Defined Benefit and Cash Balance plans promise guaranteed benefits to participants. When a plan includes a guaranteed retirement benefit, oversight and funding requirements increase. One of the key entities involved in that oversight is the Pension Benefit Guaranty Corporation.
Understanding …
Stargret Thompson | Retirement Plan Consultant | Insights for plan sponsors & HR professionals
Starting January 1, 2026, high earners aged 50+ face new rules on how they can make catch-up contributions to their 401(k).
If your organization sponsors a …
Insights from Julie Thompson, Retirement Plan Consultant, Nydia Retirement Solutions
If you’ve received an amendment to your retirement plan document recently, you’re not alone, and there’s no cause for alarm. This is a routine but important step that every plan …
Retirement plan design has historically favored large corporations with the scale to spread costs and compliance across thousands of employees. Business owners had to choose between sponsoring a standalone 401(k) plan which can be …
For many companies, retirement plans run smoothly year after year. Contributions are processed, annual testing is completed, and employees continue building retirement savings without much disruption.
The most significant challenges rarely come from routine administration. They appear when the business …
Many business owners hear the same reassuring phrase every year.
Your plan passed testing.
Coverage passed. Nondiscrimination passed. No compliance issues flagged. On paper, everything looks fine. But passing annual testing does not mean your retirement plan is working as …
Embedding a Cash Balance or Defined Benefit plan alongside a 401(k) can significantly increase annual retirement contributions for business owners. It also introduces coordinated deduction rules that shape how much can be funded each year.
When structured thoughtfully, a combo …
Each year, many business owners reach the same moment. Tax returns are finalized, quarterly payments are made, and a significant check is written to the IRS. For some, that check is substantial. Six figures is not uncommon.
At that point, …
For many business owners, determining how much they can contribute to a 401(k) plan is straightforward. When compensation comes from W-2 wages, the numbers used for retirement plan calculations are clearly defined.
Self-employed individuals often face a more complex situation. …
Retirement plans are often designed at a moment in time. A small team. Predictable costs. Straightforward administration. At that stage, decisions feel manageable. Eligibility rules are simple. Contribution formulas are easy to model. The workforce is stable enough that testing …