For Employees: Who’s Behind Your 401(k)?

Posted on Jun 10, 2025

When it comes to your 401(k) plan, you likely know the basics: you contribute a portion of your paycheck, your employer might match some of it, and over time, your money grows for retirement. But behind the scenes, several key players are working to ensure your plan runs smoothly, and one of the most important is the Third-Party Administrator, or TPA.

A TPA is an independent expert hired by your employer to handle the day-to-day administration of the 401(k) plan. While they don’t manage investments (which is typically the job of a financial advisor or recordkeeper), TPAs are responsible for making sure the plan complies with IRS and Department of Labor rules, contributions are calculated accurately, and all required filings and reports are completed correctly and on time.

Think of the TPA as the plan’s compliance and operations specialist. They help track employee eligibility, monitor annual contribution limits, perform nondiscrimination testing (to ensure the plan treats all employees fairly), and prepare important legal documents like the Summary Plan Description and Form 5500.  They’re also a go-to resource when questions or issues arise—such as correcting contribution errors or handling plan amendments.

Why does this matter to you as a participant? Because a well-administered plan means fewer errors, faster resolutions, and stronger protection for your retirement savings. TPAs help ensure your plan stays healthy, compliant, and built to last—so you can focus on growing your nest egg with confidence. So the next time you check your 401(k) balance, remember: behind every solid retirement plan is a skilled team—including a dedicated TPA—working to safeguard your financial future. Knowing who’s behind your plan is the first step to becoming an informed, empowered saver.

This material is provided for informational purposes only, and is not intended as authoritative guidance, legal advice, or assurance of compliance with state and federal regulations.