ADVANTAGE(K) SAFE HARBOR NON-ELECTIVE

Why Employers Choose Safe Harbor Non-Elective

• Unlike matching plans that require employee participation to receive employer contributions, the Safe Harbor Non-Elective design provides the same contribution to all eligible employees.

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    Key Benefits

    • Predictable employer contribution strategy
    • Contributions made regardless of employee participation
    • Designed to help satisfy annual nondiscrimination testing requirements
    • Immediate vesting on Safe Harbor contributions
    • Simple and easy-to-understand plan design
    • Supports broad employee retirement readiness
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    Plan Features

    Eligibility

    • Age 21 requirement
    • One year of service and 1,000 hours worked
    • Quarterly entry dates

    Employee Contributions

    • Pre-tax contributions
    • Roth contributions
    • Catch-up contributions

    Employer Contributions

    • 3% Safe Harbor Non-Elective contribution
    • Additional discretionary matching contribution available
    • Discretionary profit-sharing contribution available

    Automatic Enrollment

    • 10% automatic enrollment
    • Eligible employees automatically enrolled unless they choose otherwise

    Participant Features

    • Participant loans permitted
    • Hardship withdrawals available
    • In-service withdrawals available at age 59½

    Vesting

    • Safe Harbor Non-Elective contributions are immediately 100% vested
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    Advantage(k) Key Plan Provisions (Safe Harbor Non-Elective))

     

    Eligibility	Service requirement: 1 Year of Service (1,000 hours worked in a 12-month computation period, which is the anniversary year and then switches to the plan year) Age requirement: 21 Entry dates: Quarterly
    Compensation	W-2 Compensation Exclude fringe benefits Include post-severance compensation
    Excluded Classes	Union employees Leased employees Non-resident aliens
    Employee Deferrals	Pre-tax contributions Roth contributions Allow catch-up contributions *Due to the inclusion of both Roth and Catch-Up provisions in your plan, special instructions will be included in your DocuSign reflecting our recommendation to use a Deemed Election for Highly Paid Individuals.
    Safe Harbor Contributions	Safe Harbor Match: 100% of deferrals up to the first 3% of compensation, then 50% of deferrals for the next 2% of compensation Compensation prior to participation is excluded Determination period: Plan Year (true-up required if deposited more frequently)
    Automatic Enrollment	Initial percentage: 10% Permissible withdrawals are allowed in the first 90 days after the first automatic deferral
    Discretionary Matching Contribution	Determination period: Plan Year (true-up required if deposited more frequently) Compensation prior to participation is excluded Allocation requirements: None
    Discretionary Profit Sharing Contribution	Method: New Comp (Cross Tested) Compensation prior to participation is excluded Allocation requirements: Employed on the last day of the applicable plan year and work 1,000+ hours in the applicable plan year
    Vesting	Safe Harbor Match: Immediate Discretionary Employer Match: 6-year graded Discretionary Employer Profit Sharing: 6-year graded Exclusions: Service prior to age 18
    In-Service Withdrawals Available	From rollover source at any time Hardship withdrawals Age 59.5 in-service withdrawals from all sources with no limitations Loans permitted

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    How the Contribution Works

    With the Advantage(k) Safe Harbor Non-Elective design, the employer contributes:

    3% of Compensation

    For all eligible employees, whether or not they elect to participate in the plan.

    This approach creates consistency across the workforce and eliminates the need to rely on employee deferral rates when determining employer contribution obligations.

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    Why Businesses Select This Plan

    Simplify Compliance

    The Safe Harbor Non-Elective design is intended to help employers satisfy annual nondiscrimination testing requirements while reducing plan management complexity.

    Consistent Employer Contributions

    Contributions are made uniformly to eligible employees, creating a predictable budgeting approach from year to year.

    Support All Eligible Employees

    Employees receive the employer contribution whether they decide to contribute to the plan or not.

    Straightforward Administration

    With a fixed contribution formula, employers can spend less time evaluating participation rates and contribution calculations.

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    Compare Plan Designs

    Feature	Safe Harbor Non-Elective	Safe Harbor Match	Traditional 401(k)
    Employer Contribution	3% of compensation for all eligible employees	Match based on employee deferrals	Employer discretion
    Employee Participation Required for Employer Contribution	No	Yes	No
    Designed to Help Satisfy Nondiscrimination Testing	Yes	Yes	Subject to annual testing
    Safe Harbor Contribution Vesting	Immediate	Immediate	Based on employer schedule
    Best For	Employers seeking predictable contributions	Employers rewarding employee savers	Employers seeking maximum flexibility

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    This plan may be a strong fit if you:

     

    • Prefer a consistent contribution formula
    • Want employees to receive employer contributions regardless of participation
    • Value simplicity and predictability
    • Want a plan designed to help satisfy annual testing requirements
    • Prefer a broad-based retirement benefit approach

     

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    This option may be less appropriate if you:

    • Want employer contributions tied directly to employee savings behavior
    • Prefer a matching contribution strategy
    • Want maximum flexibility over annual contribution decisions
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    Common Features Included

    All Advantage(k) Start plan designs include:

    • Guided implementation
    • Online document execution
    • Ongoing administrative support
    • Compliance support
      Participant enrollment resources
    • Payroll integration support
    • Pre-tax contribution options
    • Roth contribution options
    • Catch-up contributions
      Automatic enrollment provisions