90-24 Transfer

What is the significance of Revenue Ruling 90-24 transfer?

This 90-24 transfer ruling permits a direct transfer between issuers of all or part of an employee's interest in a tax sheltered annuities (TSA) or a custodial account without tax consequences.

The transfer can be from an annuity to another annuity or to a custodial account, and conversely from a custodial account to another custodial account or to an annuity.

The ruling allows for partial transfers, but the employee's 403b plan might be more restrictive.

A current employee, former employee, or a beneficiary of a former employee may make a 90-24 transfer under Revenue Ruling 90-24.

Is the approval of employers and issuers of 403b, TSA s and custodial accounts required to allow direct 90-24 transfer?

Revenue Ruling 90-24 transfer does not address the issue of consent, nor does it require that employers permit direct transfers.

Are 403b plans withdrawals eligible for 10-year averaging?

No.

Are 403b Plans subject to the sunset provisions of EGTRRA?

The new rollover rules and the increased contribution levels described above will be automatically repealed for years after 2010 unless Congress and the President extend the provisions of the Economic Growth and TAX Relief Reconciliation Act of 2001 ("EGTRRA").