cdavis25 Posted January 22, 2014 Posted January 22, 2014 I believe this is ok, but wanted to see if I am missing anything. Company A has a 403(b). A new company B is formed and started a new 403(b) Plan. That new plan is identical to company A's Plan. About 100 people are leaving company A to work for company B. There are no other employees. The two companies are not a control group. Can they transfer the assets for the affected participants from A to B?
rcline46 Posted January 22, 2014 Posted January 22, 2014 Are the accounts custodial accounts or annuity accounts? Remember, 403(b) plans do not have trustees to effect trustee to trustee transfers.
cdavis25 Posted January 22, 2014 Author Posted January 22, 2014 I believe they are all custodial accounts at one vendor.
rcline46 Posted January 22, 2014 Posted January 22, 2014 Remembering that these are not 'qualified' plans, you should be able to execute a merger with custodian approval, providing the accounts are NOT individually titled accounts.
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