Of Interest

IRS Issues Guidance for 
Safe Harbor 401(k) Plans

The IRS has issued guidance that will encourage employers to offer safe harbor 401(k) plans. Safe harbor plans are exempt from nondiscrimination testing and therefore allow highly compensated employees to "max out" the elective deferral limit regardless of how much the plan’s non-highly compensated employees elect to defer.

Employers who are setting up or switching to a safe harbor plan can retrieve Notice 2000-3, 2000-4 IRB 413 from the IRS website at:

Select "Internal Revenue Bulletins," then download the correct document from the list.