Retirement 101: A Comprehensive Glossary for 401(k) Recordkeepers and TPAs
Blog post from Finch
The retirement field is characterized by complex regulations and evolving terminology, necessitating a comprehensive understanding of key concepts like savings plans, compliance, and payroll integrations to navigate effectively. This detailed glossary serves as a vital resource for both newcomers and seasoned professionals, offering clarity on roles such as plan sponsors, participants, administrators, and third-party administrators (TPAs), who play crucial roles in the management and compliance of retirement plans like 401(k)s. It also covers essential aspects like fiduciary responsibilities under ERISA, non-discrimination testing to ensure equitable access to retirement plans, and the regulatory impacts of the SECURE Act, which aims to enhance retirement security and broaden plan accessibility. The document delves into various types of retirement plans, including employer-sponsored options like 401(k) and 403(b) plans, and highlights the importance of technology in modern retirement management, such as automated payroll processing and API integrations for seamless data handling. Understanding these elements is crucial for making informed decisions and optimizing retirement strategies in compliance with current legislation and technological advancements.