Do you have clients who should be more proactive in growing their retirement accounts?
A 401(k) retirement plan with a safe harbor provision can help employers maximize the salary deferrals of highly compensated employees, providing a convenient way for them to:
- Defer up to $17,500 with pre-tax payroll deductions (and an additional $5,500 if they are 50 years old and over).
- Contribute a maximum of $52,000 through employer and employee contributions in 2014 ($57,500 if the catch-up provision applies).
- Consider Roth 401(k) post-tax contributions as an option, regardless of income level.
The deadline to establish a 401(k) safe harbor plan for 2014 is October 1st so now is a prime opportunity for client consultation.