Startup Idea: 401k Distribution and Loan Management System

Startup idea to develop a software that allows employees to directly input their contact information, streamlining communication for a Third-Party Administrator (TPA) during 401k distribution/loan processing. This could expedite the process and minimize information loss between the TPA, client, and recordkeeper.

I am a 401k distribution and loan specialist. I assist employers and employees withdraw funds against their 401k whether that be a withdrawal or loan. Technically the firm I work for is a THIRD-PARTY ADMINISTRATOR (TPA). We work alongside our client (employers / employees) and the recordkeeper they are with, such as, John Hancock, Voya, Vanguard, Ascensus, Lincoln, etc.

Because I assist both the client and recordkeeper, some information is lost through the process with an employee of a client is trying to request some type of 401k distribution. It would be very helpful if we can implement some type of database or program that employees can put down their contact information so we as the TPA can get ahold of them directly.

Sometimes as the TPA we do not have contact information for the employees distribution that we are working on. We would have to go to the recordkeeper for more information which is generally pretty broad or go to the client. Sometimes it takes days before we get a response from either end.

This is the streamline the process and provide employees with the money they need. We have not tried to find a solution with this as of right now. The problem with this issue is that some clients are not willing to divulge information, or they would rather the TPA talk directly to them before we talk to the employee. However, some clients are not as knowledgeable in the 401k implications due to IRS restrictions and may withhold some information before relaying it to the employee.