SAFE HARBOR 401(k)/QACA COMPARISON CHART
September 12, 2007
E-mail Alert 2007-12, Updated 6/25/09

3%

3%

$/$ 0 - 3%
1/2 $/$ 3% - 5%

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3% deferral
3% SH Match

$/$ 0 - 1%
1/2 $/$ 1% - 6%

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3% deferral
2% SH match

4% Compensation

3.5% of Compensation

100% Immediate

100% after 2 years
(e.g. 2-year cliff vesting)

Optional

Required initially using a default rate of at least 3%, but no more than 10%.

Annual deferral escalator requirement to 4%, 5%, 6% respectively when using a 3% initial default rate.  No escalator requirement once a participant reaches 6%, therefore starting with a 6% default rate makes the plan exempt from the annual escalator requirement.

Top heavy rules apply.
May be exempt if only deferrals and SH contribution is made (annual determination).

Top heavy rules apply.
May be exempt if only deferrals and SH contribution is made (annual determination).

Required

Required

Only needed if plan utilizes automatic enrollment.

Required.

Only needed if plan utilizes QDIA

Only needed if plan utilizes QDIA. Most QACA are expected to use QDIA.