Q. Can a former employer control where a 403(b) account is rolled after employment?
A. Under the rollover rules, individuals who are eligible to receive a distribution from a retirement plan, including a 403(b) plan, must be given the right to directly roll over that distribution to a variety of plans or accounts. The federal tax code says that rollovers from one plan type to other plan types, and to IRAs, are permissible. Based upon that, my conclusion is that the former employer cannot restrict this individual from rolling the 403(b) account to the 403(b) account of the new employer, as long as the new employer's 403(b) plan accepts rollovers into it.
05/04/2015
Recent Comments
Does the roth requirement for catch-up contributions for people who earned $145,000 apply to 457...
Hi Ed,
I really liked this article and I think you make a lot of sense. And I had no...
I believe there's a misstatement in that last quote - it should refer to governmental and...
Working with several medical providers as clients, I note that the high-end earners tend to push...
Congratulations to NTSAA for landing a good one. Nathan's breadth of experience and...