Payments Directly by TPA (not a trustee) to Participant in 401(k) Plan

[Guest Libby]

Has anyone ever heard of a TPA receiving a check on behalf of a retirement plan participant from a custodian or trustee for deposit in the TPA's account, with the TPA then handling the payment process and actually writing a check to the participant?

[Guest b2kates]

Yes, see my post to your other question. in essence TPA is appointed paying agent on behalf of the plan/