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403(b) - Ability to Take Over Contract


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Can a spouse beneficiary of a 403(b) tax-deferred annuity take-over the contract (i.e., assume it "as is"), or does it need to be surrendered with the proceeds eligible for rollover treatment?  What is the authority for disallowing the survivor from taking over the contract?  

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My suggestion would be to look at the contract.  In many of these situations in 403(b), the terms of the contract will prevail.

PNJ

Patricia Neal Jensen, JD

Vice President and Nonprofit Practice Leader

|Future Plan, an Ascensus Company

21031 Ventura Blvd., 12th Floor

Woodland Hills, CA 91364

E patricia.jensen@futureplan.com

P 949-325-6727

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Thank you!  The agent indicated that the regulations prohibit the surviving spouse from taking over the contract by rolling it into her IRA.  The agent said they could either roll over the proceeds to an IRA or take the cash as a taxable distribution.  I could not find authority on this. 

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