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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: Re: Where can I move my 403(b) Date: 1/19/1999 7:25 PM
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[[ My response:
I don't think what TMF Taxes said is correct. 403(b) money may NOT be
transferred/rolled over into a 401(k) plan (the two types cannot be co-mingled),
but it CAN be rolled over into an IRA. ]]

The proble with the origial post is that the person is currently employed. So you are right...my answer is not correct...but not for the reasons that you note.

When I read the post I didn't recognize that the question had reverted to a 401k from a 403b. If the personal is currently employed, the 403b money effectively can't go anywhere. If it does, it is treated as a taxable distribution.

So, again, you are correct...you can't take your 403b funds into a 401k plan if you are still employed.

[[My wife had a 403(b) from her old job
which we rolled into an IRA last year (and then converted to a Roth). I don't see
why you wouldn't be able to do the same...]]

But this situation is much different. In your case, your wife had left her prior employment. That would allow her to grab her 403b funds. And if she would have maintained them separately in an IRA rollover account, she could have moved them over to another employer 401k account at some time in the future.

But with the original post, that person is still currently employed. So there is no way to take those funds NOW and move them into an IRA without paying taxes (and potentially penalties) on that distribution.

Thanks for the help...
TMF Taxes
Roy
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