Our company is considering offering 401K employer match. We are about 200 employees venture backed company. We have about 60% participation mostly the non HCEs and only some key employees contribute. We always pass top heavy test and wpassed the 2019 ADP/ACP test. We are aggressively hiring and project there will be increase in participation, particularly if we offer the match. Given this information would it make sense to continue with a traditional 401k plan or go with safe Harbor plan?

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It seems like you are already passing ADP/ACP testing without using a safe harbor which can be expensive. Maybe consider talking to your financial advisor about offering a traditional 401k with a match, maybe even a flat match amount to start to ensure ACP testing. It seems that your team as described may benefit from a Roth 401k. Do you offer that now? It can really benefit workers who have recently entered the job market.

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Thanks for your reply. Yes, we offer a Roth 401k.

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