Help - Search - Members - Calendar
Full Version: Safe Harbor Match Arrangement
BenefitsLink Message Boards > Retirement Plans > 401(k) Plans
MBCarey
Can a plan match dollar for dollar on first 4% and 50 cents on the next two percent for a total of 5% match and still be within the guidelines of Safe Harbor and not be subject to either the ADP or ACP test. The extra match on the 2% would not be discretionary.
Tom Poje
ah, an ehnhanced match. its better than the basic match.
so it satisfies ADP safe harbor.
It is limited to 6% deferred, so it satisfies ACP sahe harbor.
go to the head of the class.
BG5150
I'm guessing, too, that the match will be 100% vested.
J4FKBC
Yes, all SH contributions are 100% vested (under the pre 2008 SH plans).

In 2008, the new QACA SH plans will allow 2-year cliff vesting on the SH contributions to these new automatic enrollment SH plans. Of course, you can still use the current SH plans if you want, which many will.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.
Invision Power Board © 2001-2012 Invision Power Services, Inc.