Thanks a lot. I think this credit is max $5000 not $500.

Sorry, still I do need to understand what is line 7 however I read all articles related 8881 but did not get it.

If when an S-corp's credit goes on Sch  K and K-1, when line 7 does have an amount?

I was wondering while the setup costs are incurred in the first year and it is done and employees contribute ongoing basis how come this tax credit is spread over three consecutive years? it means employer can apply this credit for 3 years if employer run this set-up one more time in the next year and third year? 

And should employer have contribution in Auto-enrollment plan?

I do not know why when I complete this form 1-5, the cost deducted from line 17?

And If employer did not have any number for plan contribution RED ERROR popes up. Should enter the cost on there?

Practically answer would be great rather than impractical.