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. How does a defined benefit pension plan differ from a defined contribution plan?

    Learn the differences between defined benefit plans and defined contribution plans when reviewing employer-sponsored qualified ...
  2. What are the best ways to pay off my mortgage quickly?

    Learn how mortgage payments may be reduced and how to save thousands on mortgage loans by lowering the interest and principle ...
  3. What are the advantages of an index fund over an ETF?

    Diversifying a portfolio is one of pillars of investing basics, and an index fund can provide an investor with exposure to ...
  4. How do deferred tax assets help in meeting retirement goals?

    Learn how tax deferred assets can help individuals achieve long-term financial goals such as retirement and how they differ ...
RELATED TERMS
  1. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  2. Elder Care

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

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

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

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

    A new tax-advantaged retirement account that President Barack ...

You May Also Like

Related Articles
  1. Professionals

    Who Wants to be a 401(k) Millionaire?

  2. Professionals

    Are Longevity Annuities in 401(k)s a ...

  3. Mutual Funds & ETFs

    Greedy on the Dollar? See This Leveraged ...

  4. Trading Strategies

    American Express: Headwinds and Tailwinds

  5. Professionals

    Why Retirement Advice Is Better But ...

Trading Center