Jump to content

Cutback When Moving From Group Annuity to Custodial Accounts?

Recommended Posts

ERISA 403(B) arrangement is invested entirely in a group annuity contract (GAC). The arrangement includes salary deferrals and employer matching contributions

Employer wants to restate document and transfer to a custodial account environment (assume there are no issues related to withdrawal from GAC).

Given that in-service withdrawals of matching contributions is allowed under the GAC (and under the existing plan), but is not permitted under a custodial account (see 403(B)(7)(A)(ii)) -- is there any way to move to the custodial account environment without causing a cutback of the in-service withdrawal feature, as it applies to matching contributions, rollovers, etc.

Your comments are appreciated.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...