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Not Allowed To Transfer

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Hello;

 

I have a question that no one seems to be able to or wants to answer. If you have time could you please answer it?

 

Why can't you transfer from a 457(b) plan into a 403(b) plan. Isn't the 403(b) a more restrictive plan? Why can't you move from a less restrictive plan into a more restrictive plan? I am a city employee in Michigan. Nationwide Retirement Solutions offers only a limited number of funds, and style of funds, in the plan they offer through my employer. I then tried to transfer from Nationwide to Vanguard but they wouldn't let me. When I asked why Nationwide advised me the US Federal Government makes the rules and they won't let you transfer from a 457(b) into a 403(b) plan. When I asked them to explain in more detail they stated, "Its complicated and you just can't."

 

I have tried to research the answer on my own and I can't find it. I even have a family member that works for the IRS and he can't tell me why. I must be looking in the wrong places or I am asking the wrong question. I don't believe it arbitrarily reads somewhere, "No One can transfer from a 457(b) plan into a 403(b) plan." There has to be an explination. If anyone has time to answer this question or to point me in the right direction I would greatly appreciate it.

 

Thank You In Advance

 

Steve

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Hello;

 

I have a question that no one seems to be able to or wants to answer. If you have time could you please answer it?

 

Why can't you transfer from a 457(b) plan into a 403(b) plan. Isn't the 403(b) a more restrictive plan? Why can't you move from a less restrictive plan into a more restrictive plan? I am a city employee in Michigan. Nationwide Retirement Solutions offers only a limited number of funds, and style of funds, in the plan they offer through my employer. I then tried to transfer from Nationwide to Vanguard but they wouldn't let me. When I asked why Nationwide advised me the US Federal Government makes the rules and they won't let you transfer from a 457(b) into a 403(b) plan. When I asked them to explain in more detail they stated, "Its complicated and you just can't."

 

I have tried to research the answer on my own and I can't find it. I even have a family member that works for the IRS and he can't tell me why. I must be looking in the wrong places or I am asking the wrong question. I don't believe it arbitrarily reads somewhere, "No One can transfer from a 457(b) plan into a 403(b) plan." There has to be an explination. If anyone has time to answer this question or to point me in the right direction I would greatly appreciate it.

 

Thank You In Advance

 

Steve

 

It is indeed possible to transfer a 457 to a 403b because I did so for my wife just last year. So yes, it can be done. I transferred her 457 from American Funds to a Vanguard 403b. You might try calling Vanguard because they were pretty helpful to me.

 

Also, you might consider lobbying your employer for better investment options.

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Guest Sierra

 

Hello;

 

I have a question that no one seems to be able to or wants to answer. If you have time could you please answer it?

 

Why can't you transfer from a 457(b) plan into a 403(b) plan. Isn't the 403(b) a more restrictive plan? Why can't you move from a less restrictive plan into a more restrictive plan? I am a city employee in Michigan. Nationwide Retirement Solutions offers only a limited number of funds, and style of funds, in the plan they offer through my employer. I then tried to transfer from Nationwide to Vanguard but they wouldn't let me. When I asked why Nationwide advised me the US Federal Government makes the rules and they won't let you transfer from a 457(b) into a 403(b) plan. When I asked them to explain in more detail they stated, "Its complicated and you just can't."

 

I have tried to research the answer on my own and I can't find it. I even have a family member that works for the IRS and he can't tell me why. I must be looking in the wrong places or I am asking the wrong question. I don't believe it arbitrarily reads somewhere, "No One can transfer from a 457(b) plan into a 403(b) plan." There has to be an explination. If anyone has time to answer this question or to point me in the right direction I would greatly appreciate it.

 

Thank You In Advance

 

Steve

 

It is indeed possible to transfer a 457 to a 403b because I did so for my wife just last year. So yes, it can be done. I transferred her 457 from American Funds to a Vanguard 403b. You might try calling Vanguard because they were pretty helpful to me.

 

Also, you might consider lobbying your employer for better investment options.

 

 

Only upon separation from service are you permitted to take a distribution from a 457. Once you have the right to the distribution you can then roll it over to another qualified plan like a 403b. If this is done while still employed by the employer sponsoring the 457 Plan then the employer is guilty of making an impermissible distribution.

 

Joel L. Frank

 

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