Safe Harbor

Plan Forfeitures and Safe Harbor Contributions

Your retirement plan was recently restated for the Pension Protection Act (PPA). Within the PPA restatement, IRS mandated that forfeitures could no longer be used to reduce safe harbor contributions (i.e. basic safe harbor match, enhanced match or 3% nonelective). On...

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Safe Harbor Plans: is it Safe to Amend?

If you have a safe harbor plan and wanted to make a change during the year, the IRS restricted what you could and could not amend, even if the change didn’t affect the safe harbor provisions. Recently, the IRS issued additional guidance for both traditional and...

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Safe Harbor Contributions

Employers with qualified 401(k) plans that fail nondiscrimination testing each year may find that a plan amendment to add a safe harbor contribution is an effective solution. A safe harbor provision requires a mandatory employer contribution, 100% immediate vesting of...

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