I have two separate accounts with two different companies.
Will there be a penalty to do this?
2006-10-05 11:52:38 · 4 answers · asked by ursaitaliano70 7 in Business & Finance ➔ Investing
If you do a trustee-to-trustee transfer, there is no IRS taxable event and no penalty.
Howver, sponsors of 403(b) plans are not required to accept these kinds of transfers. Find out from the plan sponsor if they will accept this kind of transfer.
If they won't, you may be able to roll each into an IRA (the same IRA). Open the IRA at a brokerage firm or bank, and then elect a direct rollover from each 403(b) plan into the IRA.
By the way, 457 is not a qualified plan.
2006-10-05 11:58:25 · answer #1 · answered by Jim H 3 · 0⤊ 0⤋
No penalty to do a trustee to trustee transfer on 403b. However there maybe some restrictions on when you can move the funds -check with HR or your plan admistrator.
2006-10-05 11:56:04 · answer #2 · answered by T O 3 · 0⤊ 0⤋
no penalty if you transfer the funds into a qualified plan
such another 403b, 401k, 457 type plan, you may even be able to transfer it into a traditional IRA. who ever is your current 403b administrator should be able to answer this question easily
2006-10-05 11:56:14 · answer #3 · answered by skipymcgoo 3 · 0⤊ 0⤋
I did that back in 2000, and there was NO penalty.
There was a "blackout period" which made me waite, which was a pain.
Your HR dept should have all the answers for you. Very simple.
2006-10-05 11:54:54 · answer #4 · answered by YRofTexas 6 · 0⤊ 0⤋