Permalink Submitted by Alan Spross on Mon, 2009-11-23 23:51
No. In service non hardship distributions would not be allowed at that early age. Generally, they would not be allowed until age 59.5 except where there are earlier exceptions for certain occupations. Some 403b plans now offer a Roth option for regular 403b contributions, and there is no max income limit to make these contributions. Of course, the tax bite would occur since these are after tax contributions.
The direct conversion from the pre tax 403b account will probably have to wait for several years unless the teacher separates from service.
Permalink Submitted by Alan Spross on Mon, 2009-11-23 23:51
No. In service non hardship distributions would not be allowed at that early age. Generally, they would not be allowed until age 59.5 except where there are earlier exceptions for certain occupations. Some 403b plans now offer a Roth option for regular 403b contributions, and there is no max income limit to make these contributions. Of course, the tax bite would occur since these are after tax contributions.
The direct conversion from the pre tax 403b account will probably have to wait for several years unless the teacher separates from service.