Rollover of 403b into IRA Account
I have a client who is retiring after 35 years of teaching and we want to roll over his 403b into an IRA and he is being told that he must use the same approved vendor, which I think is a line from the salesman of the VA……I was told that IF there is an approved vendor within the plans, that any of those vendors could be used and I intend to use one of the vendors.
I know the laws and rules have changed on the 403b’s but I thought you might be able to give me some guidance or help here..
THANKS
DJ
Permalink Submitted by Alan Spross on Tue, 2008-11-18 21:51
Once the client separates from service, he can transfer the account balance by direct rollover to any IRA custodian he wishes. That makes the determination of who is approved vrs non approved vendor a moot point.
Permalink Submitted by Chris Hastings on Tue, 2008-11-18 23:12
When you do the rollover from the 403b to an IRA make sure to include a letter of instruction to the current custodian specifying that the receiving account is an IRA and the client has separated from service. The current custodian usually requires their own paperwork for the rollover and surrender of the annuity.