How to Roll Over a 403b Plan to an IRA
If you work for a nonprofit agency or public institution, you might have access to a 403b plan to help you save for retirement. The 403b plan is a tax-sheltered vehicle that allows you to put money aside through payroll deductions and have that money grow tax-free until you take it out in retirement. When you leave your job, you can choose to take the money in your 403b with you, but you will pay a tax penalty for doing so. A better option is to roll the money over into an IRA, where you can control how the funds are invested.
Other People Are Reading
Instructions
-
-
1
Review your most recent 403b statement to determine how much money is in the plan. Keep in mind that the current amount could be more or less than what is shown on the statement. Market fluctuations could have affected the value. If you have online access to your account, you can get a real-time balance.
-
2
Contact the custodian you want to use for your rollover IRA. If you already have an IRA with a bank, brokerage firm or mutual fund, you can use that same institution for your rollover IRA. Inform the representative that you wish to roll over your 403b and ask for the appropriate paperwork. Depending on the custodian, these forms might be available online.
-
-
3
Complete the transfer form from the new custodian. Include your name, address, telephone number, Social Security number and the account number of the 403b plan. You can get the account number from your 403b statement.
-
4
Make copies of all your paperwork, then submit the completed transfer form to the new custodian. You will receive confirmation of the rollover in the mail once the transaction has been completed.
-
5
Keep copies of your paperwork, including the rollover confirmation, with your tax records. You will need this documentation in case the IRS questions whether the money was rolled over or taken as a distribution.
-
1
