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

401(k) audits can be time-consuming and stressful for the plan sponsor. In this video we will provide you with some helpful tips on how to make your annual audit process go as smoothly as possible.

Key items the auditor will request include: the basic plan document, the plan’s adoption agreement, and the plan’s service agreements.

Other items that will likely be requested by the plan auditor include:

– participant I-9 forms
– payroll records
– salary or wage agreements
– retirement committee meeting minutes
– plan’s fidelity bond

Is the design of your 401(k) plan in line with peers?  In this video we highlight leading investment lineup trends to help get your 401(k) plan on track.  For more information about see the video above.