• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Money trapped in an old TSA account

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Theblake57

New member
My wife has worked for the same Non-Profit Hospital Corp since 1989. At that time they "offered" a TSA (403b) thru an Insurance company contract. All employee pre-tax dollars with no match. After a few years they switched to offering a traditional retirement plan that they funded, and the TSA participants were presented with 2 options - Leave the current assets in the TSA or put them in a mix of stock and bond funds selected from a small group of funds. The TSA assets were not rolled over into the company pension plan. The TSA was frozen -no more contribution and the annuity contracts sold by Travelers Ins were taken over by Met Life then later Brighthouse. The original contract my wife signed correctly stated all the IRS rules for withdraw i.e. no withdraw til 59.5 or employment termination, hardship etc. It CLEARLY states that a direct roll over to another qualified plan was allowed. She wants to roll it over to an IRA but is being blocked by the employer, even though the account is dormant. Does she have any legal recourse to regain control of her investments direction?
 


Plan is subject to current IRS rules not IRS rules at time contract was signed. See if there is an updated plan document. She can do a rollover at time of separation. But if she doesn't want to quit her job she may be stuck.
 
Sponsored Ad

Top