Election to defer and Plan to Plan transfer

[30Rock]

I have a client with a terminated participant. He wants to defer his payment, but in the event the plan of new employer allows a transfer, he wants the option to be able to transfer the benefit to the other plan. His deadline to elect is fast approaching, and his concern is if he has to make the election before he finds out if his plan allows the transfer, then he will be locked in to the deferred date and will lose his ability to do the transfer. Any thoughts??

[QDROphile]

My thoughts are (1) it is strange that this should be a problem and there is a plan design flaw, and (2) almost no plans will accept elective transfers from outside of the controlled group so no one should worry about misinfomred participant expectations or aspirations.

[30Rock]

Sorry but I am not following. THe executive is working for a new tax exempt employer and wants to transfer his account which is allowed under the 457b regulations. The question is does he have to make a short term deferral election like 3 months to give him time to find out if the new plan will accept the transfer? This way if the new plan will not, he can make a one time election to defer his payment to a later date.

[QDROphile]

I apologize for not paying attention to the forum. I was thinking about qualified plans. Different world.