If I am no longer employed, can I roll over a 403(b) plan into an IRA?

Now that you are no longer working with the (former) employer that established your 403(b) account, you may roll your 403 (b) balance to your Traditional IRA.

Generally, only a signed contribution form is required by the IRA custodian/trustee to deposit the funds to your IRA. However, to be sure, consult with your IRA custodian regarding its policies and procedures. This will prevent any unnecessary delays.

You should also consult with your 403(b) plan administrator/carrier to ensure the proper paperwork is completed. You may need to complete a distribution request form in order to have the assets distributed. The administrator may also require an acceptance letter from your IRA custodian. This serves as a confirmation that the assets will be deposited to an eligible retirement plan.

Finally, make sure the transaction is processed as a "direct rollover." This means that any funds distributed are made payable to your IRA custodian and are usually sent directly to them. If the funds mare made payable to you, the 403(b) administrator is generally required to withhold at least 20% for federal taxes.

(To read more, check out Traditional IRAs Tutorial and 403(b) Plan Tutorial.)


This question was answered by Denise Appleby
(Contact Denise)

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