Rolling over 401(k) to 403(b)

[Guest Barney Byrd]

I understand EGTRRA 2001 permits the owner of a 401(k) to rollover the plan balance into a 403(B) effective in 2002.

Has the IRS issued any regulations on this provision of EGTRRA?

Must IRS issue such regulations before plan administrators may put the above rollover provision into effect?

Is a participant's ability to do such a rollover contingent upon either or both plans being amended to authorize these types of rollovers?

Is amending the plans as above or authorizing the type of rollover in question optional for either plan administrator?

[QDROphile]

Whether or not a plan accepts rollovers of any kind is optional and depends on the terms of the plan. A plan can accept some types and not others, if it chooses. A plan can choose to accept rollovers, but exclude certain features, such as loans or after tax amounts. If a plan chooses to accept a certain class of rollover, the plan administrator may usually reject a particular rollover for good reason, such as the belief that the plan sending the rollover is not qualified.

Plans are able to amend to expand the scope of acceptable rollovers effective January 1, 2002. No further regulatory action is required, and the formal amendment can be be adopted within the remedial amendment period (by December 31, 2002 for most plans). But don't expect all plans to rush to the opportunity.

I think that effective January 1, 2002 all eligible retirement plans have to provide direct rollovers to any eligible plan that will accept them, whether or not an amendment to that effect has been adopted by the distributing plan.