Providing Insightful Retirement Planning
This program requires a 3% annual employer contribution. The employer contribution is allocated to all eligible employees (whether or not they make 401(k) deferrals). This option also permits discretionary profit sharing contributions in addition to the 3% safe harbor contribution. 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 non-elective design and discretionary profit sharing which in this case is maximizing the owner contributions.
401(k)Fit-Z 3% Safe Harbor with Profit Sharing
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.