Plan Design for Safe Harbor 401(k)

Safe harbor 401(k) plans have evolved into one of the most popular 401(k) plan designs. SunGardRelius has posted answers to the following questions that are frequently asked while designing safe harbor 401(k) plans:

May an employer add matching contribution formulas in addition to the ADP safe harbor matching contribution formula (or, the 3% safe harbor nonelective contribution)? If so, may the additional matching contribution formulas qualify under the ACP safe harbor?
May the plan impose vesting schedules on the ACP safe harbor matching contributions?
May the plan impose allocation conditions on othe ACP safe harbor matching contributions?
Is there a limit on the number of matching contribution formulas an employer may include in a safe harbor 401(k) plan and continue to qualify under the ACP safe harbor requirements?
What is the advantage of adding ACP safe harbor matching contribution formulas?
What are some of the more popular safe harbor 401(k) plan design options an employer may use to each the maximum 415 limit?
Is there an advantage in including additional ACP safe harbor matching contributions rather than nonelective contributions (other than nonelective contributions used to satisfy the ADP safe harbor)?
In designing a safe harbor 401(k) with a cross-tested profit sharing allocation formula, should the employer use the safe harbor match or the safe harbor nonelective contribution to satisfy the ADP safe harbor requirements?
May a plan use split eligibility (e.g., immediate eligibility for deferrals and one year of service an the attainment of age 21) for a safe harbor 401(k) plan?
In what circumstances would an employer select a safe harbor 401(k) plan design over a cross-tested plan design?

Please contact us with questions about safe harbor 401(k) plans.

Plan Design for Safe Harbor 401(k)

Types of Plans