Financial Dictionary

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Atlantic Financial

Atlantic Financial

Investment Word

Safe Harbor 401k

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A Safe Harbor 401k is similar to a traditional 401k plan, but the employer is required to make contributions for each employee. The employer contributions in Safe Harbor 401k plans are immediately 100% vested. The Safe Harbor 401k eases administrative burdens on employers by eliminating some of the complex tax rules ordinarily applied to traditional 401k plans.

Safe Harbor 401k - definition

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