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Consilium Financial
Consilium Financial
http://www.consilium-financial.com 360-714-3388

401(k)s

Traditional 401(k)

  • Maximum employee deferral is the lesser of 100% of income or $19,500
  • Catch-up provision of $6,500 for participants age 50 or older
  • Discretionary annual company contribution
  • Restrictive distribution provisions
  • Loan feature and hardship withdrawals
  • Company contribution can be integrated with Social Security
  • Third-party administration company needed for annual testing and government reporting
  • 25% company limit on discretionary and matching contributions combined
  • Discretionary company match feature
  • Maximum employee eligibility requirements: one year with 1,000 hours of service and/or age 21
  • Vesting schedules available
  • Total maximum contribution: $57,000
  • Total maximum contribution with catch-up: $63,500

Safe Harbor 401(k)

  • Maximum employee deferral is the lesser of 100% of income or $19,500
  • Catch-up provision of $6,500 for participants age 50 or older
  • Mandatory company contribution: (1) Match- 100% on first 3% of compensation plus 50% on next 2% (Total of 4%) or (2) Non-elective- 3% of compensation
  • Restrictive distribution provisions
  • Loan feature and hardship withdrawals (employee deferrals only)
  • Third-party administration company needed for annual testing and government reporting
  • 100% vesting on all safe harbor contributions, other employer contributions may be subject to a vesting schedule
  • ADP/ACP does not apply
  • Top-heavy satisfied with mandatory company match listed above
  • Maximum employee eligibility requirements: one year with 1,000 hours of service and/or age 21
  • Total maximum contribution: $57,000
  • Total maximum contribution with catch-up: $63,500 

This information is provided as of November 13, 2020.

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