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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.


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