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rhollowood

Another 403B Gone Wrong Song...

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from page 6 of the Ameriprise form:

"How do I do a rollover?

There are two ways to do a rollover. You can do either a direct rollover or a 60-day rollover.

If you do a direct rollover, the Plan will make the payment directly to your IRA or an employer plan. You should contact the IRA sponsor or the administrator of the employer plan for information on how to do a direct rollover.”

 

 

You should do the direct rollover, not the 60-day rollover. I don’t think this form should be a problem to fill out if you decide you want to roll over your Ameriprise 403b to Fidelity. If I had to fill out the form, I’d do it the following way. If you have any questions, please ask them.

Page 1

supply the account number in upper right-hand corner

Page 1, ,Part 1
Plan Type: Tax Sheltered Annuity (TSA)
Amount to be moved: 100%
Page 1, Part 2
Company name: Fidelity
Advisor/Agent: none
Owner name: your name
Product name: 403b7
Product type: mutual fund
Page 2, Part 2 (cont’d)
Product is NOT an annuity, do not check.
Plan type: other: 403b7
Delivery Instructions: Get these from Fidelity
Page 2, Part 3
Supply your school district's name, EIN, address, phone #
Page 2, Part 4
Does not apply to your rollover
Page 3, Part 4
Does not apply to your rollover which is not taxable. You could check “Do not withhold” anyway.
Most of this page is information for you to read.
Page 4, Acknowledgements and Signatures
Direct Rollover and Conversion: They will give you 30 days to think over your rollover decision, during which you can ask for a distribution, which they will process without delay.
Signing means you want a Direct Rollover
Page 4, Spousal Consent
Your 403b plan is not an ERISA plan, and you are not taking a distribution, so this doesn’t apply
Page 5, Part 6
Notarization: Doesn’t apply.
Page 5, Part 7
Acceptance by Fidelity officer. I think Ameriprise can do this by phone or internet. Ask Fidelity.
Pages 6, 7 and 8
Special Tax Notice for Plan Distributions.
Because you are doing a Direct Rollover, most of these 3 pages don’t apply to you. Have a read to make sure. There’s a lot about a non-direct rollover, where you receive a check, with 60 days to get it to the new 403b. There are penalty tax issues and income tax issues possible if not all the money gets sent to the new 403b in time.
I went through this process twice with a VALIC 403b annuity. It’s slow and frustrating, but eventually my money showed up at Fidelity (and Vanguard for the rest of it.) In the meantime, I hope you are contributing to your new Fidelity 403b, using their excellent Spartan Index funds!
By the way, I don’t think it’s fair to blame all the complexity and red tape on Ameriprise. Congress has some of the blame for not preventing non-ERISA 403b’s and for allowing an insurance industry free-for-all to sell to uninformed teachers. The IRS is not known for reducing complexity or improving clarity for the 403b user. As has been discussed in other threads, there’s a lack of leadership and knowledge on many levels—, school districts, unions, educators, etc.
Hang in there!

 

 

Great instructions krow!

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So...thanks again krow36. Great work on what needed to be marked on the paperwork. Better than the Ameriprise rep who reached out and got the clear message that I had no intention of staying in their annuity product. Pretty weak attempt at retention. So, the paperwork got bounced back to me. And now I'm being told that I have to send it to Fidelity first to complete part 7. They were very specific that it has to be completed by a corporate officer. Lol. I suppose it will then be bounced again if they're not satisfied with who signs it when it gets to Fidelity. Perhaps next, the Grand Poo-bah will be required. Anyway a fairly lengthy phone call with Fidelity this morning yielded no result as to where I have to send it. What I described to the representative resulted in a bunch of fact finding on her end about what gone on so far and, eventually, I get students in the morning. I guess summer is coming if I need to concentrate on this some more.

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rhollowood, it sounds like you are making progress, even if it's slow. Folks have reported that it has taken as much as 2 months before their money arrived at the new providor. The insurance companies seem to drag it out for as long as possible. Try not to get discouraged and keep plugging away. It will feel fantastic when it finally arrives at your Fidelity 403b account. Have you started making payday contributions yet?

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It's possible that I've got this thing cracked. I received a letter from Fidelity stating that they've sent a completed letter of acceptance to Ameriprise. If I'm reading the form correctly that should satisfy the requirement in Section 7 which is why my initial set of forms got bounced..

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Is there anyone that can tell me what to expect at this point? When my paperwork wasn't quite right I heard back from Ameriprise within a week. It's closing in on two with the re-submission. Fidelity sent a letter of acceptance and now...I'm not clear on what's happening or what to expect. Radio silence.

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I remember being very frustrated, waiting weeks and weeks for VALIC to move my money to Fidelity. And I was leaving about half of my account with VALIC (boy was that dumb!). Ameriprise may not tell you the move has been made--you may have to check your Fidelity account to find out?? There was something on that Ameriprise form about giving you 30 days to think about your decision to bail out?? I'm not sure it applies to your rollover, or only to a distribution.

 

Anyway, I think you can expect the rollover to happen, just don't hold your breath!

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Money came out of Ameriprise as of yesterday! I'm assuming overnight check to Fidelity and up and running shortly, Or I could be wrong. In either case, I think I'm over the big hurdle now.

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That's great! I think they often send you a check, made out to Fidelity, "for the benefit of rhollowood", and you send it on the Fidelity. But if they send it direct to Fidelity, that would be ideal.

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