bibliwho Posted January 9, 2019 Posted January 9, 2019 I know the IRS does not allow participants to change their election amounts mid-year (absent a qualifying event). I'm thinking it should be OK to switch brokers, however, as long as the the election amount does not change. The biggest obstacle would presumably be gaining approval from both brokers. Anyone have any experience with this? Many thanks in advance!
rr_sphr Posted January 10, 2019 Posted January 10, 2019 yes, you can change vendors (do you mean vendor or broker?). [We thought about it but ending up switching vendors at the end of this last calendar year. Even by doing so we had "rolling" balances that had to be transferred. The biggest issue was the blackout/shutdown of the prior vendor's transactions so that we weren't paying for two vendors for multiple months - we didn't want to leave that money at the old vendor since they were holding close to $14k of our money (prior forfeitures, etc). This was easier at year end since the employees got their new balances and cards pretty quickly. Mid-year, your blackout period might need to be longer as no matter what time you change, there will be pending claims and transactions that have to clear.] Our broker facilitated the move and we moved to another vendor that we already had a relationship with (they do our COBRA outsourcing). eta: I am not sure it would be as easy to switch brokers and stay with the same vendor as they might deserve any commissions for the full year. I'd guess I would ask what is the broker not doing well?
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now