Custodial Choice re: Allowing purchase of past service credits

[Guest rightsaidfred]

Question: An individual has his/her 403(b) account with Mutual Fund Co. "A" (the Custodian) and wishes to purchase past service credits using his/her 403(b) account. Mutual Fund Co. "A" is refusing to honor the request claiming EGTTRA allows for Custodial discretion as a matter of internal administrative policy.

Is this correct?

[Appleby]

Ask them for a cite and/or demand to speak with a supervisor

[mbozek]

Like other provisions in the relationship between a mutual fund and the customer, the ability to withdraw funds is subject to the the terms of the contractual agreement between the parties. You need to review the terms of the custodial account to see if a withdrawal to purchase service credits is within the discretion of the custodian.