457(b) to 403(b)

Submitted by Eleonora Tomasello on Thu, 2021-02-04 19:56

I have a client that is working at XYZ school district and has a 457(b) annuity out of surrender, she wants to move it to her 403(b) account that’s established under the same school district. Is there a way to make this happen? After some research, it seems to me that this is not possible while she is working at her current school district.



Submitted by Alan - IRA critic on Thu, 2021-02-04 22:34

The rollover is allowed by the IRS, but may not be under the district’s plan rules. Any plan can contain provisions limiting rollovers from other types of accounts, and the 457b itself may not allow the distribution until she retires. If either plan does not allow this transfer, there may be no way around it other than separating from service.

Submitted by William Tuttle on Thu, 2021-02-04 22:53

The 457b minimum in-service rollover age was reduced from 70 1/2 -> 59 1/2 with the SECURE ACT. She still can only do this rollover if she is >= 59 1/2.

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