|
Feature
|
Basic Safe Harbor Match
|
Enhanced Safe Harbor Match
|
Nonelective Safe Harbor
|
QACA Safe Harbor
|
|
Employer Contribution
|
100% on first 3% + 50% on next 2% (max 4%)
|
At least as generous as Basic (e.g., 100% on first 4%)
|
At least 3% of pay to all eligible employees
|
Match: 100% on first 1% + 50% on next 5% (max 3.5%) OR 3% Nonelective
|
|
Who Gets Contribution
|
Only employees who defer |
Only employees who defer |
All eligible employees |
Only employees who defer (if match); all if nonelective |
|
Vesting Requirement
|
Immediate
|
Immediate
|
Immediate
|
Up to 2-year cliff vesting allowed
|
|
Automatic Enrollment
|
Not required
|
Not required
|
Not required
|
Required
|
|
Annual Notice to Employees
|
Required
|
Required
|
Required (may be waived for some plans as of 2024)
|
Required
|
|
Testing Relief
|
Satisfies ADP/ACP Test
|
Satisfies ADP/ACP Test
|
Satisfies ADP/ACP Test
|
Satisfies ADP/ACP Test
|
|
Contribution Flexibility
|
No
|
Yes (formula can be more generous)
|
No
|
Yes (match or nonelective; auto-escalation allowed)
|
|
Best For
|
Simplicity and cost control |
Recruitment/retention; higher matching
|
All employees, low participation plans
|
Encouraging participation; vesting Flexibility
|
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