Which retirement plan best meets the objectives of providing a large contribution for Nick while keeping plan costs reasonable?

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An age-based profit-sharing plan is particularly well-suited for Nick since it allows for larger contributions based on the participant's age. This feature is advantageous because it enables higher contributions as employees grow older, which can be beneficial for individuals who may be behind in their retirement savings or who wish to accelerate their savings in the latter part of their career.

Additionally, while it provides significant contribution opportunities, it can still keep overall costs reasonable for the employer. The plan's contribution limits are designed to provide a substantial benefit to older employees without the restrictions of a traditional defined benefit plan, which can come with higher fixed costs and require more complex funding calculations.

In contrast, other options such as cash balance pension plans and traditional defined benefit plans may offer larger funding requirements and administrative complexities, making them less cost-effective in terms of management and required contributions. Profit-sharing plans generally provide flexibility but may not allow for the same level of accelerated contributions based on age that Nick might require. This makes the age-based profit-sharing plan a balanced option that meets the need for higher contributions while maintaining manageable costs.