Accept a rollover or not?

[TBob]

I have searched prior threads about accepting rollovers for terminated employees. In most cases, they are not accepted by the current plan because the person rolling the money over is no longer an employee. Most plans limit rollovers into the plan to "employees".

What do you do when the employee request the rollover from his prior employers plan and then terminates from his current employment while the money is in transit? Does the fact that the rollover was initiated while he was still an employee have any bearing on the issue? To accept or not accept, that is the question?

[WDIK]

To accept or not accept, that is the question?

Whether 'tis nobler in the mind to suffer

The slings and arrows of outrageous and ambiguous legalities,

Or to take arms against a sea of troublesome plan provisions,

And by opposing end them? To terminate: to invest;

No more; and by an investment to say we end

The heart-ache and the thousand natural shocks

That pension administration is heir to, 'tis a consummation

Devoutly to be wish'd. To return, to invest;

To invest: perchance to charge some fees: ay, there's the rub;

(Liberties taken are shown in italics.)

My advice is to justify either position based on plan language and policy and consistently stick with that position unless/until you are proven wrong.

P.S. If the plan already acknowledged that it would receive the rollover prior to the employee terminating, I would probably accept it.