401k Retirement Plan: A Case study on Data Path Limited

Abstract

Data Path Limited acts as a third-party administrator to its mother company, July Services established in Texas, USA. July Services is bound to outsource its business processes as the average gross salary in the US is high. It is due to this reason that the mother company arranges more TPA companies to carry out its 401k operations effectively and efficiently. The accounting principles or procedures of Retirement Provident Fund (RPF) followed by the USA is complex on root level as opposed to what we learn here in Bangladesh. People in the USA industry follow a set of rules and regulations while carrying out the 401k operations and it is due to those rules that the RPF accounting procedures have grown to be so complicated in the first place. The RPF industry without any doubt may have an impact on the outsourcing world here in Bangladesh. This sector happens to be lucrative as more people are investing in 401k plans at an exponential rate and simultaneously showing growth in both stock market and individual financial security. Bangladesh can learn a lot from this industry. This applies to how one must abide by rules and how the US government is concerned for its elderly and retired citizens.