In this world all things will have both the good side and the bad side. The strengths and weaknesses are likely not separated in all aspects in this world. This is the same thing with the plan that employers provide. There are advantages and disadvantages of a plan that will give the impact to all participants.
The advantages from Safe Harbor 401K is that the employer is able to operate this plan according to the strategy and guidelines of safe harbor such as for nondiscrimination test. The plan will not conduct that top heavy, which means advantages are mostly for highly paid employees or top employees are restricted. (These highly paid employees usually get more than $95,000 each year). Non-highly paid employee will get greater advantages. The disadvantage from safe harbor is that the vesting must be 100% and employers have commitment to send annual notice about the rights of all participants in the plan.
If you have already taken the 401K Plan in your company, you can further analyze which plan would be better for you and your employees. You can change it if you want to provide safe harbor plan. But not to neglect to update the documents and make new annual safe harbor notice that must be delivered to the employees that consist of rights in the plan.
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