The deadline to start a new Safe Harbor Plan is fast approaching. Please act now!
For the right company, a Safe Harbor 401(k) Plan offers real advantages over a traditional 401(k). Most importantly, Safe Harbor Plans make it possible for owners and highly compensated employees to make the maximum salary deferral contributions to the plan even if other employees make limited or no contributions. See “Is it Time to Set Sail into a Safe Harbor 401k?”
Why act now? An Employer who would benefit by starting a Safe Harbor 401(k) Plan in 2018 needs their plan to be fully operational by October 1, 2018 in order to satisfy requirements that the plan allows employees at least 3 months to make deferral contributions. This is necessary to meet the “safe harbor” condition of this type of qualified retirement plan.
Oct. 1, 2018 - Deadline for New Plans to be operational for plan year 2018
Dec. 1, 2018 - Notify employees of Safe Harbor elections for 2019 plan year.
Contact Joe Trybula with the Printers401k® at 800.307.0376 to see if your company would be a good candidate for a Safe Harbor 401(k). We encourage you to act now to enable plan installation over the next few weeks. If you have any questions or would like help in getting started, please reach out to us today. We’re here to help.