Help your business owner clients reduce taxes + increase retirement savings by converting their SIMPLE plan to a Safe Harbor 401(k). With higher 2025 contribution limits and valuable tax incentives, early in the year is the ideal time to make the switch.
Why Convert to a Safe Harbor 401(k)?
Maximize Savings: SIMPLE IRAs limit deferrals to $16,500 (plus catch-up), while a Safe Harbor 401(k) allows $23,500 up to $77,500 (including total contributions and standard catch-ups).
Immediate Tax Deduction: Employer contributions, including Safe Harbor and profit-sharing, are fully tax-deductible, reducing corporate taxes while rewarding employees.
Avoid Testing Issues: Safe Harbor plans eliminate ADP/ACP testing, letting highly compensated employees (HCEs) defer the full amount without refund risks.
CrossPlans can guide your clients through this mid-year transition with expert plan design, compliance, and ongoing support to maximize business benefits. Starting this process early will optimize outcomes as the employee 401(k) contributions are weighted during the transition year.
Let’s discuss how we can help your clients this tax season.
Dana Point, CA
714.210.4164
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