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Third Party Administration

Protecting You — All The Way

As long as you need us, we're there

In reality, there is a lot more to Third Party Administration than accounting and filing forms. It’s about continuing to protect our clients. FranFund is a full-service TPA organization. You will be assigned to a dedicated TPA manager who will work with you to ensure the proper administration of your plan. The right support really can make all the difference.

5 keys to quality Third Party Administration

Retirement Plan Design

Whether using a pre–approved document or a custom designed document, the 401(k) Profit Sharing Plan that a company adopts should meet the needs of the company. The company's demographics, the type and amount of contributions that the company wants to make (if any), should be discussed upfront. Eligibility provisions, timing of distributions, and what other features are to be provided in the plan should be outlined carefully and be fully understood before signing on the dotted line.

Compliance Testing

Retirement plan regulations are complex and ever-changing. You are best served hiring a TPA you can trust to interpret the rules and apply regulations. As your Third-Party-Administrator, we perform a thorough check on your plan to include:

  • Who is eligible for the plan?
  • Were contributions deposited and posted to your account correctly?
  • Were the contributions deposited within the allowable limits?
  • Perform necessary compliance testing to ensure no discrimination of contributions or eligibility.
  • Were participants paid out of the plan appropriately?
  • Participant Loan calculations and monitoring


A retirement plan is a tax–exempt trust. We prepare a set of annual financial statements for the retirement plan (trust) — as well as employee eligibility reports. In order to prepare these financial statements, we verify and validate all deposits and withdrawals. We compare the company's records to those of the trust account to validate there are no discrepancies or variations between the two sets of information. Having an independent review of the trust activity provides the company with an additional layer of protection and comfort.

Transaction Assistance

A lot happens while a participant is in the plan, but it all starts with enrollment and ends with their distribution. Transactions we document include determining a date on which a new employee can enroll in the plan, assisting in processing loans and hardship withdrawals, making corrective distributions to bring the plan into compliance, and more.


Don't miss the deadlines. Retirement plans must provide the government with an annual Form 5500. If a plan has more than 100 participants, audited financials must also be submitted. Distributions paid to participants must be reported on Form 1099–R. As your TPA, we will help you meet all of these deadlines.



Can my plan make another investment after the initial stock issuance?

Yes, but because the IRS requires that anytime that shares are bought or sold this must be done at current market value, you will need a third-party valuation. For more information, see the “Making a Second Investment In Your Plan



Is my accountant able to perform the Third Party Administration requirements?

Maybe. A few accounting firms also offer TPA services, but you will want to confirm they understand that your plan is a ROBS plan. We have found that not all TPA’s will administer a ROBS plan. In addition, make sure your accountant understands the scope of the services required. Plan Administration is more than just filing the annual Form 5500; it entails keeping your plan document in compliance with changes in the law as well as tracking plan activity such as participant loans, distributions, contributions, etc. They also would be responsible for preparing the Form 5500 and Form 1099-R.



Profit Sharing Contribution

An employer may make a profit sharing contribution to the retirement plan on behalf of an eligible employee without the employee having to defer at all. Typically, Profit Sharing contributions are subject to vesting as outlined in the Plan Document. Profit Sharing Contributions are always at the employer's discretion.



Wage Deferral Contribution

Once eligible, an employee may choose to make a pre-tax contribution from their salary/wages to the 401(k). This is simply dollars that are removed from the employee’s paycheck on a pre-tax basis and deposited into their 401(k) account. These contributions are 100% vested.

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