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?
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?
Permalink Submitted by Denise Appleby on Wed, 2008-12-17 21:35
[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.
Permalink Submitted by [email protected] on Thu, 2008-12-18 17:03
Even if no severance of employment exists, yet participant is over 59 1/2 can complete rollover from 403b to IRA