We have several clients who are no longer allowed to make contributions to the 403B accounts that they have contributed to in the past. The school system no longer lists the companies as approved providers. Can the client rollover these funds to an IRA? If so, how is this completed?
If they are at least age 59 ½, they should be able to rollover their balances to an IRA or other eligible retirement plan.
If there is no triggering event, then the assets need to remain in the account. If the account is orphaned they can transfer the balance to another 403(b) account held with an approved vendor, or- if the delisted vendor is willing to keep the assets, they can leave it there…depending on when the account was opened.
Regarding the operational requirements for completing the rollover, they should check with the IRA custodian and the 403(b) vendor to determine their requirements
Permalink Submitted by Al Fry on Thu, 2009-01-15 03:48
Are they over age 59 1/2?