what is a fica alternative plan? My friend is a substitute teacher for a school board and she has a fica alternative plan. If she is unhappy with the results can she use a 90-24 transfer to another 403b?

In states which have not elected in to Social Security, employees of state and local governments must nevertheless be covered by Social Security unless the employees are covered by a retirement plan that meets certain requirements ("FICA alternative plan"). Treas. Reg. § 31.3121(b)(7)-2 gives the details. So long as certain minimum benefit, etc., requirements are met, the plan can be any type of retirement plan -- 401(a), 403(b), 457, etc. The rules which would apply to a FICA alternative plan, once the money was in it, would be identical to that of any other plan of a similar type. Thus, for example, a FICA alternative 403(b) plan could make a 90-24 transfer, if one was otherwise available, but a FICA alternative 401(a) plan could not.

Also, you have to look at the specific terms of the plan and contract involved. Rev. Rul. 90-24 merely governs the tax consequences of a transfer, if one is permitted. However, the plan document, applicable state or local law, or the contract involved may prohibit such transfers.

If permanent teachers were allowed a 90-24 transfer in their 403b plan would it be the same for the substitute's alternative plan or would they have different rules? Would I call the plan administrator or the company who runs the plan? To learn about the 90-24 transfer for my plan, I had to call and call and then each person had different answers! This is in Florida.

The rules could be the same or different, depending on the plan document. Most commonly they are the same, but unfortunately, you really have to check.