For any business that offers a retirement plan, staying compliant with complex federal regulations can feel overwhelming. Between the Department of Labor (DOL), the Internal Revenue Service (IRS), and the Employee Retirement Income Security Act (ERISA), there are countless rules to follow, each with strict deadlines and serious penalties for noncompliance. That’s why working with a qualified third-party administrator (TPA) isn’t just a convenience, it’s a necessity.
At Fiduciary Advisors, LTD, we’ve spent more than 30 years helping businesses navigate the technical details of retirement plan administration and compliance. As a trusted TPA in Phoenix, AZ, our team partners with employers to ensure their retirement plans operate smoothly, meet all legal requirements, and deliver real value to employees.
Whether you manage a growing company or oversee a complex multi-location operation, understanding the role of a TPA can help protect your business, simplify your responsibilities, and improve the effectiveness of your retirement plan.
What Is a Third-Party Administrator (TPA)?
A third-party administrator is a professional firm that specializes in managing and maintaining retirement plans on behalf of employers. While the employer sponsors the plan and makes major decisions, the TPA handles the day-to-day administration, documentation, and compliance work that keeps the plan running correctly.
A TPA’s responsibilities can include:
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Drafting and updating plan documents
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Performing annual compliance testing
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Filing government reports such as Form 5500
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Calculating employer contributions and participant allocations
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Monitoring contribution limits and vesting schedules
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Managing plan amendments and terminations
In short, a TPA acts as the operational backbone of your retirement plan, handling the details so you can focus on running your business.
Why Compliance Is So Critical
Retirement plans are heavily regulated for a reason. They hold employees’ hard-earned money and offer valuable tax advantages, which means the government pays close attention to how they’re managed.
Noncompliance can lead to costly penalties, back taxes, disqualification of the plan, and loss of employee trust. Even small mistakes, like failing to make timely deposits, miscalculating contributions, or forgetting required testing, can cause significant issues.
For example:
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Late 5500 filings can result in daily fines.
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Failed nondiscrimination tests can trigger refunds or additional contributions.
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Improper documentation can lead to audits and increased scrutiny from the IRS or DOL.
A skilled TPA in Phoenix, AZ, helps prevent these problems by proactively managing compliance and ensuring every rule, form, and deadline is met.
The Key Benefits of Partnering with a TPA
Working with a third-party administrator like Fiduciary Advisors, LTD offers significant advantages for both employers and employees.
1. Expert Guidance through Complex Regulations
ERISA, DOL, and IRS rules governing retirement plans are constantly changing. Keeping up with those updates can be a full-time job in itself. A TPA’s primary role is to stay on top of those regulations and interpret them correctly for your business.
Our team at Fiduciary Advisors, LTD translates complex legal requirements into clear, actionable steps. We monitor rule changes, manage compliance testing, and prepare all necessary filings — all so you don’t have to.
This level of expertise ensures your plan remains compliant year after year, giving you peace of mind and protecting your company from unnecessary risk.
2. Customized Plan Design and Administration
No two businesses are the same, which means no two retirement plans should be either. A quality TPA doesn’t just process paperwork—they help you design a plan that aligns with your goals and employee demographics.
At Fiduciary Advisors, LTD, we specialize in both defined contribution and defined benefit plans, including:
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401(k) and profit-sharing plans
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Cash balance plans
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Traditional pension plans
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Safe harbor plans
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Cross-tested and new comparability plans
We work closely with employers to tailor contribution formulas, eligibility rules, and vesting schedules to fit their financial objectives while maintaining full plan compliance.
Our hands-on approach ensures your plan not only meets regulatory standards but also supports retention, recruitment, and long-term employee satisfaction.
3. Accurate Compliance Testing and Reporting
One of the most technical aspects of retirement plan administration is annual testing. Federal law requires plans to pass several compliance tests to ensure they do not unfairly favor highly compensated employees. These include:
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Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) testing
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Top-heavy testing
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Coverage and participation testing
If your plan fails any of these tests, corrective action must be taken immediately. A professional TPA handles all of this for you—conducting calculations, identifying potential issues, and guiding you through corrections if needed.
We also manage Form 5500 filing, summary annual reports, and all required participant notices. This ensures your plan’s reporting is accurate, complete, and submitted on time.
4. Reduced Administrative Burden
Managing a retirement plan can take a significant amount of time and attention from your HR or finance team. A TPA streamlines this process by taking on the administrative workload, freeing your staff to focus on other priorities.
From enrollment management to contribution tracking, we handle the behind-the-scenes details so your plan runs seamlessly. Our systems are designed to simplify communication, reduce errors, and ensure data accuracy across all plan-related activities.
As a result, you can spend less time worrying about compliance paperwork and more time focusing on strategic growth.
5. Fiduciary Confidence and Consulting
Employers who sponsor retirement plans have fiduciary responsibilities, meaning they must act in the best interest of their participants. However, many business owners and managers aren’t fully aware of what those responsibilities entail — or how to fulfill them.
That’s where fiduciary consulting becomes invaluable.
At Fiduciary Advisors, LTD, we help clients understand their fiduciary obligations, reduce liability, and maintain proper governance. Our consultants guide you through:
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Understanding fiduciary roles and responsibilities
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Establishing procedures for oversight and documentation
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Evaluating service providers for reasonableness and performance
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Maintaining compliance with ERISA fiduciary standards
With our support, you can operate your plan confidently, knowing your fiduciary duties are being met.
6. Cost Efficiency and Error Prevention
Many employers assume outsourcing plan administration will be expensive, but in reality, it often saves money over time. TPAs help prevent costly errors, avoid penalties, and ensure contributions and filings are handled correctly the first time.
In-house teams or payroll providers may lack the specialized expertise to navigate complex plan rules, which can result in mistakes that are time-consuming and expensive to fix.
By partnering with a local TPA in Phoenix, AZ, you gain access to experienced professionals who can identify risks early, apply best practices, and maintain the highest levels of accuracy and compliance.
7. Local Support with National Expertise
Working with a local partner offers distinct advantages. Fiduciary Advisors, LTD is based right here in the Phoenix area, which means our team understands the unique needs of Arizona businesses.
We provide face-to-face service when needed, responsive communication, and quick turnaround times. Yet, our expertise spans across industries and plan types nationwide.
Our 30-plus years in the field allow us to bring deep insight, proven systems, and personal attention to every client relationship.
How a TPA Fits into the Bigger Picture
A TPA plays a central role in your retirement plan ecosystem, coordinating efforts between key stakeholders:
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Employer (Plan Sponsor): Owns the plan and is ultimately responsible for its operation.
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Recordkeeper: Tracks participant balances and investment elections.
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Custodian or Trustee: Holds plan assets and executes transactions.
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Financial Advisor or Fiduciary Consultant: Provides investment advice and oversight.
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Third-Party Administrator: Ensures plan compliance, testing, and documentation accuracy.
By working with all these parties, your TPA ensures smooth communication, proper execution, and regulatory consistency across every aspect of plan operation.
At Fiduciary Advisors, LTD, we often serve as the bridge between the employer, financial advisor, and recordkeeper, making sure the plan runs efficiently from both an administrative and fiduciary standpoint.
The Risks of Going Without a TPA
Some employers choose to rely on payroll providers or bundled services for plan administration, but these solutions often lack the depth of expertise required for true compliance.
Without a dedicated TPA, businesses face greater risk of:
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Failing annual testing requirements
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Missing critical filing deadlines
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Misapplying contribution limits
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Lacking necessary plan documentation
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Violating fiduciary standards
Even a small oversight can trigger a full IRS or DOL audit, putting your business and its finances at risk. A qualified TPA ensures that doesn’t happen.
Why Fiduciary Advisors, LTD Is the Right Choice
For over three decades, Fiduciary Advisors, LTD has been the trusted TPA in Phoenix, AZ for small and medium-sized businesses across all industries. Our team combines technical precision with personalized service to deliver exceptional results in retirement plan administration and plan compliance.
Here’s what sets us apart:
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30+ Years of Experience: Deep industry knowledge in both defined benefit and defined contribution plans.
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Full-Service Administration: We manage everything from plan setup to annual filings and amendments.
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Local Presence: Based in Phoenix and serving surrounding communities with responsive, one-on-one support.
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Fiduciary Consulting Expertise: Helping employers meet their fiduciary obligations with confidence and clarity.
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Commitment to Compliance: Every plan is managed with precision and integrity, ensuring full adherence to IRS and DOL requirements.
When you partner with Fiduciary Advisors, LTD, you gain a trusted ally dedicated to protecting your plan, your business, and your employees.
Secure, Compliant, and Confident
Your company’s retirement plan is a valuable benefit that helps attract and retain top talent. But to deliver that value effectively, it must be administered and maintained with care, accuracy, and compliance.
Partnering with an experienced third-party administrator like Fiduciary Advisors, LTD ensures your plan runs smoothly, your employees are supported, and your business remains protected from costly mistakes.
If you’re looking for a dependable TPA in Phoenix, AZ, with proven expertise in retirement plan administration, fiduciary consulting, and plan compliance, contact Fiduciary Advisors, LTD today. Let our team help simplify the complex and give you confidence in every aspect of your retirement plan.