The Ultimate Guide to Safe Harbor 401(k) Plans

Safe harbor 401(k) plans are subject to employer contribution and participant disclosure requirements that don’t apply to traditional (non-safe harbor) 401(k) plans. In exchange, a safe harbor plan can automatically pass the ADP/ACP testand satisfy the minimum contribution requirement when the top heavy test fails. Because many small 401(k) plans (under 100 participants) have a hard time passing the ADP/ACP and top heavy tests, safe harbor plans are popular with small businesses.

We receive a lot of questions from business owners about safe harbor 401(k) plans. In this guide, we’ll answer the most common.

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