News & Events

January 21, 2000

401K Safe Harbors Work for Small Business

This chapter will examine the history, the present and the future of 401(k) safe harbors.

The technical rules governing 401(k) safe harbors will be explained in detail and some flexible, yet simple, small business 401(k) safe harbor plan designs will be analyzed.

THE GENESIS OF THE 401(k) SAFE HARBORS

Stay clear of 401(k) plans! This was the advice given to small businesses not so long ago. They were considered too complicated and costly for a small company. Clearly, a small business could not properly administer a 401(k) plan by itself. The amount of 401(k) contributions that could be made by the highly compensated employees ("HCEs") was dependent upon the amount contributed by the non-highly compensated employees ("NHCEs") calculated under a forumla set forth in Section 401(k) of the Internal Revenue Code ("IRC"). Because of the complexities inherent in performing the anti-discrimination tests imposed by Section 401(k) and the regulations thereunder, (referred to as the "ADP tests"), a competent thid party administrator was virtually required if the plan was to be kept in operational conformity with the law.

...

DOWNLOAD FULL ARTICLE >

News

September 26, 2022

Jessica Summers Provides Commentary for HR Dive Concerning Pre-Employment Testing Policies

Employment Law Principal, Jessica Summers, spoke with Ryan Golden of HR Dive to provide commentary for, "Employers face ‘new era’ of drug testing in post-pandemic landscape" on September 22, 2022.

Read More

Blog

Presenting Presidential Medal of Freedom Winner, Sylvia Mendez

A young Mexican-American girl named Sylvia Mendez was at the center of the famous Mendez v. Westminster case from 1947, which led to the desegregation of schools for Latino...

Read More

Resource Center

Paley Rothman shares this library of resources with clients and friends of the firm to help them stay ahead of legal and business developments and trends. Here, you will find helpful tips and tools written by our attorneys and relevant to our areas of practice.

Read More