I am a teacher in a public school system and I don't presently have a 403(b) plan, but I do have some money in a Roth IRA and also a self-directed IRA. Can I roll my IRA funds into a newly opened 403(b) plan, since I am presently employed by the school sy

By Denise Appleby AAA
A:

If you establish a 403(b) account under the school's 403(b) plan, you may roll the Traditional IRA assets to the 403(b) account. As you may know, the rollover from the Traditional IRA to the 403(b) cannot include after-tax amounts or amounts representing required minimum distributions. You should check with the 403(b) provider and the IRA custodian/trustee to determine whether they require special paperwork to complete the transaction.

Generally, because current law prohibits the rollover of after-tax assets from IRAs to regular 403(b) plans, you are not allowed to roll your Roth IRA assets to the 403(b) plan. However, if your employer has adopted the deemed IRA provision for its 403(b) plan, then you may be able to rollover your Roth IRA assets to the deemed IRA under the 403(b) plan. To be sure, check with your employer.

This question was answered by Denise Appleby
(
Contact Denise)

RELATED FAQS

  1. Can an employer adopt a different type of retirement plan for each employee?

    Generally, any qualified retirement plan or IRA-based plan adopted by an employer must cover all eligible employees. Failure ...
  2. My daughter would like to use some of her Roth IRA to pay for some current tuition ...

    This is a surprisingly complicated question, as it touches on the differences between traditional and Roth IRAs, as well ...
  3. What pension benefits are available to military personnel?

    The United States military provides its members many benefits, including what many regard as a rather generous pension system, ...
  4. What is cliff vesting?

    An employee is considered "vested" in an employer benefit plan, once they have earned the right to receive benefits from ...
RELATED TERMS
  1. Eligible Transfer

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

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

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

    A new tax-advantaged retirement account that President Barack ...
  5. Provident Fund

    A compulsory, government-managed retirement savings scheme used ...
  6. Rollover IRA

    A special type of traditional individual retirement account into ...
comments powered by Disqus
Related Articles
  1. IRA Assets And Alternative Investments
    Retirement

    IRA Assets And Alternative Investments

  2. Distribution Rules For Inherited Retirement ...
    Taxes

    Distribution Rules For Inherited Retirement ...

  3. Raising Grandchildren A Financial Feat
    Retirement

    Raising Grandchildren A Financial Feat

  4. The Defined-Contribution Plan: A Flawed ...
    Retirement

    The Defined-Contribution Plan: A Flawed ...

  5. 5 Ways To Fund Your Retirement
    Retirement

    5 Ways To Fund Your Retirement

Trading Center