Be Careful Who You Use as Your Retirement Plan’s Third-Party Administrator
If your company currently has a retirement plan for its employees, you will probably know that it has hired an outside Third-Party Administrator (TPA) to run many of the daily functions of the plan, such as processing distributions and loans, annual plan testing and compliance, allocations of contributions, and trading of mutual funds within participant accounts. Although many firms offer TPA services to retirement plans, not all offer the same quality of services due to the nature of their business. One major example of this is payroll providers.
If you are using your payroll provider as your retirement plan’s TPA, you may be running into issues that could be avoided by using a firm that specializes in TPA work. Click here to read an article that discusses the potential drawbacks of using payroll providers for TPA work.
Additionally, if you have experienced issues with your current TPA, whether they are your payroll provider or not, we at DirectAdvisors would be happy to discuss potential solutions with you based on your company’s needs, size, and budget.