pricespector

I think you're on the right track with a Safe-harbor 401k. The problem most likely to occur with a redgular 401k is that it will become "top heavy" because there is a large disparity between the top-earning doctors and lower echelon employees. The doctors would likely max-out their contributions each year while the lower echelon contributes a small percentage of income. Soon, the plan would be deemed to be primarily for the benefit of the highly compensated employees because average account values would be disproportionate. Each year the plan will have to be "tested" for compliance and contributions of the high earners will be limtied to bring the plan back into proportion. This would add to the complexity and administrative costs of the plan.

The way around this is the "safe harbor". Unlike a traditional 401k with a match to participants, a safe harbor has a MANDATORY employer contribution of 2% or more to all ELIGIBLE employees. This means that you will match your employees regardless of their own contributions. In exchange for the safe harbor contributions, the high earner's contributions will not be limited and can be maximized.