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msucurt

Please help with 403b / Roth IRA decisions

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Once those funds get transferred, I will set up another ROTH IRA account and use the extra $5,000 to invest.

Good luck! I think the Roth IRA transfers will be smoother than the 403b transfers to SB. 

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On 11/6/2020 at 2:02 PM, krow36 said:

Step 2 on the SB Direct Invest Incoming Funds Request says:

“2. Please contact your current carrier for any form requirements it may have for transferring money to another company. “

This is critical to moving your balances from VOYA and National Life Group. The transfer will not happen unless the transfer forms of VOYA and National Life Group are completed to their satisfaction. After receiving the forms, you will need to talk to them about their requirements. They will not accept SB’s transfer form as sufficient to make the transfer. Other posters have found that annuity company transfer forms can be a serious challenge. They have parts to be filled out and signed by you, and a part to be filled out and signed by Security Benefit, and a part to be signed by your district's TPA, all done in the correct order. Let us know how it goes. Discussing your questions may help other posters in the future. 

I would assume I need to contact both VOYA and NATIONAL LIFE GROUP and get their transfer forms and complete them to their satisfaction? Wow, what a complete and utter nightmare. No wonder no one goes through this process......its so time consuming. I have literally spent going on 2 weeks with this. Its a shame that it has to be this difficult when its your money and your decisions. You would think since we put a man on the moon that we would figure out a easier process than jumping through a million hoops. Its truly embarrassing from the HR departments to the financial institutions. 

thanks

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It's been reported by an employee of an un-named 403b annuity-seller that they would receive a transfer form with 3 mistakes. They would reject the transfer and point out only 1 mistake. Same procedure on a 2nd mistake. The customer would often give up or postpone the transfer. 

There's lots of blame to go around for the K-14 403b problems, including Congress, the Federal executive branch (SEC, IRS, Dept of Labor, etc.), the States, school districts, unions, the insurance and finance industries, the TPAs, etc. Did I forget to mention K-14 employees and their willingness to trust insurance salespersons? There's been a number of small victories, here and there, but it's slow going. 

Yes VOYA and NLG have the upper hand now, and you will need to be thorough and patient. Many posters have reported on their experience and that can be helpful. We can help you understand the transfer form if you'd like. Of course calling the companies with questions is always a recommendation. 

You might find it useful to join the 403bwise Facebook Group. It's full of folks that have dealt or are dealing with transfer forms. I don't use FB, but do participate in this very useful Group. You can see info on the Group with a sticky at the top of this forum's intro page.

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Msucurt,  everybody here shares your frustration.  Especially galling is that this is far from a put-a-man-on-the-moon problem: good solutions are in place in many states.  Federal government employees have the exemplary Thrift Savings Program.  Several states have ultra-low-cost state programs for 403b or 457b accounts available to all qualifying workers in the state.  Districts like the one I work for don't have those, but do offer direct access to low cost vendors including Fidelity and Vanguard.  In every case, enrollment is simple.

I guess it is a matter of building local interests that will consciously counter the interests of the insurance companies and their sales forces who have found the 403b market to be a cash cow for decades.  It's a shame this hasn't been cleared up at the federal level, but the financial services folks appear to have some effective lobbyists.

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