401k Alternatives

[Guest dziegler]

What type of plan or benefit do you suggest as an alternative to a 401k Plan? Due to our complex business model (we have a significant number of immigrant common law employees who have no interest in a 401k) we are having testing challenges. As such, would like to consider an alternative benefit for our employees. What suggestions do you have and have you run into similar challenges?

[four01kman]

A "safe harbor" 401k plan might do the trick. For those who do not want to participate, there is no penalty to those who do. This requires a "fixed" match of 100% of the first 3% of employee deferrals and 50% of the next 2% of employee deferrals. All employees are considered eligible and the ADP and ACP tests automatically are considered met.