403b In Service Withdrawals
A client ( age 62 ) called this morning asking about doing an “In Service Withdrawal” on an existing 403b. She plans on teaching for another 4 years. I am under the impression that this process is not as simple as a 401k.
Any thoughts? Thanks
Permalink Submitted by Alan - IRA critic on Mon, 2018-01-15 16:38
Prior to 59.5, some 401k plans may allow in service distributions (non hardship) of balances other than elective deferrals, while a 403b cannot. After 59.5 (this client), a 403b plan may allow in service distributions, however it appears that fewer of them compared to 401k plans. Since the individual plan provisions govern at this age, the client will need to check with the plan administrator on this question.