A Third Party Administrator (or TPA) is an organization that manages many day-to-day aspects of your employee retirement plan.
A TPA performs responsibilities such as:
- Designing retirement plan documents
- Preparing employer and employee benefit statements
- Ensuring the plan is in compliance with the IRS non-discrimination requirements
- Preparing annual returns and reports required by IRS, DOL or other government agencies
- … and much more.
Knowledge, time and cost are among the biggest factors a business owner faces when making a decision to use a TPA. The Retirement Advantage, is able to address all of these concerns in an efficient and cost effective manner.
WHAT IS A THIRD PARTY ADMINISTRATOR (TPA)?
Why do I need a TPA?
401(k) and other retirement benefit plans can be highly technical field. Keeping up with changes in the retirement plan industry, best practices, compliance, and other administration tasks makes hiring a specialized company, such as TRA, actually more cost effective than doing the same work in-house. Ultimately, choosing TRA means one less thing to worry about.
The rules of qualified plans are quite intricate and require important mathematical calculations called compliance testing to ensure your retirement plan does not discriminate against non-highly compensated employees
Why should I choose The Retirement Advantage as my third-party administrator?
Many mutual funds, banks, insurance companies and brokerage firms provide retirement plan services as a byproduct of their core businesses. Our core business is retirement plan administration.
We actively listen, professionally consult, and deliver customized retirement plan solutions. While other third party administrators offer one-size-fits-all style plan designs, we take the time to start at the beginning and design your optimal retirement plan, together.
TRA is “large” enough to support over $5 billion in retirement assets under our administration but still small enough to still give you and your employees the personalized service you expect.
What's so special about retirement plan design?
The most important but often forgotten role of a TPA is plan design. We are experts in plan design and deliver retirement plans that maximize contributions to highly compensated employees within the limits of the law.
Much like an attorney providing solid legal advice to clients, we help you maximize your contributions. Superior retirement plan design is an art form that should not be discounted if you are a plan sponsor that has the financial backing to support contributions to your employees.
Is a TPA required for a Solo (K)?
If you are willing to do the heavy lifting sometimes associated with sponsoring a retirement plan then you might be able to afford not to engage the services of a TPA.
However, in our experience, most plan sponsors would rather focus on running their business than saving a few pennies to administer their retirement plan. Additionally, we offer Solo (K) plans that are designed to assist sole proprietors to focus on their business instead of the minutiae of sponsoring a retirement plan.
How do you get paid?
It varies depending on your retirement plan design and the services we provide. If you would like us to provide a quote on providing services to you and your plan, please contact our sales team.