Safe Harbor 401(k) 

A defined contribution plan in which employees can defer up to the lesser of $11,000 or 100% of compensation. Employer must contribute 3% on behalf of all eligible employees or match 100% of employee contributions up to 3% of compensation plus 50% of employee deferrals in excess of 3% up to 5% of compensation.

Safe Harbor Design

No ADP Testing

Fully vested 3% employer non-elective contribution required for Safe Harbor

Matching contribution may not be used for top heavy or for 401(a) testing

3% Non-elective contribution may be used for 401(a)(4) testing

3% Non-elective contribution may be used to meet top heavy requirements

Cannot use permitted disparity on the portion of the non-elective contribution