Nondiscrimination testing can hand highly paid staff a taxable refund of money they already deferred

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A safe harbor design buys exemption from the testing rules by promising a minimum employer contribution every year The annual additions limit counts employer match and after-tax money so the headline deferral cap is not the real ceiling Cliff vesting at five years means leaving at four years and eleven months pays nothing from the employer side A plan freeze stops accruals for new hires and sometimes for everyone already enrolled A plan menu stays short because the sponsor owes a fiduciary duty of prudence and not because choice is worthless A defined benefit formula multiplies final average salary by years of service and an accrual rate Why the elective deferral limit applies only to your own contributions and never to the employer match Benefit formulas that use career average earnings pay less than final salary ones for the same years of service Vesting requirements decide whether you leave with a benefit at all or only with your own contributions Waiving the joint and survivor annuity requires a spouse's written consent in most private plans