Saturday, November 7, 2015

403B Plan to Plan Transfers

From www.tiaa-creg.org PDF, there is a lot of great information on the ins and outs of 403B plans.

An employer may have one plan for each broker/dealer that handles their empoyees 403B accounts.  You have 3 types of options available.

If you stay within the existing plan but change asset allocation (ie stay with the same employer and the same broker/dealer), this is called a contract to contract exchange.

If you transfer between plans (ie stay with the same employer but change broker/dealers), whether you keep the current asset allocation or change asset allocations, this is called a plan to plan transfer.

Finally, if you leave the plan, which typically can only occur after leaving the company, this is called a rollover.

For rollovers, you have direct and indirect rollovers.  Typically, indirect rollovers are easier because you become the middle man which simplifies communication between you and each individual broker/dealer.  However, it can take longer to process.