Third-party administrators (TPAs) are the most important plan provider that a 401(k) plan has and the biggest problem is those plan sponsors and many of their advisors don\u2019t know that. That\u2019s a huge problem because it can only hurt a TPA that is good at what they do.<\/p>\n\n\n\n
A good TPA goes a long way in minimizing financial risks to a 401(k) plan sponsor, as well as maximizing employer contributions\/tax deductions. TPAs need to do a better job in marketing themselves, as well as expressing why they shouldn\u2019t be replaced for 5 dollars less. TPAs are not a convenience store that all sell the same products or a McDonalds where the fries and burgers taste all alike. A good TPA is all about putting plan sponsors out of harm\u2019s way at a cost-effective price. That\u2019s it and TPAs need to a better job of expressing that.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" Third-party administrators (TPAs) are the most important plan provider that a 401(k) plan has and the biggest problem is those plan sponsors and many of their advisors don\u2019t know that. That\u2019s a huge problem because it can only hurt a … Continue reading