The Retirement Planning Ecosystem: Roles and Responsibilities
Why the Retirement Plan Consultant Belongs at the Center of It All
When business owners set out to offer a retirement plan, they’re not just offering a benefit, they’re creating a financial system that must serve the needs of the business, the employees, and the owners themselves. And while it may seem like a simple 401(k) is all that’s needed, the reality is far more complex.
Retirement planning, especially for closely held businesses and high-earning owners, isn’t plug-and-play. It requires strategy, compliance, financial insight, and coordination across multiple professionals. This is the retirement planning ecosystem, and at its center sits a critical but often underrecognized player: the Retirement Plan Consultant (commonly referred to as a TPA).
Below, we break down each role in the ecosystem, and why the Retirement Plan Consultant is essential to success.
The Retirement Plan Consultant 
(formerly known as the TPA)
The Retirement Plan Consultant designs and administers the plan. But that simple description understates their real impact. This is the party responsible for aligning the plan with business goals, managing compliance, and making sure everything from eligibility to nondiscrimination testing to 5500 filings is done right.
Key responsibilities:
- Partnering with recordkeepers, plan sponsors, broker-dealers, DCIOs and advisors to ensure everyone reaches their financial goals
- Custom plan design (Safe Harbor, Profit Sharing, DB, Cash Balance, etc.)
- Nondiscrimination testing and controlled group analysis
- Annual filings, including Form 5500
- Coordinating plan amendments and updates
Retirement plan consultants don’t choose the investments, yet, without them, the goals that the retirement plan is in place to achieve can fall short.
The Advisor
The Financial Advisor brings investment expertise to the table. They help business owners and participants select the right fund lineups, provide fiduciary guidance, and build strategies that grow wealth over time. They also advise on how the retirement, pension, DB/ DC, or 401 (k) plan integrates with the business owner’s overall financial picture.
Key responsibilities:
- Design investment strategy and fund selection
- Support fiduciary responsibilities (3(21) or 3(38) advisory)
- Help owners and key employees maximize plan value
- Coordinate with the Retirement Plan Consultant to ensure the investment goals are supported by the plan structure.
The Advisor and the Retirement Plan Consultant must work in tandem. Without the right plan structure, the Advisor’s investment strategy may not perform as intended.
The Business Owner (Plan Sponsor)
The business owner is the legal plan administrator under ERISA, even if they outsource the work. Ultimately, they’re responsible for ensuring the plan operates in compliance with the law, and that it meets the needs of their business and employees.
Key responsibilities:
- Selects and retains plan service providers
- Ensures the plan is compliant and properly maintained
- Approves design strategy and contributions
- Uses the plan for tax and employee retention goals
Owners want different outcomes: reduced taxes, better benefits, happy employees. And they need a coordinated team to deliver those results.
The Recordkeeper
The Recordkeeper provides the technology and infrastructure for the plan. They track balances, process contributions, manage participant accounts, and offer online access to plan data. Think of them as the operating system.
Key responsibilities:
- Track participant balances and contributions
- Process loans, distributions, and rollovers
- Provide participant and plan-level reporting
- Coordinate with payroll and the TPA for accurate data flow
Recordkeepers need clean data and accurate plan specs. Without collaboration, errors multiply, plan sponsors are unhappy, work piles up, and errors can compound.
The Broker-Dealer
Behind many advisors is a Broker-Dealer (BD) who supports their work. The BD provides access to investment platforms, technology, compliance oversight, and compensation infrastructure. They may also set standards for which Retirement Plan Consultants are approved to support their advisors.
Key responsibilities:
- Support affiliated advisors in plan management
- Ensure compliance and regulatory supervision
- Provide investment platforms and recordkeeper access
- Coordinate with TPAs for seamless plan support
A good Retirement Plan Consultant is a broker-dealer’s secret weapon.
The CPA
The CPA advises the business owner on tax strategy, and a well-designed retirement plan is a critical part of that strategy. Contributions to the plan can significantly reduce taxable income, especially when combined with advanced plan designs like Cash Balance or combo plans.
Key responsibilities:
- Advise on retirement plan tax strategy
- Monitor contribution limits and deductibility
- Support year-end tax planning using retirement plan tools
- Collaborate with the Retirement Plan Consultant on plan feasibility and optimization
The CPA and the Retirement Plan Consultant often work hand-in-hand to ensure contributions are optimized for compliance and tax savings.
Why the Retirement Plan Consultant Matters More Than Ever
In a world of bundled platforms and robo-plans, it’s tempting to treat the retirement plan consultant’s role as an afterthought. But here’s the truth: the Retirement Plan Consultant is the linchpin that holds this entire ecosystem together.
With us at the helm:
- Owners save for retirement and save on taxes
- Highly compensated employees make maximum contributions
- Plans are smart and pass nondiscrimination testing
- Recordkeepers have a partner they can turn to for expert guidance
- Advisors look like the smart, informed experts they truly are
When a Retirement Plan Consultant is at the table, each party gets what they need: strategy, experience, guidance, expertise, compliance, expert plan design, and long-lasting relationships built on trust.
Teamwork Makes the Dream Work
Retirement planning is a team sport, and every member plays a key role. If you’re building a winning team, make sure your Retirement Plan Consultant isn’t just in the room, they’re a key part of the game plan.. Oh, and make sure they’re members of the Asteri Collective.
