I have a client that has a 403B account at former employer(school district),who wants to do a direct transfer to an IRA. The custodian which is Primerica refuses to to do the direct transfer because their policy states that it must be a like account(403B). The IRS code allows a transfer for a terminated employee to an IRA. Primerica will make a distribution after withholding 20%. My question is how can Primerica be forced to make the direct transfer thereby avoiding the withholding?
Talk about the weirdest most obscure account find ever. PRIMERICA is now in the 403B market? Is it in Legg Mason funds?
AND WHY WOULDN'T PRIMERICA BE IN THE 403B MARKET. NEXT TO YOU CLOWNS, THEY ARE GENIUSES! GENIUSES!
WHY, I WOULD WORK THERE IF I WAS SKILLED ENOUGH TOO. TRUST ME I TRIED AFTER I GOT FIRED FROM EVERY OTHER PLACE I TRIED. OR GOT TURNED DOWN.
NOW I JUST RUB THE CROTCH OF MY LION-O ACTION FIGURE AND WISH THAT HE WERE STILL A LITTLE LION-O.
THAT'S RIGHT LION-O, MELETI-O LOVES YOU.
LET IT RAIN!
Ice, you are correct, it is a rollover. Priamerica says they will not rollover to anything but another 403B. They do have a form for distributions and they will do that with permission for the employer, but they will withold 20%. There is no loan. They are aware that the emplyoyee has terminated. They admit that it is just their policy, even thought it is allowable by the IRS. All other companies that I have dealt with don't have a problem with it, so I was wondering how they could legally establish such a policy. The funds they use are Van Kampen.
That's ridiculous. Read them/send them a copy of the plan document, and highlight the part that establishes the rules for a rollover.
If that won't work, exchange (which will require TPA exchange forms) their 403B to another 403B vendor in the plan, and then do the rollover.
I don't think that's even legal; why would they withhold taxes on a direct rollover? I'd call someone else at Primerica, maybe you just spoke to someone that is completely incompetent.
Pretty much. Rephrase: "I'd call someone else at Incompetence, Inc. Maybe you just spoke to a Primerican.
I appreciate the help. I will try and find someone who is competent enough to get the transaction done. I don't spend any time in the 403b world, so I thought I might be missing something. It appears that I am only missing making the right contact.