Is it possible for a TPA doing only traditional r/k to receive the sub t/a fees? It would seem to follow the same logic.

Yes, it may be possible for you to receive sub-ta fees if you only are doing traditional balance forward recordkeeping. You will probably need to have the Trustees sign something indicating that these fees can be paid to you. This may also be true for the 12b-1 or shareholder services fees, depending on whether or not there is a broker involved in the plan. If you send me an e-mail, I can send you a copy of a disclaimer form that you might use.

carol@shawmutconsulting.com

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Carol J. Ringwald
Senior Consultant
Shawmut Consulting Assoc.

Please defined what you mean by sub T/A fees.

Mutual fund companies pay a transfer agent a fee to track individual accounts. This is called a sub-TA or sub-transfer agency fee. This fee is a part of the normal operational fees collected by the mutual fund. If your firm is tracking individual participant information, rather than the transfer agent doing this, the mutual fund company is willing to share a portion of this fee with you. Any sub-ta fees that your firm receives needs to be used to offset other administrative fees that are charged to the plan.





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Carol J. Ringwald
Senior Consultant
Shawmut Consulting Assoc.