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Which Design is Best for Your Team?

Our three most popular plan designs 

All three plans automatically enroll employees after three months of service with a 3% savings rate that increases 1% each year up to 10%. Employees can opt out at any time.

The Employer chooses the employer contribution amount:

  1. 3% contribution to everyone with immediate vesting

  2. 3.5% to savers as a match with up to two years vesting

    • 100% Match on first 1%, 50% Match on next 5%
    • Employee saves 6%, then Employer contributes 3.5%

  3. 4% to savers as a match with immediate vesting

    • 100% Match on first 4%
    • Employee saves 4%, then Employer contributes 4%
    What to learn more? Check out this Blog post about Safe Harbor plans.

Common Safe Harbor Plan Designs

Automatic Enrollment is Required for All Designs Below

Employer Contribution

Vesting

Recipients

Qualified Automatic Contribution Arrangement

3.5% Match

Up to 2 yrs.

Savers

Qualified Automatic Contribution Arrangement Nonelective

3%

Up to 2 yrs.

Eligible employees

Safe Haror Match

4% Match

Immediate

Savers

Safe Harbor Nonelective

3%

Immediate

Eligible employees

Enhanced Safe Harbor Match

4% Match or More

Immediate

Savers

Enhanced Safe Harbor Nonelective

3% or more

Immediate

Eligible employees

 

Remember:

  • Employer contributions are not required
  • Automatic enrollment is required for new plans
  • Avoid state-mandated retirement plans and fines

Are You an HCE and Why Would You Care?

Who qualifies as a Highly Compensated Employee (HCE)?
 

According to IRS guidelines, an HCE typically falls into one of three categories:

1) anyone who owns more than 5% of the company

2) family members of someone who owns more than 5% (including spouse, parents, children, or grandparents), or

3) employees who earned more than $155,000 in the previous calendar year (2024 limit; this amount is subject to annual IRS cost-of-living adjustments). 

The IRS requires 401(k) plans to undergo several compliance—or “nondiscrimination”—tests each year. These tests ensure that all employees, regardless of their compensation level, are treated fairly by the plan. 

Safe harbor plans provide a streamlined path to compliance. By following specific rules on employer contributions, vesting schedules, and employee notifications, safe harbor plans automatically satisfy the IRS’s nondiscrimination testing requirements.

Schedule a PEP talk

Built for every business

No business too large or too small.

Quick setup

Get started today with the online plan setup or schedule a PEP talk if you have questions.

Easy to use

We take care of the investments and administration for you.

Customizable

Each business chooses their own plan design.

Our values

Transparency. Honesty. Trust. Creative Solutions.

This is what you can expect when you work with Castle Rock Investment Company.

We believe

You always come first. You will always know what you are paying for when you trust us with your finances. No hidden fees. No commissions.