Key Takeaways
- Use a direct rollover instead of taking a check yourself—this avoids the 20% mandatory withholding that requires you to contribute your own money to complete the rollover
- If the plan issues a check for a direct rollover, have it made payable to '[Your Name] IRA' rather than to you personally to avoid the 60-day time limit and withholding rules
- The once-per-year rollover rule only applies to IRA-to-IRA transfers, not to plan-to-IRA rollovers, so rolling over a 403(b) to an IRA doesn't trigger this restriction
- If you're age 72 or older, you must first take your required minimum distribution (RMD) before rolling over the remaining 403(b) balance
- Contact your former 403(b) plan administrator to confirm how much of your balance is eligible for rollover and to initiate the direct rollover process
Ask The Hammer - 403b Rollover: In this episode of Ask The Hammer, Jeffrey Levine discusses rolling a 403b into a traditional IRA. Watch more episodes of Ask The Hammer at this link: https://www.finstream.tv/videos/ask-the-hammer/
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