No. of Recommendations: 0
I think I understand that one cannot convert a 401(k) balance while still employed at the same employer, so is this a loophole that allows those working for not-for-profits to do just that? If so, doesn't really seem fair to me.

Since posting my questions I have found out that the same limitations apply to 403(b) plans as 401(k); I have to leave my 403(b) employer before I can complete the rollover of 403(b) assets into the IRA. I found this out when my 403(b) custodian returned my application for transfer, indicating that I needed to indicate the circumstances of my disbursement. Since I'm over 60, I could take the distribution (paying the taxes) but it couldn't be rolled over into the IRA.

However, when I retire in 3 years, I can accomplish the rollover at that time. Or, I could retire now and give up all of the extra contributions I could make in preparation for the rollover. Or I could leave my present employer (sacrificing the ability to contribute the long-term employee catchup amounts), do the rollover into the IRA, and then go back to work for another employer (or maybe even my current employer).

So many questions; so few answers (so far).
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