403 Rollover to IRA
Client, age 55 has a 403b with past employer. She has a new 403b with new employer. Can she roll the old 403b to an IRA, so she can have QDRO assets transferred into it?
Client, age 55 has a 403b with past employer. She has a new 403b with new employer. Can she roll the old 403b to an IRA, so she can have QDRO assets transferred into it?
Permalink Submitted by Alan Spross on Thu, 2012-11-08 22:23
She can roll the old 403b to an IRA, but the QDRO exception to the early distribution penalty does NOT apply to IRA accounts. It only applies to the non IRA retirement plan included under the QDRO and filed with that plan administrator.
I am guessing that the client is the alternate payee under the QDRO, but that the QDRO applies to certain retirement plans of the ex spouse. If those plans permit her to distribute her portion of the plan, she can open a new IRA to receive a rollover or she could roll them to an existing IRA.