Please Help Me !!!

[Guest thestockman]

Can a person in a 403b ( still working for the school ) roll the 403b to an IRA now? I am aware of the 90-24 transfer from 403b to 403b, but under the new laws - is it possible to roll to an IRA without a triggerring event having to have taken place?

I am not as knowledgeable as a lot of you folks so take it easy in the jargon, please explain in English so that I can then explain it to the few hundred teachers that have asked me.

Thanks:confused:

[Carol V. Calhoun]

The answer in English is no. A transfer while you are still working and are not entitled to take a distribution from a 403(B) can occur only (a) in the form of a Rev. Rul. 90-24 transfer to another 403(B), or (B) to a qualified (401(a)) governmental defined benefit plan to purchase service credit.

[Guest thestockman]

Carol,

I thought ( perhaps wrongly ), that under enhanced portability of Retirement plans it states that elegible rollover distributions made from tax-qualified plans including 403bs may generally be rolled over to any other type of paln, including IRAs, that accept such rollovers, given that the plan into which assets are being rolled does, in fact, accept rollovers

Now is elegible the sticky point?

And, just for kicks and giggles, why is the 403b not allowed to be rolled over to an IRA while still in service, ... what restriction exists?

Again - remember - the above took me some time to come up with in thought, so take 'er easy on the reply.

Shawn

[Carol V. Calhoun]

It's not the "eligible" part that's the hang-up, it's the "distributions." Until you have the right to receive a distribution from the plan, the eligible rollover distribution rules don't apply, so you're stuck with the transfer rules, which are much more restrictive.

[mbozek]

Carol: I thought that the restiction on distributions prior to 59 1/2 did not apply to employer contributions to an annuity contract or to salary reduction account balances of annuity contract as of 12/31/88.