403(b) Transfer. help please.
I have a client that is not pleased with his current 403(b) company Van Kampen. He would like to move it to another company. He is 42 and is still teaching so there is no 59.5 rule or discontinued service rule I can use. I used the Third Party Administrator’s approved vendor list when choosing the company receiving the transfer. Is this allowed/Correct?
I have heard a lot about 90-24 transfers but those are not available since09/2007 (I believe). All I would like to do is help this man transfer his money into something he would like to invest in with no tax consequences.
Please advise. Thank you.
Permalink Submitted by Denise Appleby on Sat, 2008-10-11 01:25
Since the new company is an approved vendor under the plan, the [i]transfer [/i]is permissible. The term used in this case is actually contract exchange ( not transfer) , because assets are being moved between accounts under the same plan 🙂 …