TMF Pixy wrote:

Nice try, but it definitely is NOT allowed while you are still
employed in the job that offers the 403b plan. You'll have to wait
until you leave that job to transfer the money to an IRA.

Oh boy, Pixy! You've just given me one of the "ah hah!" moments :-)

My sister is a former teacher, now self-employed as an editor/writer. She still has an annuity sitting in a 403(b) account which she's in the process of cashing out. The insurance salesman who sold her the annuity in the first place has told her she CANNOT roll over those proceeds into her SEP-IRA or her Roth IRA, and now she's uncertain just what she can do with that money. Obviously she doesn't want to keep it in a 403(b) but it sounds as though she's being given wrong advice.

She's only in her 40s and would like this money invested in a tax-deferred account, preferably in a growth vehicle of her own choosing, such as an index fund.

Can you clarify?

Many thanks,

Jeanie