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Author: nes Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Looking for an index fund Date: 12/21/1998 1:08 PM
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Hello fellow fools,

I currently have a 403(B) account with Oppenheimer Funds and am interested in swithching to a company that offers an index fund as part of their choices (for those of you who have not heard of a 403(B)account, it is similar to a 401(k), but offered to not-for- profit employees). Oppenheimer's Quest Value fund has only returned 5% for the year, and I would have done much better in a S&P index fund. I would like to switch to a company that not only offers an index fund part of their fund family, but also has a loan feature in their 403(B) program. I have already checked with Vanguard, and they don't offer loans with their 403(B) program. Any thoughts?

Eric Nesbitt
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7398 of 76418
Subject: Re: Looking for an index fund Date: 12/21/1998 1:55 PM
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Greetings, Eric, and welcome. You asked:

<<I currently have a 403(B) account with Oppenheimer Funds and am interested in swithching to a company that offers an index fund as part of their choices (for those of you who have not heard of a 403(B)account, it is similar to a 401(k), but offered to not-for- profit employees). Oppenheimer's Quest Value fund has only returned 5% for the year, and I would have done much better in a S&P index fund. I would like to switch to a company that not only offers an index fund part of their fund family, but also has a loan feature in their 403(B) program. I have already checked with Vanguard, and they don't offer loans with their 403(B) program. Any thoughts?>>

Although a Private Letter Ruling of the IRS did authorize loans from a 403b(7) account, it's not a generally accepted practice. I doubt you will have much luck finding a custodian who will be willing to allow loans. I know of none who will, and if Vanguard won't, then my belief in the difficulty of your finding one is even stronger. All you can do is call around to the various fund families until you find one who does. I hope your finger doesn't get tired in the process.

Regards….Pixy


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