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Royboy, in a follow-up, writes:

<<Hi Trixy:

Thanks for the note on IRA s. Another question.
403b accounts can be used as collateral for a loan while you are an employee. Is this true after one leaves the company?? That is the only reason left not resolved on the decision to transfer the 403b into the same IRA which was transfered from a previous org.

I hear that a IRA transferred from a 403b may in the future should she again join as an employee of a not for profit org. ---may be transferred bvack the that orgs 403b. Long shot if true but all the soptions should be considered.>>

LOL. Methinks you need to get your bifocals checked or you made some kind of Freudian slip with the spelling of my screen name. I vote for the former myself. :-)

I know of no circumstances in which you may use a 403b plan as collateral for a loan; however, some 403b plans do have a loan provision that allows you to borrow money from the plan. After you have departed the plan sponsor, it's highly unlikely a loan will be permitted from that plan due to the difficulties of automatic repayment. While working, that's done via payroll deduction, and that same procedure cannot be used for an ex-employee. Thus, on departure from the job a loan from the plan is rarely permitted. In fact, I know of no instance where it is.

As to a transfer of the 403b money into a future employer's 403b plan, that can be done only if the 403b money was transferred into its own IRA or into an IRA that only contains money that came from another old employer's 403b plan. The conduit/rollover IRA must be "pure" to retain eligibility for a transfer back into another 403b plan. That means it cannot be mixed with annual IRA contribution money or money that came from any other kind of qualified retirement plan like a 401k. Therefore, as long as all that's in the IRA is old 403b plan money and any earnings thereon, then it may be transferred into a future employer's 403b plan that accepts rollovers from old 403b plans.

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