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Buyer Beware: Why retirement plan sponsors should think twice before using payroll provider TPAs

When it comes to 401(k) plan administration and payroll, they don’t have much to do with each other beyond salary deferrals

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Third Party Administrators (TPA) at a Glance

A TPA’s responsibilities include, most importantly, retirement plan design, as well as record keeping, yearly testing to gauge a plan’s compliance with Internal Revenue Service’s (IRS) non-discrimination rules and participant contribution limits, and preparing annual returns and reports required by the IRS.