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Safe Harbor 401k

A powerful formula is combining a cross-tested profit sharing with a safe harbor 401(k).

​Advantages

  • Owners can defer the maximum amount
  • Profit Sharing allocations favor the owner
  • Tax-deferred retirement savings
  • Availability of life insurance with tax-deductible premiums

Considerations

  • Safe harbor contributions are required
  • Owner profit sharing allocations impated by employee demographics

Sample Max Contribution Comparison Scenario
Scenario:  Business Owner age 55, Spouse 52;  Two employees age 24 and 33

 ​Profit Sharing + Safe Harbor401(k)​Total Annual Contributions
Owner & Spouse$67,000$50,000$117,000
Employees$  2,600 $    2,600
Employer Contribution$69,600  
Percent to Owner & Spouse98%  

Securities offered through ELE Wealth Advisors, Inc., member FINRA. Advisory services offered through ELE Advisory Services, Inc. EWAI and EAS are affiliated through common ownership and control. Financial Wealth Solutions, Inc. and 1st Consumer Insurance Agency Inc. are not affiliated with EWAI or EAS.
FINRA Broker Check https://www.finra.org/compliance-tools/rule-2210-brokercheck

Financial Wealth Solutions, Inc. · 12200 East Briarwood Ave Suite 165
Centennial · CO 80112

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