The problem with TPAs

Ary Rosenbaum - The Rosenbaum Law Firm P.C.
Contact

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

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’t know that. That’s a huge problem because it can only hurt a TPA that is good at what they do.

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’t 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’s way at a cost-effective price. That’s it and TPAs need to a better job of expressing that.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ary Rosenbaum - The Rosenbaum Law Firm P.C. | Attorney Advertising

Written by:

Ary Rosenbaum - The Rosenbaum Law Firm P.C.
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Ary Rosenbaum - The Rosenbaum Law Firm P.C. on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide