My old company offers a 401(k) plan and my new employer only offers a 403(b) plan. Can I roll over the money in the 401(k) plan to this new 403(b) plan?

By Denise Appleby AAA
A:

It depends. While the regulations do allow rollover of assets between 401(k) plans and 403(b) plans, employers are not required to allow rollovers into the plans they maintain. Consequently, the receiving plan (or employer that sponsors/maintains the plan) ultimately decides if it will accept rollover contributions from a 401(k) or other plan. Check with your employer or 403(b) provider to determine if the 403(b) in which you participate allows for rollovers from 401(k) plans.



If the 403(b) does not allow for rollovers, and you are required to distribute the assets from the 401(k) plan because you separate from service with your former employer, you may consider rolling the assets to a Traditional IRA.



This question was answered by Denise Appleby
(
Contact Denise)



RELATED FAQS

  1. What are some examples of common fringe benefits?

    Learn how offering fringe benefits can be a strategic recruitment and retention tool for employers and drastically increase ...
  2. Is it a good idea to add a reverse mortgage to your retirement strategy?

    A reverse mortgage can be a great way to increase retirement income. Does it work for everyone? What happens after a homeowner ...
  3. What does amortization mean in the context of a pension plan?

    Discover when and why accountants use amortization techniques in the context of pension plans, and why those changes help ...
  4. What's the difference between a financial advisor and a financial planner?

    Seeking professional advice from a financial advisor may involve asking for financial help from a certified financial planner, ...
RELATED TERMS
  1. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  2. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  3. Leveraged Benefits

    The use – by a business owner or professional practitioner – ...
  4. Peri-Retirement

    A term for the period of time leading up to actual retirement. ...
  5. MyRA

    A new tax-advantaged retirement account that President Barack ...
  6. Target-Date Fund

    A mutual fund in the hybrid category that automatically resets ...

You May Also Like

Related Articles
  1. Professionals

    Retirement Bliss? Not So fast: When ...

  2. Professionals

    Multiple Accounts? Here's How to Calculate ...

  3. Professionals

    Tips for The Reality of a Working Retirement

  4. Professionals

    CITs in 401(k)s: What You Need to Know

  5. Trading Strategies

    American Express: Headwinds and Tailwinds

Trading Center