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What is a Safe Harbor 401(k)?

A Safe Harbor 401(k) is an employer-sponsored retirement plan that satisfies IRS nondiscrimination requirements when employers make mandatory, fully vested contributions. These plans can help avoid compliance testing, but they often involve higher administrative costs, strict contribution rules, and ongoing regulatory oversight. For many small organizations, this level of complexity can create more work than it is worth.

A WealthRabbit SIMPLE IRA provides a more straightforward and more sustainable path to offering a retirement benefit. SIMPLE IRAs have predictable employer contributions, no annual testing, and no Form 5500 filing. They are easier to administer, more cost-efficient, and allow employers to focus on supporting their teams rather than managing compliance tasks.

For organizations seeking an accessible, compliant, and low-maintenance retirement solution, a WealthRabbit SIMPLE IRA is often the better fit. It delivers the core advantages employers need without the operational burdens that come with a Safe Harbor 401(k).