Did you recently get a check from your 401(k) plan that you didn't request? The answer is that every 401(k) plan must go through "nondiscrimination testing" on an annual basis. Safe Harbor Plan - If your employer changes your plan to a safe harbor plan, your company is considered exempt from nondiscrimination testing. This strategy may also potentially mean that you are leaving money on the table that you could have kept in your 401(k) plan. Remove Newly Hired - A 401(k) plan administrator may also remove people who have not met certain plan eligibility conditions to improve testing results, even if they were eligible for or participated in the plan during the year.

Source: Forbes March 14, 2019 04:41 UTC