401(K) Plan Administrator for the Employer
RETIREMENT PLANS ARE COMPLEX. WE MAKE IT EASY.
At The Retirement Advantage (TRA), we believe in the best retirement for you and your employees — not only for the future, but for today’s bottom line. Retirement plans and employee benefits also help attract and retain great talent. Join forces with one of the industry’s leading experts in retirement plans.
Through flexible and innovative plan design, we provide you with the best customized retirement solutions. We also guide you through the technical industry jargon and regulations to be certain you understand the process and what’s required to both comply and prosper.
HOW RETIREMENT PLANS WORK: AN OVERVIEW
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Preparation
A business owner must select four main parties to help create and operate a retirement plan: financial advisor, recordkeeper/investment provider, third party administrator (TPA) and fiduciary. Many times, employers work with a financial advisor or investment firm that selects the other entities on the employer’s behalf. A plan must have at least one fiduciary — a person or entity — named in the written plan as having control over the plan’s operation. Fiduciaries have important legal responsibilities and are subject to standards of conduct because they act on behalf of retirement plan participants — owners and employees — and their beneficiaries. In many small cap and middle market companies, the business owner is often the fiduciary. Using a delegated 3(16) plan administrator, business owners can transfer the fiduciary responsibilities to another entity. Learn more about how TRA can relieve your day-to-day fiduciary responsibilities with our 3(16) Plan Administration.
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Retirement plan selection
The financial advisor and/or (TPA) discusses your goals for a retirement plan — both your needs as a business owner and the benefits you intend to bring your employees. The financial advisor and TPA will design a plan to fit those needs. There are quite a few types of plans that offer various advantages and disadvantages based on the plan goals. For instance, plans for companies with fewer than 100 employees vary from those with thousands of employees to one with a sole proprietor. The Retirement Advantage is a third-party administrator that specializes in custom plan design for your unique needs — and will then also administer your plan to make sure you remain in compliance with federal regulations.
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Retirement plan administration
The third-party administrator creates a plan document that outlines how your retirement plan will work. The financial advisor invests the funds deposited into your plan, and the recordkeeper tracks the performance of those investments while the third-party administrator oversees the plan’s compliance with the U.S. Department of Labor and IRS regulations.
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Retirement
The plan document sets the earliest age at which a plan participant (employer, employee or beneficiary) may request a retirement distribution. The plan also determines when an employee is fully vested and may be entitled to receive all of the money contributed by the company and its earnings. There are other situations and life events where it becomes necessary for the plan participant to withdraw or transfer funds.
Let us help guide and protect your company’s retirement plan with ease and clarity.
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TRA Administration for Employers Frequently Asked Questions (FAQ's)
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What does a 401(k) plan administrator do for employers?
A 401(k) plan administrator helps employers design, document, test, and maintain their retirement plan so it stays compliant and runs efficiently. TRA supports plan administration, ongoing compliance, and day-to-day oversight.
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How can a TPA help reduce retirement plan administrative burden?
A third-party administrator (TPA) helps handle plan documents, testing, deadlines, and regulatory requirements. This gives employers and advisors more time to focus on employees, client relationships, and business priorities.
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What is the difference between a recordkeeper, a financial advisor, and a TPA?
A recordkeeper tracks plan accounts and investments, a financial advisor helps guide plan strategy and investments, and a TPA focuses on plan design, administration, and compliance. Each plays a different role in keeping a retirement plan effective.
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Can a 3(16) plan administrator help employers reduce fiduciary responsibility?
Yes. A 3(16) plan administrator can take on specific administrative fiduciary responsibilities defined in the service agreement and plan structure. This can help employers reduce day-to-day plan administration responsibilities while improving oversight.
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How do employers choose the right retirement plan design?
The right plan design depends on company size, goals, budget, employee needs, and owner objectives. TRA works with employers and financial advisors to build customized retirement plan designs that align with those priorities.
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Why do financial advisors partner with a third-party administrator?
Financial advisors often partner with a TPA to help deliver stronger plan design, compliance support, and ongoing administration for clients. This coordination can improve the employer experience and support better plan outcomes.
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How can retirement plans help employers attract and retain employees?
A well-designed retirement plan can strengthen an employer’s benefits package and support long-term employee financial wellness. For many businesses, that makes retirement benefits an important tool for recruiting and retention.
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