A Safe-Harbor 401(k) retirement plan provides the most flexibility and benefit for business owners.

A Safe-Harbor allows owners, and participants alike, to defer the maximum IRS limit to a 401(k) without being dependent on the deferrals of other employees. Furthermore, without a Safe-Harbor in place, owners can be limited to the amount of income that can be saved in their personal 401(k) account per year. Here are some government-mandated deadlines to keep in mind when reviewing retirement benefits. 

If you have a SEP IRA or no retirement plan in place:
• It is not too late to set up a safe-harbor 401(k) with discretionary profit sharing for 2017
• The documents must be in place by Oct 1st, 2017
• The documents must be in the drafting process by Sept 15th
• If not concerned about 2017, one can start a safe-harbor 401(k) at any point

If you have a SIMPLE IRA:

• You cannot fund another qualified retirement plan in the same year as a SIMPLE
• If you are planning to switch from a SIMPLE IRA to another qualified retirement plan, all participants
must be notified at least 2 months before the plan will be terminated. A deadline of Nov. 1 for new
plans starting Jan 1 of the following year.

If you have 401(k) in place, but it is not currently a Safe-Harbor Plan:
• The plan documents can be amended to allow for a Safe-Harbor
• Can only be changed at the beginning of the plan year
• Documents must be in place by Jan 1, allow 2 weeks to process with your administrator

For more information on how to choose an optimal retirement plan, please contact me today:
Tyler Campbell
tyler@waypointus.com
843-720-3756