Safe Harbor 401(k)

The last thing you need is added complexity in running your business. A Safe Harbor 401(k) can be a complicated retirement plan option – so let us take the guesswork out of it.

Who is best suited for a Safe Harbor 401(k) plan?

  • A business with fewer than 25 employees.
  • The business owner must be willing to make the required “safe harbor” employer match or contribution to employees’ accounts as a percentage of their compensation.

A Safe Harbor 401(k) lets you contribute the maximum amount to your own account. This means you and your highly compensated employees can maximize tax-deferred contributions without the restrictions of a traditional plan that doesn’t require matching.

What sets us apart from other TPA’s?

  • We sit down with our clients to customize a plan to fit their specific needs.
  • With one TPA assigned to your plan, you receive personalized service and a relationship is built with you, your employees and your TPA.
  • CDSA provides on-site enrollment educational meetings with you and your employees.

Contribution Features

  • Total contributions from both sources (employer and employee) may not exceed 100% of income or $55,000 per eligible participant.
  • The employer is required either to match employee contributions (100% of the participants’ first 3% of salary and 50% of the next 2% of salary) or provide a non-elective contribution (3% of salary for all eligible employees).
  • All participants can make the maximum salary deferral contribution.
  • Contributions can be pretax, after-tax (Roth deferral contributions) or both.

Let us exceed your expectations. Contact Naomi Struck at (888) 388-1040 to learn more.


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