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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Member of Controlled Group or Business Under Military spouse. A military spouse is an employee of the
Common Control eligible small employer who is not highly compensated (as
For purposes of figuring the credit, controlled groups of defined in section 414(q)) and, as of the first date that the
corporations under section 414(b), partnerships or sole employee is employed or rehired by the employer, is
proprietorships under common control under section married (as defined in section 7703) to a member of the
414(c), and affiliated service groups under section 414(m) uniformed services (as defined in U.S. Code Title 10,
are treated as a single employer. In addition, leased section 101(a)(5)) serving on active duty. For this purpose,
employees described in section 414(n) are treated as you may rely on an employee’s certification that the
employed by the employer. As a member, compute your employee’s spouse is a member of the uniformed services
credit based on your proportionate share of the $500 if such certification provides the name, rank, and service
annual credit giving rise to the group's small employer branch of the spouse.
auto-enrollment credit. Enter your share of the credit on
line 9. Attach a statement showing how your share of the Member of Controlled Group or Business Under
credit was figured, and write “See Attached” next to the Common Control
entry space for line 9. For purposes of figuring the credit, controlled groups of
corporations under section 414(b), partnerships or sole
Part III. Military Spouse Participation proprietorships under common control under section
Credit 414(c), and affiliated service groups under section 414(m)
are treated as a single employer. In addition, leased
The credit is allowed under section 45AA and is part of the
employees described in section 414(n) are treated as
general business credit.
employed by the employer. As a member, compute your
How To Figure the Credit credit based on your proportionate share of the maximum
$200 and $300 annual credit per military spouse giving
The military spouse participation credit may be claimed
rise to the group's military spouse participation credit.
only for tax years of an eligible small employer beginning
Enter your applicable share of the credit as appropriate on
after December 29, 2022.
line 12 and line 13. Attach a statement showing how your
For an eligible small employer, the credit is $200 for share of the credit was figured, and write “See Attached”
each military spouse who is an employee of the employer next to the appropriate entry space for line 12 and line 13.
and who participates in an eligible defined contribution
plan of the employer at any time during the tax year, plus
up to $300 of the amount of employer contributions (not Specific Instructions
including an elective deferral, as defined in section 402(g)
Line A
(3)) to the plan during the tax year on behalf of the military
spouse. For each employee, the credit is limited to 3 Enter the number of employees of the eligible employer
successive tax years of the employer, beginning with the who received at least $5,000 of compensation from you
first tax year during which the employee began during the tax year preceding the first credit year that
participating in the plan after it was adopted as, or applies to the small employer plan startup costs credit.
amended to be, an eligible defined contribution plan. Line 2
Eligible small employer. To be an eligible small The computation must be based on the number of
employer, you must have had no more than 100 employees entered on line A.
employees during the tax year preceding the tax year for
which the credit is claimed who received at least $5,000 of Line 3
compensation from you during that tax year. Enter the number of non-highly compensated employees
Eligible defined contribution plan. An eligible defined who are eligible to participate in the eligible employer plan
contribution plan is any defined contribution plan (as during the tax year for which the credit is claimed.
defined in section 414(i)) of the eligible small employer
Line 6a
under which military spouses employed by the employer
are eligible to participate in the plan not later than 2 Enter the number of your employees during the tax year
months after the military spouse begins employment and, preceding the tax year for which the credit is claimed.
upon such participation, are immediately eligible to Line 6c
receive the same amount of employer contributions under
the plan that a similarly situated participant who is not a The employer contribution credit is subject to a $1,000
military spouse would be eligible to receive under the plan limit per employee after taking into account the
after 2 years of service, and immediately have a percentage that applies to the first through fifth years of
non-forfeitable right to the military spouse's accrued the plan.
benefit derived from employer contributions under the Therefore, if you have employees for whom you made
plan. All eligible defined contribution plans of the same employer contributions (not including elective deferrals, as
employer are treated as one eligible defined contribution defined in section 402(g)(3)) of more than $1,000 (and the
plan. See Member of Controlled Group or Business Under contributions are not disqualified because you paid the
Common Control below for rules on treatment as a single employee wages in excess of $100,000), first determine
employer. the amount of contributions made for each individual
employee for the tax year. For this purpose, do not include
Instructions for Form 8881 (January 2024) 3
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