NIPA NEWS: Tips for Selecting a TPA Third Party Administrator
NIPA News: Selecting a Third Party Administrator (TPA) for a qualified retirement plan is a challenging task since it is not a process that is performed with regularity. Ms. Claudia St. John, President, HR Affinity Group provides insight on what should be important to a plan sponsor when conducting a search for TPA services. She offers advice in three distinct area:
- Qualifications of the firm professionals do make a difference. It should be a baseline for any search;
- Does the TPA firm possess expertise in the area of Tax? Your retirement plan is a tax-qualified plan so tax-related expertise is important; and
- Dos the firm have experience in working with the Internal Revenue Service and the Department of Labor.
Having the responses to these three key areas is a good start when searching for a new TPA.