403B question

[FREE866]

Hi there,
My sister works at a hospital and is still employed there. She's 60 years old and has a 403 B plan. Can she liquidate the funds and have it transferred to a traditional IRA at Schwab?
thx

 

[Out-to-Lunch]

I think that depends on the details of the 403(b) plan. What your sis is looking for is called and "in-service distribution." This is not forbidden by the IRS, but it not allowed by all plans. Whether or not it is allowed should be described in the summary plan description (SPD), which is available from the custodian of the 403(b).

 

[FREE866]

I think that depends on the details of the 403(b) plan. What your sis is looking for is called and "in-service distribution." This is not forbidden by the IRS, but it not allowed by all plans. Whether or not it is allowed should be described in the summary plan description (SPD), which is available from the custodian of the 403(b).

Thank you so much!!

 

[rpguy4]

My wife and I both worked at a non-profit hospital and contributed to a 403B plan in the 1990s. At that time, our only choice of plans were administered by insurance companies, VALIC, Aetna, etc. However, once we left the hospital for other jobs, we found out that we had to wait 5 years (I believe it was Aetna) after we stopped contributing to be able to transfer the money to an IRA without a penalty.

 

[FREE866]

My wife and I both worked at a non-profit hospital and contributed to a 403B plan in the 1990s. At that time, our only choice of plans were administered by insurance companies, VALIC, Aetna, etc. However, once we left the hospital for other jobs, we found out that we had to wait 5 years (I believe it was Aetna) after we stopped contributing to be able to transfer the money to an IRA without a penalty.

Thx. Have to find out if she is still contributing

 

[38Chevy454]

Thx. Have to find out if she is still contributing

If she is still working, the initial question of in-service transfer applies. Even if she has stopped contributing.

 

[FREE866]

OK. Good news!
She can do an in service distribution. Main reasons are that shes over 59.5 and its an old plan that she is no longer contributing to. So relieved!
Thank you for your input guys!