large 403(b) depositing SH Match in Employer Match accounts

[Lori H]

A fiscal year TIAA plan was amended for the last plan year to change their 100% vested employer match to an enhanced Safe Harbor Match. The plan sponsor continued to deposit the SH Match in the match accounts instead of setting up a SH Match account.  Should they just approach TIAA to have them move the SH into its own account along with allocable yield?

[Earl]

My experience is that TIAA can re-post under the correct money type.

[Lori H]

Apparently TIAA is refusing to transfer the SH Match(plus yield) into the appropriate source.  Considering the plan allows for hardships, this could be an issue if Match and SH match funds are commingled.  Thoughts?

[Kevin C]

It sounds like they need to get higher up the food chain at TIAA. 

Keeping the different matches separate is needed for more than just hardship distributions. What if they decide to add an in-service distribution provision down the road?