Is an IRA to 403B rollover allowed?
Hello,
In 2011, I helped a minister convert his 403B to an IRA after he was laid off. His accountant is now informing him that because of this, he will lose his housing allowance unless he becomes employed again as a minister this year. Or, if we can re-characterize the rollover back to 403B status, everything should be fine. The questions are 1) Can an IRA be re-characterized to a 403B or even rolled over into a new 403B and 2) can it happen while the minister is unemployed?
Thank you,
Anthony
Permalink Submitted by Alan Spross on Mon, 2012-03-26 18:41
An IRA can be rolled into a 403b plan if the plan will accept it. But it is not likely that a plan will accept it when the employee is not working for the plan sponsor. I think his housing allowance is dependent on his employment, not the location of his retirement funds. If he is reimployed with a church that offers a housing allowance, he might have access to a new 403b, and possibly also to a new housing allowance.