UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Author: Seal99 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75614  
Subject: who's choice is a 403b(7)? Date: 8/2/1999 2:27 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
i'm currently have a 403b account at the non-profit organization i work for. the problem is that i don't like the limited mututal fund options they give us. i talked to my representative about opening a 403b(7) account with a mutual fund, but she said that their company would not allow it (great west is the company).

can they do that or is the choice mine?
Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12720 of 75614
Subject: Re: who's choice is a 403b(7)? Date: 8/2/1999 3:59 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Seal 99, and welcome. You asked:

<<i'm currently have a 403b account at the non-profit organization i work for. the problem is that i don't like the limited mututal fund options they give us. i talked to my representative about opening a 403b(7) account with a mutual fund, but she said that their company would not allow it (great west is the company).

can they do that or is the choice mine?>>


It's a question that's come up in the past to which I've been unable to obtain an answer. I don't know if the plan agreement can restrict that option, and so far no one who does know has posted on this board. I suspicion, though, that the plan agreement can make such a restriction. Still, I can't say with any degree of authority.

Regards..Pixy

Print the post Back To Top
Author: peppermintpatty Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12752 of 75614
Subject: Re: who's choice is a 403b(7)? Date: 8/3/1999 7:57 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Pixy - If a 403b plan is bound by ERISA the employer typically selects one vendor to supply the investment vehicle, be is TSA or mutual funds. This way administration of the program is easier to manage (one Form 5500 for IRS filing, etc.).

In a voluntary plan, there may be several vendors, and usually are. The employer may still restrict the number of vendors to a "managable" number, however.
It's a lot of trouble to cut dozens of individual checks to vendors for one or two participants! Lobby the employer to exchange vendors if you can muster support from a number of employees who want to use the same vendor...

Sincerely, PP

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12754 of 75614
Subject: Re: who's choice is a 403b(7)? Date: 8/3/1999 8:09 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
PP writes:

<<Pixy - If a 403b plan is bound by ERISA the employer typically selects one vendor to supply the investment vehicle, be is TSA or mutual funds. This way administration of the program is easier to manage (one Form 5500 for IRS filing, etc.).

In a voluntary plan, there may be several vendors, and usually are. The employer may still restrict the number of vendors to a "managable" number, however.
It's a lot of trouble to cut dozens of individual checks to vendors for one or two participants! Lobby the employer to exchange vendors if you can muster support from a number of employees who want to use the same vendor...>>


I totally agree with what you say. The employer may restrict where the initial contribution goes. Once there, though, the code permits a transfer to a 403b(7) account at a fund that accepts such accounts. These transfers occur between providers all the time. The real question is can the employer, the provider and/or the plan document prohibit such transfer? That's what no one has been able to answer for me.

Regards..Pixy

Print the post Back To Top
Author: peppermintpatty Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12755 of 75614
Subject: Re: who's choice is a 403b(7)? Date: 8/3/1999 8:17 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Pixy - the plan may restrict the transfer of "employer" funds, but the employee funds are 100% vested from the get-go. Therefore, the employee may use Rule 90-24 to make partial transfers to another 403b account! It's a bit of paperwork! And if the original contribution was into a TSA there would be surrender fees/a mutual fund may have a load (back-end) to consider... PP

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12756 of 75614
Subject: Re: who's choice is a 403b(7)? Date: 8/3/1999 9:13 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
PP sez:

<<Pixy - the plan may restrict the transfer of "employer" funds, but the employee funds are 100% vested from the get-go. Therefore, the employee may use Rule 90-24 to make partial transfers to another 403b account! It's a bit of paperwork! And if the original contribution was into a TSA there would be surrender fees/a mutual fund may have a load (back-end) to consider... >>

Thanks. That's the answer I was looking for. Thus, the employee may transfer any contributions the employee makes. I would also assume any earnings as well. And, yes, it would be a hassle. Still, that's a small price to pay for a better return elsewhere.

Regards..Pixy

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Advertisement