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In a previous thread someone asked a similar question to mine: Can 401k and 403b funds be moved to a SEP IRA?

However, the details of when one qualifies were not covered. That is, does one have to be:

a) 59.5?

b) Separated from the organization providing the 403b or 401k?

c) All of the above?

d) None of the above?

I understand the bit about "tainting" the funds going into the SEP IRA. But I would like to know more about qualifying.

Cheers!
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<<Can 401k and 403b funds be moved to a SEP IRA?>>

I don't think you can rollover to your SEP-IRA but you can set up a self-directed IRA into which to roll them

<<does one have to be:
a) 59.5?>>

Yup

<<b) Separated from the organization providing the 403b or 401k?>>

Yup

Furthermore, the current custodian of your 403b/401k plan may have limitations on how much and over what period you can rollover.
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FoolishProf asks:

<<In a previous thread someone asked a similar question to mine: Can 401k and 403b funds be moved to a SEP IRA?

However, the details of when one qualifies were not covered. That is, does one have to be:

a) 59.5?

b) Separated from the organization providing the 403b or 401k?

c) All of the above?

d) None of the above?

I understand the bit about "tainting" the funds going into the SEP IRA. But I would like to know more about qualifying.>>


Age doesn't matter for transferring plan money to an IRA, but current employment does. In general, you cannot be working for the plan sponsor at the time of the transfer. Therefore, answer "b" is the extent of your qualification assuming you are now self-employed and have a SEP-IRA. Actually, it's the same answer even if it's just a typical traditional IRA.

Regards..Pixy
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Thanks, especially to TMFPixy as usual, for the info. Now for another question: After reaching 59.5 does one have to be separated from the provider of the 401k or 403b plan to withdraw funds without the 10% penality?

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FoolishProf writes:

<<Now for another question: After reaching 59.5 does one have to be separated from the provider of the 401k or 403b plan to withdraw funds without the 10% penality?>>

As a general rule, yes; however, some plans will allow in-service withdrawals after reaching that age. Those would be free of the penalty if they're allowed. You would have to check with the plan administrator to see if your's permits such withdrawals while you're still employed. Additionally, as long as you separate from the plan provider in the year you attain age 55, then you may take money from that plan free of the 10% early withdrawal excise tax.

Regards..Pixy
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Pixy writes:
As a general rule, yes; however, some plans will allow in-service withdrawals after reaching that age. Those would be free of
the penalty if they're allowed. You would have to check with the plan administrator to see if your's permits such withdrawals
while you're still employed. Additionally, as long as you separate from the plan provider in the year you attain age 55, then
you may take money from that plan free of the 10% early withdrawal excise tax.


Does it matter if the plan is a 403b or a 403b(7)?

Thanks
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FoolishProf asks:

<<Does it matter if the plan is a 403b or a 403b(7)?>>

Nope, not as long as you're working for the employer who allows you to have the plan.

Regards..Pixy
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