You already know that a 401K is a very popular retirement plan and, like other plan designs, it allows employees to take advantage of tax deferrals on contributions and earnings while their money accumulates for retirement.
To enjoy this special status, the IRS put in place rules to assure that plans benefit rank and file employees and not just a company’s owners and highly compensated employees. These are called nondiscrimination rules and there are three tests we use each year to determine whether a plan measures up.
Know more at https://www.pentegra.com/expertise/advisor-connect/set-sail-safe-harbor/
