How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Zhicheng Lai Your Own Question
Zhicheng Lai
Zhicheng Lai, Enrolled Agent(EA)
Category: Tax
Satisfied Customers: 811
Experience:  5 years tax preparing experience
Type Your Tax Question Here...
Zhicheng Lai is online now
A new question is answered every 9 seconds

What are the penalties if I roll my 403B while I am still employed

Resolved Question:

I have a 403B account I wish to combine in a rollover IRA with my other funds, my 403B is no longer meeting my needs and I want it to be professionally managed. What are the penalties if I move the assets while still employed?
Submitted: 10 years ago.
Category: Tax
Expert:  Zhicheng Lai replied 10 years ago.
I don't think you can roll over your 403(b) to IRA while you are employed in the same job. If you are under 59 and 1/2, and take a distribution, you are going to pay 10% penalty plus Federal and state income tax.
Customer: replied 10 years ago.
I am going to fill out the distribution form as if I were seperated from employment. It is a voluntary plan with only my money in it. My employer has never made a contribution. Since I am rolling to IRA account are there any penalties?
Expert:  Zhicheng Lai replied 10 years ago.

You should check with your employer to see if your employer allows you to roll over the money to IRA.

If the employer doesn't allow you, you may pay the penalty plus tax by taking the distribution.

A rollover from a 403(b) plan to an IRA may be permitted if there has been a distributable event. A distributable event would include death, disability, separation from service, or attainment of age 59 ½. You may also transfer the asset to another 403(b) by using 90-24 Transfer if your employer permits.


Zhicheng Lai and other Tax Specialists are ready to help you

Related Tax Questions