Safe Harbor: An even easier way to 401(k)
A Safe Harbor 401(k) from Guideline can help boost savings and reduce admin work.
Safe Harbor, explained
Safe Harbor 401(k) plans are popular because they generally satisfy IRS nondiscrimination tests. In exchange, companies must contribute to their employees’ 401(k) accounts.
71% of our plans are Safe Harbor, as of May 2023
Jeri Alcock
Rose City Philanthropy
Client of Guideline. Views may not be representative of other clients.
With IRS nondiscrimination testing exemptions and a company contribution, Safe Harbor plans are a benefit that can benefit everyone.
Plan admin on a Guideline Safe Harbor 401(k) takes less than 30 minutes a month for most plan sponsors.
Everyone can get a savings boost. Highly compensated employees can max out their deferrals.
A company contribution encourages employee participation and can help attract and retain talent.
New Safe Harbor plans need to be live by October 1, and employees must be notified at least 30 days prior. To meet these requirements and get your team saving, you’ll need to start plan setup by August 23.
Aug. 23, 2024
Sep. 1, 2024
Oct. 1, 2024
Open a new Safe Harbor 401(k) plan today and start saving this year.
Core is our most popular pricing option with foundational services and more features — monthly pricing starts at $89, plus $8 per participant.
Unlike traditional 401(k) plans, Safe Harbor 401(k) plans get certain “safe harbor” protections and automatically satisfy most IRS nondiscrimination tests. In exchange, companies must contribute to their employees’ 401(k)
Nondiscrimination testing is required by the IRS to help ensure that 401(k) plans benefit both owners and employees. But even the most well-intentioned business owner can run into trouble when sponsoring a 401(k) plan. An owner contributing too much or employees contributing too little can result in a failed test and expensive corrections.
Aug. 23, 2024 Last day to set up a Safe Harbor 401(k) matching plan with Guideline
Sep. 01, 2024
30-day notice sent to employees
Oct. 01, 2024
Your Safe Harbor 401(k) plan is live
Nov. 20, 2024 Last day to add Safe Harbor matching provisions to your 401(k) with Guideline
Dec. 01, 2024
30-day notice sent to employees
Jan. 01, 2025
Safe Harbor matching provision takes effect for 2024
The deadline to add a 3% Safe Harbor nonelective provision to your 401(k) plan is Dec. 1, 2023. In order to adopt this provision, you’ll need to request an amendment by Nov. 5, 2023. If you want to add this provision to your plan after the Dec. 1 deadline, it must be at least 4%.