Safe harbor 401(k) plans are the most popular type of 401(k) used by small businesses today. Safe harbor 401(k) plans are a great benefit for all employees: by providing a certain contribution to all eligible staff, business owners, and other highly-paid employees, safe harbor 401k plans allow employees to fully save up to IRS limits ($57,000 for 2020, or $63,500 if over age 50).
As an employer, you’re responsible for keeping your company’s retirement plan in compliance at all times. Additionally your plan document should be reviewed on an annual basis and administered accordingly. The IRS offers useful tips for plan sponsors, helping you to stay compliant, informed and prepared to provide the best possible retirement plan for your employees – here are some highlights.
The Department of Labor (DOL) recently reported that in reviewing Form 5500 data for 2018 a significant number of multiple employer plans (MEPs), including MEPs sponsored by professional employer organizations (PEOs), failed to include a complete and accurate list of participating employers with their Form 5500/5500-SF.
