Sign in
Sign in
SAFE HARBOR 401(k)

Stop worrying about nondiscrimination testing.

Every traditional 401(k) comes with annual IRS testing that can cap what you and your highly compensated employees contribute — and sometimes force refunds if rank-and-file participation is too low. A Safe Harbor 401(k) eliminates all of that. In exchange for a required employer contribution, the IRS lets you skip the tests entirely. Business owners and key employees can contribute the full limit, guaranteed.
In 2026, that means up to $24,500 as an employee deferral ($32,500 if you’re catch-up eligible) — with no risk of a refund because participation didn’t hit a threshold.
Talk to Our Team

The Plan Most Small Businesses are Choosing in 2026

SECURE 2.0 now requires most new 401(k) plans to include automatic enrollment. That’s actually good news for Safe Harbor: the QACA design (Qualified Automatic Contribution Arrangement) combines Safe Harbor compliance with auto-enrollment by default, satisfies testing automatically, and requires a slightly lower employer match than a traditional Safe Harbor plan — 3.5% instead of 4%.
The result is a plan that’s simpler to administer, easier to sell to employees, and structured to let owners maximize their own retirement savings from day one. 401GO builds all SECURE 2.0 requirements into the platform — you don’t track changes. We do.

What Makes a Safe Harbor Plan Different

No annual nondiscrimination testing

Traditional 401(k)s require ADP/ACP testing every year to ensure high earners aren’t contributing disproportionately to rank-and-file employees. Fail the test and contributions get refunded. A Safe Harbor plan bypasses this entirely by meeting specific employer contribution requirements upfront.

Guaranteed maximum owner contributions

With testing eliminated, there’s no ceiling imposed by employee participation rates. You and your highly compensated employees can defer the full $24,500 in 2026 — or $32,500 if you’re 50 or older — without restriction.

Required employer contribution — two paths

You choose the structure that fits your business. Option 1: match 100% of the first 3% of employee contributions, plus 50% of the next 2% (4% total). Option 2: contribute 3% of compensation for all eligible employees regardless of whether they contribute. QACA plans can match at 3.5% instead. All Safe Harbor contributions are immediately 100% vested.

Pair it with profit sharing for even more

Safe Harbor plans combine naturally with profit-sharing contributions, which in 2026 can bring total annual contributions up to $72,000 per participant (or $80,000 for catch-up-eligible individuals). For business owners who want to shelter more income, this pairing is one of the most tax-efficient tools available.

Most small businesses think testing is just paperwork. Then they get a refund check they weren’t expecting. Safe Harbor prevents that conversation entirely.

How 401GO Runs Your Safe Harbor Plan

401GO handles plan design, document creation, payroll sync, compliance, and administration in one integrated system. There’s no TPA to coordinate with, no third-party recordkeeper to wait on, and no manual reconciliation for your team. SECURE 2.0 updates — auto-enrollment thresholds, QACA provisions, catch-up rule changes — are implemented at the platform level.
You make the introduction to employees. We run the plan.
FREQUENTLY ASKED QUESTIONS

Questions? We’ve Got Answers.

Honest answers about how the platform works, what it costs, and where it fits.
What's the difference between a Safe Harbor 401(k) and a traditional 401(k)?

A traditional 401(k) requires annual ADP/ACP nondiscrimination testing, which can restrict contributions for owners and highly compensated employees if too few rank-and-file employees participate. A Safe Harbor plan eliminates that testing by requiring the employer to make specific contributions. In exchange, owners and HCEs can contribute the full IRS limit without restriction.

You have two options: match 100% of the first 3% of employee contributions plus 50% of the next 2% (4% total match), or contribute 3% of compensation to all eligible employees regardless of whether they contribute. QACA designs use a slightly lower match of 3.5%. All Safe Harbor contributions vest immediately.
This is the most common hesitation — and a fair one. The required employer contribution is mandatory once you adopt Safe Harbor. If your revenue fluctuates significantly year to year, a non-elective contribution structure (3% of all eligible compensation) can be more predictable than a matching structure tied to employee participation. Discuss the right design with our team before committing to a structure.
A QACA (Qualified Automatic Contribution Arrangement) is a Safe Harbor plan design that includes automatic enrollment as a core feature. SECURE 2.0 now requires most new 401(k) plans established after 2022 to include auto-enrollment — so QACA has become the default design for new Safe Harbor plans. 401GO builds QACA compliance in at the platform level.
401GO owns recordkeeping, TPA administration, compliance, and plan documents in one integrated system. Safe Harbor notice requirements, annual contribution calculations, SECURE 2.0 amendments, and payroll sync are all handled at the platform level. You don’t manage them manually.

Not the right fit?
Explore the full 401GO portfolio.

401GO offers a full range of retirement plan types. If you’re not sure where to start, our team will help you find the right structure for your business size, goals, and budget.

Standard 401(k)

the core offering, built for SMBs

Safe Harbor 401(k)

simplified compliance for employers who want it

Starter 401(k)

for businesses just getting started

Solo 401(k)

for owner-only businesses

ERISA 403(b)

purpose-built for tax-exempt organizations

Traditional IRA

individual retirement access

Cash Balance

for businesses with more complex planning needs

FUTURES BUILT HERE

The Most Tax-Efficient 401(k) Design for Small Business Owners

Maximize your own retirement savings. Eliminate testing headaches. And give employees a real reason to participate. Let’s build your Safe Harbor plan.
Get Started →