As a qualified retirement plan third-party administrator (TPA) specializing in serving small and medium-sized businesses, we’ve seen firsthand how the right support can transform a 401(k) from a basic benefit into a powerful tool for employee retention and business growth. Yet, we often hear from financial advisors and CPAs that if a plan’s design is straightforward, there’s no need for a dedicated TPA – opting instead for bundled providers or payroll companies seems sufficient. While this perspective is understandable at first glance, it overlooks the broader role TPAs play. Plan design is just the tip of the iceberg; we’re retirement plan experts and consultants who provide ongoing guidance, compliance monitoring, and administrative efficiency that can save time, reduce risks, and enhance outcomes for business owners.
Beyond Plan Design: Comprehensive Expertise at Your Service
At its core, a retirement plan isn’t a set-it-and-forget-it arrangement. Sure, bundled providers or payroll companies might handle basic setup and integration with your existing systems, but they often lack the depth and specialization needed for long-term success. A dedicated TPA, on the other hand, acts as your strategic partner, ensuring every aspect of the plan operates smoothly and compliantly.
Consistent Guarding Against Fees and Disqualifications
Consider the non-discrimination and coverage tests we monitor—hundreds of them, in fact. These aren’t one-time checks; they’re ongoing evaluations to confirm your plan meets IRS requirements, avoiding costly penalties or disqualifications. For small and medium-sized businesses, where employee demographics can shift quickly, this oversight and knowledge base is crucial. We’ve helped countless clients navigate these complexities, identifying issues early and recommending adjustments that keep plans in compliance.
Hands-on, People-first Support
Administrative functions form another pillar of our work and are where clients and referral partners most directly feel our difference. From assisting you with timely payroll remittances to processing loans and distributions, we handle the day-to-day details that can overwhelm in-house teams. Plan sponsors frequently turn to us with questions about eligibility, vesting schedules, or contribution limits, and our team provides clear, expert answers tailored to their unique situation. In a self-service, chatbot driven industry, we remain committed to offering a white-glove, people-first customer experience. To put it simply, we make it easy to work with us.
Ongoing Plan Design Customizatoin as You Evolve
Of course, we excel at plan design too. We craft structures that align with your business goals, whether maximizing contributions for owners or incentivizing key employees. But unlike bundled options, we don’t stop at implementation. We monitor and suggest modifications as your business evolves – perhaps changing the safe harbor provision or tweaking profit sharing after an ownership transfer has happened. This adaptive approach ensures your plan remains effective.
Seamless Payroll Coordination
Lastly, a common selling point for payroll providers and bundled recordkeepers has been their promise of “easy implementation” and payroll integration. In reality, those advantages are no longer unique. When working with a high-quality TPA like The Pension Source, implementation and payroll coordination become seamless. We know the retirement plan industry inside and out, and we act as the quarterback between vendors and service providers to ensure onboarding is smooth and efficient. Payroll integration, now considered table stakes for a modern 401(k), is an area where we guide clients through the best-fit solutions. With numerous integration options available, we help eliminate the hassle of manually submitting contributions each pay period. And because certain payroll vendors pair better with specific recordkeepers or integration platforms, we advise on the right combination, and educate you throughout the entire process.
Why Expertise Matters, Even for “Simple” Plans
The misconception that simple plans don’t need expert oversight stems from underestimating the regulatory landscape of retirement plans (even if plan design is “simple”) and the multitude of moving pieces to properly administer a retirement plan. Many “all-in-one” providers will say that their services obviate the need for such expertise, but that has not been our experience when taking over plans from these providers and reviewing their work. Businesses are dynamic and ever-changing, and even a slight change to the business’ operations may knock the all-in-one provider off its default path, yet no one will be there to course correct. It could be anything from hiring new employees, buying another business, adding a new location, ownership changes, tax law changes, bringing family into your business, you name it. We have probably seen it all and know how to guide you through the impact on your retirement plan. And when we do, we are sure to converse with you in plain language, not IRS code sections or various acronyms.
Partnering for Long-Term Success
We’d love to have a discussion with you about tailoring a tax-advantaged retirement plan to your liking. Our passion is improving retirement outcomes for small business owners and their employees.
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