The Ultimate Guide to Safe Harbor 401(k) Plans

Safe harbor 401(k) plans are subject to employer contribution and <a href="https://www.employeefiduciary.com/knowledge-center/401k-participant-disclosure-requirements" rel="noopener ugc nofollow" target="_blank">participant disclosure</a> 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 <a href="https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide-the-plan-was-top-heavy-and-required-minimum-contributions-were-not-made-to-the-plan" rel="noopener ugc nofollow" target="_blank">minimum contribution requirement</a> 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 <a href="https://www.employeefiduciary.com/knowledge-center/small-business-401k-plan-design-study-what-3975-401k-plans-are-doing" rel="noopener ugc nofollow" target="_blank">popular with small businesses</a>. We receive a lot of questions from business owners about safe harbor 401(k) plans. In this guide, we’ll answer the most common. <a href="https://medium.com/@ericdroblyen/the-ultimate-guide-to-safe-harbor-401-k-plans-94233eca8bf7">Read More</a>