Most companies retain the services of a third party administrator (TPA) to assist in setting up and administering a company's retirement plan. There are many plan options an experienced TPA can discuss with you, such as a 401(k), Safe Harbor or Profit Sharing, among a few. A TPA would also handle much of the day-to-day administration of the plan. Not all TPAs are the same.
There are a few things to consider when selecting a TPA, those include:
• the staff’s experience and qualifications
• staff communication skills
• plan design suggestions and implementation
• document sponsorship
• amendment capability
• ability of the firm to represent your plan before the IRS and Department of Labor
• problem solving abilities
TPA independence is also important because this may impact the quality of work and fees Incurred. TPA qualifications to look for are CPA, MST, JD, ESQ, EA, QPA, QKA and CEBS, to name a few. ARS employs caring pension professionals that each have more than ten years of pension experience and have earned ASPPA Qualified 401(k) Administrator (QKA) credentials plus CPAs, with MSTs and an enrolled actuary.
Selecting the right TPA is paramount to the success of the plan. In most cases, the bundled environment is not the best approach, since you cannot choose with whom you work, and whether they have sufficient qualifications to make ongoing plan recommendations.
Most companies evolve, as does the Internal Revenue Code relating to retirement plans. Most plans would be served best by a firm which specializes only in retirement plans, has no vested interest in selling additional services or investments, and which only cares about the success of the plan.
Here at ARS we pride ourselves in listening carefully to what your company's retirement objectives are and setting up a plan to cater to your needs. To learn more about ARS and what we as a TPA can provide to your company's retirement plan visit our About Us page or send a message to one of our welcoming administrators to contact you so we can discuss how we can help your company meet its retirement goals.
The 401(k) / Roth contribution limit is $18,000 plus $6,000 catch-up for employees age 50 and over