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If you get ASPPA’s Plan Consultant magazine, the Fall 2020 issue has an article for TPAs, “Rewrite your service agreement to protect your business: Ten tips to do it yourself.”

Above you said they asked for it to happen, which would make them a fiduciary, if the actions are completed. Below you say they are (just) asking questions, which would not.

And dare I say, time for service agreements. I know some folks still resist service agreements, but I think its getting harder and harder to defend running a business without them.

Invoice them for 2022. You can threaten collections or not if they don't pay, your choice. You can resign from the client for 2023 or know you'll probably be going through this with them next year. Lesson learned, some folks are just not worth having as a client. If they are on your preapproved document kindly remind them they can no longer rely upon your opinion letter and will be considered an individually designed plan and that you are not responsible for timely amending their document.

I have not, and I am interested in seeing an example of the letter. Could you possibly post a copy with all client indicative information redacted?

The two "goals" listed are precisely what the successor plan rules are meant to prohibit. The money in the plan also has to be distributed within 12 months or the termination is retroactively negated. This would also mean that all distributions from the original "termination" would not have been from a distributable event. And if the existing 403(b) is an ERISA 403(b), they still have a 5500 and all other ERISA administration rules to follow with both plans. Here is an idea: Start a new 401(k) and terminate the 403(b). The successor plan rules do not apply in a 403(b) to 401(k) sequence. The sponsor will have deferral testing in the 401(k) and they still have to get all the money out of the 403(b) in 12 months, but it gives you something to offer them that may help. Treas. Reg. Sec. 1.403(b)-10(a)(1); PlanSponsor.com/Terminating-403b-starting-401k/

Methinks it's time to move on and turn the page!

If the individual is making decisions about where to invest contributions to the plan, and the plan says that right belongs to the participant, they are acting as a fiduciary. They can ask questions. They cannot instruct the investment. If the recordkeeper is asking whether the recordkeeper should listen to this individual about what to do with other participants' money, the answer is no.

They may hold a lot of knowledge but apparently they don't know they became a fiduciary by virtue of their actions. This is worth pointing out to the plan's named fiduciaries (plan administrator, trustee...) that there is a rogue fiduciary in their midst.

Lessons learned on this one. FWIW, we very rarely send the 5500 before the invoice is paid. Once they have the 5500, they have no real incentive to pay you. You can warn the new TPA to that they didn't pay you, and definitely don't provide any data to them without pre-payment. If you have been providing 5500s before being paid for a long time, and this is the first time you were unpaid, consider yourself blessed.

Depends on how fee sensitive the client is. I have had clients do their own to save a buck, I have also had them say "just take care of it". Its really not difficult to complete if you understand industry terms