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 is the difference between a 401(k) plan and a 403(b) plan?

    Administered by for-profit, private companies, 401(k) plans are more common than the nonprofit or government-sponsored 4 ... Read Answer >>
Related Articles
  1. Investing

    Understanding the Benefits of Rollover IRAs

    Need help deciding what to do with your 401(k) plan from a former employer? Here are your options.
  2. Financial Advisor

    Top 403(b) Questions Answered

    This plan doesn't get as much attention as its more popular cousin - the 401(k) - but it has a lot of benefits for eligible investors.
  3. Financial Advisor

    401(k) Rollovers: The Tax Implications

    The tax rules for 401(k) rollovers can be simple or more complex, depending on which path you take.
  4. Retirement

    Top 9 Benefits Of A 403(b) Plan

    A 403(b) plan is a tax-sheltered retirement plan for employees of many non-profit entities, including public safety and educational organizations.
  5. Retirement

    What to Do With Your 403(b) Funds if You Change Jobs

    If you have a 403(b) plan and change jobs, there are a few options for handling the funds in it.
  6. Retirement

    Top 9 Benefits of a 403(b) Plan

    Find out how the 403(b) plan helps employees of nonprofit entities meet their retirement goals.
  7. Retirement

    A Guide To Rollover A 401(k) To A New Employer

    Here's exactly what you need to know.
  8. Financial Advisor

    Best Ways to Roll Over Your 401(k)

    When you leave a job, you have some decisions to make about what to do with your 401(k). Here are some choices.
  9. Investing

    The Problems With 401(k) Rollovers Part 2

    Investment advice and options should be taken into when considering rolling over a 410(k).
  10. Financial Advisor

    403(b) Plan Tutorial

    Learn about the set-up, the contributions to and the distributions from this retirement plan for certain employees of public schools and tax-exempt organizations.
RELATED TERMS
  1. IRS Publication 571: Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of ...

    A document published by the Internal Revenue Service (IRS) that ...
  2. Direct Rollover

    A distribution of eligible rollover assets from a qualified plan, ...
  3. Eligible Rollover Distribution

    A distribution from an IRA, qualified plan, 403(b) plan or 457 ...
  4. Rollover IRA

    A special type of traditional individual retirement account into ...
  5. Designated Roth Account

    An individual retirement plan in which employees can have all ...
  6. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
Hot Definitions
  1. Book Value

    1. The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated ...
  2. Dividend Yield

    A financial ratio that shows how much a company pays out in dividends each year relative to its share price.
  3. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. ...
  4. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents ...
  5. Leverage Ratio

    Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to ...
  6. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
Trading Center