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401(k) Administrator for Small Businesses
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.
Plans Done Right
A free review of your plan and fees
What does a 401(k) administrator do?
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.
Who does what in a 401(k)
| 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.
Why your administrator matters
- Owner contributions: a custom design like new comparability profit sharing or a cash balance plan can raise what owners save from $24,500 to $72,000 or $300,000+.
- Fewer surprises: testing done early in the year avoids refunds to owners.
- Compliance: late deposits, missed filings, and document errors can be expensive to fix.
- Service: a real person who knows your plan, not a call center.
How We Build Your Plan
From first call to first contribution, we handle the design, the math, and the compliance.
1
Review Your Business
We look at your income, age, staff census, and current plan to see what’s possible.
Design Your Stack
We layer your 401(k), profit sharing, and cash balance plan around your tax goals.
See the Numbers First
You get a clear illustration of your deduction, your savings, and your staff cost before you commit.
We Run It for You
Plan documents, annual actuarial work, testing, and filings, handled every year.
Questions to ask before hiring a 401(k) administrator
- Do you design plans to maximize owner contributions, or use a standard template?
- Can you add profit sharing or a cash balance plan as we grow?
- Who prepares and signs our Form 5500?
- Do you work with multiple recordkeepers, or only one?
- How are you paid, and do you receive revenue sharing from investments?
- Who is our day-to-day contact?
Who we work with
- Small businesses with 1 to 50 employees, nationwide
- Business owners starting their first 401(k). See 2026 startup tax credits.
- Businesses unhappy with their current provider. See switching 401(k) providers.
- High-income owners who want to save more. See The Retirement Plan Stack.
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.
Why business owners work with Life, Inc.
- Everything under one roof. Plan design and administration, investment advisory, and insurance strategies, all from one team. No juggling three different firms.
- A credentialed, in-house team. Our plan specialists hold industry designations including QKA, QPA, and AIF, and handle your plan year round.
- Independent and unbiased. We work with the recordkeeper that fits your business and don’t take kickbacks from any of them.
- Custom, not cookie-cutter. Every plan is designed around the owners’ tax goals first, then built to pass IRS testing.
- Nationwide. We design and administer plans for businesses across the country.
Learn more: Switching Providers | Safe Harbor vs. Traditional | The Retirement Plan Stack | Cash Balance Plans | About Us
FREE Consultation!
Our Most
Asked Questions
What does a 401(k) TPA do?
A third-party administrator handles plan design, plan documents, nondiscrimination testing, contribution calculations, Form 5500 filings, and ongoing compliance for a 401(k) plan.
Is a TPA the same as a recordkeeper?
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.
Do small businesses need a TPA?
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.
How much does a 401(k) administrator cost?
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.
Can a TPA help owners contribute more?
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.
What is a 3(16) or 3(38) fiduciary?
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.
Can we change administrators without changing recordkeepers?
Often, yes. Many recordkeepers work with independent TPAs, so you can change administrators without moving accounts.
Some Of Our Trusted Partners:
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.