I work for a university, and I have a 403(b) with TIAA-CREF. But TIAA-CREF says I cannot transfer money to another provider. Can they prevent me from transferring my money to a better investment?

By Denise Appleby AAA
A:

It depends. The IRS does permit the transfer of assets between 403(b) providers; however, employers and 403(b) providers are not required to allow such transfers.

Generally, the transfer is permitted only if the new 403(b) account (to which the assets are being transferred) is subject to the same (or stricter) distribution rules that apply to the 403(b) account from which the assets are being transferred. For this reason, and other reasons of their own, some employers and 403(b) providers may restrict transfers to other 403(b) providers. It may be in your best interest to contact TIAA-CREF again and ask that they give you a specific reason for not allowing the transfer. You may refer them to IRS Revenue Ruling 90-24, which is the IRS-issued document that allows you to transfers assets between 403b accounts, provided there are no transfer restrictions by your employer or the 403(b) plan provider.

This question was answered by Denise Appleby
(Contact Denise)

RELATED FAQS

  1. Does it make sense to convert a Traditional IRA to a Roth when the market’s down?

    If your modified adjusted gross income (MAGI) is $100,000 or less and you are not married filing separately, you may initiate ...
  2. Can I roll a Traditional IRA into a 529 college account for my grandchild?

    A 529 plan, also known as a "qualified tuition program", is an investment vehicle that allows individuals to save for education ...
  3. Can I still set up an SEP if one of my employees refuses to participate?

    You can establish the SEP IRA, even if the employee refuses to participant. However, you would need to establish an IRA for ...
  4. I want to close my IRA account. What percentage will I lose to tax?

    You can move the amount by means of a trustee-to-trustee transfer to another IRA, or roll over the amount to your 401(k). ...
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. Impact Of Continuing To Work In Retirement ...
    Retirement

    Impact Of Continuing To Work In Retirement ...

  2. Health Insurance Tips For College Students
    Insurance

    Health Insurance Tips For College Students

  3. Independent 401(K): A Top Retirement ...
    Retirement

    Independent 401(K): A Top Retirement ...

  4. After-Tax Balance Rules For Retirement ...
    Taxes

    After-Tax Balance Rules For Retirement ...

  5. Should You Convert Your IRA?
    Retirement

    Should You Convert Your IRA?

Trading Center