No. of Recommendations: 0
Greetings, Kipmcdowell, and welcome. You wrote:

<<My wife has resigned from her teaching position in order to stay home with our two kids (2 and 5). She has a current total value of about $14,000 invested through a 403(b), divided between two lack-luster mutual funds. We would like to transfer the 403(b) into a “Spousal IRA,” so that we can continue actively investing for her retirement, instead of moving it into a "Traditional IRA," where I assume we can not invest the $2000 maximum per year for her. Is this possible? >>

TMF ExRO already told you it's probably possible to transfer this money to a rollover or conduit IRA. That's just another name for a traditional IRA that only holds money that came from an old employer's qualified retirement plan like a 403b. See the IRA area for a full explanation of what that entails.

You should be aware that while transfer of the 403b is possible, it's also possible the plan itself may impose some restrictions on doing so. Many 403b plans will only let you do a partial transfer each year over a period of ten years instead of all at once. You need to check with your wife's administrator to see what her plan allows.

Regards..Pixy

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!
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.
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.