Safe Harbor 401(k) PLAN SIZE: Small to large employers (tax-exempt and for-profit entities) who want to offer a salary reduction plan with a maximum number of design options. Companies with a large percentage of highly compensated employees. Top-heavy plans with low participation rates. Plans routinely failing ADP/ACP tests. ELIGIBILITY: Must include employees who are at least 21 years old, have completed 2 years of service (at least 1,000 hours each year). Employer may set less restrictive eligibility standards. Automatically excludes Union employees and/or non-resident aliens. FUNDING: Safe Harbor employer contributions required. Employee pre-tax salary deferrals optional. Other employer contributions permitted. VESTING: Participants are immediately 100% vested in salary deferrals and mandatory Safe Harbor employer contributions. Vesting schedule available for discretionary employer contributions. Return to Investment Front Page