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A 401(k) administrator, or TPA, keeps your plan compliant: testing, filings, plan documents, and design. The right one can also help owners contribute far more.
Plan design and administration under one roof.
A free review of your plan and fees
A third-party administrator (TPA) handles the technical and compliance side of a 401(k). That includes plan documents, annual nondiscrimination testing, contribution calculations, Form 5500 filings, and distribution and loan processing.
A TPA is different from your recordkeeper, which holds the accounts and processes trades, and your investment advisor, who manages the fund lineup. Many large providers bundle all three with a basic, one-size-fits-all design. An independent TPA designs the plan around your goals.
| Role | What they do |
|---|---|
| TPA (plan administrator) | Plan design, plan documents, testing, contribution calculations, Form 5500, compliance |
| Recordkeeper | Holds participant accounts, processes contributions and trades, provides the employee website |
| Investment advisor | Selects and monitors the investment menu. A 3(38) advisor takes on that fiduciary responsibility |
| Plan sponsor (you) | Oversees the plan, deposits contributions on time, and hires and monitors the providers |
At Life, Inc., we serve as your TPA, and as a registered investment advisor we can also serve as your plan’s investment fiduciary.
From first call to first contribution, we handle the design, the math, and the compliance.
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We look at your income, age, staff census, and current plan to see what’s possible.
We layer your 401(k), profit sharing, and cash balance plan around your tax goals.
You get a clear illustration of your deduction, your savings, and your staff cost before you commit.
Plan documents, annual actuarial work, testing, and filings, handled every year.
Michael, a successful business owner with no employees, wanted to maximize his retirement savings while minimizing taxes.
Through a custom-designed retirement plan stack, he and his wife were able to contribute over $575,000 across multiple plans in a single year.
This strategy not only helped secure their financial future but also generated over $222,000 in immediate tax savings, significantly increasing their cash flow and long-term wealth-building potential!
James runs a construction company with high employee turnover and wanted a way to protect cash flow while maximizing retirement contributions.
Through a custom 401(k) and profit-sharing plan design, we used strategic eligibility and vesting schedules to limit costs from short-term employees while allowing ownership to maximize contributions.
This strategy protected company assets, controlled expenses, and helped James build significant retirement wealth.
Eileen, a small business owner, needed a low-cost retirement plan that would meet state mandate requirements while helping her recruit and retain high-quality employees.
Eileen used a customized 401(k) solution focused on minimizing expenses, giving Eileen a competitive edge in hiring without pulling resources away from reinvesting in her growing business.
By using tax credits, her design allowed her to stay compliant, attract top talent, and keep her financial priorities aligned.
*These are hypothetical clients with hypothetical situations and plan designs.
Learn more: Switching Providers | Safe Harbor vs. Traditional | The Retirement Plan Stack | Cash Balance Plans | About Us
A third-party administrator handles plan design, plan documents, nondiscrimination testing, contribution calculations, Form 5500 filings, and ongoing compliance for a 401(k) plan.
No. A recordkeeper holds participant accounts and processes transactions. A TPA handles compliance, testing, and plan design. Some firms do both, and many plans use separate providers.
Most 401(k) plans with employees need TPA services, whether bundled with a provider or from an independent firm. An independent TPA usually offers more flexible design.
Costs depend on plan size, design, and services. Fees for a plan’s administration are generally deductible to the business, and new plans may qualify for startup tax credits.
Yes. Plan design choices like safe harbor, new comparability profit sharing, and cash balance plans can greatly increase what owners contribute while managing staff costs.
A 3(16) administrator takes on certain administrative fiduciary duties for the plan. A 3(38) investment manager takes responsibility for selecting and monitoring investments.
Often, yes. Many recordkeepers work with independent TPAs, so you can change administrators without moving accounts.
Life, Inc. Retirement Services does not offer tax advice. Please always consult your tax professional about your eligibility for tax credits.
Life, Inc. Retirement Services is a Registered Investment Advisory Firm of the state of Ohio and licensed in Florida and Maryland. All emails and communication are meant to be informative and educational and should not be considered a sale of security until proper notification and disclosures are given.