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woodyz

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  1. We finally got our list of approved vendors. I am not familiar with any of them. The district will be setting up a presentation and will give us an opportunity to meet with the vendors. I have a 403b with Janus. I received a letter from Janus in June notifying me of "my options" (I am with the same district and not near 59 1/2). The option for me is: -Under age 59 1/2 and making contributions -Automatic salary reductions must be stopped by December 31, 2008 -You may transfer your Janus 403(b) account to an eligible 403(b) vendor by December 31, 2008 I stopped contributing a few months ago. I talked to a Janus representative and they will not be continuing with 403(b)'s. His impression was that I had to move the money by December 31st. However the letter says "may" but then by December 31st. I want time to decide upon a new vendor and for now am contributing to a Roth at Vanguard. Can I roll after December 31st? or will it be "stuck" there forever? I am not sure I want to leave it there if they are going out of 403(b) altogether I do not want to have problems in the future. The second question is on my vendor options. I have a list of questions to ask and have begun doing some research but if anyone has "opinions" I would like to hear them. If anyone can direct me to a list of questions to ask that would also be appreciated. I have compiled one, but I want to make sure it is comprehensive. I will probably just max out my Roth for this year and maybe next but feel I may need to rollover my Janus by 12/31 and want as much information as possible to make my choice. The 6 choices are: AIG/Valic AXA Equitable First Investors Horace Mann Oppenheimer Funds Pacific Life Insurance Company
  2. After receiving little or no information until today (even when asking questions) we received our "short" list of providers today. The letter reads: "As of December 31, 2008 ________ will no longer be accepting salary reduction contributions to existing 403(b) accounts." Here is a short list of vendors that we believe will be able to comply with the new regulations. Horace Mann - rep. and phone number AXA Equitable - rep. and #" The blank is wherever you were sending it before. We had numerous different options as we only needed 2 employees to add a company to the list. When asked we were told that these were the only two that would agree and sign the required paperwork. So, now what? My husband has his own business so we can put more money into his SEP and depending upon how good business is a Roth is an option sometimes.
  3. I have a few of the same worries. Seems are Buisness office takes the path of least resistance which does not always bode well for our teachers That is promising. I too have the same worries, that my district will not accept their form. Janus sent me back "their" form yesterday and my district is "looking" at it but has already stated that they probably will not accept it. They want the provider to sign our form only. So far that leaves us with Horace Mann, American Funds, AXA and Valic.
  4. At my district we received a memo on Thursday regarding the new 403b regulations. To be honest before that I did not know anything about nor has anyone in my building that I have spoken to. I have been doing some research the past 24 hours, but it is a lot to digest and I feel like I have to do it so fast. We have always been able to contribute to any 403b provider as long as there were 2 employees choosing that provider. Obviously then this is not too much of a shock the memo states that "We do not currently have service provider agreements in place for the majority of the providers you are working with." They gave each of us a copy of the Service Provider Agreement for non-ERISA Plans and told us to get it signed by our provider and also "This problem should be easy to solve if you are working with an established 403b service provider." I have an account with Janus. Upon contacting them yesterday it appears that they will not sign the form. I have faxed it to them as requested but the intial reaction from the two representatives on the phone was that they would not sign it. I went to the district office yesterday to find out which companies we have a provider agreement with and the answer was "not many" and they could provide me with a list on Monday. They seemed overwhelmed and confused themselves. My questions are -- Do I need to transfer my money from Janus? Will it become "orphaned" and face some penalties later? Will it be stuck there forever if I do not move it now (assuming I even have time)? I can work on what provider (if any) I want to start a new account and it seems may have to work on getting a decent service provider, but it is my understanding that after September 25th transfers can only be made to providers within the "group" and I keep reading these things about "orphaned" money and the tax implecations of that at a later date. I could kick myself for not knowing about this sooner. This always happens in my district, last minute. Thank you for your knowledge and time.
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