For some businesses, particularly small businesses, the issue may arise where the owner wishes to defer the maximum contribution allowed, but is prevented by nondiscrimination testing because the Non-Highly Compensated Employees are not contributing a sufficient level. As a remedy, there are some plan designs that permit the owner to contribute the maximum allowable amount regardless of the employees' deferral levels. Each of these plans has different rules and contribution limitations that generally require the employer to make minimum contributions to all participants. The two most common such plans are the Safe Harbor 401(k) and the SIMPLE 401(k).
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