When you switch third-party administrators (TPAs), there is a lot of work involved. I don’t recommend switching TPAs if you don’t have to, but there are times you need to.

The problem is that there are TPAs out there that want you to set up a new 401(k) plan because it’s easier for them. What is easier for them, may not be easy for you. Your existing 401(k) plan may have loans and other things that are important for your employees. Creating a new 401(k) plan will create more headaches than you need since that means two Form 5500s and the need to figure out what you need to do with one plan.

Hiring a TPA is supposed to make it easier for you, not easier for them.