Safe Harbor 401(k)

A Safe Harbor 401(k) plan is similar to a traditional 401(k) plan with a  few disparities such as the provision that all employer contributions are fully vested when made and it is not subject to annual nondiscrimination tests.  Employers sponsoring a Safe Harbor 401(k) must provide each plan eligible employee with written notice of their rights and obligations under the plan within the content  and timing requirements as described by the IRS.

This type of plan can be very enticing with no annual testing requirements and no vesting schedule but there are important compliance obligations that employers must be aware of.  Let Hillspring Financial, Inc. work alongside you to determine whether this  type of plan is right for your business and stay on top of governing rules.