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401k to a 403b with a twist

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R

rolsto

Guest
What is the name of your state? NY

I am a physician and currently work for a medical PC connected to a hospital. I have a 401K plan with this corporation. I am being moved to a completely different PC, still working within the same institution, and will now have a 403b.

Because the 401K I am leaving is suboptimal secondary to limited choice and high fees, I wish to rollover my assets into the new 403b. I am getting mixed messages. Some tell me it is permitted, others tell me it is not (I am not still working in the same hospital). Can anyone shed some light?

thanks,
brad
 


cbg

I'm a Northern Girl
I am not an expert on this, and will have to wait till tomorrow to contact my expert. However, as I understand it, it is only very recently, like within the current administration, that it was legal to transfer funds from a 401k to a 403b, or vice versa. So it may be that you're getting mixed messages because of the recent change in the law.

The major issue here is whether or not your plan document permits such rollovers. Regardless of whether the law agrees to it or not, only such rollovers as are approved by the plan document can be made. That's something no one here can tell you, obviously.

What does your HR department say?
 
R

rolsto

Guest
Re: 401k to 403b with a twist

The issue is not the 401k to 403b transfer. That is permitted. My HR department tells me that because I am not changing "employers," ie, I am still working in the same hospital under the same umbrella, that it is not a distributable event. I dont believe they have any evidence to back up their decision and I am looking for firmer footing.
 

cbg

I'm a Northern Girl
Oh, I see. Sorry I misunderstood.

Sorry, but they are correct. Moving within the same employer is NOT a distribution event. That's written into the law, though I don't believe I could put my hand on the exact page.
 

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