An exchange is simply the movement of all or some portion of a 403(b) account held with one vendor to another vendor that is a part of the employer’s plan. The recipient vendor MUST be a part of the plan, either because the vendor is receiving contributions under the plan (thus is required under the written plan to share information necessary for compliance), or has entered into an Information Sharing Agreement with the employer. In both cases, the recipient vendor must be listed as an approved provider in the plan.
403(b) / 457(b)Transactions/Transfers&Exchanges: What is an exchange?
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