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  • Comprehensive 401k Plan Nonstand Safe Harbor Adoption Agreement

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Flexible Money Purchase Pension Plan Standardized Adoption Agreement EMPLOYER INFORMATION Name of Adopting Employer Address City State Zip Telephone Adopting Employers Federal Tax Identification Number.

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Safe harbor 401(k) plans are the most popular type of 401(k) used by small businesses today. Unlike a traditional 401(k) plan, they automatically pass the ADP/ACP and top heavy nondiscrimination tests when mandatory contribution and participant disclosure requirements are met.

A safe harbor 401(k) plan excludes overtime and bonuses from the definition of compensation. The definition will satisfy IRC Section 414(s) if it (i) does not by design favor highly compensated employees, (ii) is reasonable within the meaning of Reg.

The non-elective contribution safe harbor requires that the employer make an employer non-elective contribution equal to at least 3% of compensation for each employee who was eligible to defer under the plan, regardless of whether they actually chose to make deferral contributions.

Employees are still able to make or change an election at least once per year. Plan Sponsors are allowed to switch to a safe harbor 401(k) plan with nonelective contributions prior to the 30th day before the end of the plan year.

While a nonelective contribution goes to all employees who are eligible for the plan, a matching contribution only goes to those who contribute out of their paychecks. That is actually true of all 401(k) plans, not just safe harbor plans.

A non-elective contribution is a fully-vested payment made by an employer to an employee-sponsored retirement plan, regardless of whether the employee makes an elective deferral. The contributions are not deducted from the employee's monthly income but are paid directly by the employer.

A Safe Harbor 401(k) allows employers to choose a matching contribution amount ranging from 3-6% of an employee's contribution or salary. In 2022, individuals can contribute up to $22,500 (age 49 or younger) or $30,000 (age 50 and older) to their 401(k) retirement plans.

The basic plan document contains all the non-elective provisions and can't include any options or blanks for the employer to complete. The adoption agreement contains the options (and blanks) for the employer to complete and is also where the employer signs the plan.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Privacy Notice
Legal Hub
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate WorkFlow
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232