Industry Insights

5 Reasons to Start a 401(k) Safe Harbor Retirement Plan

Effortlessly Increase Assets Under Management

A 401(k) Safe Harbor Retirement Plan is designed to allow all participants to contribute the maximum allowable amount to their account, making it easy for you to increase assets under management with no hassle.

  1. Employers Can Easily Maximize Contributions
    Safe Harbor 401(k) plans automatically pass the required IRS testing, making it easy for the highly compensated employees to maximize their contribution limit without the surprise of refunds or corrective contributions.

  2. Employers Retain Top Talent
    By offering an additional benefit to employees, this not only incentivizes them to save, but helps with employee retainment and creates consistent growth for your book of business.

  3. Employers Receive Tax Deferral Opportunities
    Employer contributions may be deductible as a business expense on their federal income tax return and are also free from payroll taxes.*

  4. Flexible and Customized Plan Design
    Adding a Safe Harbor to a 401(k) plan allows for customization and a plan design that can grow and change with the Plan Sponsor.

  5. And Even More Tax Credits!
    With the recent SECURE Act legislation, Plan Sponsors may be eligible to receive up to $16,500 in tax credits over a three year period.

Interested in learning how to increase assets under management through 401(k) Safe Harbor Retirement Plans?

Contact your Regional Vice President of Retirement Sales by clicking HERE.

*This content is for informational purposes only. Please consult with a tax professional to determine tax credits and deductions.