A ‘TPA‘ in the retirement plan world is better understood as a third party administrator for a qualified retirement plan. Most TPA’s work with 401k plan, 403b plan, defined benefit, cash balance, as well as, other types of qualified retirement plans. A TPA is generally one-third of the retirement plan team that helps accomplish the plan sponsor’s overall objectives and goals for the qualified plan itself.
What Does a TPA Do?
Third Party Administrator should not be confused with Plan Administrator. The Plan Sponsor is always the Plan Administrator unless someone else is selected.
Some of the duties of a TPA
- Design the retirement plan so that it is goal oriented, but compliant with the legal requirements set forth by the DOL and IRS.
- Re-state and Amend the legal Plan Document
- Annual compliance testing, such as, discrimination testing
- Calculating vesting percentages
- Completing and filing the annual Form 5500
- Be a proactive consultant partner to the Plan Sponsor
- Partner well with the other members of the team!
2659 Townsgate Rd,
Westlake Village, CA 91361
Regional Vice President of Sales – Hawaii
President – Utah