Avoid annual compliance tests and ensure equal benefits and access to all employees.

Safe harbor plans allow you to bypass complicated plan testing while allowing for higher contributions to owners and highly compensated staff. Alerus consultants can help determine the best plan for your situation and employees.

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  • Safe harbor plan design allows for all employees, including highly compensated employees, to maximize their personal accounts.
  • This design alleviates the need for year-end compliance testing.
  • The employer must make either a matching contribution based on a specified formula or a contribution based on a specified percentage.
  • The employer contribution must be 100% vested, immediately.
  • All eligible employees must be notified annually, at least 30 days but not more than 90 days prior to the beginning of the following plan year, of the plan sponsor’s intent to be a safe harbor plan for the year.