Non profit agency merges, changes 403b vendors, can I transfer the old

[Guest R. Kerst]

I am employed by a small not for profit agency. Our 403b is with an insurance annuity to which both the employer and employee contribute. Our small nonprofit is merging with a larger nonprofit and we will be using the benefit package of the larger agency which uses a different financial services firm that brokers a different variable annuity and mutual funds. We are no longer allowed to contribute to the original variable annuity but those funds remain in that account. The period for surrender charges for that original annuity is about to expire so I could transfer those old monies without paying surrender charges. Given that the account contains monies from both the employer and the employee, what are my options? Must the money remain in that closed account as long as I work for the employer? Can I transfer the money to one of the new accounts contracted by my employer? Or best of all, can I transfer that money to any mutual fund I choose that accepts 403b7 custodial accounts?

[Carol V. Calhoun]

You'll need to check with your employer, as the ability to transfer is discretionary with the employer.