re: 401(k) discrimination testing

quote:

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to either offer 100% dollar for dollar match on the first 4% of each employee's total yearly compensation that the employee chooses to invest themselves or put 3% of each employee's yearly compensation directly into that employee's 401k plan whether or not the employee makes a voluntary contribution themselves, as long as all money in the plan was 100% vested from day one.

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You got the second safe harbor correct. The first one is dollar for dollar to 3, and 50 cents on the dollar for 4 and 5. I'm not sure if 100 percent to 4 counts.

Also, under either option, employer match must be 100 percent vested from the start. So if you have a vesting schedule, it doesn't matter what percentage you match or contribute - no safe harbor.