Advantage(k) Safe Harbor Match

Why Employers Choose a Safe Harbor Match

• A company-sponsored match demonstrates an investment in employees’ long-term financial success while creating a strong incentive for retirement plan participation.

  Key Benefits

  • Rewards employees who actively save for retirement
  • Helps encourage higher participation rates
  • Assists with annual nondiscrimination testing requirements
  • Provides immediate vesting of Safe Harbor contributions
  • Supports employee recruitment and retention
  • Allows for additional discretionary employer contributions

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    Key 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

    • Safe Harbor Match contribution
    • Additional discretionary matching contribution available
    • Discretionary profit-sharing contribution available

    Automatic Enrollment

    • 10% automatic enrollment
    • Eligible participants automatically enrolled unless they elect otherwise

    Participant Features

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

    Vesting

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

     

    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 Match Works

    Under the Advantage(k) Safe Harbor Match design, the employer contributes:

    • 100% of employee deferrals up to the first 3% of compensation
    • 50% of employee deferrals for the next 2% of compensation

    This structure creates a meaningful incentive for employees to participate while helping employers provide a competitive retirement benefit.

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    Why Businesses Select Safe Harbor Match

    Attract and Retain Talent

    A matching contribution demonstrates a commitment to employee financial well-being and can help make your benefits package more competitive.

    Encourage Retirement Readiness

    Employees are more likely to participate when employer contributions reward saving behavior.

    Simplify Compliance

    Safe Harbor plan provisions are designed to help satisfy annual nondiscrimination testing requirements.

    Build Long-Term Engagement

    Employees recognize and value employer contributions that help support future retirement goals.

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    Compare Plan Designs

    Feature	Safe Harbor Match	Safe Harbor Non-Elective	Traditional 401(k)
    Employer Contribution Formula	Match based on employee deferrals	Fixed contribution to eligible employees	Employer discretion
    Rewards Employees Who Save	Yes	No	Optional
    Helps Satisfy Nondiscrimination Testing	Yes	Yes	Subject to annual testing
    Safe Harbor Contribution Vesting	Immediate	Immediate	Based on employer schedule
    Employee Participation Incentive	High	Moderate

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    This plan may be a strong fit if you:

     

    • Want to reward employees who contribute to the plan

     

     

    • Are looking to encourage participation and retirement savings

     

     

    • Want a plan designed to help satisfy nondiscrimination testing requirements

     

     

    • Prefer a straightforward employer match formula

     

     

    • Want the flexibility to add discretionary contributions

     

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    This option may be less appropriate if you:

     

    • Prefer making contributions regardless of employee participation

     

    • Want maximum flexibility over annual employer contributions

     

     

    • Need an alternative contribution strategy

     

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    Common Features Included

    All Advantage(k) Start plan designs include:

    • Professional plan administration
    • Guided implementation process
    • Ongoing compliance support
    • Online document execution
    • Payroll integration support
    • Participant enrollment resources
    • Pre-tax and Roth contribution options
    • Catch-up contribution eligibility
    • Automatic enrollment provisions