What is the difference between a 401k plan sponsor and a plan administrator?
A 401k plan sponsor is typically the employer or business owner providing the retirement savings plan to their employees. Sponsors are responsible for establishing the plan, making investment decisions, and occasionally contributing funds.
On the other hand, a 401k plan administrator manages the operational aspects of the plan, ensuring that it adheres to legal guidelines. Administrators handle compliance testing, filings, and recordkeeping. ERA Admin steps in as a third-party administrator to bridge the gap, helping sponsors meet their compliance and administrative responsibilities seamlessly.