Memo – Business Owners With A Retirement Plan | Who Is Your TPA? (Third Party Administrator)

As a business owner, if you offer retirement plans to your employees, a TPA (Third Party Administrator) is the professional that maintains your official retirement plan documents and keeps them in compliance with the IRS’s ever-changing rules.

A third party administrator (TPA) is an organization that manages many day-to-day aspects of your employee retirement plan.

A TPA performs responsibilities such as:

1) Designing retirement plan documents
2) Preparing employer and employee benefit statements
3) Ensuring the plan is in compliance with the IRS non-discrimination requirements
4) Preparing annual returns and reports required by IRS, DOL or other government agencies

That makes them almost as important as me!

But most business owners, also called Plan Sponsors, aren’t aware of this vital person / company representing their company.

Did you know you were the Plan’s Sponsor? Many business owners are never informed of this.

But it is imperative that you form a direct personal relationship with your TPA if you are a business owner offering any type of retirement plan to your employees.

Also, many business owners are not aware that they can choose their own TPA. Many times a financial advisor selects one for the business owner.

I suggest avoiding this. The TPA is much too important to not interview and select one on your own.

As they keep you in compliance with the IRS retirement plan rules, they are extremely important.

I have relationships with seasoned Third Party Administrators who I trust implicitly and can introduce you to.

If you are a business owner offering a retirement plan and you don’t know your TPA, or your TPA is not responsive enough, call me so we can remedy that today.

Like any other specialist your business relies upon, finding your own TPA is vital to your retirement plan success.

Questions? Concerns? Call me on (732) 673-0510.