The 10 Most Important Questions to Ask When Evaluating a Retirement Plan Administrator

A great retirement plan administrator (TPA—Third Party Administrator) is more than just a vendor—they’re a strategic partner. For HR directors and benefits managers, choosing the wrong TPA can mean compliance headaches, frustrated employees, and hours lost trying to fix avoidable mistakes.  

How do you separate the truly great administrators from the rest?  

The secret lies in asking the right questions. By the end of this blog, you’ll have a clear list of key questions that will help you evaluate potential TPAs, red flags to watch for, and confidence in your ability to select the best fit for your organization.  

The Right TPA Matters  

Retirement plan administration is a highly regulated and complex process. Your TPA will manage critical tasks like ensuring compliance with IRS and Department of Labor regulations, supporting plan audits, and handling contributions and distributions.  

Choosing an ineffective partner could result in compliance violations, tax penalties, or a larger administrative burden on already stretched HR teams.  

Ask questions upfront to avoid costly and time consuming setbacks.  

The Questions to Ask a Third-party Administrator 

1. What is Your Experience with Plans Like Ours? 

Start with the basics. Ask the TPA about their experience handling retirement plans similar to yours in terms of type, size, and complexity. Whether you’re managing a small business 401(k) plan or a larger multiple employer plan, consider a TPA with experience specific to your needs is better equipped to provide tailored service. 

What to listen for:  

• Familiarity with your organization’s industry  
• A track record of administering similar-sized plans  

Red flag:  

A TPA that doesn’t clearly outline their expertise with organizations like yours. 

2. What Services Do You Perform? 

Not all TPAs offer the same level of service. Some handle only basic compliance tasks, while others provide end-to-end administrative support. Clearly outline what tasks you need assistance with, such as plan design, compliance testing, or participant communication. 

Follow-up questions:  

• Do you assist in submitting government filings like Form 5500?  
• Are participant communications included, or is that extra?  

Red flag:  

Vague service descriptions or unclear pricing structures. 

3. How Do You Ensure Compliance with Changing Regulations? 

Retirement plan laws and regulations evolve regularly. A reliable TPA will have proven processes for staying up to date and ensuring your plan remains compliant.  

Follow-up questions:  

• How do you track regulatory updates?  
• Do you provide regular compliance audits?  
• Have you handled corrective actions for regulatory breaches in the past?  

Red flag:

A TPA that cannot articulate a clear compliance strategy. 

4. Who Will Be Our Main Point of Contact? 

Frequent miscommunication between organizations and TPAs often boils down to unclear or insufficient points of contact. Insist on knowing in advance who will be handling your account and their qualifications. 

Follow-up questions:  

• What is their expertise with retirement plan administration?  
• Is there a high turnover rate with your account managers? 

Red flag:  

A revolving door of account managers or lack of a designated contact person. 

5. Can You Provide References from Other Clients?

A reputable TPA will always have satisfied clients willing to vouch for their work. Don’t hesitate to ask for references, specifically from organizations similar to yours. 

Follow-up questions:  

• How responsive is the TPA’s team?  
• Have they delivered on their service agreements?  
• What has been the biggest benefit of working with them?  

Red flag:  

Reluctance or refusal to provide client references. 

6. How Flexible is Your Plan Design Offering?

Retirement plans shouldn’t be one-size-fits-all. A good TPA will be able to tailor plan features to align with your organization’s goals and workforce needs, from matching contributions to vesting schedules. 

Follow-up questions:  

• Can you help design a plan to maximize tax benefits while catering to participant needs?  
• Are you experienced with plan mergers or terminations?  

Red flag:  

A TPA unwilling to customize or lacking the expertise to handle plan design changes. 

7. What is Your Fee Structure?

Transparency around fees is critical. While cost should never be your sole consideration, it’s important to fully understand the fee structure to avoid hidden expenses. 

Ask them to clarify:  

• How are fees calculated—per participant, flat rate, or percentage of plan assets?  
• Are there additional fees for compliance testing, audits, or extra requests?  

Red flag:  

A tendency to dodge detailed fee discussions or present highly complicated invoices. 

8. What Sets Your Services Apart in the Market?

Use this open-ended question to gauge how the TPA differentiates themselves. This could include advanced technology, exceptional customer support, or unique value-added services. 

Follow-up questions:  

• Can you share examples of particularly challenging issues you’ve solved for your clients?  
• How do you go above and beyond basic plan administration?  

Red flag:  

Generic answers that lack depth or specificity.  

Partner With an Expert TPA You Can Trust  

Evaluating and selecting the right retirement plan administrator comes down to asking the right questions—and listening closely to the answers. Your TPA should feel like a true partner in your organization’s success, providing expertise, transparency, and flexibility to meet your needs.  

Contact us today if you need help searching for the right TPA partner. One of our core responsibilities as a retirement plan advisor is to assist with searching for, selecting, and monitoring your plan’s vendors.   

 

This content is for informational and educational purposes only and should not be construed as individualized advice or a recommendation for any specific product, strategy, or course of action. Brighton Jones, its affiliates, and employees do not provide personalized investment, financial, tax, or legal advice through this communication. This material is not intended to, and does not, create a fiduciary relationship under ERISA or any other applicable law. For individualized advice tailored to your specific circumstances, please consult with your adviser.