Safe Harbor 401k

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


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


  • 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%