Think of a 401(k) plan like a breakfast plate, and business owners are the chefs who want to serve up the most satisfying helping—especially for themselves, their family, and their employees, who save on their own. Normally, that’s done with a custom profit-sharing recipe alongside a standard “safe harbor” match. But sometimes the ingredients just aren’t right. When that happens, it might be time to get out the pancake mix! (Or all pile in the car for a trip to IHOP).
Why pancakes and not waffles or bacon? Because the pancake mix is for the Safe Harbor Super Match – which is like a stack of pancakes. Each layer adds more goodness—but only for those who bring their own syrup (deferring at least 6% of their salary).
Layer 1 – The Basic Pancake
This is your classic safe harbor match.
- 100% match on the first 3% of pay
- 50% match on the next 2%
🍴 So, if employees defer 5% of their pay, they get a 4% match.
Layer 2 – The Blueberry Boost
This one’s a little extra, like adding fruit.
- It matches 66.67% of deferrals, up to 6% of pay.
🍴 That’s another 4% match—yum!
Layer 3 – The Whipped Cream Topper
Now we’re sweetening the deal to hit the IRS’s full plate limit for 2025 all contribution types.
- It fills in the rest—up to the $70,000 max—based on how much room is left after deferrals and the first two layers.
A few additional recipe notes
- Either of the second or third layer matches may be enhanced (like 100% up to 6% of pay).
- Both the second and third layer matches are guaranteed to the participant for the year, regardless of whether the participant stays through the end of the year.
Example with 2025 limits:
Our top chef (business owner) earns $350,000 and defers $23,500 (7%).
- Layer 1: $14,000
- Layer 2: $14,000
- Layer 3: $18,500
🍽️ That’s a total of $46,500 in matching contributions—fluffy, golden, and perfectly stacked.
Bottom Line:
For those who bring a full appetite (at least a 6% deferral), they get a delicious 13.3% of their salary in matching goodness. And to sweeten up the deal for business owners, this match can come with a vesting schedule—meaning some layers are earned over time to help employers retain talent.
As you can see, the safe harbor super match isn’t just a fun concept; it’s a practical tool to stack contributions while incentivizing employee participation.
Need help flipping retirement plans into something sweet? Call us today to discuss how we can help; let’s get you cooking!
