PARTICIPANTS TAKE ADVANTAGE OF MAXIMUM SALARY CONTRIBUTIONS WITH A SAFE HARBOR 401(K)
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.
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 Jen Burnett at (888) 388-1040 to learn more.
