Eliminate nondiscrimination testing headaches with a properly designed Safe Harbor plan. Flat-fee administration from an independent TPA that works for you — not for a fund family.
Request a Plan ReviewThe Smartest Path to Full Owner Contributions
Guaranteed Pass
Safe Harbor plans automatically satisfy ADP/ACP nondiscrimination requirements. Your owners and highly compensated employees can defer the full $23,500 (2025 limit) without worrying about whether rank-and-file participation rates will hold up.
Known Commitment
Whether you choose the 3% non-elective contribution or the 4% match formula, you know exactly what the plan will cost before the year starts. No testing surprises. No refund checks.
Employee Retention
Safe Harbor contributions vest immediately. Your employees get full ownership from day one — which makes the plan a real retention tool, not just a tax shelter.
Your Plan, Your Rules
Basic Safe Harbor, Enhanced Match, QACA with 2-year cliff vesting — we help you pick the design that maximizes owner benefits while managing cost.
What's Included
Setup
We draft and restate your plan document to ensure the Safe Harbor provisions are properly adopted, including the required annual notice and matching or non-elective formula.
Compliance
We prepare and distribute the required Safe Harbor notice at least 30 days before the plan year — so you never miss the deadline that could cost your plan its Safe Harbor status.
Testing & Filing
Top-heavy testing, 415 limits, Form 5500, and any required amendments. Even though ADP/ACP testing is waived, there are still compliance requirements — we handle all of them.
Day-to-Day
Enrollment support, distribution processing, loan administration, and direct participant Q&A so questions don't end up on your desk.
Comparison
A traditional 401(k) gives you more contribution design flexibility, but subjects you to ADP/ACP testing every year. If your highly compensated employees want to max out deferrals, low participation among rank-and-file can force refunds and reduce owner benefits. Safe Harbor eliminates that risk entirely. The trade-off is a mandatory employer contribution — but for most small businesses, the certainty is worth more than the cost.
Maximum employee deferral for 2025 ($31,000 with catch-up for 50+). Safe Harbor ensures your owners can defer the full amount, every year.
Standard employer contribution: 3% non-elective to all eligible employees, or 4% match formula. We model both scenarios to show you the true cost.
Plan sponsors trust Independent Retirement with their administration. Most are Safe Harbor plans.
FAQ
Yes. A Safe Harbor 401(k) handles the deferral and matching side. You can layer a profit-sharing contribution on top — including New Comparability designs that direct the majority of profit-sharing dollars to owners and key employees. We model these combo designs regularly.
If the notice is not distributed at least 30 days before the plan year, your plan may lose Safe Harbor status for that year — meaning it reverts to traditional testing. We send reminders well in advance and prepare the notice for you so this never happens.
Generally, no. Safe Harbor status is elected before the plan year begins. However, there are limited circumstances where a mid-year amendment can be made. We advise on this during your annual strategic review.
A Basic Safe Harbor match is 100% of the first 3% of compensation deferred, plus 50% of the next 2% (effectively 4% match if employees defer 5%+). A QACA (Qualified Automatic Contribution Arrangement) allows a slightly lower 3.5% match formula and permits a 2-year cliff vesting schedule on the employer match. We model both to show you the cost difference.