Safe Harbor 401k

Select from pre-approved matching and vesting schedules to simplify compliance requirements and maximize contributions for your Safe Harbor 401k.

Connect With An Expert

What is a Safe Harbor 401(k)

A Safe Harbor 401k is a specialized retirement plan designed to simplify IRS compliance and open the door for maximum contributions. By adopting pre-approved matching and vesting schedules, this plan allows business owners and highly compensated employees to contribute more to their retirement accounts.

The framework is particularly appealing for businesses aiming to attract top-tier talent, as it offers multiple vesting options. With a Safe Harbor 401(k), you’re not just building a nest egg; you’re investing in the long-term growth and stability of your workforce.

Contribution Limits:

Employees can contribute up to $22,500 for 2023, and $23,000 for 2024.
An additional $7,500 catch-up contribution is available for participants 50 and older.
Safe Harbor 401(k)s support both Roth and pre-tax contributions.

Eligibility:

Employees with 1,000+ hours of service within a year.
Part-time employees with 500 hours of service for three consecutive years. (Reduces to two years in 2025)
Employers have the ability to require up to 1 year of service before entering the plan, and enrollment periods as long as 6 months.

Download Quick Guide

Let’s Start

With A Proposal

Get A Custom Quote

Types of Safe Harbor 401(k)s

Choose from one of the IRS pre-approved matching and vesting schedules.

Best 401k provider, third party administrator, 401k plan advisor, 401k administrator, small business 401k plan, 401k plan administrator, 401k plan recordkeeper, 401k provider, 401k provider list, who is the best 401k provider, 401k plan sponsor, 401k plan safe harbor, solo 401k

Who Should Consider a Safe Harbor 401k.

Business owners looking to maximize their contributions.

If you’re a business owner who aims to aggressively save for retirement, a Safe Harbor 401(k) could be your best bet. This type of plan allows you to contribute the maximum allowable amount to your own retirement account.

One key advantage is that it bypasses the IRS non-discrimination tests that often limit contributions from business owners and highly compensated employees.

Employers attempting to compete for quality employees within their industry.

The job market is competitive, and a quality retirement plan could be the deciding factor for a potential employee.

A Safe Harbor 401(k) plan includes a mandatory employer match, a feature that many top candidates find attractive. It not only helps you to attract the best talent but also fosters long-term loyalty.

Businesses with Highly Compensated Employees.

If your business has a wide range of income levels, a Safe Harbor 401(k) can help to level the playing field. Such plans are particularly useful for highly compensated employees who may be limited in how much they can contribute to a traditional 401(k) due to IRS tests.

Implementing a Safe Harbor 401(k) removes these barriers, enhancing job satisfaction and financial well-being across your organization.