Photo of life ring with money stacked inside
October 1st Tax Savings Deadline!
August 25, 2021 | posted in: Accountants | by Frye Retirement
Don’t Let Your Clients Miss the 2021 401(k) Safe Harbor Plan Deadline
The 401(k) Safe Harbor Plan allows your clients who have one or more employees to:
- Defer taxes on up to $19,500 of their income, or up to $26,000 if age 50 or older, regardless of employee participation
- Receive a safe harbor match/non-elective contribution and also get a tax deduction
- Take advantage of SECURE Act Tax Credits – up to $5,500 per year for putting this benefit in place
- Avoid the hassle of IRS non-discrimination testing
Other advantages include:
- Cost-effective benefit for employees to save for their retirement
- Can allow additional tax deductible discretionary profit sharing contribution
- Roth investing option for tax-free growth, which is not subject to income limits like other plans
Don’t delay! Contact us now to learn how we can help maximize your clients’ tax savings before the October 1st deadline.
