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Is 403(b) Safe Harbor Plan Design Right for Your Plan?

Learn how 403(b) Safe Harbor plan design may encourage plan participation and satisfy testing.

June 7, 2017 For Your Business
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One method of satisfying the actual contribution percentage (ACP) test is to adopt a safe harbor plan design. A safe harbor 403(b) is a specific type of 403(b) retirement plan designed to encourage employee contributions and participation.

A safe harbor plan design offers a plan sponsor many advantages such as exemption from ACP testing provided that non-safe harbor matching contributions do not exceed certain limitations and no allocation conditions are applied. Safe harbor plans are still subject to coverage testing and annual additions limit testing.

Learn more about 403(b) Safe Harbor plan design, tracking and eligibility and other important considerations. 



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