Left Your School, Hospital, or Nonprofit Job? What Happens to Your 403(b)?
You dedicated years to your career. Now it's time to make sure you understand what you can do with the retirement savings you worked hard to build.
If you have an old 403(b), you may be eligible to roll over your savings into an IRA and explore new retirement planning opportunities.
Before withdrawing or transferring your money, find out what options are available to you.
Free consultation • No obligation • No transfer required
Your Career Changed. Has Your Retirement Plan?
Your 403(b) was designed to help you save during your working years. But after changing jobs or retiring, your financial goals and retirement needs may look different.
An IRA rollover could offer additional choices. The first step is understanding whether your account qualifies and what benefits or restrictions may apply.
Why Consider Rolling Over Your 403(b) Into an IRA?
An IRA rollover may provide opportunities that differ from your current retirement plan. Here are three potential benefits worth exploring.
Expand Your Retirement Choices
Depending on the IRA provider, you may have access to different investments and retirement planning strategies than those available in your existing 403(b).
Bring Accounts Together
If you have retirement savings from multiple previous employers, an eligible rollover may help you consolidate accounts and simplify your retirement planning.
Align Savings With Your Future
Explore ways to organize your retirement savings around your income needs, retirement timeline, and financial goals.
Important: An IRA rollover is not automatically better than keeping your 403(b). Your existing plan may offer competitive fees, valuable features, or contractual benefits. Review the differences before moving funds.
Thinking About Cashing Out Your Old 403(b)? Know the Tax Consequences First.
A cash withdrawal from a traditional 403(b) is generally taxable and may trigger an additional early-distribution tax.
An eligible direct rollover into a traditional IRA can generally preserve tax deferral. Understanding the difference before taking a distribution can help you avoid an expensive surprise.
Who May Qualify for a 403(b) to IRA Rollover?
Your eligibility depends on your employment status, plan rules, and whether your funds are available for an eligible distribution.
Former School Employees
If you left a public school, school district, college, or another eligible educational employer, your 403(b) may be eligible for a rollover.
Former Healthcare Employees
If you previously worked for an eligible hospital or healthcare organization, you may have rollover options after separation from employment.
Retired Employees
If you have retired, you may be eligible to roll over some or all of your available 403(b) balance, subject to plan and distribution rules.
Current Employees
Some plans allow eligible distributions while you are still employed, including certain distributions after age 59½. Plan rules determine availability.
Not All 403(b) Accounts Have the Same Rules.
Before moving your retirement savings, it's important to understand the features and restrictions of your specific account.
Account Restrictions
Some 403(b) arrangements have contract restrictions, withdrawal limits, or charges that may apply when transferring money.
Tax Treatment
Traditional pretax and designated Roth 403(b) balances have different rollover rules. The destination account matters.
Existing Benefits
Review costs, investment options, available guarantees, withdrawal provisions, and other benefits before making a change.
Why a review matters: Your 403(b) may have features that are valuable to keep. Understanding those features helps you compare the potential advantages and tradeoffs of an IRA rollover.
You Spent Years Building Your Retirement. Don't Make Your Next Decision Without a Review.
Whether you left your employer recently or years ago, now is a good time to understand what choices may be available.
Find out whether your 403(b) may qualify for an IRA rollover and explore your retirement planning options.
403(b) Rollover Questions Worth Asking
Find answers to common questions about moving a 403(b) after leaving a job, IRA eligibility, taxes, and retirement planning.
Can I roll over a 403(b) into an IRA?
Generally, eligible distributions from a 403(b) can be rolled into an IRA. A direct rollover from a traditional 403(b) into a traditional IRA generally preserves federal tax deferral.
Can teachers roll over their 403(b) after leaving a school district?
Generally, separation from employment can make eligible 403(b) funds available for distribution and rollover. The specific plan and account terms must be reviewed.
Can I roll over my 403(b) without paying taxes?
An eligible direct rollover of pretax 403(b) funds into a traditional IRA is generally not immediately taxable. Roth conversions, cash distributions, and other transactions may have different tax consequences.
Can I transfer my 403(b) while still working?
Some 403(b) plans allow distributions under specific circumstances, such as reaching age 59½. Availability depends on the plan and the type of funds.
Are there fees for rolling over a 403(b)?
Some accounts may have administrative fees, contract surrender charges, or other costs. The receiving account may also have fees. Review all charges before making a transfer.
Can I combine my 403(b) and old 401(k) into one IRA?
Eligible retirement accounts can often be consolidated into a compatible IRA. Traditional and Roth balances generally require different treatment, and some distributions are not rollover eligible.
Is it better to keep my 403(b) or roll it into an IRA?
An IRA may offer different investment choices, consolidation, and retirement planning flexibility. Your 403(b) may offer valuable benefits, lower costs, or protections. The best choice depends on your situation.
Can I roll over a Roth 403(b) into an IRA?
An eligible designated Roth 403(b) distribution can generally be rolled into a Roth IRA, not a traditional IRA. Applicable distribution and rollover rules must be followed.
What happens if I cash out my 403(b)?
Traditional 403(b) cash withdrawals are generally taxable. An additional 10% early-distribution tax may apply before age 59½ unless an exception is available. Eligible rollover distributions paid to you generally require 20% federal income tax withholding.
How do I find out if my 403(b) qualifies for a rollover?
Your employment status, plan provisions, distribution eligibility, and account type are important factors. Request a complimentary review to explore your options and determine what information is needed.
Three Steps to Get Started
You don't have to make a rollover decision just to learn about your options.
Request Your Review
Complete our short form with basic information about your 403(b) and retirement goals.
We Contact You
Our team will contact you at your preferred time to arrange your complimentary consultation.
Explore Your Options
Discuss rollover eligibility, potential IRA benefits, and important considerations with a qualified professional.
Your 403(b) May Have More Options Than You Realize.
You worked hard for your retirement savings. Take a few minutes to find out whether your old 403(b) may qualify for an IRA rollover.
A complimentary consultation can help you understand the opportunities and considerations before you decide.
No obligation to move funds or purchase a product.