Questions to ask a 401(k) TPA

A financial advisor goes out to a small business owner and presents three options for a 401(k) record-keeper.  He talks about each of the record-keeper’s due diligence on the funds, the investment fees, the enrollment material, and the website.  There is a lengthy and robust discussion about the pros and cons of each record-keeper.  At some point in the process, the financial advisor explains that a third party administrator (TPA) will do the plan document, Form 5500/Form 5500-SF, and the IRS-required nondiscrimination testing.  Usually the time spent on the choice of TPA is minimal, but sometimes a representative of the TPA attends the meeting.

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