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Vendor Refuses 90-24!

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Great-West says that they will ONLY allow a 90-24 transfer to the new vendor chosen by the District. The teacher wants to to a 90-24 to Vanguard. The District is OK with this, but it is the vendor, Great-West saying no in this case.

 

Which portion of the law states that they must allow a 90-24 transfer if the Employer permits it?

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Guest Sierra

Tell GW that this is the modification to RR 90-24 effective 1/1/06. Ask them why they are implementing it now when they are not suppose to conform to the Regs until 1/1/06.

 

Peace,

Joel

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Vendors have never been required to accept 90-24 transfers. They are not required to accept rollovers, either.

 

It is possible that they have adopted this rule in anticipation of the proposed regulations being made final, or perhaps it is something they do regardless, perhaps to give them some cover in case a problem occurs since, technically, the school district is responsible for compliance but might be able to plausibly disclaim responsbility when money moves to a non-approved vendor.

 

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Guest Sierra

Chuck---

 

Haven't you realized yet that you have entered the "no spin zone?"

 

GW---being one of the "sharks" has instituted this policy because it simply is desirous of maintaining assets under management for as long as possible PERIOD!

 

Peace,

Joel

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1 If Great West says no, then what legal recourse do I have to move my Great West 403b money to a district approved vendor via a 90-24 transfer?

2 Also, can Great West decide to which vendor it is moved?

3 Does GW have legal sanctions whether or not they allow a 90-24 transfer?

4 What is the law that governs these issues?

5 OR...is my money simply held hostage by GW?

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Guest Sierra

Pab: I know the IRS would like to hear your story. These are the type of things that the Final Regs will address. Below please find how to officially communicate your story/comments to the Federal Regulators.

 

Peace and Hope,

Joel L. Frank

------------------------------------------------------------------------------------

4830-01-p]

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 31

[REG-155608-02]

RIN 1545-BB64

Revised Regulations Concerning Section 403(b) Tax-Sheltered Annuity Contracts

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking, notice of proposed rulemaking by crossreference

to temporary regulations, and notice of public hearing.

SUMMARY: This document contains proposed regulations under section 403(b) of the

Internal Revenue Code and under related provisions of sections 402(b), 402(g), 414©,

and 3121(a)(5)(D). The proposed regulations would provide updated guidance on

section 403(b) contracts of public schools and tax-exempt organizations described in

section 501©(3). These regulations would provide the public with guidance necessary

to comply with the law and will affect sponsors of section 403(b) contracts,

administrators, participants and beneficiaries. In the Rules and Regulations section of

this issue of the Federal Register, the Treasur y Department and IRS are issuing

temporary regulations providing employment tax guidance to employers and employees

on salary reduction agreements. This document also provides notice of a public hearing

on these proposed regulations.

2

DATES: Written or electronic comments must be received by February 14, 2005.

Outlines of topics to be discussed at the public hearing scheduled for February 15, 2005

to be held in the IRS Auditorium (7th Floor) must be received by January 25, 2005.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-155608-02), room 5203,

Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044.

Submissions may be hand delivered Monday through Friday between the hours of

8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-155608-02), Courier=s Desk, Internal

Revenue Service, 1111 Constitution Avenue NW., Washington, DC, or sent

electronically via the IRS Internet site at www.irs.gov/regs or via the Federal

eRulemaking Portal at www.regulations.gov (IRS-REG-155608-02). The public hearing

will be held in the IRS Auditorium (7th Floor), Internal Revenue Building,

1111 Constitution Avenue, NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, R.

Lisa Mojiri-Azad or John Tolleris, (202) 622-6060; concerning the proposed regulations

as applied to church-related entities, Robert Architect (202) 283-9634; concerning

submission of comments, the hearing, and/or to be placed on the building access list to

attend the hearing, Sonya Cruse, (202) 622-7180 (not toll-free numbers).

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I want to thank you for your answers. I haven't posted back because I am still negotiating through the labyrinthian arrangements of who-did-what-to-whom. The story will continue...thanks!

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