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I have about $600 in a 501(c) TSA. Contributions were made prior to 1992-1994. I have about $8000 in a 403(b). Contributions were made 1995-1998. I am currently in a situation (due to illness and disability) in which I had no tax liability for 1999, and expect 2000 to be the same. I would like to find a way to roll these over into Roth IRAs while my tax rate is so low. Does anyone know if this is possible, and if so, a discount broker who understands 403(b)s and 501(c)s well enough to let me do it? The relevant IRS handbook seems to say that it is possible to do this, but Firstrade will only roll over 401ks. I would like to be well-informed before I contact Equivest and Lincoln Financial Group with requests to roll funds over. The IRS handbook mentions that you need a "qualifying event" to roll over a 403(b), and I am hoping that becoming disabled will qualify.

Zemyna9
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Greetings, Zemyna9, and welcome. You wrote:

<<I have about $600 in a 501(c) TSA. Contributions were made prior to 1992-1994. I have about $8000 in a 403(b). Contributions were made 1995-1998. I am currently in a situation (due to illness and disability) in which I had no tax liability for 1999, and expect 2000 to be the same. I would like to find a way to roll these over into Roth IRAs while my tax rate is so low. Does anyone know if this is possible, and if so, a discount broker who understands 403(b)s and 501(c)s well enough to let me do it? The relevant IRS handbook seems to say that it is possible to do this, but Firstrade will only roll over 401ks. I would like to be well-informed before I contact Equivest and Lincoln Financial Group with requests to roll funds over. The IRS handbook mentions that you need a "qualifying event" to roll over a 403(b), and I am hoping that becoming disabled will qualify.>>

Your plan custodians should be able to tell you if the plan proceeds may be transferred to an IRA of your choice. In general, that's possible when you have left your job with that employer. However, some 403b plans have restrictions on doing so as do some annuities. You don't say if your 501(c) TSA is in a qualified plan or if it's in a 457 plan. If the latter, that money cannot be transferred to an IRA under any circumstance.

Bottom Line: Your best bet is to talk with your plan administrators to see what you can do.

Regards..Pixy
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TMFPixy,

Thanks for your response. I will contact the plan custodians :-)

Zemyna9
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