Also discussed in Section II, the SIMPLE 401(k) is an administratively simplified version of the Safe Harbor Plan, which is available only to small businesses (100 or fewer employees). The SIMPLE 401(k) is not subject to nondiscrimination or top-heavy rules; however, it has the smallest maximum contribution level of any other plan design (including being notably less than the Safe Harbor 401(k)). For that reason, if a small businessowner is interested in deferring the absolute maximum amount, the SIMPLE 401(k) design may not be the best alternative for him or her.
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