Letters to the Editor
To the Editors:
Robert Warrens letter to the editor (August 2006 AAII Journal) regarding closing a direct purchase plan of a decedent does not address the problems of closing a plan of a living participant [AAIIs 2006 Guide to Direct Purchase Plans appeared in the June 2006 AAII Journal]. In many plans (possibly all), there is a direct deduction plan tied to a participants bank account. I found that getting out of the plan would require careful timing. The transfer agent, in my case, was in New York City and the administering agent was in Chicago (different companies). I closed the account with the transfer agent (per instructions) and was told this cancelled the account. Unfortunately, one additional purchase was made after I closed with the transfer agent. Getting the administering agent and the transferring agent to agree that I had an additional purchase after the account was closed was very difficult. I would never go into another direct purchase plan. There are just too many hidden problem
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