Solo 401(k) Plan

A Solo 401(k) can be established for incorporated or unincorporated businesses employing owners and spouses only (no other employees). A Solo 401(k) may allow small business owners to shelter a greater portion of their income from taxation than is possible with conventional business retirement plans such as SIMPLEs and SEPs. Learn more.

Traditional 401(k) Plan

A traditional 401(k) plan can be adopted by sole proprietors, corporations, partnerships and most non-profit organizations. A 401(k) plan allows employees to defer income from each payroll check and contribute those deferrals to their retirement plan account. Employee contributions are made before federal income taxes and grow tax-deferred until withdrawal. Employers can also make discretionary matching contributions to the plan on behalf of their employees. These contributions can be made subject to a vesting (ownership) schedule and certain other service requirements. Traditional 401(k) plans are subject to special non-discrimination testing that often limits personal plan contributions by the business owner and certain other Highly Compensated Employees. A Safe-Harbor 401(k) Plan design offers relief from this potential problem. Learn more.

Safe Harbor 401(k) Plan

The Small Business Job Protection Act (SBJPA) gave retirement plan sponsors the ability to add Safe Harbor provisions to qualified plans. Adoption of Safe Harbor provisions allows 401(k) plan sponsors to avoid the Actual Deferral Percentage (ADP) test and the Actual Contribution Percentage (ACP) test for employer contributions. These non-discrimination tests are deemed satisfied if the employer agrees to make certain contributions of behalf of plan participants. In other words, Safe Harbor adoption will allow 401(k) participants (including Highly Compensated Employees) to defer up to the maximum IRS limit without fear of non-discrimination test failure and corrective refunds. Learn more.

Super Safe Harbor 401(k) Plan

InWest’s Super Safe Harbor 401(k) Plan combines a Safe Harbor 401(k) Plan design along with a New Comparability Profit Sharing Plan. A Super Safe Harbor 401(k) Plan often allows the sponsor to target a certain employee (business owner) or group of employees for higher plan contributions. Learn more.