Plan Sponsor Tool

Safe Harbor 401(k) plan analyzer

Compare the predictable corporate costs of implementing a Safe Harbor 401(k) against the financial and operational risks of a Traditional 401(k) vulnerable to failing annual ADP/ACP compliance testing.

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Company demographics & payroll

Company name (optional)

Total eligible employees

HCEs count

NHCEs (auto-calculated)

Total annual NHCE eligible payroll ($)

NHCE participation rate60%

Average NHCE contribution rate4.0%

Traditional plan failure risk

Estimated cost of a failed ADP/ACP test ($)

Includes corrective distributions / QNECs, administrative rerun fees and fiduciary consulting hours.

Probability of failing ADP/ACP test annually40%

Safe Harbor plan design

Traditional 401(k) risk

Total compliance testing & administrative risk

$6,000

HCE contribution limits are tied to NHCE performance. Testing failure triggers mandatory refunds, penalized corrective actions, or unexpected business cash outflows.

Safe Harbor 401(k) strategy

Total guaranteed safe harbor employer outlay

$44,100

Automatically passes ADP/ACP compliance testing. Allows business owners and HCEs to maximize personal deferrals up to annual IRS limits without restriction.

Net financial differential (Basic Match)

$38,100

Safe Harbor premium vs. expected risk

NHCEs

Participating payroll

$1,260,000

Expected risk

$6,000

Risk cost vs. guaranteed contribution — all three designs

Side-by-side comparison of expected traditional-plan risk cost against the guaranteed Safe Harbor contribution for each plan design option.

Expected Risk (Traditional)
Guaranteed Cost (Safe Harbor)

Optimization recommendation

The Safe Harbor contribution significantly exceeds expected annual risk cost. Consider a QACA Safe Harbor, a non-elective formula, or refining participation assumptions before committing.

The memo logs your inputs, calculated expenses and recommendation into the history table below for export or executive review.

How to compare plan designs

1.Set your inputs to the first configuration you want to evaluate.
2.Click Save to log that plan design to the history table below.
3.Adjust one input at a time (for example, bump your contribution rate or headcount), then save again.
4.Repeat for each variation. Every saved row appears side-by-side so you can compare results at a glance.

Plan design memo history

A running log of the Safe Harbor analyses you've generated. Compare guaranteed outlay, expected risk and the net differential across designs.

Company	NHCEs	Participation	Contrib.	Design	Safe Harbor	Expected risk	Net diff.
Untitled	40	60%	4%	Basic Match	$44,100	$6,000	$38,100
Untitled	40	60%	4%	Basic Match	$44,100	$6,000	$38,100

This analyzer is provided strictly for educational purposes and is not investment advice or a recommendation from an advisor. Results are estimates based on the inputs you provide and assume uniform participation, salary and contribution rates. Actual plan costs and testing outcomes depend on plan design, payroll specifics, IRS thresholds and provider fees. Speak with a Cognis advisor for guidance tailored to your practice.