Safe harbor contributions are employer contributions required in many 401(k) plans to ensure IRS compliance and provide guaranteed benefits to employees. As a plan sponsor, you are responsible for ensuring contributions are deposited on time and in accordance with your plan document.

Who This Applies To

This article is for employers and plan sponsors who are responsible for making safe harbor contributions to their 401(k) plan.

Types of Safe Harbor Contributions and Deadlines

1. Safe Harbor Non-Elective Contributions

  • Based on each employee’s annual compensation.
  • Must be deposited no later than the end of the plan year following the applicable year.
  • Example: Contributions for the 2024 plan year must be deposited by December 31, 2025.
  • If you want to deduct the contribution on your 2024 tax return, you must deposit it by your tax filing deadline (including extensions):
    • S-Corps and Partnerships: March 15 or September 15 (with extension)
    • C-Corps and Sole Proprietors: April 15 or October 15 (with extension)
  • Contributions made after the tax filing deadline but before December 31 of the following year will be deducted on the following year’s tax return.
  • Tip: Consult your CPA for tax reporting and deduction strategies.

2. Safe Harbor Matching Contributions

Safe harbor matching contributions may be calculated per pay period or on an annual basis, depending on your plan provisions.

Per-Pay-Period Match:

  • Deposit contributions alongside employees’ elective deferrals.
  • Must be deposited at least quarterly.
  • Based only on compensation employees actually deferred; no year-end true-up required.

Annual (End-of-Year) Match:

  • May be deposited throughout the year or at year-end.
  • Requires a true-up calculation to ensure all eligible compensation is matched.
  • Deposit deadline is the same as for safe harbor non-elective contributions:
    • Tax filing deadline (including extensions), or
    • December 31 of the following year.

How to Fund Your Safe Harbor Contribution

  1. Log in to your employer dashboard.
  2. Go to Contributions in the left navigation menu.
  3. Click Annual Contributions.
  4. Choose the applicable annual date or add New Annual Payroll.
  5. Enter the safe harbor contribution amounts in the Safe Harbor column or upload via the Batch File menu .
  6. If you cannot locate the safe harbor column, please contact us.

Requesting Contribution Calculations

If you would like Ubiquity to prepare your employer contribution calculations:

  1. Log in to your account.
  2. Under Reports, select Employee Demographic Report.
  3. Select the plan year and download the report in Excel (.xlsx) format.
  4. Review the data.
  • If correct: email Support with your calculation request.
  • If updates are needed: make changes in the file and send it securely (contact Support for a secure transmission method).

In your request, include:

  • Type of contribution (e.g., discretionary match, discretionary profit sharing, safe harbor annual match, safe harbor non-elective, or required top-heavy).
  • Your contribution goals (e.g., minimum or maximum dollar amount, maximizing owner contributions, or targeting specific employees).

Best Practices for Requests:

  • Provide as much detail as possible.
  • Note if any employees are related to company owners.
  • Submit requests 3–4 weeks before your tax-filing deadline.
  • Allow 5–10 business days for completion and respond promptly to follow-ups.

Fiduciary Responsibilities

As the plan fiduciary, you are responsible for ensuring:

  • Contributions comply with your plan document and IRS regulations.
  • Safe harbor and top-heavy contributions are made as required.
  • Contributions are properly reflected in plan reporting.

Our team reviews all employer contribution requests for compliance and will suggest alternatives if your request does not meet regulatory requirements.

What Happens if Contributions Are Not Made on Time

  • Lost earnings must be funded on late safe harbor contributions.
  • Consistent late funding may increase audit risk.
  • Late deposits may result in IRS or Department of Labor (DOL) penalties under audit.

Need Help?

If you need assistance with safe harbor calculations or submissions, please contact us.