The last thing you need is added complexity in running your business. A Safe Harbor 401(k) can be a complicated retirement plan option – so let us take the guesswork out of it.
With a Safe Harbor 401(k), you, as the business owner, must be willing to make required contributions in the form of a match. Any size business may find these plans attractive, but take a closer look if:
A Safe Harbor 401(k) lets you contribute the maximum amount to your own account. But you must also provide a "safe harbor" match or contribution to employees' accounts as a percentage of their compensation. This means you and your highly compensated employees can maximize tax-deferred contributions without the restrictions of a traditional plan that doesn't require matching.
An Edward Jones financial advisor can provide information about the types of retirement plans available.
This information is for educational purposes only. Edward Jones, its employees and financial advisors cannot provide tax or legal advice.