403b in service transfers
can 403b in service transfers be invested in individual stocks or must they be invested in mutual funds and/or annuities?
can 403b in service transfers be invested in individual stocks or must they be invested in mutual funds and/or annuities?
Permalink Submitted by Denise Appleby on Mon, 2007-09-10 21:28
It depends on the type of 403(b) account to which the assets are transferred:
See http://retirementdictionary.com/403-b-plan.htm
The options are :
An annuity contract ,
A custodial account , where investments are limited to regulated investment companies described in IRC §851(a)(1)(A) :or
A retirement income account for which there is usually no restriction on investments
Permalink Submitted by Denise Appleby on Mon, 2007-09-10 21:31
PS…unless the deadline is extended, you may be required to complete the transfer by September 24. There are some new rules that prohibit 90-24 transfers, unless certain agreements are in place- between the financial institution and the employer.
I am working on a document with the details and will post