Get 403(b) Distribution/rollover Authorization Form

You have 60 days to re-deposit your funds into a new retirement account after it's been released from your old plan. If this does not occur, you can be hit with tax liabilities and penalties.

What are the steps to roll over a 403(b) plan? Ensure that the new plan allows for rollovers. Decide whether to roll over to a new employer's plan or an IRA. ... Ask the plan administrator what forms are needed and complete the required paperwork.

In exchange, the Roth IRA must be funded with after-tax dollars. So when you roll over your 403(b), you'll pay income tax on the entire account balance. This can be significant depending on the size of your 403(b). A Roth conversion can also push you into a higher tax bracket.

Your vested balance is the amount of your 403(b) that you get to keep if you quit. Your unvested balance will go back to your employer when you quit whether you leave your 403(b) there, transfer it to your new employer, or withdraw it.

Fortunately, if you change jobs, you won't have to worry about losing your retirement plan. You have the option to roll over your 401(k) or 403(b) into a traditional IRA. If your new employer offers a 401(k) or 403(b) of their own, you can also transfer your retirement savings from your old plan to your new one.

How long do you have to rollover a 403(b) from a previous employer? If you choose to make an indirect rollover of a 403(b) plan, you have 60 days to complete the transfer. If you miss the deadline, you face a 10% penalty and income taxes on your savings.

Eligible Accounts for Rollovers While the IRS regulations allow the rollover of assets between 401(k) plans and 403(b) plans, employers are not required to allow rollovers into the plans they maintain. 8 Whichever transfer you're thinking of, your employer must permit it.

If you don't roll over your payment, it will be taxable (other than qualified Roth distributions and any amounts already taxed) and you may also be subject to additional tax unless you're eligible for one of the exceptions to the 10% additional tax on early distributions.

One of the advantages of rolling over your old 403(b) into your new employer's plan, if it meets the criteria above, is having all retirement accounts in one place. As you change jobs, if you can continue to roll over the funds into one central retirement account, it may be easier to keep on top of your investments.