Permalink Submitted by Clyde Wolf on Wed, 2008-09-10 19:14
Jbroersma,
You are right in giving this some thought and consideration now.
You would think this would be a straight yes or no answer, but like much of the retirement savings rules, the answer is, It Depends.
There are 2 types of Orphaned 403b accounts. The non-Grandfathered Orphaned Account (NGOA) and the Grandfathered Orphaned Account (GOA). Both types of orphaned accounts are not associated with the employer’s plan after January 1, 2009.
The NGOA is your account that is not associated with your current or former employer’s 403b plan. The account is considered orphaned if after January 1, 2009 your employer deselects the insurance company or mutual fund company that administers the plan.
If the account was in existance before January 1, 2005 and no employee contributions have been made since December 31,2004, it is considered a GOA. The GOA is also an anccount that was transferred to a provider that is not part of the employer’s plan on or before September 24, 2007 and no further contributions were made.
NGOA accounts can be:
– Moved to an account in the employer’s plan if that plan accepts such accounts.
– You can retain the account, but can not take distributions as long as your are an employee.
– Rolled over to an IRA if you are age 59.5 years or older.
The GOA can be:
– Moved to an account in the employer’s plan if that plan accepts such accounts.
– Maintain the account and you deal directly with the plan provider for distributions using 403b rules.
Permalink Submitted by Clyde Wolf on Wed, 2008-09-10 19:14
Jbroersma,
You are right in giving this some thought and consideration now.
You would think this would be a straight yes or no answer, but like much of the retirement savings rules, the answer is, It Depends.
There are 2 types of Orphaned 403b accounts. The non-Grandfathered Orphaned Account (NGOA) and the Grandfathered Orphaned Account (GOA). Both types of orphaned accounts are not associated with the employer’s plan after January 1, 2009.
The NGOA is your account that is not associated with your current or former employer’s 403b plan. The account is considered orphaned if after January 1, 2009 your employer deselects the insurance company or mutual fund company that administers the plan.
If the account was in existance before January 1, 2005 and no employee contributions have been made since December 31,2004, it is considered a GOA. The GOA is also an anccount that was transferred to a provider that is not part of the employer’s plan on or before September 24, 2007 and no further contributions were made.
NGOA accounts can be:
– Moved to an account in the employer’s plan if that plan accepts such accounts.
– You can retain the account, but can not take distributions as long as your are an employee.
– Rolled over to an IRA if you are age 59.5 years or older.
The GOA can be:
– Moved to an account in the employer’s plan if that plan accepts such accounts.
– Maintain the account and you deal directly with the plan provider for distributions using 403b rules.