My client says his or her payroll provider handles 401k administration. Should I recommend a TPA?
Almost certainly. PA payroll provider that offers TPA services is an example of a “bundled provider.” Bundled providers typically offer TPA services to bolster other offerings, such as payroll, financial advice, and insurance. These types of partnerships often result in poor plan design/administration and unnecessary exposure to compliance risks. By using a qualified TPA, you will have a team of knowledgeable, experienced professionals who can help you to design and administer your retirement plan with the best possible outcomes.
Should my client work with a TPA?
Retirement plans are a complex, highly-specialized benefit. They require knowledge, experience and a keen insight into the ever-changing regulatory landscape. Using a TPA will ultimately prove more cost-effective than having the work done by an in-house plan sponsor or outsourced bundled provider. It will also significantly lower and even eliminate compliance risks associated with plan design and ongoing administration.
How do I recommend the right retirement plan?
Let us help. No two organizations are exactly alike. In the past, employees depended on pension plans and Social Security to cover their costs during retirement. Now, there are many retirement programs that provide tax benefits to both employers and employees based on organizational size, business sector, revenue, and much more. An experienced TPA partner can help you cut through the noise of today’s retirement plan marketplace, helping you to select, design, and administer a best-fit retirement plan solution for your clients.
My client is a one-person shop/startup. What options does he or she have?
There are options for solo professionals, one-person organizations, and startups. The retirement plan may still need to be designed to allow for growth, as the organization grows. Many one-person firms and startups benefit from having a TPA they can depend on to administer their retirement plans and ensure that they continue to remain compliant as laws and regulations change.
What retirement plan options are available for non-profits organizations and government workers?
Organizations of all sizes benefit from offering retirement plans to their employees. Retirement plans help organizations recruit and retain top talent in today’s competitive labor market. There are a number of plan options available for tax-exempt organizations, non-profits and government entities. A skillful and informed TPA can help these types of organizations design and administer a retirement plan that will bring value to their employee benefits portfolio, without increase compliance risk.