Asset Transfer

[Guest MatchaT]

Hi all,

I have a plan that is in the process of moving its assets to another platform.

The new account is set up with a different plan name since the Plan Sponsor changed the name of the company.

A new EIN was also issued in the process.

Now, the vendor is refusing to transfer the asset unless a distribution form is filled out.

Their reasoning is that the new plan has a new EIN, so they cannot transfer the assets.

I have provided them with documents stating the change of the plan name and EIN.

They are still refusing to do the transfer.

Has anyone been through this before?

[david rigby]

The new account is set up with a different plan name since the Plan Sponsor changed the name of the company.

Changing the name of the company is not the same as changing the name of the plan. Likely, a plan name is accomplished via plan amendment.

[QDROphile]

You should be able to transfer assets even if it is a different plan of a different employer. The vendor should do what the plan administrator directs the vendor to do. That does not mean the vendor will behave.

It also sounds like the new set-up is confused, and perhaps mistaken. That spooked the vendor. You need someone who knows what she is talking about to evaluate what was done formally, what needs to be done under the circumstances, and communicate with the vendor.

[Guest MatchaT]

The new account is set up with a different plan name since the Plan Sponsor changed the name of the company.

Changing the name of the company is not the same as changing the name of the plan. Likely, a plan name is accomplished via plan amendment.

David,

There was a plan amendment to change the plan name, and I provided a copy of the amendment to the vendor as well.

You should be able to transfer assets even if it is a different plan of a different employer. The vendor should do what the plan administrator directs the vendor to do. That does not mean the vendor will behave.

It also sounds like the new set-up is confused, and perhaps mistaken. That spooked the vendor. You need someone who knows what she is talking about to evaluate what was done formally, what needs to be done under the circumstances, and communicate with the vendor.

QDROphile,

Thank you for verifying. I'll try to talk to them again.

[Lou S.]

Have you tried asking the old vendor if they have a from fro changing the name? If so getting that and sending in with another copy the asset transfer request may be the path of least resistance.

[Guest MatchaT]

Have you tried asking the old vendor if they have a from fro changing the name? If so getting that and sending in with another copy the asset transfer request may be the path of least resistance.

Lou,

Good idea. Maybe i should get a trust identification number for the plan, so i won't have to deal with this ever again!

[movedon]

The solution may be just as simple as arguing your way up the food chain with the vendor until you get someone that knows what they're doing. I had a similar problem (minus the name and EIN change) when trying to move my own solo k plan away from Fidelity a few years ago. I yelled at a progressively more senior chain of supervisors until I finally got the right one. If you're an ASPA member, you can also use the ASPA online yearbook to find someone employed by the vendor that ostensibly knows enough to help.