What is a TPA?

Nova 401(k) Associates is a non-producing third party administrator for retirement plans and a defined benefit actuarial firm. But what in the world does this mean?

  • Non-producing means that Nova 401(k) Associates does not sell any investment products or give any investment advice.
  • Third party administrator (‘TPA’) is an industry term meaning that Nova 401(k) Associates works with record-keepers who provide the daily recordkeeping, investment line-up and participant experience instead of providing this service ourselves. 401(k) TPAs do compliane work instead of recordkeeping.  We work with fabulous record-keepers, which lets us focus on assisting our clients with the compliance issues related to their 401(k) plan, such as plan documents, nondiscrimination testing, Form 5500s, and law changes.

While “non-producing third party administrator” is the industry term that best describes us, we are a consulting firm. We consult with business owners, benefits staff and our financial advisors on implementing and maintaining successful 401(k) plans. For most of our clients, the 401(k) plan is just a tiny part of their job, but they understand it is important to keep their retirement plan in compliance. By listening to our clients and giving them concise, timely advice, we help our clients offer a great employee benefit while still having time to run their businesses.