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Employer changed 403B institutions

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Sorry Tony but I don't know if or how Reg can get his balance out of Lincoln Life. Hopefully Fidelity will be able to figure it out? If I were Reg, I would present this problem to the Boglehead forum. Alan S. is a highly respected expert on IRS regulations and on this sort of problem. Also Spirit Rider has amazing depth of understanding IRS regulations. They both participate in other forums used by professionals. https://www.bogleheads.org/forum/viewforum.php?f=1

 

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tony,

I don't know what happens in that case because Lincoln is not part of the plan anymore. Just wanted to let everyone know to be careful of what is actually happening (contract exchange, rollover, etc) and to make sure that it's coded correctly so you don't have any trouble later on in the future. Judging from the original poster, it is not a rollover so do not do a rollover unless you have a qualifying event for distribution.

The contract exchange, i believe, can happen as long as the investment provider that the money is moving into is part of the approved vendor in the plan and there's an Information Sharing Agreement. So, you can move money into an approved vendor but not into a vendor that's not approved anymore. Check with your plan administrator to see if its part of their rules for contract exchange.

But based on what I see, it's definitely part of a contract exchange because no other type of transaction applies to your situation.

Rollover must have a distributable event: age 59.5, separate from employer, disability, or death.
Transfer is from one employer to a new employer.

Anyway, double check with an expert to be sure. But I feel pretty certain though but double check.

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Here is my update:

After exhaustive questioning of all parties, here is the definitive answer. 

I CANNOT DO A ROLLOVER OF MY PREVIOUS 403b account unless I meet distribution age of 59.5 or leave the employer.

I CAN ONLY EITHER LEAVE THE MONEY WHERE IT IS OR PERFORM A PLAN EXCHANGE AND CONSOLIDATE MONEY FROM MY PREVIOUS 403b into the current one at Fidelity. (See below)

 

 What is the difference between a contract exchange and a rollover?
A contract exchange allows you to move your investments to different service providers under the same employer (in this case the Employer Retirement Savings Plan accounts).
A rollover allows you to move your investments out of the Employer Retirement Savings Plan accounts and into another account   either through another employer plan or an IRA. You can only do a rollover if you meet certain criteria.

 

Thanks everyone. 

Thanks DK for your correct assessment. 

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