I have a TSA with a company that is not on my district's approved list. I have another TSA which is on the approved list. Can I transfer my "non-approved" TSA funds to my "approved" TSA?
You will need to check with your district to find out whether contract exchanges are permitted under the plan. The district’s written plan will state whether exchanges are permitted and, if so, which vendors are approved for a contract exchange. A contract exchange is the movement of all or some portion of your 403(b) account held with one vendor to another vendor that is part of your district’s plan. If exchanges are permitted, then generally you may transfer only among approved vendors, and the vendors must have an information sharing agreement with your district. In addition, it is often permissible to transfer from a non-approved vendor to an approved vendor, even if there is not an information sharing agreement in place.
You should also consider any back-end sales charges (these are fees charged by mutual funds or variable annuities when you move or transfer your funds) or surrender fees (these are fees charged by fixed or variable annuities when you move or transfer your funds) that may be involved if you decide to transfer from one vendor to another.
For information on exchanges between vendors that is specific to your plan, please contact your district.
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