Thank's for the info Fool's! I know my 403b is a qualified plan and being made up of pretaxed dollars I was told it could not be transfered into a after tax vehicle like an IRA. Also, does anyone know what a conduit IRA is?
kbettsIt's where you can roll your 403b, without commingling with any other retirement monies, in case you want to roll it into another 403b plan (assuming the new plan allows it.) If you don't think you'll ever want to put those funds into another 403b, you can roll your 403b into a regular IRA and commingle with other retirement monies.ez
kbetts1 -You said: "! I know my 403b is a qualified plan and being made up of pretaxed dollars I was told it could not be transfered into a after tax vehicle like an IRA. Also, does anyone know what a conduit IRA is? "You getting confused here!You may rollover your 403b into an IRA of your choice upon termination of employment with your school or non-profit employer. The "Traditional IRA" will hold your pre-tax contributions until you do something further.The term "conduit IRA" refers to an IRA set up for the exclusive use of transferred money (most commonly from a 401k plan). It's useful for a person who later wants to transfer the funds into another 401k plan of a future employer. Think of it as a temporary parking place for your retirement funds between jobs! This "conduit" rule does not apply to 403b accounts - once money leaves a 403b for an IRA it can't return to another 403b. Direct transfer from 403b to 403b are allowed.Hope this helps... PP
Peppermint Patty said:<<This "conduit" rule does not apply to 403b accounts - once money leaves a 403b for an IRA it can't return to another 403b.>>You may be teaching me something here of which I've been unaware. Could you please quote chapter and verse that prohibits 403b money from using a conduit IRA? I ask because in IRS Publication 590 on page 18 it says:"Conduit IRA. If your traditional IRA contains only assets (including earnings and gains) that were rolled from a tax-sheltered annuity, you can roll over these assets into another tax-sheltered annuity. If you plan another rollover, do not combine the assets in the IRA from the rollover with assets from another source. Do not roll over an amount from a tax-sheltered annuity into a qualified pension plan."That passage is clearly referring to a 403b annuity, so it seems to be rather clear to me that if a new 403b accepts rollovers from an old plan, then a conduit IRA can be used for that purpose. Accordingly, I'm puzzled by your statement this is not allowed. I also recognize, though, that 403b plans can be very, very weird beasties in comparison to other qualified plans. Thus, I would appreciate any clarification you can provide.Regards..Pixy
MEA CULPA!I stand corrected......and thanks for the "heads-up" Pixy.I guess I was worried about keeping the TSA account intact to preserve the loan provision, etc. After reviewing IRS Publications 590 & 571 I admit my error <blush>Thanx Pixy, PP
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