Can I roll my 403(b) and 457 into other low-cost venders when I change jobs?

By Denise Appleby AAA
A:

It is very likely than you will be able to roll over or transfer these amounts after you stop working for your current employer. To be sure, the 403(b) and 457 agreements should be checked to determine the events that result in eligibility for withdrawals from the plans.

Assuming you are eligible to make withdrawals from the plans, the amounts can be rolled over or transferred to an eligible retirement plan. Rollovers should be done as a direct rollover so as to avoid the 20% mandatory withholding tax.

Be sure to ask the current providers whether there would be any fees incurred for terminating the accounts, and if so, whether there are any circumstances under which the fees would be waived or reduced.

Most importantly, you may want to consider working with a competent retirement plans counselor to ensure the proper steps are taken. The retirement counselor would need copies of the 403(b) and 457 agreements in order to determine the options available under the plans. These can be obtained from the plan providers.

If your balance includes after-tax amounts, be sure to check out Rollovers Of After-Tax Assets May Change The Landscape Of Your IRA.


This question was answered by Denise Appleby
(Contact Denise)

RELATED FAQS

  1. What are qualified retirement plan types?

    Understand the different types of qualified retirement plans and what they mean in terms of employee and employer contribution ...
  2. How does a qualified retirement plan early distribution work?

    Weigh the pros and cons of taking an early distribution from a retirement account. Most early distributions are subject to ...
  3. What are the Roth 401(k) withdrawal rules?

    Understand the requirements for tax-free withdrawal from a Roth 401(k) account, how early withdrawals are taxed and options ...
  4. What are the main differences between a Roth 401(k) and a 401(k)?

    Learn more about financial planning, investment options and decision making between traditional 401(k) and Roth 401(k) accounts, ...
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. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose ...
  4. Leveraged Benefits

    The use – by a business owner or professional practitioner – ...
  5. Multibank Holding Company

    A company that owns or controls two or more banks. Mutlibank ...
  6. Short Put

    A type of strategy regarding a put option, which is a contract ...
comments powered by Disqus
Related Articles
  1. Top Financial Frights: Emergencies & ...
    Investing Basics

    Top Financial Frights: Emergencies & ...

  2. Steps To Retiring With A Reverse Mortgage
    Retirement

    Steps To Retiring With A Reverse Mortgage

  3. Pick the Right Brokerage Account for ...
    Options & Futures

    Pick the Right Brokerage Account for ...

  4. When Your Job Offers An Awful Retirement ...
    Retirement

    When Your Job Offers An Awful Retirement ...

  5. Top 5 Strategies To Pay For Elder Care
    Retirement

    Top 5 Strategies To Pay For Elder Care

Trading Center