadlines have already passed.
◆ U.S. mandate map · 10 states
Tap any highlighted state to load it into the calculator above.
- Deadline past
- Upcoming
- Selected
MEVTNHWAIDMTNDWIMIMAWYSDIAINOHPARIUTNEMOKYWVDEAZNMKSARTNVANCDCOKLAMSALGASCTXFLAKHI
Geographic grid representation. Tile color reflects mandate status as of 2026-04-24. Non-mandate states are shown for reference; only the 10 highlighted tiles are interactive.
| State | Program | First deadline | Peak penalty / emp. | Status |
|---|---|---|---|---|
| NYNew York | NY Secure Choice | 2025-09-08 | $1000/yr | Passed 228d ago |
| NJNew Jersey | NJ Secure Choice | 2025-11-15 | $500/yr | Passed 160d ago |
| CTConnecticut | MyCTSavings | 2024-04-01 | $500/yr | Passed 753d ago |
| CACalifornia | CalSavers | 2023-06-30 | $500/yr | Passed 1029d ago |
| ILIllinois | Illinois Secure Choice | 2023-11-01 | $750/yr | Passed 905d ago |
| OROregon | OregonSaves | 2023-03-01 | $300/yr | Passed 1150d ago |
| COColorado | Colorado SecureSavings | 2024-04-01 | $250/yr | Passed 753d ago |
| MDMaryland | MarylandSaves | 2025-07-01 | $250/yr | Passed 297d ago |
| MNMinnesota | MN Secure Choice | 2026-07-01 | $500/yr | In 68d |
| NVNevada | NV Employee Savings Trust | 2026-01-01 | $400/yr | Passed 113d ago |
◆ How it works
Thirty minutes in. Forty-eight hours later, a written report.
Minute 0
You dial in.
Bonnie already has your short payroll summary. The call is conducted by phone or Zoom — your choice.
Minutes 1–10
Your situation.
She confirms your state, headcount, payroll, and any existing plan. The data above, as you entered it.
Minutes 10–25
The plan design.
Safe Harbor vs traditional, match formula, vesting schedule. Form 8881 credit projection in plain English.
Minutes 25–30
Your questions.
Timelines, who signs what, how filing works, whether a CPA needs to be on the next call. No question is too basic.
Within 48 hours
You receive the report.
15 pages: eligibility math, projected credits, plan architecture, and next steps you can hand to your CPA.
◆ Why owners trust the worksheet
The legal duty rests with the fiduciary. Not with you.
Four protections matter when you take this kind of work off your desk and onto a consultant's. Each one is a contract, a filing, or a written record — not a promise.
Direct IRS filing
Form 8881, Form 5500, and the plan document are prepared and submitted on your behalf. You sign once. Filings keep going.
Written 15-page report
Every consultation produces a written report delivered within 48 hours: eligibility, credit projection, plan architecture, and clear next steps.
Independent advice, on the record
If a state auto-IRA is the right answer for your business, Bonnie will say so. Not a sales call. Not a captive recommendation.
◆ The shape of the offer
Up to $15,000. Across 10 states. With one consultant, for 25 years.
Three Secure Acts (2019, 2022, and the 2026 technical corrections) have made the federal startup credit larger and clearer than ever. Eleven states have made it harder to ignore. The math does not change from owner to owner — only the answer does.
- $15,000
- Max federal credit
- $250
- Per eligible employee
- 10
- Mandate jurisdictions
- 25 yrs
- One consultant, one inbox
◆ Field notes from prior worksheets
Three owners who ran the numbers with Bonnie.
Credit claimed · $12,000
Bonnie ran the line-by-line on my payroll and showed me the $12,000 I was leaving on the table. I signed the plan the next week.
Math: 16 eligible × $250 × 3 = $12,000
Credit claimed · $15,000
Our old 401(k) was bleeding fees. Her report cut plan costs in half and qualified us for the startup credit at the same time.
Math: 88 eligible × $250 × 3 (capped at $5,000/yr) = $15,000
Credit claimed · $10,500
I had no idea NJ Secure Choice already applied to us. Thirty minutes later I had a deadline, a credit estimate, and a written plan.
Math: 14 eligible × $250 × 3 = $10,500
◆ Your consultant
Bonnie Yam, 25 years in pension design.
Founder of Pension Maxima. Specialist in small and mid-sized employers (1–300 employees) across the eleven state-mandate jurisdictions. She takes one call per client and writes every report herself.
If a state auto-IRA turns out to be the right answer for your business, she will say so on the call and wish you well. That is not a marketing promise — it is a quarter-century practice.
CFA — Chartered Financial AnalystCFP — Certified Financial PlannerAIF — Accredited Investment FiduciaryCLU — Chartered Life UnderwriterChFC — Chartered Financial ConsultantRICP — Retirement Income Certified ProfessionalEA — Enrolled Agent (IRS)CVA — Certified Valuation AnalystCMAP — Certified Merger & Acquisition ProfessionalCEPA — Certified Exit Planning AdvisorCSLP — Certified Student Loan Professional
Designations
- CFP® — Certified Financial Planner
- AIF® — Accredited Investment Fiduciary
- ChFC® — Chartered Financial Consultant
- CLU® — Chartered Life Underwriter
- RICP® — Retirement Income Certified Professional
- 3(21) — ERISA Investment-Advice Fiduciary
◆ Common questions
Before you book.
How is the $15,000 federal credit calculated?
IRS Form 8881 awards $250 per eligible non-highly-compensated employee, capped at $5,000 per year, for 3 consecutive plan years. The annual cap is reached at 20 eligible employees ($250 × 20 = $5,000). Three years at the cap = $15,000, which is the ceiling.
Is this the same as the 401(k) employee deferral limit?
No. The deferral limit is the maximum an employee can contribute from their own paycheck. The Form 8881 startup credit is a federal tax credit paid to your business for establishing the plan. Two different mechanisms, two different numbers.
What if I already have a 401(k)?
We review the plan for fees, compliance, and match design. If it serves you well, nothing changes. If it doesn't, we redesign — and depending on your situation, you may still qualify for a portion of the startup credit on a re-established plan.
Do I have to switch payroll providers?
No. A custom 401(k) works alongside whatever payroll system you already use. Bonnie works with all major providers and will tell you on the call if there is any friction specific to yours.
Is the call really free with no obligation?
Yes. There is no card on file, no upsell, and no contract. If a state auto-IRA turns out to be the right answer for your business, Bonnie will say so on the call.
◆ Completion — the next step
You have run the math. Book the call.
The next thirty minutes on Bonnie's calendar are the only step between this page and a written plan in your inbox. There is no card, no upsell, and no obligation.
Book a 30-minute call
Opens Bonnie's calendar · 30 minutes · your time zone
Prepared by
Pension Maxima
Consultant
Bonnie Yam, CFP®
Effective
April 2026
Document
v2026.04 · PM-LP-01