Frequently Asked Questions

A TPA, or Third Party Administrator, is a retirement plan professional who helps employers manage the technical and administrative side of a qualified retirement plan.

In simple terms, a TPA helps keep the plan organized, compliant, and operating in accordance with the plan document.

A TPA helps administer the plan according to its document and applicable IRS and Department of Labor requirements. Depending on the plan and the service arrangement, this may include:

• plan design consulting
• plan document preparation and amendments
• eligibility and entry date support
• contribution allocation calculations
• compliance and nondiscrimination testing
• annual administration
• Form 5500 preparation
• coordination with advisors, recordkeepers, payroll providers, and employers
• correction support when plan errors or operational issues need to be addressed

The goal is to help the employer manage the plan’s ongoing responsibilities with greater clarity and confidence.

Each retirement plan provider has a different role.

A recordkeeper generally maintains participant accounts, tracks investments, processes transactions, and provides online access for employees.

A financial advisor typically focuses on investment-related guidance, fiduciary support, participant education, and helping employers evaluate plan investment options.

A TPA focuses on the plan’s technical operation including plan design, plan documents, compliance testing, eligibility, contribution calculations, annual administration, and administrative accuracy.

A strong retirement plan often works best when the employer, TPA, advisor, recordkeeper, payroll provider, and other professionals are aligned.

It depends on the provider and the service model. Some 401(k) providers offer bundled services that include recordkeeping, plan documents, compliance testing, and certain administrative support. Other arrangements rely on an independent TPA to provide more detailed plan design, compliance testing, document preparation, and annual administration services.

If an employer wants more hands-on technical support, more customized plan design, or a different level of service than their current arrangement provides, an independent TPA relationship may be a better fit.

For some employers, a right TPA relationship can make the plan easier to understand, manage, and maintain.

No. The employer remains the plan sponsor and continues to have fiduciary, operational and compliance responsibilities.

A TPA provides the technical knowledge, guidance, and administrative support to help the employer manage those responsibilities. TNJ helps employers understand what needs attention, what decisions may be needed, and how to keep the plan moving in the right direction.

TNJ works with a variety of qualified retirement plans, including:

• 401(k) plans
• Profit Sharing plans
• 403(b) plans
• Money purchase plans

We also assist with plan design features such as safe harbor provisions, new comparability allocations, and other employer contribution strategies.

Because each plan type has different rules and requirements, we help employers and advisors understand which structure may fit the goals of the business and the needs of the workforce.

Yes. A plan review can be valuable even when nothing appears to be “wrong.”

Over time, businesses grow, ownership changes, payroll systems change, employee demographics shift, and laws evolve. A plan that made sense several years ago may no longer be the best fit.

A plan review can help identify:

• Outdated plan provisions
• Repeated testing issues
• Eligibility or payroll coordination concerns
• Missed design opportunities
• Administrative inefficiencies
• Potential compliance risks
• Opportunities to better align the plan with business goals

It is often easier to review plan design and operations before an issue becomes urgent.

TNJ works as part of the team supporting your retirement plan. We coordinate with employers, advisors, recordkeepers, payroll providers, CPAs, and other service providers to help keep plan responsibilities organized and moving forward.

Our role is to provide technical retirement plan support, clear communication, and expert guidance so employers and their advisors have a knowledgeable resource throughout the life of the plan.

TNJ is a small, experienced firm that brings retirement plan knowledge, professional credentials, responsive communication, and a partnership mindset to each client relationship. Clients work directly with professionals who each bring more than 25 years of retirement plan administration and consulting experience.

Our focus is on helping employers understand how their plan works, where risks or opportunities may exist, and how the plan can better support the business and its employees.

We are dedicated to providing responsive communication and thoughtful administration support, as well as nurturing long-term relationships with our clients and advisors.

Employers and advisors should contact TNJ whenever a plan question, change, or issue may affect how the plan operates. It is often easier to review questions before action is taken, especially when payroll, eligibility, contributions, distributions, or plan design may be involved.

We always encourage our clients to reach out early so we can help identify what needs to be considered and keep the plan moving in the right direction.

Yes. TNJ works with employers who already sponsor retirement plans and need experienced help with annual administration, compliance testing, plan documents, required filings, corrections, or plan design questions.

We can review how the plan is currently operating, help identify areas that may need attention, and work with your existing advisor, recordkeeper, payroll provider, and other service providers.

Employers may consider changing TPAs when communication is inconsistent, questions are not being answered clearly, deadlines feel rushed, or the employer wants more experienced support with the technical details of the plan.

A change may also make sense when the plan has become more complex, the employer is considering design changes, or issues have come up that require more hands-on guidance.

Changing TPAs is often straightforward, but it does require coordination. TNJ helps keep the transition organized so the employer, advisor, recordkeeper, and former TPA understand what is needed and what comes next.

A good transition process helps organize the moving parts, identify open issues, and keep the change manageable.

Yes. A plan design that worked well when the plan was established may not continue to fit the business as ownership, employee demographics, cash flow, or company goals change.

TNJ can help review the current plan design, explain available options, and coordinate with advisors or other professionals when changes should be considered.

Retirement plan mistakes happen, and they should be addressed promptly. Common issues may include missed deferrals, late deposits, eligibility oversights, failed testing, missed notices, loan issues, data errors, or questions about which types of compensation should be included for plan purposes.

Many issues can be corrected through IRS or DOL correction programs when handled properly. TNJ helps identify the concern, evaluate correction options, prepare calculations and documentation, and guide clients through the correction process.

A business may consider starting a retirement plan when it wants to create savings opportunities for owners and employees, offer a meaningful employee benefit, support recruiting and retention goals, or explore potential tax planning opportunities.

Some employers may also be evaluating whether to sponsor their own retirement plan instead of participating in a state-facilitated retirement savings program, such as My Illinois Savings, formerly known as Illinois Secure Choice.

The right plan depends on what the employer wants to accomplish. Some businesses may need a straightforward 401(k) plan, while others may benefit from safe harbor provisions, profit sharing contributions, new comparability allocations, or other design features.

TNJ helps employers and advisors understand how different plan types and design choices can impact contributions, employee participation, ongoing plan responsibilities, and cost considerations so they can make informed decisions.

Not necessarily. The cost and complexity primarily depend on the type of plan, the contribution strategy, and service providers involved. TNJ helps coordinate the setup process, including plan design, documentation, implementation, as well as the ongoing annual administration.

There are also IRS tax credits available for most new plans which can cover several of the plan-related costs for the first three to five years of the plan. The applicability of any tax credits should be discussed with your tax accountant.

The timeline depends on the type of plan, the plan design, the service providers involved, and how quickly decisions and required information are completed. Because some plan provisions and deadlines are time-sensitive, employers should start the conversation early. TNJ helps outline the steps, coordinate the details, and keep things moving forward and on schedule.

Plan sponsors are responsible for making sure the plan is operated according to the plan document and applicable rules. This may include tracking eligibility, making timely contributions, providing required notices, completing compliance testing, reviewing distributions and loans, filing Form 5500 when required, and maintaining records. TNJ helps employers manage these moving parts so important deadlines and requirements do not fall through the cracks.

A qualified retirement plan is an employer-sponsored plan that is designed to meet certain IRS and Department of Labor rules and regulations. When operated properly, these plans can provide tax advantages for employers and participants while helping both business owners and their employees save for retirement.

Common examples include 401(k) plans, profit sharing plans, money purchase plans, and certain defined benefit plans.

A plan document is the written document that establishes the rules for proper operation of the qualified retirement plan. This mandatory document explains important provisions such as eligibility, contributions, vesting, distributions, and other plan requirements. The plan must be administered according to its document in order to retain its tax-favored status. This is just one reason why keeping the document current and understanding its provisions is a critical part of maintaining a compliant plan.

Compliance testing is performed annually to determine whether a retirement plan satisfies certain IRS requirements. Depending on the plan’s design, this testing may encompass participation, contributions, benefits, limits, and whether the plan treats all employees in a nondiscriminatory manner. If a test is not satisfied, corrective action may be needed.

Some plan designs, such as Safe Harbor 401(k) plans, may reduce or eliminate certain annual testing requirements if specific rules are met.

Form 5500 is an annual filing required for many retirement plans. It provides information to the IRS and Department of Labor about the plan’s operations, financial activity, and certain compliance testing details. The filing requirements can vary depending on the type and size of the plan.

Employee contributions, such as 401(k) deferrals, are amounts employees choose to make from their own pay into the plan.

Employer contributions are amounts the company contributes, such as matching, profit sharing, Safe Harbor, and nonelective contributions.

The plan document determines what types of contributions are allowed or required, which employees are eligible for contributions, and how the employer contributions will be allocated among the eligible employees.

Vesting determines when a participant has a nonforfeitable right to employer contributions made to their account. Employee 401(k) deferrals are always 100% vested. Employer contributions may vest immediately or over time depending on the plan’s vesting schedule.