FEES
TPA will charge an annual fee to SPONSOR for the services described in Section B above. TPA will send SPONSOR and/or TRUSTEE, either electronically or by regular U.S. mail, an invoice reflecting any price increases (“Price Increase Invoice”) providing at least sixty (60) days written notice prior to the implementation of the price increase. Unless SPONSOR and/or TRUSTEE objects to the terms of the Price Increase Invoice, in writing sent by certified U.S. mail return receipt requested or by another delivery method that requires a signature such as hand delivery or nationally recognized overnight carrier within thirty (30) days of the price increase notice, SPONSOR and/or TRUSTEE will be deemed to have agreed to the Price Increase Notice. If SPONSOR and/or TRUSTEE objects and gives written notice of its objection to the Price Increase Invoice, SPONSOR and/or TRUSTEE will have sixty (60) days from the date of the invoice to either reach a new agreement with TPA, or to locate and retain a new third party administrator in place and instead of TPA.
SPONSOR and/or TRUSTEE agree and understand that an additional two hundred fifty dollar ($250) late fee will be due TPA
if as of thirty (30) days prior to the due date of the Form 5500, with a timely filed extension Form 5558, SPONSOR and/or TRUSTEE has failed to remit to TPA the information necessary to prepare the Form 5500, such as financial statements, balance sheets, schedule of receipts and disbursements, plan expenses, etc., or as of thirty (30) days prior to the due date of the Form 5500, with a timely filed extension Form 5558, TPA has received inaccurate, incomplete, and/or missing information.
Moreover, SPONSOR and/or TRUSTEE agree and understand that an additional five hundred dollars ($500) late fee will be due TPA if as of fifteen (15) days prior to the due date of the Form 5500, with a timely filed extension Form 5558, SPONSOR and/or TRUSTEE has failed to remit to TPA the information necessary to prepare the Form 5500, such as financial statements, balance sheets, schedule of receipts and disbursements, plan expenses, etc., or as of fifteen (15) days prior to the due date of the Form 5500, with a timely filed extension Form 5558, TPA has received inaccurate, incomplete, and/or missing information.
SPONSOR and/or TRUSTEE agree to be jointly and severally liable for any and all invoices, fees, and other amounts due TPA, including the FINAL INVOICE, as described under Section I(4) of this TPA AGREEMENT, its successors and/or assigns. TPA may, in its sole discretion, seek full payment or sue and collect judgment for any payments or damages from either one or both parties. SPONSOR and/or TRUSTEE agree(s) and understand(s) that invoices for the preparation of IRS/DOL Form 5500, IRS required testing, calculation of contributions, calculation of any excess contributions, and all related schedules to the IRS/DOL Form 5500 are due and payable within thirty days (30) days upon filing of IRS/DOL Form 5500. SPONSOR and/or TRUSTEE agree(s) and understand(s) that all other invoices, including the FINAL INVOICE, as described under Section I(4) of this TPA AGREEMENT, are due and payable within fifteen (15) days upon receipt of invoices setting forth such fees. SPONSOR and/or TRUSTEE agree(s) and understand(s) that the PLAN TERMINATION INVOICE, as described under Section I (8) of this TPA AGREEMENT, is due and payable within thirty (30) days upon receipt of invoices setting forth such fees.
SPONSOR and/or TRUSTEE will be obligated to pay a late fee for any amount generated under this Section G of this TPA AGREEMENT equal to .5% per month from the date of the invoice to the date invoice is paid in full. If any invoice, fee, and/or other amount due TPA is not paid within one hundred eighty (180) days after the date of the invoice, SPONSOR and/or TRUSTEE understand and agree that TPA reserves the right to suspend any and all services until all invoices, fees, and other amounts due TPA are paid in full and to seek all remedies available to TPA under law and in equity. Any fees due and unpaid shall survive the termination of this TPA Agreement.
If PLAN needs to file Form 5558, after TPA already prepared the Form 5500, TPA will charge SPONSOR a one hundred fifty dollar ($150) fee for the preparation and filing of the Form 5558.
SPONSOR and/or TRUSTEE agree that TPA shall have no liability to SPONSOR, TRUSTEE, and/or PLAN for any penalties, fines, or other damages that may be incurred as a result of the suspension or termination of services. SPONSOR and/or TRUSTEE agree to be obligated to pay any and all costs, and expenses, including reasonable attorneys’ fees, associated with collection of any fees, compensation, and other amounts due TPA, its successors and/or assigns hereunder.
Notice Under The Employee Retirement Income Security Act Section (ERISA) 408(b)(2).
In addition to the compensation described above in Section G of this TPA AGREEMENT, TPA may also be eligible to receive compensation from the RECORD KEEPER. Any payments received by TPA from RECORDKEEPER will offset fees due TPA from SPONSOR or PLAN relative to TPA’s services. Any compensation received under this section, is exclusively for the services that TPA provides under Section B and not to investment advice as defined in Section D.
TPA processes distributions, hardship withdrawal requests, and participant loans on a flat fee basis. The flat fee of one hundred thirty dollars ($130) will be charged for processing distributions, hardships and participant loans. The fee will be billed directly to the participants and will be deducted from the participants account by the RECORDKEEPER and remitted to TPA. The one hundred thirty dollars ($130) fee for the processing of distribution, hardship, and/or loan is separate and in addition to the fees charged under Section G of this TPA AGREEMENT.
In addition, TPA will email Form 5500 to SPONSOR or TRUSTEE for signature. If TPA does not receive a signed Form 5500 prior to October 1st, TPA may overnight the Form 5500 to SPONSOR by Priority Mail Express or another overnight service. The fee of reprinting the Form 5500 and overnighting to SPONSOR will be a seventy-five dollar ($75) processing fee.
In addition to the services listed above in Section B of this TPA AGREEMENT, TPA may provide other special services, upon SPONSOR and/or TRUSTEE’s specific request and for additional charge(s), including, but not limited to, preparation of amendments, notices, completion of forms to move assets from one financial institution to another, preparation of Internal Revenue Code Section Section 125 Plan documents, Internal Revenue Code Section 132 Documents, Internal Revenue Code Section 129 Documents and TPA’s human resource website. The charges for these additional services will be based on the prevailing standard charge for such service or will be based on a formula for time spent to provide the service. TPA will notify SPONSOR and/or TRUSTEE of the amount of any charges at the time of request. Amounts due under this section of the TPA AGREEMENT are due and payable within fifteen (15) days upon receipt of invoices setting forth such fees.
The fees for services, which are subject to modification and increase by TPA in its discretion, detailed in this TPA AGREEMENT, PLAN TERM AGREEMENT, and TERM AGREEMENT are separate and cumulative and subject to selection by TRUSTEE and/or SPONSOR, as well as circumstances of the PLAN account, include, but may not be limited to:
TPA AGREEMENT:
§G(1) references fees for services set forth in Section B of TPA AGREEMENT
§G(2) $250 late fee in association with Form 5500
§G(3) $500 late fee in association with Form 5500
§G(5) 2% per month late payment fees
§G(6) $150 to file a Form 5558 after Form 5500 has been prepared
§G(9) $75 fee to reprint and overnight mail Form 5500
§G(9) $100 fee to mail Form 5500
§G(9) $130 fee for distribution forms
§I(3) $100 per month storage fee
§J(6) $75 fee for returned check
§J(6) $1 fee for each declined credit card transaction
PLAN TERM AGREEMENT:
§2 references fees for services set forth in Section 1
§2 2% per month late payment fees
TERM AGREEMENT:
§1(a) references fees for Preparation of Form 5500 if this section is initialed
§2(a) references fees for Preparation of Amendments if this section is initialed
§3(a) $3,000 for the email or mailing of all documents for prior three (3) years
§3(b) $1,000 for the email or mailing of Form 5500 and its supporting documents for one (1) specific calendar year
§3(c) $1,000 TPA speak to the new Third Party Administrator and/or new Recordkeeper
§3(d) $1,500 for the email or mailing of all PLAN documents that TPA has on file
§4 additional hourly or project based fees for special services
§6 minimum of 2% per month late payment fees
By way of example only (and only to serve as a clarifying provision), a combination of services could lead to the following fees:
Example 1. SPONSOR and/or TRUSTEE of the ABC Plan wish to terminate TPA services as described in Section I(3) of this TPA AGREEMENT. SPONSOR and/or TRUSTEE sign the TERM AGREEMENT and initial Section 1(a) and 3(d) of TERM AGREEMENT. In this example, if the fee for the preparation of the 5500 is $1,200, then the FINAL INVOICE would be $2,700 ($1,200+$1,500).
Example 2. Assuming the facts are the same from Example 1, but SPONSOR and/or TRUSTEE have an unpaid invoice for late information as described in each Section G(2) and (3) of this TPA AGREEMENT. The FINAL INVOICE would then be $3,450 ($1,200+$1,500+250+500).
Example 3. SPONSOR and/or TRUSTEE of the ABC Plan send TPA all of the information required to prepare form 5500 on April 1st. On April 15th TPA sends SPONSOR and/or TRUSTEE the 5500. On October 2nd, SPONSOR and/or TRUSTEE request TPA send an additional copy of Form 5500 for SPONSOR and/or TRUSTEE to sign. In this example, if the fee for the preparation of the 5500 is $1,200, SPONSOR and/or TRUSTEE would also receive an invoice for $75 for overnight mail and an invoice for $150 for preparing a 5558. Thus the total due TPA would be $1,425 plus invoices for any late fees that may be due as a result of non-payment.
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