403b Rollover

Can a 403b be rolled over to an IRA?

A rollover of 403b to IRA is permitted provided there is a "triggering" event, i.e.,

• death,
• disability,
• over 59 1/2 or
• separation from service.

Beginning in 2002, permitted 403b rollover may also be transferred into another employer retirement qualified plan, such as a 401k, or deferred compensation section 457 plan, if the targeted plan allows it.

A rollover from a 403b plan, once it is determined that it is permitted, is handled in the same manner as 401k rollovers from other qualified plans.

403b Plans must allow rollovers if there is a distributable (triggering) event (special rules may apply if the payments are made over a period of 10 years or more).

403b Rollover can be a whole 403b rollover or a partial 403b rollover.

403b rollover can be made into a surviving spouse's IRA (or into a separated/divorced spouse's IRA pursuant to a qualified domestic relation's order (QDRO)). But 403b rollover cannot be made to a non-spouse beneficiary's IRA.

How much time does an employee have to make a 403b rollover after the employee receives the assets?

The assets must go into the IRA within 60 days from the date the employee received them from the 403b plan.