A Safe Harbor 401k plan is a type of retirement plan designed to automatically meet certain IRS rules that apply to regular 401ks. These rules are meant to make sure plans are fair for all employees, not just for business owners or highly paid workers. To qualify as a Safe Harbor plan, employers must make a minimum contribution to their employees’ accounts, and that contribution must follow specific guidelines. In return, the plan is exempt from annual testing requirements that can be complicated and time-consuming. Safe Harbor plans allow employees to contribute the same way they would in a regular 401k, with the added benefit that they always get to keep the employer’s contributions right away. These plans are popular with small and midsize businesses because they help avoid IRS testing and make retirement planning more predictable for everyone involved.