Defined Contribution Plans
Safe Harbor 401(k) Plan
Want to get your first 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 can sometimes be confusing.
- Employer choice of required Safe Harbor company contribution
- Simplified census collection
- No initial plan document fee
- Affordable annual maintenance fee
- Ability to upgrade to additional features when the time is right
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.
- 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
New Comparability Plans
Description coming soon!
Multiple Employer Solutions
Traditional Multiple Employer Plans (MEPs)
MEPs are a single retirement plan that multiple companies participate in. The IRS considers these individual plans for purposes of the nondiscrimination testing and the top heavy testing. The Department of Labor (DOL) considers these to be single plans for purposes of the Form 5500. The DOL requires the adopting employers have something in common other than the retirement plan (referred to as common nexus) in order to file a single Form 5500. MEPs that do not meet this requirement are required to file a Form 5500 for each adopting employer. MEPs are often sponsored by PEOs or by companies that have some common ownership, but not enough to rise to the level of a controlled group.
Association Plans are a type of MEP that was created by the DOL in 2019. Association Plans expand the entities that can sponsor a MEP to include chambers of commerce, trade associations, and other related entities. The common nexus requirements still apply, but can include employers in the same trade, same industry, same line of business, or same geographic area.
Pooled Employer Plans (PEPs)
PEPs are a new type of MEP that was created by Congress and allowed for the first time in 2021. PEPs further expand the types of entities that can sponsor the plan to any company that registers as a Pooled Plan Provider (PPP) with the DOL. PEPs do not have the common nexus requirement other types of MEPs do and the threshold to make the MEP subject to independent CPA audit increases to 1,000 participants if no single adopting employer has more than 100 participants. The PPP takes on many of the fiduciary responsibilities for the plan, but can outsource those duties like any plan sponsor.
Multiple Employer Aggregation Programs (MEAPs)
MEAPs are a way to get some of the economies of scale benefits that come with aggregating employers together without the restrictions of MEPs. Each employer in a MEAP sponsors their own completely separate plan with their own plan document and Form 5500. MEAPs typically share an investment manager and investment provider.
Groups of Plans (GOPs)
GOPs are the newest plan aggregation model created by Congress and will be allowed for the first time in 2022. GOPs allow groups of individual plan sponsors to file a single Form 5500 if certain conditions are met. The conditions are that each member of the GOP have the same Trustee, Plan Administrator, Named Fiduciary, Plan Year Beginning Date and Investment options available to participants. Much additional guidance is expected from the DOL before these plans become available in 2022.
Descriptions coming soon!
SmoothStart 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.
Instant Solo(k) Plan
SIMPLE 401(k) Plans
Descriptions coming soon!
More About Nova 401(k) Associates
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