412(e) defined defined benefit plan overview
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412(e) defined defined benefit plan overview
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Contribution Flexibility
Defined benefit plans allow higher contribution levels than defined contribution plans but along with that flexibility comes the requirement to meet minimum contributions.
Safe Harbor 401(k)s are designed to allow owners and highly compensated employees (generally owners and those making over $120,000) to contribute up to the maximum dollar limit as their 401(k) elective deferral without regard to what other employees contribute. The maximum deferral for 2019 is $25,000 if a participant is age 50 or over.
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