Lastly, consider the potential benefit to the law firm by suggesting adding a Profit Sharing component to a Safe Harbor (Matching) 401(k) Plan design. With the partners of this law firm wanting to maximize their contributions, adding the Profit Sharing component would increase how much more each employee would have in annual contributions. Notice on the illustration for the stand alone Safe Harbor 401(k) (Matching) plan that the lawyers can only defer $29,500. Then, look at the illustration for the Safe Harbor (Matching) with Integrated Profit Sharing Plan. Adding the Profit Sharing component now allows both lawyers to contribute the maximum IRC Section 415 limit of $45,000, plus the additional $5,000 catch-up contribution for being over age 50 with their annual contributions totaling $50,000.

This plan design should meet their stated needs of "maxing out contributions" to the fullest extent the law allows. Keep in mind that these maximum contribution limits were set by the IRS for the year 2007 and may be indexed periodically.