Safe Harbor 401k Calculator

A Safe Harbor 401(k) Plan allows plan sponsors to 'buy' their way out of traditional 401(k) plan testing. Doing so permits the Highly Compensated Employees to defer the maximum amount into the plan, without being restricted by the average of the Non-Highly Compensated Employee.

Below is a simple calculator that can illustrate the contributions for a small Safe Harbor 401(k) Plan. By entering the Annual Compensation, and Annual 401(k) Deferral for each participant, the system will provide a quick illustration of one method of satisfying the Safe Harbor requirements.

(Click on the 'Reset' button to clear data and restart.)

NameCompensation401(k)Rate %Safe Harbor MatchTotal

The above example assumes the use of the Safe Harbor Matching Contribution, which is one method of passing the testing. For additional information on ways a Safe Harbor 401(k) Plan may be beneficial to you, please call our office at 203-483-9998 and ask to speak to one of our Plan Administrators.

Please note that the above is for illustration purposes only and does not constitute plan design advice. As with all retirement plans, certain regulations and requirements must be met in order to keep the plan in compliance. Any changes in your employee census could have a significant impact on the plan design and employer contribution.

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