403(b) pre-1987 grandfathered contributions

[Guest MBeck]

I have two separate 403(b) TSA's. Both have grandfathered pre-1987 contributions. I am currently 71 years old. Can I transfer these two 403(b)s to a new custodian and combine them into one new 403(b) and still maintain the grandfathered contribution amounts so that portion is subject to the minimum required distributions begin at age 75?

Likewise, if I transfer these assets to an IRA, can I maintain the grandfathered amounts that are subject to age 75 RMD's?

Thank you for your help.

Mark

[Michael Devault]

You can transfer the 403(b) accounts to another 403(b) account and retain the grandfathered status of the December 31, 1986 account balance if (1) the existing custodians report those balances to the new custodian as part of the transfer process and (2) the new custodian agrees to track that information.

However, if you roll the 403(b) accounts into an IRA, the money will take the comlextion of IRA funds. That is, any benefit of the 1986 account balance will be lost.

Hope this helps.