The above does not necessarily represent the best allocation or design for this group.

It simply represents a typical scenario when a 401(k) Safe Harbor Matching Plan is employed.

To understand this example, you must recognize that Salary Deferrals are monies that each person elects to contribute to the Plan.

Matching is a contribution from the Employer that "matches" the person's Salary Deferral.

Safe Harbor Matching is required.  Bonus Matching is not.

Profit Sharing is a contribution from the Employer that typical is related to a person's compensation, and possibly age.

Profit Sharing Contributions are NOT required.

The key point to this example is how much of the benefit is being provided to each person.

What goals do you have for your plan?