I am ready to establish a 401(k) plan but need to know who plays what role. In a 401(k) plan today the recordkeeper could be the same or different from the entity hired to do the administration and compliance of the plan. Third Party Administrators ( TPA) are often used for annual administration and compliance as well as for plan design and review, but they too could be performing recordkeeping functions. As with everything related to vehicles that allow for tax deference, the specific duties of all of these players in the defined contribution and 401(k) plan space are ever changing. Learn more about these entities and their roles in plan establishment and ongoing operation in the 401(k) market specifically.
Your client already has a qualified retirement plan but it was been put on the set-it and forget-itmerry-go-round. The cost of the plan, the investment returns and the service model are the three most important items your client will take into consideration during the on-going operation of any qualified plan. Know who plays what role and how with some simple pieces of data you can obtain a cost/benefit analysis that will put you front and center to provide a cost effective, service oriented competitive platform.
Susan Hajek offers securities through Resource Horizons Group, L.L.C., Member FINRA/SIPC.
1350 Church Street Ext. NE, 3rd Floor, Marietta, GA 30060. Telephone 770-319-1970.
Resource Horizons Group, L.L.C. and Brokers Alliance, Inc. are not affiliated….(read more)
LEARN MORE ABOUT: Qualified Retirement Plans
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