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. RIC active provider products include professional money management, flexible payment options, quality service at reasonable cost and no surrender fees. Inactive providers do not always agree to give their investors the same products and services. You may decide to make an exchange if…
First, review the following list of product benefits offered by RIC’s 403b active providers. RIC active providers have new and competitive products and services that 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 by following the instructions provided on the exchanges page of our website.
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
Active providers have no restrictions or fees for exchanges to other active provider accounts.
Inactive providers may have surrender charges that limit your ability to exchange part or all of your assets without a penalty PLUS your employer's plan elections might not include this type of exchange.
A surrender charge is typically imposed for a set period (5, 10, 15 yrs, etc.) and decreases each contract year from the original date of your policy or the date of each contribution. Check with your inactive 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.