Transfer from Non-ERISA 403(b) to ERISA 403(b)

[austin3515]

Is there any restriction on transferring assets from a non-ERISA 403b plan of an employer to the newly established 403(b) plan of that same employer?  Assume of course that both plans permit such transfers. 

[Patricia Neal Jensen]

Assuming both plans permit such transfers, I do not think so. 

You could have problems with the vendor(s) on the Non-ERISA side.  I have had them refuse to transfer the account or asset without a distribution event. (Document language is, of course, critical.)

More frequently lately, we have been asked to merge the Non-ERISA plan into the ERISA plan (same provider (TIAA)).  (I am assuming your "newly established" plan is ERISA.)  Your idea would be cleaner if the Non-ERISA plan has several different investments funding it.  You would avoid having assets with recordkeeping in various and sundry places with the records not easily available for administration.  Most of mine involve 2 TIAA plans where the asset records are easily available and TIAA is very cooperative.

Hope this helps!

PNJ