What is a TPA?
A TPA is a Third Party Administrator. Qualified plans must be operated in compliance with the plan document, IRS and DOL rules and regulations, and provide the benefits promised. When a business establishes a qualified plan such as a 401(k) plan, it is the duty of the Plan Administrator and Trustees to keep the plan in compliance. This requires skills and knowledge not often in the hands of the owner, HR people and CFO etc. It is then appropriate to retain a responsible, trained and qualified party to assist in the duties of plan compliance. That is what a Third Party Administrator does.
