The status of a provider's relationship with planwithease (pwe) and RIC determines if and how an exchange may be made (see chart below).
Additionally, your employer's plan elections may indicate exchange restrictions. Participants with assets invested in inactive provider products need to be aware that restrictions and/or penalties may exist. You may use the Policy Review Data Sheet PDF to help you ask your old provider questions about your policy. The answers to these questions will help you compare the old product with the active provider products.
Exchanges between active providers are not recommended unless you have been dissatisfied with your current active provider services and/or investments over a reasonable amount of time.
Consider an Exchange (from an inactive provider)
You may find one or a number of reasons to consider investing with a different provider. Some providers do not always agree to give their investors the same products and services that are offered by RIC providers. You may decide to make an exchange if…
First, review the following list of product benefits offered by RIC’s 403b providers. RIC providers have competitive products and services that typically include:
Second, review your annuity policy or call your inactive provider and request information listed on the Policy Review Data Sheet PDF. Provider contact information may be found on your account statement.
And finally, compare the policy with the active provider investment options, benefits, and fees.
To access active provider information:
Exchange Options for Inactive Provider Products
Assets in inactive provider accounts may be moved to an active provider account at anytime. Instructions for completing an exchange are available here.
Inactive provider assets may move to another inactive provider account ONLY if:
Depending on the provisions of your inactive policy, your options to exchange assets to another RIC provider are most likely the following two ways:
Possible Exchange Restrictions or Fees
Some of the active providers have no restrictions or fees for exchanges to other active provider accounts.
A surrender charge is typically imposed for a set period (5, 10, 15 yrs, etc.) and decreases over the surrender period from the original date of your policy or from the date of each contribution. Check with your provider for possible penalties and the possible option to exchange your assets over a period of time to avoid penalties.
Be aware that an exchange is completed by selling your investment(s) with the old provider and purchasing new investments with a different provider. Talk to an active provider representative about whether or not exchanging your investments is appropriate for your retirement savings goals and objectives.
Instructions for completing an exchange are available here.