John A Posted July 11, 2001 Share Posted July 11, 2001 If a participant has a 403(B) and a 401(k) with the same employer, can the participant roll assets from 403(B) into 401(k)? Link to comment Share on other sites More sharing options...
Appleby Posted July 11, 2001 Share Posted July 11, 2001 It depends As the current version of the law stands- 403(B) assets cannot be rolled to ( commingled with )401 (k) asets. however, with the passage of EGTRRA-2001, this will be permissible effective 2002 Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link to comment Share on other sites More sharing options...
david rigby Posted July 11, 2001 Share Posted July 11, 2001 .... but don't you still need a "distributable event"? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
Guest Tom Geer Posted July 12, 2001 Share Posted July 12, 2001 Yes, but that could be a plan termination. Link to comment Share on other sites More sharing options...
jlf Posted July 13, 2001 Share Posted July 13, 2001 But "plan termination" is not a "distributable event" under 403b7 and or b11. Link to comment Share on other sites More sharing options...
Guest RJT Posted July 13, 2001 Share Posted July 13, 2001 You would need instead to terminate the a and roll it into the b if you only want one plan. And 1.401(a)(31)-1 Q&A 7 allows the plan, under certain conditions to, to direct the rollovers into the b as the default option withjout an affirmative election by the participant. Link to comment Share on other sites More sharing options...
jlf Posted July 14, 2001 Share Posted July 14, 2001 It is the rare 403(B) that is an Erisa plan. Most are funded solely by salary deferral with very little employer involvement. RGT and Tom are assuming that the 403(B) is an ERISA plan. Maybe JohnA can tell us if it is. Best wishes, Joel L. Frank:confused: Link to comment Share on other sites More sharing options...
Guest RJT Posted July 16, 2001 Share Posted July 16, 2001 The answer doesn't depend on whether or not the b plan is ERISA. Rolling the a money cleanses it of its ERISA status, and as long as there isn't significiant employer involvement in the b plan, the rolling of the a money into it should not trigger ERISA status for the b. To make sure you avoid ERISA status in the b (as well as avoiding some security law concerns) the amendment to the a plan which sets up this arrangement should also probably state what kind of default investments should be purchased in the b with the rollover funds. Link to comment Share on other sites More sharing options...
PMC Posted August 7, 2001 Share Posted August 7, 2001 Need some help - If the 403(B) is not considered established by the employer/ERISA plan, and the 403(B) is funded through individual contracts, how does the employer direct a transfer to the 401(a)? And even if the 403(B) is considered an ERISA plan can the employer terminate the plan and make distributions to participants? EGTRRA didn't change the rules to allow trust-to-trust or plan-to-plan transfers from 403(B)s to 401(a)s did it? I thought it was eligible rollover distributions that could be rolled from a 403(B) to a 401(a)? If the participant isn't eligible to receive a distribution from the 403(B),and it doesn't seem as though plan termination is a distributable event, how is it rolled to a 401(a) plan? Link to comment Share on other sites More sharing options...
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