Services at Nova 401(k) Associates
Defined Contribution Plans
Defined Contribution (DC) retirement plans allow employees to invest pre-tax dollars that can grow tax-deferred until retirement. While there are a few different types of DC plans, the 401(k) is the most popular and widely evaluated by businesses looking to offer retirement plan to their employees. Your Nova 401(k) Retirement Plan Consultant can discuss the features and benefits of each plan type to assist you in finding one that best fits the needs of your business.
Defined Benefit Plans
Defined Benefit (DB) retirement plans are a type of plan where the retirement benefit is defined by the employer. These are commonly referred to as pension plans where the DB plan provides a specific payment amount at retirement based on employee factors such as age, salary and years of services to the business. These types of plans require actuarial calculations and your Nova Retirement Plan Consultant can further detail what makes a good DB candidate and assist in reviewing anticipated employer contributions that will be needed to properly operate a DB plan.
Tax Exempt Plans can be viewed as a subset of DC plans and typically reference 403(b) and 457(b) plan types. These types of plans are normally offered by tax exempt or governmental organizations, such as 501(c)(3) entities, churches and municipalities. These plans often allow for individual employees to make tax-deferred contributions, as well as the option for the organization to make an additional contribution to the employee’s retirement account. Nova is proud to maintain an entire team exclusively focused on tax exempt plans.
Multiple Employer Solutions
This is a category of plan types that typically comprise two or more unrelated employers utilizing a single retirement plan. The most common of these plan types are Multiple Employer Plans (MEPs), Professional Employer Organizations (PEOs) and Pooled Employer Plans (PEPs). Each can offer unique advantages to those businesses that choose to participate, such as a reduction of fiduciary responsibility, ease of administration and potential cost savings. Nova’s dedicated Multiple Employer Solutions team serves as a tremendous resource for the administration and federal compliance reporting these plan types require.
This type of retirement plan is available to a direct business owner and their spouse, so long as there are no full-time employees at the business. Owner-Only retirement plan clients are afforded the same pre-tax deferral opportunities of traditional DC plans, but often are not required to adhere to some of the traditional annual administration requirements. Nova is pleased to offer it’s “Instant Solo(k)” plan option for those business owners looking to immediately establish a retirement plan.
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