Safe Harbor for Small and Medium-Sized Businesses
Safe Harbor for Small and Medium-Sized Businesses
Click the button below if the guide does not immediately download to your desktop.
Learn MOre About
Adding a Safe Harbor Option to Your Plan
Safe Harbor is a type of employer contribution that can be added to a 401(k) plan to help the plan pass compliance testing. A 401(k) Safe Harbor can boost participation in your retirement plan, enabling owners and highly compensated employees to contribute more money to their own retirement account.
What is a Safe Harbor
Safe Harbor is a type of employer contribution that is added to a 401(k) plan to help business owners and highly compensated employees save more for retirement while helping the plan pass compliance testing. There are three types of contributions an employer can choose from: non-elective, basic match, and enhanced match.
Why Safe Harbor is Important
Adding a Safe Harbor provision to your 401(k) plan allows the plan to pass compliance testing. This means highly compensated employees can maximize their annual personal contributions. And if you choose a Safe Harbor match, you’re incentivizing enrolled employees to increase their retirement savings themselves.
How Fisher\SMB Can Help
Fisher\SMB is one of America’s top advisory firms with deep experience helping business owners navigate the ins and outs of evaluating and setting up a Safe Harbor strategy tailored to meet their specific objectives.
Learn MOre
Safe Harbor Resources
Case Study: Use a Safe Harbor Component to Increase Contributions
Consider how highly compensated employees can maximize their 401(k) contributions.
Top-Heavy 401(k)? Consider Adding Safe Harbor
If you run a small or mid-sized business and offer a 401(k), there’s one rule you really need to know about: top-heavy testing. It sounds technical, but don’t worry—we’ll break it down together.
What Safe Harbor Means in a 401(k) Plan
A safe harbor can help your employees save more for retirement and help you reduce your taxes by thousands of dollars per year. See how it works.