Stand alone 403(b)

A client was notified by the insurance company where a stand alone 403(b) is being held in an annuity, that she would need to recharacterize or roll the 403(b) into an IRA. Is this a requirement?



[quote=”LBundy”]A client was notified by the insurance company where a stand alone 403(b) is being held in an annuity, that she would need to recharacterize or roll the 403(b) into an IRA. Is this a requirement?[/quote]

By standalone 403(b), do you mean an orphan account?
Distributions are not permitted, unless there is a distributing/triggering event. For instance, if the participant is at least age 59 ½, he/she can rollover the 403(b) balance to an IRA.



Even if no severance of employment exists, yet participant is over 59 1/2 can complete rollover from 403b to IRA



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