Question: What is a 401k plan Third Party Administrator?

Answer: A Third Party Administrator (or TPA) is an organization that is hired by the 401k plan sponsor (YOU, the company sponsoring the Plan) to run many day-to-day aspects of your retirement plans. These include, but are not limited to:

  • Monitoring eligibility (who is eligible & when?)
  • Verifying contributions to the Plan arewithin legal limits
  • Helping you interpret your Plan (answer questions about whether certain transactions are allowed)
  • Preparing employer and employee benefit statements (the government requires that certain notifications be provided to employees annually and in certain other situations)
  • Assisting in processing all types of distributions from the plan (needed to distribute the account balance that former employees are entitled to)
  • Preparing loan paperwork for plan participant (if your Plan allows loans)
  • Testing the plan each year to gauge your Plan’s compliance with all IRS non-discrimination requirements as well as plan and participant contribution limits (because there are often limits & rules that apply to how much the Owners & Stockholders can add to their own accounts)
  • Calculating the amount of the Company’s tax-deductible contribution to the Plan based on your Plan Design and your Company’s tax-saving goals
  • Calculating how the Company contribution is allocated among the eligible employees
  • Calculating Employees’ vested percentages (for Profit Sharing Plans)
  • Preparing and filing annual returns (very similar to Tax Returns) and reports required by IRS, DOL or other government agencies.

Question: Why use Beasley, Mitchell & Company’s services?

Answer: Beasley, Mitchell & Company is a well-known Tax, Consulting and Retirement-plan leader, providing excellent service at competitive prices. Beasley, Mitchell & Company is a locally-owned and operated team of over 50 highly qualified professionals, and our Retirement Plan Team is ready to help you maximize the Tax & Wealth Accumulation opportunities available from wisely utilizing your Retirement Plan.


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