EGTRRA affect on forward averaging

[Guest Ralph]

It's my understanding that forward averaging is not available for 403(B) assets . However, now that 403(B) assets can be rolled into a 401(k) plan, how will this impact forward averaging treatment?

[Guest JKG]

If the 403(B) assets are rolled into the 401(k), under the new law all of the assets are tainted. Result: If 403(B) assets are rolled in, not even the 401(k) assets qualify for averaging anymore. This provision is not in the Code. It is Section 641(f)(3) of EGTRRA.

[Guest Ralph]

Great! Thanks for your response.