Transfer 100% of 403b while still employed?

[mystang52]

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?

 

[pb4uski]

My suspicion is that she wouldn't be able to do an IRA rollover until she terminates service.

 

[Mulligan]

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.

 

[thefinancebuff]

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?

The law allows if she's over 59-1/2.

 

[Khufu]

The law allows if she's over 59-1/2.

But the plan must also allow it. Some do. Some don't.

 

[mystang52]

Yah, I'm waiting for the Plan contact person's office to reopen and I will be following up. Thanks, all.

 

[thefinancebuff]

But the plan must also allow it. Some do. Some don't.

The OP already knew that. mystang52 specifically asked whether the law allows.

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?

 

[pb4uski]

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?

 

[mystang52]

Update: the Plan DOES allow it.