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403b Transfer To An Ira

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#1 Armand

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Posted 18 September 2005 - 08:53 AM

Spoke to a rep at TC and they said yes, but what I read elsewhere is different. Sounds like you can only do this if there is an event like retirement, job change, or you're 59 1/2. Does anyone know about this? Thanks.

#2 JMacDonald

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Posted 18 September 2005 - 12:30 PM

I transferred my 403b funds into an IRA when I turned 59 1/2.

The TC rep may had made a mistake or misunderstood the situation.

My question for you is this: Why do you want to transfer your 403b funds to TC? I use TC as the vendor that gets my new 403b funds, but 95% of my old funds are with Vanguard. You might consider sending your funds to Vanguard instead. Best Wishes.


#3 Herb

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Posted 18 September 2005 - 12:45 PM

Armand: usually, you can only transfer a 403B account to an IRA when one of the following has happened: separation from service, death or disability. You can withdraw(spend) money from a 403b account when you separate from service after your 55 birthday, and, you can withdraw (spend) or transfer your 403b account when you have reached age 59.5, even if you are still employed with the employer that sponsors your 403b account.

If you feel you do not meet one of the qualifying events to transfer the 403A account to an IRA, (death, disability or separation from service); you may wish to contact TIAA CREFF and re-ask the question. You also may wish to contact the annuity company you purchased your 403B account from, or the agent, and pose the question to them. I am assuming you have an annuity because you mention your account is free of surrender charges, which is usually a scenario that involves annuities.

The previous poster asks a good question on "why", you may wish to consider what you wish to accomplish with this strategy. I hope this helps.

Herbert Hussey

#4 Armand

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Posted 18 September 2005 - 04:38 PM

Thanks for the great info.

JMacDonald: I want to transfer to TC because I did a transfer to Vanguard (very happy with them) some years ago, and am thinking it's a good idea to not have all funds with the same company.

Herb: I will be checking with TC, but it looks like it won't work since I haven't yet had a qualifying event.

Thanks again.

#5 Herb

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Posted 18 September 2005 - 09:32 PM

Armand: I can't speak to the reason of selecting one company or another; but I would say this: you can move your 403B account to another 403B account with a vendor of your choice. Rather than moving the account from 403B to IRA, you may wish to keep the account as a 403B, but move the account to another company. You can do this under REv Ruling 90-24. The attractive aspect of 90-245 is that you can make this transfer while you are still employed with your current plan sponsor. This type of transfer is not a taxable event; rather it is a selection of another trustee of your accoount. I understand why TIAA CREF can not accommodate your wishes; they are not approved within your district to accept funds from your present 403B company.

Possibly you can seek out other vendors that appeal to you, and see if they are able to do what you want.

#6 spiderman

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Posted 16 October 2005 - 10:01 AM

I read somewhere that you can transfer out a 403b account to an outside annuity company or brokerage account while still be employed as long as the employer allows it? If so, then does anyone know if there is a list or a website of employers that definitely do allow it?

#7 Dan Otter

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Posted 16 October 2005 - 08:42 PM

Hey Spiderman,

The procedure is called a 90-24 transfer. Click the link to learn more.

#8 spiderman

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Posted 17 October 2005 - 11:39 AM

Yep, I know that, however, I want to know if there is a master list of some sort that shows all the organizations/ISD's and/or plan administrators etc. that allow it.

#9 sschullo

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Posted 17 October 2005 - 09:18 PM

Hi spiderman,
In my experience and talking with others, most of the time transfers (that is, trustee to trustee, non taxable event in a non ERISA plan) can be done. Usually its people who want to get out of a high cost annuity into a lower cost mutual fund. The stumbling block is the surrender fee that we have to eat, not the employer. Most of the time, the employers don't even know it, nor do they care.
No, there is no master list that shows this.