bright eyed,
You really have to know you plan requirements.
If you CAN roll it, it should be tax free, but you really need to check the plan. Example: I have one 403b accrued while I worked for the state under an optional retirement plan (state put $$ into an account and state has no futher obligation). I am now back with the state under the standard defined benefit pension plan (retirement pay based on formal calulation of ave 5 yr salary and years of service - excluding the optional years of service).
If I roll the old 403b (away from the original high expense vendor), the state assumes I retired, and this will affect standard defined pension (CURRENT benefits)!!
Basically, current pension would stop at todays calculation and if I continued working, new pension employment period would start, requiring me to revest (another 6 years), etc. A very ugly scene.
You really have to know you plan requirements.
If you CAN roll it, it should be tax free, but you really need to check the plan. Example: I have one 403b accrued while I worked for the state under an optional retirement plan (state put $$ into an account and state has no futher obligation). I am now back with the state under the standard defined benefit pension plan (retirement pay based on formal calulation of ave 5 yr salary and years of service - excluding the optional years of service).
If I roll the old 403b (away from the original high expense vendor), the state assumes I retired, and this will affect standard defined pension (CURRENT benefits)!!
Basically, current pension would stop at todays calculation and if I continued working, new pension employment period would start, requiring me to revest (another 6 years), etc. A very ugly scene.
