What is a Safe Harbor 401(k) Plan?
A Safe Harbor plan is a 401(k) plan under
which the employer is no longer required to subject the plan to
nondiscrimination testing of elective (employee pretax contributions)
or matching contributions. To qualify as a Safe Harbor plan, there
are certain employer contribution requirements and 100% vesting
of these contributions. The maximum dollar limit for elective contributions
($13,000 for the year 2004) can be contributed by the highly compensated