Providing Insightful Retirement Planning
This program requires an employer match. When an employee chooses to defer out of their own paycheck, they will receive a match. The employer matches 100% on first 3% of compensation and 50% on the 4th and 5th percent of compensation. The maximum employer match is 4% of pay. The employer match is allocated only to employees who make 401(k) deferrals. Nondiscrimination testing of deferrals is not required. When required, the failure of these tests usually results in a refund of deferrals to highly compensated employees. The chart provides a sample illustration of a safe harbor match plan design.
401(k)Fit-X Safe Harbor Match
For the Plan Year 1/1/2021 through 12/31/2021
Roles & Responsibilities
Plan Sponsor– The employer decides to establish a plan and selects plan design and vendors
Financial Advisor – Individual who will advise and otherwise assist the plan sponsor and plan fiduciaries in structuring retirement plan investments and in obtaining the types of products and services necessary for the plan’s operation.
Recordkeeper/Vendors – The plan’s investment platform which provides employers and employees access to plan information and the custodian of the plan’s assets. Often times the term “vendor” may be used for this role as well.
CPA/Auditor – A financial experts retained in order to minimize tax payable while remaining compliant with the law in various financial situations.
The Ryding Company (TPA) – A THIRD PARTY ADMINISTRATOR, also known as a TPA, works on 401(k), 403(b), Defined Benefit, and Cash Balance plans to achieve a Plan Sponsor’s qualified retirement plan objectives and goals.