403B transfer rules
In 2006 my teacher client did an in-service transfer from a payroll deducted annuity 403B to an outside brokerage 403B. I know there were massive changes to 403B rules in 2007. Teacher is still actively employed today in the same job. Can she rollover the 403B to an IRA now or does she need to wait until she retires? Brokerage 403B has changed custodians and they are wanting an official w/ the county school system to sign a 403B Information Sharing Agreement and I’m concerned they won’t sign it since now there is no connection between the school system and the Brokerage 403B. Help.
Permalink Submitted by Joseph Arsenault on Thu, 2010-10-14 19:53
How old is she?
If she is over 59 1/2 and the plan permits, she can transfer to an IRA.
If she is not, she must wait until she severs employment or turns 59 1/2.
With the old 90-24s gone, and the new disclosure requirements seemingly restricting the ability for most 403b’s to self direct, this is usually what you are up against.