Defined Contribution Plans

Smooth Start 401(k) Plan

Want to get your 401(k) plan off to a smooth start? For many small businesses, the key to a smooth start is an easy to understand and administer plan coupled with the right professionals at your side. In the beginning, there is no need for more complicated features and choices that sometimes confuse employers.

Nova 401(k) Associates is pleased to roll out its Smooth Start 401(k) Plan. After many years of studying what issues employers have in their first few years of operating a 401(k) plan, we have designed an affordable, easy option for employers sponsoring their first 401(k) plan.

Features include:

  • Employer choice of eligibility period
  • Employer choice of matching contribution that goes only to participants who contribute
    to the Plan or a contribution that goes to all eligible employees
  • A 401(k) plan that is exempt from most of the complicated IRS nondiscrimination testing
  • 401(k) plan loans
  •  Simplified census collection
  •  Allows rollovers into the plan
  •  No initial plan document fee 
  • Affordable annual maintenance fee
  • Ability to upgrade to additional features when the time is right

Safe Harbor 401(k) Plan

A Safe Harbor 401(k) Plan can benefit all employers, but especially those concerned about passing annual IRS-required nondiscrimination tests.  

Features include 

  • Automatically passes the ADP/ACP test  
  • All employees including the owners can contribute the maximum  
  • Usually deemed to pass the Top Heavy nondiscrimination test
  • Your choice of immediately vested required company contribution: either a match that would go to all participating or a non-elective that would go to all eligible 
  • Notices must be given to employees within a specific timeframe- we can help with that!

Traditional 401(k) Plan

Traditional 401(k) plans are great for companies who want to offer their employees the chance to save for their own retirement! They are especially appealing for employers who have a lot of participation from all classes of employees and who like the idea of deciding each year whether or not to make company contributions into the plan.  

Features include 

  • Flexibility in company contributions 
  • Wide variety of plan provisions, including eligibility and rollover options
  • Ability to add a vesting schedule to company contributions 
  • Option of offering different types of distributions 

More About Nova 401(k) Associates

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