Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009

Nonstandardized Safe Harbor Plan

Print

Definition

A Master&Prototype Plan that would be a standardized plan except that the plan:

  • Is not required, by its terms, to benefit all nonexcludable employees and may, in the case of a defined contribution plan, condition allocations on employment on the last day of the plan year and/or the completion of up to 1000 hours of service during the plan year;
  • May use certain alternative definitions of compensation [ as described in IRC § 414(s) ] determining contributions or benefits that must be tested for nondiscrimination
  • May provide past service credit that fails to meet the safe harbor for certain grants of benefits for past periods ( described in  § 1.401(a)(4)-5(a)(3)).

Referring Cite

Rev. Proc. 2005-16,

Additional Helpful Information

  • The opinion letter issued for the plan will state that the plan is a nonstandardized safe harbor plan.
More

Keep Learning

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Salary Deferral Contribution

Definition A contribution made pursuant to a participant’s election to have a portion of his/her salary/wages  contributed to his/ her employer sponsored plan  rather than

Be among the first to know when

IRA Rules
Change