Is there a limit on how many partial rollovers from 403b to tIRA in one year?

[Digger1000]

I am 55 and retired. Is there a limit on how many times I can do a partial rollover of my 403b at TIAA to my tIRA at another company in the same year? I hate having money out of the market even for a few days.

 

[TheWizard]

No limit from the IRS...

 

[Digger1000]

No limit from the IRS...

Thank you!

 

[Out-to-Lunch]

I am 55 and retired. Is there a limit on how many times I can do a partial rollover of my 403b at TIAA to my tIRA at another company in the same year? I hate having money out of the market even for a few days.

Two comments:

-Can you elaborate on your concern about money being out of the market? If the issue is that money being moved to tIRA must do so as cash, you know, you can rejigger your holdings in your 403(b) to account for that.

-I assume you are aware of this, but the money you move to your tIRA cannot be accessed (without a penalty) until you are 59.5.

 

[Gumby]

....
-I assume you are aware of this, but the money you move to your tIRA cannot be accessed (without a penalty) until you are 59.5.

Unless you use IRS Rule 72(t) substantially equal periodic payment distributions

1. Is there an exception to the tax for distributions in substantially equal periodic payments?
Yes. If distributions are made as part of a series of substantially equal periodic payments over your life expectancy or the life expectancies of you and your designated beneficiary, the §72(t) tax does not apply. If these distributions are from a qualified plan, not an IRA, you must separate from service with the employer maintaining the plan before the payments begin for this exception to apply. If the series of substantially equal periodic payments is subsequently modified (other than by reason of death or disability) within 5 years of the date of the first payment, or, if later, age 59½, the exception to the 10% tax does not apply. In that case, your tax for the modification year is increased by the amount that would have been imposed (but for the exception), plus interest for the deferral period.

Source https://www.irs.gov/retirement-plans/substantially-equal-periodic-payments


See also https://www.investopedia.com/terms/... Is Rule 72(t,by the Internal Revenue Service for a more understandable explanation

 

[Out of Steam]

I certainly hope such transfers aren't limited. I've done two 401(k) rollovers to an IRA, followed by monthly Roth conversions from the tIRA since 2020.

 

[Digger1000]

Two comments:

-Can you elaborate on your concern about money being out of the market? If the issue is that money being moved to tIRA must do so as cash, you know, you can rejigger your holdings in your 403(b) to account for that.

-I assume you are aware of this, but the money you move to your tIRA cannot be accessed (without a penalty) until you are 59.5.

Thank you.

I'm already 100% S&P 500 Index in my 403b.

I dont need the money. The 2 reasons for moving it is because each year I am converting some of my tIRA to a Roth IRA. Once you start taking money out of a 403b they have to with hold 20% for federal. So I certainly want the money out of the 403b before then, though I wont need it till after 72 or in my mind probably later.

I'm actually 56 now. I forgot I had a Bday. I retired 5 years ago this week. I've moved money twice since then from TIAA to my IRA at Fidelity. I'm all S&P 500 Index with Fidelity too. Their expense ratio is .015 and TIAA is .02. So thats great on both. But for TIAA's S&P 500 Index in an IRA it would be .30.

 

[Digger1000]

I certainly hope such transfers aren't limited. I've done two 401(k) rollovers to an IRA, followed by monthly Roth conversions from the tIRA since 2020.

I've done several tIRA to Roth IRA conversions in a year but never more than one 403b to tIRA transfer in a year. So are you saying that a person would be fine to move from 403b to tIRA monthly?

 

[Out of Steam]

I've done several tIRA to Roth IRA conversions in a year but never more than one 403b to tIRA transfer in a year. So are you saying that a person would be fine to move from 403b to tIRA monthly?

It would probably be too hard to do the 403(b) to tIRA across companies, but it seems possible within the same investment company. In the case of TIAA, it might be a way to reinvest proceeds of a transfer payout (monthly or quarterly) from TIAA Traditional to an IRA within TIAA.

 

[TheWizard]

I certainly hope such transfers aren't limited. I've done two 401(k) rollovers to an IRA, followed by monthly Roth conversions from the tIRA since 2020.

I did 13 rollovers (Roth conversions) from 403(b) to Roth IRA each of the past few years and still haven't been incarcerated...

 

[TheWizard]

It would probably be too hard to do the 403(b) to tIRA across companies, but it seems possible within the same investment company. In the case of TIAA, it might be a way to reinvest proceeds of a transfer payout (monthly or quarterly) from TIAA Traditional to an IRA within TIAA.

TIAA was where I did monthly conversions from 403(b) to Roth IRA the past several years.
I started RMDs this year and have stopped any further Roth conversions...

 

[Out of Steam]

TIAA was where I did monthly conversions from 403(b) to Roth IRA the past several years.
I started RMDs this year and have stopped any further Roth conversions...

My wife is working more hours than expected so far this year, which may take away our chance to do conversions at the 12% Federal tax rate. Given the possibility of future rate increases, and the impact of one of us being taxed at single rates in the future, 22% may still not be a bad deal.

 

[TheWizard]

I did Roth conversions in the 24% Federal bracket the past few years. Goal was to get AGI up approximately where it will be this year with RMDs starting and no Roth conversions.

Secondary goal was/is to keep my AGI/MAGI from going over the next higher IRMAA tier threshold.
So far, I've achieved those goals...