Which employer contributions are right for your company?

Now that you have learned more about your employer contribution options, here are some plan design considerations to keep in mind when choosing an employer contribution type:

  • For peace of mind, particularly in small companies, consider a Safe Harbor plan. Safe Harbor plans eliminate the risk of falling outside nondiscrimination limits often faced by small companies and ensure that owners and executives can maximize contributions without having to refund dollars at the end of the year to correct testing failures.
  • To control your company costs, you can consider discretionary matching, which encourages your employees to contribute to their retirement savings at a cost that works for you and can be adjusted anytime. 
  • For maximum flexibility, you can consider profit sharing to share successful years with your employees without creating an obligation and to make maximum allowed contributions to the plan.

While there is no one-size-fits-all employer contribution solution for all businesses, we can help you design an employer contribution that fits your company needs. Feel free to contact our plan administrator support team to further discuss. 

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