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Frequently Asked Questions What is a “TPA” and what do they do? A Third Party Administrator (TPA) provides plan administration services. TPAs design plan documents, certify eligibility of plan participants, prepare reports and process claims. CDS Administrative Services, LLC is a TPA for employers that provide cafeteria plans and retirement plans to their employees.
What is ERISA's bonding requirement for our company's 401(k) Plan?
ERISA requires that every plan fiduciary and every person who “handles funds or other property” of a plan be bonded. This bond is commonly referred to as a fidelity bond. The bond must be for at least 10% of the amount of the funds handled in the preceding plan year but generally must be for no less than $1,000 or no more than $500,000.
What is a Form 5500 and do we have to file one? Retirement Plans are subject to the reporting requirements of ERISA are required to file a Form 5500 for the plan. A plan which does not cover any employees (only a sole shareholder, partner in a partnership and/or spouse) is not an ERISA plan for DOL purposes, but is for IRS purposes.
What is the maximum amount I can contribute to my retirement plan in 2005? The annual individual saving deferral is limited by law to $15,500 for 2007 for Standard and Safe Harbor Retirement Accounts. For individuals age 50 and older, an additional catch-up contribution of $5,000 is allowed. For Simple Plans, the limit is $10,500. |
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