Navigating Safe Harbor 401(k) Rules
In order to meet important IRS guidelines, don’t forget that the deadline for new Safe Harbor plans is October 1.
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A 401(k) is a qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on an aftertax and/or pretax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit sharing feature to the plan. Earnings accrue on a tax-deferred basis.