Creative Pension Consultants, Inc.
Compensation Strategies Group, Ltd.
Nova 401(k) Associates
The Retirement Plan Company (TRPC)/an ABG firm
Nicholas Pension Consultants
Atlantic Pension Services Inc
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|How to Deal with 'Small Amount' 403(b) Annuities of Former Participants|
Business of Benefits
Jan. 12, 2015
"Perhaps the most persistent of the [403(b)] regs' shortcomings is the failure to adequately recognize, and deal with, the fact that individuals -- and not plan sponsors -- control vast aspects of plan operations under individually owned annuity contracts and custodial accounts. This results in circumstances (often in the otherwise most simple matters) which offer no easy solutions, compelling us to seek unique procedures addressing some of this regulatory myopia's most difficult effects.... Though the 'small amount' rules of 401(a)(31) do apply to 403(b) plans, how do you distribute small amounts out of an individually owned contract over which the plan has no ability to force a cash rollover?"
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