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. I have a 403(b) from a old employer. I would like to convert it to a 401(k). How ...

    The IRS says that you can roll a 403(b) plan into a 401(k) plan if you now work for an employer that offers a 401(k) plan. ... Read Answer >>
  2. I'm a teacher. Which is better for me, a 401(k) or 403(b)? What is the difference? ...

    The first step is to check with your employer regarding any retirement plan(s) it provides for employees, as you can only ... Read Answer >>
  3. 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 >>
  4. Can I roll over the 401(k) money from my old job into my new company's plan?

    Roll over your old 401(k) to your new employer's 401(k) or other retirement plan. Check with your new plan to ensure eligibility. ... Read Answer >>
  5. Who is eligible to obtain a 403(b) plan?

    Learn which employers offer 403(b) plans and see how they are custom-designed for nonprofits but similar to 401(k) plans ... Read Answer >>
  6. What happens to my 401(k) plan if I switch jobs?

    Roll over your old 401(k) plan to your new 401(k) plan or an IRA, cash it out, or leave it alone. Which option is right for ... Read Answer >>
Related Articles
  1. Retirement

    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.
  2. 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.
  3. Retirement

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

    Here's exactly what you need to know.
  4. Professionals

    Rollovers

    Rollovers
  5. Retirement

    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.
  6. Retirement

    403(b) Plan: Eligibility Requirements

    By Denise Appleby Who May Establish a 403(b) Plan?A 403(b) plan can be established by any of the following organizations: A tax-exempt organization established under section 501(c)(3) of the ...
  7. Retirement

    403(b) Plan: Introduction

    By Denise Appleby What Is a 403(b) Plan?A 403(b) plan is a retirement plan for certain public school employees, employees of tax-exempt organizations and ministers. Individual 403(b) accounts ...
  8. Financial Advisors

    Tread Carefully with Retirement Plan Rollovers

    Compelled to rollover your retirement plan? Beware of bad advice, unsuitable options and 'toxic' tactics.
  9. Retirement

    How a 403(b) Works After Retirement

    Everything you need to know (don't be afraid to ask) about handling your 403(b) plan when you retire.
  10. Retirement

    Avoid the Most Common IRA Rollover Mistakes

    Avoid paying excess taxes by learning some simple transfer rules.
RELATED TERMS
  1. Direct Rollover

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

    A distribution from an IRA, qualified plan, 403(b) plan or 457 ...
  3. IRS Publication 571: Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of ...

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

    A rollover is when you do the following: 1. Reinvest funds from ...

You May Also Like

Trading Center