403B into IRA

[xrac]

Peter, thank you for an informed educational post.

 

[Norwayguy]

Im rolling over a 403B into an IRA.

The 1035/transfer paperwork had a place for the trustee to sign if it was a 403B transferring to another 403B; we had planned to transfer it to an IRA so I didnt get it signed...

Your terminology is wrong...there is no 1035 of Qualified funds.

 

[HarryRenard]

Your terminology is wrong...there is no 1035 of Qualified funds.

I think he was referring to the form being a 1035/transfer form which can be combined.

 

[Norwayguy]

I thought of doing that in the first place, but I try to keep the client out of the transfer process as much as possible if I can.

Plus this is a very small account, so I just dont get the resistance.
NYL was quick to act; they called the same day they received the request.

Two things...your going to run into the same problem just getting a check all distributions from 403(b) must be approved by the Plan and meet IRS requirements.

Second the resistance is to benefit the plan. If the new regs are not followed it can disqualify the entire plan making everyones account taxable...And I know people are going to say can't happen...but I had a payroll slot where prior to the new rules we did common remitting ie money comes into Great American and goes out to American funds I had a client do a change of B/D-Rep on me and under the new rules American Funds was no longer and approved vendor while Great American was long story short after repeatedly telling this ex-client she needed to cease contributions to the american account through my payroll slot and her "advisor" not listening my fall back was her school districts payroll office. They stopped her contributions and required full restituition from the american funds account in that they where not an approved providor.

403(b)s used to be very easy to deal with that has changed...I know I've posted alot on this subject in that I deal with them alot....If you have questions give me a call I can probably help you overcome some hurdles.
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I think he was referring to the form being a 1035/transfer form which can be combined.

I know but the other thing that hit me was if the form only required signatures on 403(b) to 403(b) it could be the form was out of date. but then again some companies that recieve funds but are no longer in the 403(b) biz I won't say don't care because it really is the releasing company and the Plan to make sure everything remains in compliance.
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Peter, thank you for an informed educational post.

I think I might have gone overboard, but after focusing almost my entire business on 403(b)s for 8 years and then these new regs came out I'm pretty passionate about what these changes have done to the 403(b) market.

 

[scagnt83]

Good grief
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I think I might have gone overboard, but after focusing almost my entire business on 403(b)s for 8 years and then these new regs came out I'm pretty passionate about what these changes have done to the 403(b) market.

You havent gone overboard at all, this is what this forum is for (imo) ; thank you for the valuable information.

You will have an email about this case shortly... lol
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That makes more sense that they called and that is not un-heard of a company getting peeved at old agents replacing their biz.

I agree about not involving clients in the process but come on this is controlled business.
If you know they dont like what your doing you why rock the boat when you dont have to (not that your doing anything wrong IMO) .

What if next week you run into to a 500k transfer from NYL your gonna wish you were'nt in a pissing match with them last week (little exaggerated but you get the point).

I understand them getting peeved over replacing my old book. But this is a 15 year old 403B that an old associate of mine set up for her... I was still in high school 15 years ago!!... lol


But as a group, our agency has replaced a lot of our old biz.. so its understandable that they might have us red flagged ... lol

 

[KJ in Miami]

I know it is an old post, but thanks for clearing this up as I thought this was the right answer but the other guy threw me off a bit!

This info is not correct under the old rules or the new rules....Under the old rules it was possible to 90-24 transfer a 403(b) into a new 403(b) and since you could self certify it acted like an IRA but was still a 403(B) you could only go from 403(b) to another vehicle upon triggering even seperation from service, attained age of 59 1/2, death and disability.

Under the new rules 90-24 transfers have gone away and the plan document rules. If your client wants to transfer from 1 403(b) to another the receiving 403(b) must be listed as an approved product on that districts plan document and be signed off on by either the TPA or school.

 

[KJ in Miami]

Great American is the worst. If you have someone with them and are trying to do a roll-over, have fun and do not expect to get paid within the next six-months!!

 

[Norwayguy]

Great American is the worst. If you have someone with them and are trying to do a roll-over, have fun and do not expect to get paid within the next six-months!!

You need to plan when it comes to Great American. You must have and use thier surrender request form along with a transfer form from the new company. Great American will not provide status updates to third parties so your transfer company will request the client call for info. To avoid this when you do all the other paperwork you have the client sign a letter of instruction authorizing Great American to provide status updates to the new company its employees, agents and brokers. This works wonders for me, Great American will now tell me what they are sayig is missing (Even though I know it was sent, I can have it refaxed to them). Also Great American fixed annuities will be a minimum processing time of 30 days for full surrender and yes they will sit with the packet completed until the 30 days is up...Finally on thier surrender request form you MUST have the client initial section 5 in the box waiving an additional 30 day consideration period.

If you do all this Great American Fixed annuities will roll in a 30 day period, assuming everything else is in good order. Thier VAs will roll much faster but once again following this process speeds things up.

 

[iceco1d]

Seems to be the norm for the major 403B players (AXA, VALIC, GAFRI, Plan Member, TIAA-CREF).

They will do anything to hold onto assets. Lame.

VALIC used to serial number and stamp their transfer out forms so you couldn't make copies for later use.

 

[KJ in Miami]

Thanks! One of the operators told my associate another way to do it... they are like Allstate, once they have your money, they do not want to part with it!!

You need to plan when it comes to Great American. You must have and use thier surrender request form along with a transfer form from the new company. Great American will not provide status updates to third parties so your transfer company will request the client call for info. To avoid this when you do all the other paperwork you have the client sign a letter of instruction authorizing Great American to provide status updates to the new company its employees, agents and brokers. This works wonders for me, Great American will now tell me what they are sayig is missing (Even though I know it was sent, I can have it refaxed to them). Also Great American fixed annuities will be a minimum processing time of 30 days for full surrender and yes they will sit with the packet completed until the 30 days is up...Finally on thier surrender request form you MUST have the client initial section 5 in the box waiving an additional 30 day consideration period.

If you do all this Great American Fixed annuities will roll in a 30 day period, assuming everything else is in good order. Thier VAs will roll much faster but once again following this process speeds things up.

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Finally, a roll-over that we initiaite back on October 14th!!!

Seems to be the norm for the major 403B players (AXA, VALIC, GAFRI, Plan Member, TIAA-CREF).

They will do anything to hold onto assets. Lame.

VALIC used to serial number and stamp their transfer out forms so you couldn't make copies for later use.