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Spart

Establishing A Second 403(b) Vendor In Addition To Tiaa-cref

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I am at a small non-profit university (currently about 125 employees). We have TIAA-CREF as our 403(b) vendor, and there is interest in having another additional vendor (Fidelity). I want to be fully prepared to address any concerns that there may be at my institution regarding the addition of second vendor. Towards this end does anyone foresee any major hurdles that my make administrators leery of establishing Fidelity as vendor too? I have talked with Fidelity and their requirements appear quite straightforward:

 

a. Minimum of 10 participants (total for 403(b) and Roth 403(b))

b. Minimum of $250,000 (total for all 403(b) plus Roth 403(b) participants)

c. Electronic remittance

d. ISA (information sharing agreement)

 

My concern is that the plan TIAA-CREF has with my institution may have something in it that makes it difficult to establish a second, competing vendor such as Fidelity. Any thoughts are very much appreciated.

 

Spart

 

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Who is going to administer the plan? My understanding is that TIAA-CREF and Fidelity only handle contributions to their own funds and do not provide record keeping and transfer services to the other co. investments. Will your employer hire a TPA to admin the plan? Under the 403b regs the employer is responsible for administering the plan in accordance with the 403b regs, e.g., 415 limits, loans, withdrawals, distributions etc.

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