Would you hire your neighbor to build a skyscraper? Not likely, most people would hire a general contractor, architect, and engineer. These three professionals and their unique skill-sets provide the intelligence, experience, and resources to construct your building.
It is similar in the retirement plan landscape. Each service provider brings a different resource to assist in the design, implementation, and success of your retirement plan.
For example, the general contractors include your recordkeeper, plan auditor, provider of investment options, benefit attorneys, and other professionals who provide services to your plan.
Your third party administrator (TPA) is like your architect. This professional firm designs the legal framework and guidelines that your plan can follow according to the rules and regulations of the Department of Labor (DOL) and Internal Revenue Service (IRS). Plan design is critical for all corporate-sponsored retirement plans. It’s the blueprint upon which plan actions take place.