Same ER 403(b) to 403(b) transfer

[Guest Deflector]

An employer has a TDA 403(b) plan and also has a DC 403(b) plan. The DC plan offers a new investment option that the TDA does not offer. Many of the participants wanted to move their TDA accounts to the DC to take advantage of this new investment option.

My question is, can the participants move their money as a transfer from one plan to another? My concern is that there is not a distributable event for most participants.

[Guest Tom:]

Yes - The final 403(b) regulations permit 403(b) plan to 403(b) plan transfers without a participant distributable event subject to certain restrictions described in Treas. Reg. § 1.403(b)-10(b)(3).

[Guest Deflector]

Thank you Tom.

[Guest Forttoth]

Technically, its not even a transfer. Its merely an exchange, the "transfer rules" in the regs would not apply