Reemployment and Related Employment in 403B
After resigning from my common law salaried postion as a Professor in a state university, the State Plan 403b Administrator produced a form that I needed to sign to get my 403b money out of the plan. It was vaguely worded and asked me to resign any other “employment or contract activity with the state” to get my money. They said this was under the reemployment and related employer section of the 403b. My reading of that is that it applies to only salaried common law employment. I am neither an employee nor a salaried/hourly worker. I am a private business under a separate TAXID billing the state fee-for-service in the private practice of Psychology. Is “Related Employment” only a 403b restriction if it is Employment (Common Law Salaried)? I would think so. What should I tell my Plan adiminstrator about this to get my money out? Thanks. (Any Case Law on this?)
Permalink Submitted by Alan - IRA critic on Fri, 2024-05-24 21:09
This seems to be a unique provision of some state run 403b plans, and while your situation might require some interpretation, more than likely the state has encountered a few former employees with this issue and their position on it has probably been firmly established perhaps after challenges. Probably all you can do is appeal the decision, and determine if they can provide some citation to justify it.