Can 403(b) assets move to 401(k) plan?

[Guest EditInIllinois]

An employer has an older 403(b) plan for its veteran employees (and retirees), and a newer 401(k) plan for those hired in recent years. It wants to move all the veteran employees' and retirees' money from the 403(b) plan to the 401(k) plan. The insurer holding the 403(b) assets says the employer can do that—IF the state insurance department approves its application for a new policy form or something like that (presumably to change the policy to allow such asset movements—whether as rollovers, trustee-to-trustee transfers, or whatever).

A 2007 Treasury regulation change (72 Federal Register p. 41128 et seq., especially 41140 et seq., amending Treasury Regulations section 1.403(b)) did expand the ability of employers to terminate 403(b) plans and transfer their assets to some other kinds of plans (see particularly subsec. 1.403(b)-10). But those regulations do not appear to allow a 403(b) plan when terminated to have its assets transferred to a 401(k) plan specifically.

Does anyone know of a way to make such a movement of all of an employer's 403(b) plan assets to its existing 401(k) plan?

EditInIllinois

[Fisher]

An employer can not transfer the 403(b) assets directly to their other 401(k). They would have to terminate the 403(b) plan and offer distributions to the participants, who then could roll their assets over to the 401(k), IRA or take cash.

[Guest EditInIllinois]

Thank you. I have just learned that what you described is what the employer is seeking to do! Somebody didn't pay enough attention to details in describing the question to me.