No. of Recommendations: 0
I need some assistance with a 403(b) annuity.

Currently, I have a 403(b) annuity account with my employer, and I am interested in a transfer, while remaining employed. On this account, my employer did not make matching contributions; instead, they have another retirement account where they make matching contributions. At the time, I needed my income to be tax deferred, and I was not allowed to contribute to the matching retirement account during my first year of employment, so my employer provided a 403(b) annuity that was non-matching, but at least tax deferred. Of course, I stop contributing to the 403 (b) annuity after the first year.

I have been reading regarding transferring, and how one can use the IRS's 90-24 transfer rule to transfer a 403(b) to a custodial 403(b)(7). My questions are:
1. Does my current 403(b) plan have to give allowances for transfers to custodial 403(b)(7) or do new IRS rules give employees allowances for transfers to any custodial 403(b)(7) of their choosing regardless of what my current 403(b) thinks?
2. Once a 403(b)(7) custodial account is setup, can that account be converted to a Rollover IRA and ultimately converted to a ROTH IRA? (I know that if I terminated services with my employer that I could rollover my 403(b) to a Rollover IRA.)

Thanks
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement