Cathy from Chicago Posted August 9, 2010 Posted August 9, 2010 A plan is active and uses a group annuity as 401(k) investment vehicle. Years ago the plan had invidual annuities as the investment vehicle and no contributions have been made to those annuities in probably ten years. Due to surrender charges on them, the participants had option to transfer 10% annually to their group annuity account as such was not subject to the surrender charge. Question: in my opinion, the participant may not roll over his individual annuity to an IRA if he is actively employed as the individual annuity is part of the Plan assets - his broker, however, told him he can. Answer?
david rigby Posted August 9, 2010 Posted August 9, 2010 Is there a distributable event under the plan? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Cathy from Chicago Posted August 9, 2010 Author Posted August 9, 2010 Is there a distributable event under the plan? No there is not
Bird Posted August 10, 2010 Posted August 10, 2010 QUOTE (david rigby @ Aug 9 2010, 08:36 AM) *Is there a distributable event under the plan? No there is not There's your answer. If you haven't learned it already, brokers are notorious for...well, for being wrong. Ed Snyder
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