Let’s get this out of the way – we, at True North Retirement Services, really like Safe Harbor 401(k) plans.
The reasons should resonate with anyone looking to offer a 401(k) plan. We like them because they are very desirable from both an employer and an employee standpoint. Classic win-win.
For employees, they are seen as one of the better types of 401(k) plans, so a Safe Harbor 401(k) is more likely to better contribute to employee attraction and retention (which is part of the reason you have a 401(k) plan in the first place, right?). Employees tend to save more for retirement, and there’s no downside to that.