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Transfer 100% of 403b while still employed?
11-02-2012, 12:54 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,833
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Transfer 100% of 403b while still employed?
Due to the hurricane after-effects here in NJ, I doubt I can get this answer from my wife's 403b rep for a while. Maybe someone here knows:
DW will continue to work and I am retiring (YAY !!) March 1. Part of this ER plan includes stopping DW's current 403b contributions. That being the case, can we transfer all of her 403b money into her rollover IRA? The expense fees are less, hence the motivation to do so.
I realize that maybe Plan rules forbid this But does anyone know if any of the prevailing laws forbid this action, since she will continue to work there?
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11-02-2012, 01:14 PM
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#2
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 35,288
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My suspicion is that she wouldn't be able to do an IRA rollover until she terminates service.
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11-02-2012, 02:10 PM
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#3
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Give me a museum and I'll fill it. (Picasso)
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Join Date: May 2009
Posts: 9,331
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I never rolled my 403b into an IRA, but every year, I would roll over my 403 b money into my pension system to buy service credit years with. PB may be correct, but in my situation, I would continually roll the money out each year while still employed with no problem.
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11-02-2012, 02:31 PM
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#4
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Recycles dryer sheets
Join Date: Dec 2008
Posts: 299
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 Quote:
Originally Posted by mystang52
That being the case, can we transfer all of her 403b money into her rollover IRA? The expense fees are less, hence the motivation to do so.
I realize that maybe Plan rules forbid this But does anyone know if any of the prevailing laws forbid this action, since she will continue to work there?
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The law allows if she's over 59-1/2.
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11-05-2012, 08:05 PM
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#5
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Recycles dryer sheets
Join Date: Dec 2011
Posts: 388
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Quote:
Originally Posted by thefinancebuff
The law allows if she's over 59-1/2.
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But the plan must also allow it. Some do. Some don't.
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11-05-2012, 09:33 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,833
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Yah, I'm waiting for the Plan contact person's office to reopen and I will be following up. Thanks, all.
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11-06-2012, 09:48 PM
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#7
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Recycles dryer sheets
Join Date: Dec 2008
Posts: 299
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Quote:
Originally Posted by Khufu
But the plan must also allow it. Some do. Some don't.
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The OP already knew that. mystang52 specifically asked whether the law allows.
Quote:
Originally Posted by mystang52
I realize that maybe Plan rules forbid this But does anyone know if any of the prevailing laws forbid this action, since she will continue to work there?
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11-07-2012, 09:15 AM
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#8
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 35,288
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Seems to me it is a bit academic if the law allows it but the plan forbids it. Since the plan prevails, what does it matter?
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11-07-2012, 12:46 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,833
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Update: the Plan DOES allow it.
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