When you have a change to your name, address, or beneficiaries, contact your provider (inactive provider) directly. Your provider will explain the process and provide forms to complete these changes.
Rebalance your investments: You may change your active provider fund selections at any time (with no fees in most cases). Access your accounts online or contact your provider (see Providers and Investments for contact information and web access).
Redirect future contributions to alternative investments if you wish. You may choose to sell current funds and reinvest them in alternative investments within RIC (some provider restrictions and fees may apply).
Inactive provider changes may or may not be allowed by phone or internet. Your provider may require that you make your request in writing. Fees and restrictions may apply to these transactions. Contact your inactive provider to ask what is required for making these changes.
First, review the following list of product benefits offered by RICβs 403b providers. RIC providers have competitive products and services that typically include:
A large selection of investments to meet the savings goals and needs of conservative, moderate, and aggressive investors.
Detailed account statements sent to your home address quarterly (annually for fixed accounts).
Reasonable fees and no sales loads (some exceptions) for mutual funds. Even a 1% difference can make a big difference over the long term of your investment.
Competitive fixed-rate investments
Local investment representatives (some exceptions)
Customer support - 24-hour toll-free phone and internet access to your account information (some exceptions)
Ability to change your investment selection at any time (some exceptions)
No surrender fees or product restrictions for transfers and distributions (some exceptions)
No annual contract fees (some exceptions)
Access to self-directed brokerage account (not offered by all providers)
Second, review your annuity policy or call your inactive provider and request information listed on the Policy Review Data Sheet. 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:
Call an active provider and tell them you are a 403b participant looking for alternatives to your current investments
Ask them to meet you at your location to discuss the possible benefits of an exchange and explain investment options
Ask the provider for reasons why you should choose their firm over the other investment providers. RIC's Investment Provider Interview PDF gives sample questions to ask providers.
You may find one or a number of reasons to consider investing with a different RIC provider. Some providers do not always agree to give their investors the same products and services as are offered by RIC providers.
You may decide to make an exchange if...
Your investment choices are limited by your current provider
Your product offers limited distribution options
You find that you are paying unnecessary fees
You want to consolidate your investments with one provider
You want an investment representative in your area
Your investments have underperformed as compared with their peers for a number of years
Some of the active providers have no restrictions or fees for exchanges to RIC provider accounts.
Some 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. Be sure to ask for fee information.
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.
Depending on the provisions of your inactive policy, your options to exchange assets to another RIC provider are most likely the following two ways:
Exchange 100% of your policy value (surrender charges may apply)
Set up an automatic annual exchange of the penalty-free amount (typically 10% of contract value) until the total balance is exchanged without penalty (some inactive policies may not have this option)
Be aware that the receiving provider must have an Information Sharing Agreement (ISA) with planwithease or RIC (see list of providers with ISAs) in order to process. Be sure to contact your old provider and ask if there are any fees and/or restrictions on moving your money out.
A provider exchange refers to the movement of some or all of your RIC assets from one investment provider to another provider in the plan. Check your employer's plan details for possible exchange restrictions.
If you still have assets invested with an inactive provider and wish to make an exchange, be aware that the receiving provider must have an Information Sharing Agreement (ISA) with planwithease or RIC (see list of providers with ISAs) in order to process. Be sure to contact your old provider and ask if there are any fees and/or restrictions on moving your money out.
Note: Exchanges between active providers are not recommended unless you have been dissatisfied with your current active provider services or investments over a reasonable amount of time. Investments with some active providers have no restrictions or fees to consider.
