Safe Harbor 401(k)

A Safe Harbor non-elective 401(k) requires an employer to contribute at least 3% of pay for every employee, regardless of whether or not the employee makes contributions. These contributions go directly from the employers to the employees’ retirement plans and employees don’t have to pay for them.

A qualified automatic contribution arrangement (QACA) Safe Harbor 401(k) is a plan type popular with small businesses particularly because of the vesting schedule and match formula. Most Safe Harbor plans require immediate vesting and at least a 4% employer matching contribution, but a QACA design is different. It allows for a vesting schedule of up to 2 years, and a matching contribution of just 3.5%. These features make it a valuable design for many small companies.

401GO works with a variety of 401(k) plans, including non-elective and Safe Harbor. If you have any questions on which 401(k) plan is best for your small business, speak to one of our knowledgeable representatives and they can help determine a plan that best fits your situation. You’ll find our plans customizable and affordable with world-class customer service.