403(b) Rollover
Can a 403(b) participant roll their account to an IRA while still employed with the company? Does it make any difference if the company has switched custodians, say from Vanguard to Fidelity – Could the Vanguard account be rolled while still employed with the company?
Permalink Submitted by Robert Healey on Wed, 2008-03-19 04:58
My wife initially transferred most of her 403b balance from her insurance account to a Vanguard 403b account. She still maintained her insurance account for subsequent deductions from her paycheck, and then tansferred new funds every three months or so to Vanguard. The hospital would not allow her to deposit the payroll deductions to Vanguard directly, so we used this workaround. They apparently had an exclusive agreement with an insurance company.
It is still a 403b account as she is now retired. She can fill out the forms to convert it to an IRA with Vanguard if she chooses. Don’t know if you can do it in one transaction. Just call Vanguard and ask. They are usually very helpful. Vanguard.com