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403(b) Rollovers - Active Employees

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Guest Sierra

Subject to the terms of the dispersing plan and the receiving plan, 403(b)s--401(k)s--401(a)s--IRAs may be rolled over to and from each other once the employee/participant attains age 59-1/2, if in service, or at any age upon separation from service.

 

Is this great stuff or what?

 

Peace,

Joel L. Frank

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Hi,

 

I've read IRS Pub 571 and the two IRC sections listed above and have another rollover question. Can an active employee who has reached the age of 59 1/2 rollover the funds currently held in a qualified plan annuity account to an IRA (non-annuity) account? My understanding up to this point was that I could only rollover to an IRA after a separation from service.

 

If the rollover to an IRA account can currently be made by an active employee who has reached the age of 59 1/2, can either the employee's employer or the qualified plan annuity contract vendor prevent the employee from rolling the funds to a non-annuity IRA?

 

Thanks

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Guest Sierra
Hi,

 

I've read IRS Pub 571 and the two IRC sections listed above and have another rollover question. Can an active employee who has reached the age of 59 1/2 rollover the funds currently held in a qualified plan annuity account to an IRA (non-annuity) account? My understanding up to this point was that I could only rollover to an IRA after a separation from service.

 

THIS MAY BE THE CASE IN YOUR SITUATION. CHECK WITH YOUR CURRENT PLAN ADMINISTRATOR

 

If the rollover to an IRA account can currently be made by an active employee who has reached the age of 59 1/2, can either the employee's employer or the qualified plan annuity contract vendor prevent the employee from rolling the funds to a non-annuity IRA?

 

IF THE PLAN PERMITS IN SERVICE DISTRIBUTIONS UPON REACHING AGE 59-1/2 YOU MAY ROLLOVER TO ANOTHER ELIGIBLE PLAN---A NON-ANNUITY IRA IS AN EXAMPLE OF AN ELIGIBLE PLAN.

 

Thanks

I have posted my reply in CAPS.

 

 

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Hi,

It is funny that this question came up because I was talking to a TIAA-CREF rep this morning, and he told me that I could roll my funds into an IRA at 59 and 1/2. This came up because I wanted to use the mutual fund part of TC and not the VA side. Moving my 403b into an IRA would permit me to do that. Best Wishes.

 

Joe

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