403b rollover
I have a client that has worked at the same not-for-profit for the past 30 years. He has a Janus Managed 403b account that he can no longer contribute to funded while with this same employer. He has a current VALIC 403b that he is able to contribute to. Can we roll-over his Janus 403b to an IRA without an adverse tax consequences at this time? He is only 50. My understanding is if he is not 59.5, totally disabled or separated from service he cannot roll over funds without being taxed.
Thanks,
Larry M.
Permalink Submitted by Alan Spross on Sun, 2010-12-12 00:53
Client needs to have a distributable event in order to roll the funds to an IRA. Usually, that is separation from service or reaching 59.5. If the employer terminated the plan altogether, that would also be a distributable event. But just a change of vendors is not.
If Janus and VALIC have an agreement in place, he might be able to transfer the Janus balance into the VALIC plan.