Does your retirement plan struggle to pass ADP/ACP testing year after year? A Safe Harbor Plan may be the solution to your testing problems! In this video, we discuss several items to consider when determining if a Safe Harbor Plan is right for you.

 

There are several items to consider when determining if a Safe Harbor Plan is right for you.

Some positive attributes include:

• No annual ADP/ACP Testing
• No return of excess contribution checks to highly compensated employees
• And safe harbor plans can be used to help recruit/attract top talent

Less attractive aspects of Safe Harbor Plans include:

• Once you elect safe harbor status, you are committed for that Plan Year and are restricted from making certain mid-year plan amendments
• Plan forfeitures are either significantly reduced or completely eliminated
• And last, but not least, the potential for increased employer contribution costs