Third Party Administrator
TPA, or "Third Party Administrator" is a professional firm that administers and sometimes performs the recordkeeping function for Qualified Retirement Plans, like a 401(k) plan or Profit Sharing Plan.
The TPA provides the necessary compliance in order for the plan to maintain it's qualified status. Certain areas of compliance include ERISA, Department of Labor Guidelines, Internal Revenue Code and Regulations.
TPA firms come in many different sizes and some prefer niche markets like Defined Benefit Plans or smaller plans. Others may concentrate on large plan operations and compliance. TPA firms provide consulting which may help to remedy a plan that is out of compliance.
Functions:
HCE and Key Employee Determination
40(k) and 401(m)
Enrollment Process
404(c) Compliance
Investment Policy Statement
Summary Plan Documents
401(a)4
Top Heavy
Vesting
Distribution
Loans
Compensation Testing
Reporting & Disclosure
5500 Preparation