I have a 403(b) account with a company that I have defaulted loans on and I am basically trying to transfer/exchange/rollover to another qualified 403(b) company. I have enough money in the account to pay off the defaulted loans and transfer the remaining balance to this other company.
I submitted all the paper work to the third party which is the TSA Consulting Group and received a certificate of Approval stating that "TSA Consulting Group, Inc. hereby certifies that this transaction is permitted under the provision of the employer's plan", but yet the company is that they need a letter of acceptance from the new custodian stating the funds will be accepted for deposit into a specific plan (WHICH IS INCLUDED) and also a reason for withdrawal which the options are:
1. Attainment of Age 59 1/2
2. Termination of Employment
3. Disability
4. Payment to an alternate payee....
5. Plan termination by job
6. Qualified Reservist Distribution
I guess I am not looking at this as a withdrawal, but a transfer of funds after the defaulted loans will be paid off.
I know this is a lot of information, but I am just trying to figure out why this company is asking for this when it received an approval from the 3rd party in which everything for 403(b) has to go through in order for anything to happen. We have to go through this company to get approved for loans, etc. I mean anything dealing with 403(b).
If anyone can shade a little light on this for me, I will greatly appreciate it.
Frustrated
