Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

This is a U.S. question. I have a 403B account that can be…

This is a U.S. question...
This is a U.S. question. I have a 403B account that can be turned into life-annuity or what I consider cash-out - that is, a fixed-term annuity over roughly 10 years. Specifically, it's 10 payments over 9 years which I understand gets them under the limit and permits rolling pay-outs into an IRA. I have actually done this with one 403B cash-out, so that the annual payments are being rolled directly into a pre-existing IRA. This seems to be completely OK and I've run into no issues in doing this. My question is if I take another one of these 403B accounts to cash out -- If some of these rollovers occur after I reach the age when required minimum distribution must be taken from my IRA -- is this still OK? It's clearly not a deposit into the IRA in the usual sense, but I haven't run across wording anywhere that addresses this particular case.
Show More
Show Less
Ask Your Own Finance Question
Answered in 10 minutes by:
9/19/2017
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Finance
Satisfied Customers: 2,619
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified

Hello my name is ***** ***** I will be able to assist you today.

Once you reach age 70 1/2 you may no longer make regular contributes to a traditional IRA, but you may continue to make rollover contributions.

Below is an excerpt from the IRS web site, which I also linked below.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

"IRA contributions after age 70½

You can’t make regular contributions to a traditional IRA in the year you reach 70½ and older. However, you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age."

If you have any further questions please let me know.

At the conclusion of your questions please accept and rate my answer by clicking on three stars or more.

A positive 5 star rating is always appreciated.

Thank you!

Ask Your Own Finance Question
Customer reply replied 10 months ago
Thank you. I'll follow the link later, but on the face of it this is extremely helpful.

Essentially, you can rollover funds from the 403b to a traditional IRA, but you can't make new contributions

Ask Your Own Finance Question
Customer reply replied 10 months ago
This website is insanely confusing, but I'm happy for your answer. If I have more questions I will certainly request you again

I placed the link in the chat for your refernce

Ask Your Own Finance Question

I do hear that often. Please let me know if I can assist you any further

Have a great evening.

Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Finance
Satisfied Customers: 2,619
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified
Chad EA, CDFA®, CFP® and 87 other Finance Specialists are ready to help you
Ask your own question now
Customer reply replied 10 months ago
Thanks. I'd just like to end at this point - you've answered my question. Can we say over and out and then it tells me I'm supposed to rate you somewhere which I'm happy to do - positively. Not so sure about the website though - it feels like a giant hussle.
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a financial professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Chad EA, CDFA®, CFP® Your Own Question
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Finance
Satisfied Customers: 2,619
2,619 Satisfied Customers
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA

Chad EA, CDFA®, CFP® is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,609 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,222 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,933 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
Approaching retirement, I'm 62 now, employed as a nurse,
THIS IS REGARDING approaching retirement, I'm 62 now, employed as a nurse, (understanding answers are not binding) ,the hospital is offering a lump sum payment of $141,858.00 from our pension plan as … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
CERTIFIED FINANCIAL PLANNER ®, Professional
2,619 satisfied customers
I am 62 years old and plan to work until I am 68.5. I have a
i am 62 years old and plan to work until I am 68.5. I have a small pension with my company that I can collect at 65 (it won't get any higher after that age). It will be worth about $84,000 and the mon… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
CERTIFIED FINANCIAL PLANNER ®, Professional
2,619 satisfied customers
I have a client who wishes to rollover a portion of a 403b
I have a client who wishes to rollover a portion of a 403b to an IRA. Is there an IRS rule that mandates that a 403b plan accelerate RMD amounts as part of a rollover if there are other funds in the a… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a question about roth IRA for non working spouse. I
Hello,I have a question about backdoor roth IRA for non working spouse. I am a married self employed physician with high income. My wife had a job early this year but quit in the summer to take care i… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I was married for 16 years in our final decree I was awarded
I was married for 16 years in our final decree I was awarded half of my exs 401k and 403b . I am 44 they are 48. vested fully into both accounts. I am 44 with 24 years service but mine retirement is a… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Prior to 2006, I accumulated contributed both pre-tax and
Prior to 2006, I accumulated contributed both pre-tax and after-tax funds to a 401k. At the time I stopped making contributions to this plan when I left that employer, I had contributed $20,000 after-… read more
socrateaser
socrateaser
1,031 satisfied customers
until two years ago we were able to pull up to 15,000 from
until two years ago we were able to pull up to 15,000 from our annuity in emergency situations..foreclosure, etc. Now.I'm told.we're no longer able to, why is that?… read more
abci168
abci168
Principal
27 satisfied customers
I HAVE $100,000 IN CREDIT CARD DEBT---WHICH I AM HANDLING EVEN
I HAVE $100,000 IN CREDIT CARD DEBT---WHICH I AM HANDLING EVEN BEYOND THE MINIMUM MONTHLY PAYMENTS---I ALSO $350,000 IN A 403b PLAN EARNING A GUARANTEED 7% ---SHOULD I CASH IN "SOME" OF THE 403b TO GE… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Have a pension fund that is offering a lump sum payout, small
Have a pension fund that is offering a lump sum payout, small amount, $20000 am 56 years old, want to roll it into a roth ira because: my wife will work for 10 to 15 years after I retire, tax rate wil… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a financial question What is good option for moving/handling
I have a financial question: What is good option for moving/handling 401k that is with company I retired from so I can pay less taxes? Can I roll over into another investment vehicle and reduce my tax… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
My company is redistributing our entire 401(k) fund into privately-controlled
My company is redistributing our entire 401(k) fund into privately-controlled investment (read: hedge) funds and trusts. There is little transparency and less oversight. This makes me very nervous. Is… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
I live in the state of texas and am 38. I have a 403b through
I live in the state of texas and am 38. I have a 403b through my employer. I need to take a small loan from my 403b. I have two questions. I am going to resign from my job and start a new one in 2 wee… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
Hello Dave. I have recently changed jobs. I had a Roth IRA
Hello Dave. I have recently changed jobs. I had a Roth IRA at my old job that I am 'rolling over' into my Roth IRA at my new job. I am being told that the employer contribution of my Roth will be taxa… read more
Eric
Eric
Financial Manager
Bachelor's Degree
559 satisfied customers
I just lost my job, and Im thinking of starting my own business.
I just lost my job, and I'm thinking of starting my own business. Ive done some research and found an article that explains a way to use 401k funds to start a business. Is this article accurate? artic… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Im 70.5 years old and will be retiring soon. I have 131000
I'm 70.5 years old and will be retiring soon. I have 131000 in my 401K. I need 900.oo per month and am thinking of an immediate annuity. Is this possible and what company is best?My email is:[email protected]… read more
Milan Vaishnav
Milan Vaishnav
Consulting Technical Analyst
Bachelor's Degree
536 satisfied customers
Is the death benefit from a life insurance contract inside
Is the death benefit from a life insurance contract inside of a 403b TSA account taxable income to the beneficiary? And if so, can the beneficiary defer paying the ordinarary income tax due by rolling… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
My husband just changed jobs and we are trying tofigure out ...
My husband just changed jobs and we are trying tofigure out how to handle his 403b savings. The problem is - we have credit card debt that is roughly equal to his 403b savings. He wants to roll it ove… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
I am a 72 year old retiree and have a Nonqualified ...
I am a 72 year old retiree and have a Nonqualified Single Premium Deferred Annuity held by Unity Mutual Life Insurance Company. My adjustable net retirement income annually is less than $40,000. I hav… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x