Frequently Asked Questions

  • What does a TPA do for retirement plans?

    A Third Party Administrator (TPA) handles plan design, compliance testing, and annual filings to keep your retirement plan legally compliant under ERISA rules. At Powers Financial Group, LLC, we manage everything from document preparation to ongoing testing like ADP/ACP and 415 limits, ensuring your plan satisfies complex IRS requirements year after year.

  • How long does it take to implement a new retirement plan?

    Implementation timelines vary, but Powers Financial Group, LLC walks your staff through each step at your own pace to minimize hassle. We accommodate your schedule and comfort level, making the process straightforward rather than overwhelming. Most employers find the process smoother and more interesting than expected.

  • What's included in retirement plan design consulting?

    Plan design includes employee surveys, drafting plan and trust documents, preparing the Summary Plan Description, and filing for an IRS Letter of Determination. Powers Financial Group, LLC also provides sample board resolutions, beneficiary forms, and assistance with employee enrollment meetings to ensure everyone understands the plan features.

  • What is ERISA and why does it matter?

    ERISA is the Employee Retirement Income Security Act of 1974, the federal law governing qualified retirement plans. It sets strict compliance and operational standards that require lifelong study and dedication. At Powers Financial Group, LLC, we ensure your plan meets ERISA rules in both design and daily operation through continuous testing and review.

  • What's the biggest mistake employers make with retirement plans?

    Many employers work with administrators who lack deep, ongoing ERISA education, leading to costly compliance errors. Qualified plan laws require perpetual study and advanced expertise. Powers Financial Group defines "ERISAholic" — we stay current on every rule change to keep your plan compliant and avoid penalties.

  • What annual testing does a retirement plan require?

    Retirement plans must pass tests like ADP/ACP, 415 limits, Top Heavy status, 410(b) coverage, and RMD calculations each year. Powers Financial Group, LLC conducts all required testing, trust accounting, and IRS reporting including 5500 filings and 1099s to keep your plan in full compliance.

  • When should I review my company's retirement plan?

    You should review your plan whenever laws change, employee needs shift, or the investment environment evolves. Powers Financial Group, LLC designs and administers plans for the long term, providing dedicated consulting whenever you need guidance on plan adjustments or updates.

  • Can a TPA help with participant education meetings?

    Yes, participant education is essential for plan success. Powers Financial Group, LLC conducts employee meetings and provides phone support to help staff understand and appreciate their retirement benefits. A well-informed team is more likely to participate and value the plan.

  • Do I need a lawyer to set up a retirement plan?

    While you don't always need a lawyer, coordinating with accountants, tax advisors, and legal counsel ensures alignment. Powers Financial Group, LLC prepares all necessary plan documents, trust agreements, and IRS filings, and works seamlessly with your professional advisors throughout the process.

  • Can a TPA in Texas serve clients nationwide?

    Yes, TPAs can administer retirement plans for clients anywhere in the United States. Powers Financial Group, LLC primarily serves Northeastern Texas including Texarkana, Tyler, and Longview, but is equipped to work with employers nationwide while maintaining the same level of professional excellence and ERISA expertise.