# Safe harbor 401(k)

> Safe harbor 401(k) — A 401(k) that is not subject to the complex annual nondiscrimination tests because it makes a fully vested employer contribution — the basic match (100% of deferrals up to 3% of pay plus 50% of the next 2%), with written notice before the year, or 3% of pay to every eligible non-highly-compensated employee.

Source: https://lopifi.com/glossary/safe-harbor-401-k
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is safe harbor 401(k)?** In accounting, safe harbor 401(k) means a 401(k) that is not subject to the complex annual nondiscrimination tests because it makes a fully vested employer contribution — the basic match (100% of deferrals up to 3% of pay plus 50% of the next 2%), with written notice before the year, or 3% of pay to every eligible non-highly-compensated employee.

## Words this system refuses for it

- SIMPLE 401(k)

- **Category:** Benefits
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** safe