CBC Retirement
Safeharbor Plan Designs
There are 4 different major Safeharbor plan design options available to business owners looking to maximize their retirement plan as a tax shelter. These designs all require matching, but have various benefits. Read below to learn more.
Basic Elective Match Formula
Basic 4% elective match (employees can access up to a 4% match)
-Can be 100% up to 4% (Employee contributes 4% to receive a 4% match)
-Can be 100% to 3% and 50% of next 2% (Employee Contributes 5% to receive a 4% match)
-No vesting period
-Matching is not credited toward profit sharing
-Matching is maxed at 6%
Basic Non-Elective Match Formula
Basic Non-Elective 3% Match Formula
- Employees receive a 3% match annually regardless of their own contribution
- No Vesting schedule
- 3% Match is credited towards Profit sharing
QACA Elective Match
3.5% Total Matching
- 1% non-elective immediate matching
- 50% addiitonal match on elective contributions up to 6% employee contribution
- 1% is given
- Additional 2.5% match requires the employee to contribute 6% themselves
- Allows for vesting period on matching up to 2 years
- Match is not credited towards profit sharing.
- Requires Automatic Enrollment
QACA Non-Elective Match
- 3% Non-Elective Match
- Employees receive a 3% match regardless of their own contribution
- Match is credited towards profit sharing
- Requires Automatic - Enrollment
- Allows for vesting period on matching up to 2 years
