Start Your Retirement Plan the Right Way
Starting your 401(k) or Cash Balance + 401(k) combo plan right makes all the difference. With more than 25 years of experience, in-house actuaries, and a dedicated team of plan design and administration professionals, you’re in the right place to build lasting retirement security for yourself and your team.
At Nydia Retirement Solutions, we specialize in helping business owners establish new retirement plans that align with their goals, whether that means maximizing tax efficiency, rewarding key employees, or building a foundation for long-term growth.
We collaborate seamlessly with your financial advisor, CPA, and the industry’s top recordkeepers to ensure every plan is designed with precision, compliance, and flexibility in mind.
What You’ll Need to Get Started
To begin your plan design, your Nydia team will guide you through a few simple steps. Having these details ready helps us tailor the right structure for your business:
- Your business name and entity type (LLC, S-Corp, partnership, etc.)
- Number of employees and ownership breakdown
- Current payroll information or census (age, compensation, and hours worked)
- Employer contribution goals (matching, profit sharing, or defined benefit funding targets)
- Advisor and CPA contact information
- Desired plan start date and budget for contributions
Start a New Plan
Frequently Asked Questions About Starting a New Retirement Plan
Do I start a combo plan with a TPA or with my advisor or CPA?
A combo plan, pairing a 401(k) with a Cash Balance plan, typically begins with a Retirement Plan Consultant (RPC) – also known as a TPA. Your advisor and CPA play vital roles in investment strategy and tax planning, while the RPC handles plan design, compliance testing, and actuarial calculations.
How do I set up a 401(k) for my company?
Setting up a 401(k) involves selecting an ROC (TPA), recordkeeper, and investment advisor. Your RPC manages the compliance and design process, ensuring your plan meets IRS and DOL requirements and fits your company’s goals.
Does profit sharing have to go into a 401(k)?
Profit-sharing contributions are often combined with 401(k) plans, but they don’t have to be. A standalone profit-sharing plan can exist, though combining it with a 401(k) offers more flexibility and higher potential contribution limits.
Can a non-profit set up a 401(k)?
Yes. Non-profits can sponsor 401(k) or 403(b) plans. Nydia helps tax-exempt organizations evaluate which plan type best fits their structure and compliance requirements.
How do I set up a 401(k) as a small business owner?
Start by identifying your goals: tax savings, employee retention, or personal retirement growth. From there, contact a Retirement Plan Consultant to handle plan design, recordkeeping coordination, and regulatory filings to make the process easy and compliant.
What is better, profit-sharing or 401(k)?
They serve different purposes. A 401(k) allows employees to defer their own income; profit-sharing allows the employer to contribute additional funds. The best approach often combines both to maximize savings potential.
Who benefits from a Cash Balance plan?
Cash Balance plans are ideal for profitable companies with consistent cash flow and owners seeking larger tax-deductible contributions than a 401(k) alone allows.
Is there a downside to a Cash Balance pension plan?
Cash Balance plans require annual funding and actuarial maintenance. For stable businesses, the benefits outweigh the complexity, but consistency is key.
What is the 3-year rule for Cash Balance plans?
Participants generally become vested in employer contributions after three years of service. This ensures fairness and encourages retention.
Can I create a 401(k) on my own?
While technically possible, the compliance requirements are complex. Partnering with an RPC like Nydia ensures your plan is properly structured, tested, and maintained.
How much does it cost a company to start a 401(k)?
Start-up costs vary based on plan design and provider selection, but most small businesses can expect $1,500–$3,000 in initial setup and modest annual administration fees thereafter.
How much will $10,000 in a 401(k) be worth in 20 years?
Assuming a 7% annual return, $10,000 could grow to nearly $39,000 over 20 years, highlighting the power of early and consistent saving.