Reg

Here is my update: After exhaustive questioning of all parties, here is the definitive answer. I CANNOT DO A ROLLOVER OF MY PREVIOUS 403b account unless I meet distribution age of 59.5 or leave the employer. I CAN ONLY EITHER LEAVE THE MONEY WHERE IT IS OR PERFORM A PLAN EXCHANGE AND CONSOLIDATE MONEY FROM MY PREVIOUS 403b into the current one at Fidelity. (See below) What is the difference between a contract exchange and a rollover? A contract exchange allows you to move your investments to different service providers under the same employer (in this case the Employer Retirement Savings Plan accounts). A rollover allows you to move your investments out of the Employer Retirement Savings Plan accounts and into another account either through another employer plan or an IRA. You can only do a rollover if you meet certain criteria. Thanks everyone. Thanks DK for your correct assessment.

Tony, Yes to both. I have, in the past, transferred old 403b plans from previous employers to my traditional IRA without incurring any fees whatsoever. That was great because I was not limited to the funds that my previous 403b plans offered. However, now, with a large portion of my nest egg stuck in Lincoln Life, I don’t have the flexibility that I have with my traditional IRA.

Thanks for all the input. Here is an update So far: Lincoln Life customer rep is not 100% sure but she said it can’t be moved without penalty while I still work for the company. Fidelity customer rep is also not 100% sure but he thinks I can move it into the new 403b with them but not the traditional IRA. He is doing research to confirm that and will get back to me. My tax lady said that there would be no penalty for me to move it. Somehow, I just don’t trust her quick answer since the other two companies weren’t sure either. It would suck if I couldn’t move it at all. I will update y'all when I get a definitive answer.

My employer changed 403B institutions. They previously sent my deductions to Lincoln Life but they ended their relationship with them. Now they are sending my deductions to Fidelity. My employer stated that my balance at Lincoln Life will remain there. Question: May I rollover my balance at Lincoln Life to a traditional IRA without penalty or taxes since my employer no longer has a relationship with them?