News & Resources From Bluegrass Retirement Plans

There are three main parties involved in a 401(k) plan:

1. The record keeper, which is also known as the 401(k) provider or 401(k) vendor, is the entity that holds the funds and investments. The record keeper also tracks contributions.
2. The third-party administrator, which is also known as the TPA, is the legal team for the plan. When documents need to be signed, the TPA will assist. They’re also in charge of the governing document for the plan, the tax filing for the plan, and ensuring the employer is in compliance.
3. The advisor is the role played by the Retirement Plans division of Bluegrass Investment Company. The advisor should be the main point of contact the employer because they will be able to answer any questions or know who to go to if the answer is out of their purview. This party also provides employee education. For example, our team visits with a 401(k) plan’s employees at least once a year, either in a group setting or one-to-one. The goal is to answer questions from employees and provide updates.

A benchmarking study provides an apples-to-apples comparison of your 401(k) plan versus those offered by businesses similar to yours in terms of geographic area, industry, business size, and plan setup.

The purpose is to provide an unbiased view of the strengths and weaknesses of your company’s 401(k) plan. It will help your business answer questions such as:

• Are there other options we should be offering?
• Are my employees happy?
• What should I be looking at in my plan?
• Is there a better option available to me?