403b trigger
A client’s hospital has been bought out 2 years ago. She still works there
but the hospital is under another name. Her HR person says she can rollover her 403b to an IRA outside the hospital. With the new 403b rules is this a real triggering event? Are we safe to move her money?
JP
Permalink Submitted by Al Fry on Thu, 2008-11-20 19:01
How old is she?
Permalink Submitted by Jennifer Poole on Thu, 2008-11-20 21:17
[quote=”[email protected]“]How old is she?[/quote] She’s 53 .
Permalink Submitted by mk foss on Fri, 2008-11-21 02:30
Before the 2001 amendments (made permanent by the 2006 PPA), IRS took the position that workers doing the same job after a merger could not rollover benefits from the former employers plan. This was called the “same desk” rule.
The same desk rule was repealed as of 1/1/2002 so the 403b can be rolled over to a new plan or IRA. If she cashed out, she’d owe a 10% penalty.