From: "revheck" 
Newsgroups: misc.invest.financial-plan
Subject: Re: rollover rules
Date: Fri, 5 Jan 2007 18:17:13 -0600
   posting-account=95Z4zAwAAADci5teLE2YKNVU74_XjjHL
	iQBVAwUARZ7qifl/I4+O31e5AQFxiQH+NbpeNrBwmvSjaRvj57D5BGS2H5+aQsCq
	RLNibE7Mfij/3S1G/0COYlhgZ3jFKAeJRObC6xCaBmlx/QH14xdfPA==
	=QHAJ


PeterL wrote:
> revheck wrote:
> > Can a *former* employer prevent you from rolling over an  403b account
> > to an IRA with another institution?
> >
> > I have a bunch of  403b accounts from previous employers, which I want
> > to consolidate by rolling them all over into a single Fidelity IRA.
> >
> > Two accounts  are from a former University employer, and are handled by
> > TIAA-CREF.  The supplemental account with my own contributions can be
> > rolled into IRA without problems.
> >
> > But I was told today by TIAA-CREF that the account with my employer
> > contibutions cannot be
> > withdrawn for any reason before I am age 55, even if I just want to
> > rollover to an IRA.
> >
> > This doesn't make sense to me: I thought that once I leave an employer
> > that I am always free to roll over all funds from any retirement
> > accounts into another IRS approved retirement account.
> >
> > What they are saying is that even though I no longer work for this
> > university, my retirement funds must continue to be invested with their
> > chosen institution and only in the limited funds allowed in that plan.
> >
> > I don't understand the logic in that restriction. Why should they care
> > once I leave their employment? What if TIAA-CREF started to mismanage
> > the funds? Why shouldn't I be able to use another institution? Can
> > anyone explain?
>
> I have more information for you.  Right after I read your post I got an
> email from TIAA about rolling over to an IRA.  So I gave them a call.
> Turns out my accounts both allow roll overs.  I can either roll into a
> TIAA IRA or to another company (in my case, Fidelity).  The agent told
> me that indeed there are institutions that have contracts with TIAA
> that don't allow roll overs.  This is essentially a paternalistic
> attitude to "protect" people from rolling the funds out and spending
> their retirement money.
>
> So the answer is it depends on the contract your employers have with
> TIAA.  It seems that they want to protect you from your own financial
> foolishness and prevent you from taking a hold of your retirement funds.

I was also told that I could not even move to an IRA within TIAA-CREF.
I must use the plan the University chooses, even though I no longer
work for them.