Employee Benefit Systems

A Good Choice for the Smaller Employer!

Processing Forms
Contacting EBS
FAQ Page
Plans Serviced
Services Offered
Approach to Fees
Safe Harbor Match










Person's Identity  Doctor / Owner Doctor's Spouse Nurse Clerical
Compensation 200,000 30,000 50,000 25,000
Salary Deferral 22,000 22,000 2,000 0
Safe Harbor Match 10,000 1,500 2,000 0
Bonus Match 8,000 1,200 2,000 0
Profit Sharing 14,500 1,484 2,473 1,236
Total Allocation 54,500 26,184 8,473 1,236
Percent of Pay 27.25% 87.28% 16.95% 4.944%
Percent of Total 60.29% 28.97% 9.374% 1.367%

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?