Qualified Pension Services: Why Engage a Third Party Administrator?


	WHY ENGAGE A THIRD PARTY ADMINISTRATOR? There are specific reasons for selecting a TPA (Third Party Administrator) rather than just using an Adoption Agreement (Plan Document) from a big Mutual Fund. A TPA will not only prepare an Adoption Agreement, but will also advise you on how to stay in compliance with ERISA Law by providing: 1) Contribution Reconciliation (at Plan Year End) – your plan could be disqualified if contributions do not reach the investment source or are not classified correctly when received. 2) Compliance Testing – required by ERISA (ADP test, Coverage test, Top Heavy test, Maximum Contribution test, and General Non-Discrimination test(s), when applicable). 3) Tax Return Preparation, including Form 5500 and related Schedules – again critical to remaining a Qualified Plan. 4) Participant’s Statements – with Vesting Calculations to comply with ERISA. 5) Amendments to the Plan – when your old plan design no longer works as well as it should. Keeping your plan in compliance with ERISA law takes work. This is what we do as your Third Party Administrator.