Can a 403(b) be transferred to a solo 401k plan?
Yes a 403(b) plan can be transferred to a solo 401k plan.
What is an IRC Sec. 403(b) plan?
Similar to a solo 401k plan, an IRC Sec. 403(b) plan is a retirement plan that allows employees to make employee/salary deferrals. However, unlike 401k plans, 403(b) plans can only be offered by certain tax-exempt organizations, public and tribal government schools, and certain ministers. Lastly, employers do not generally establish a trust to hold the plan assets. Rather, each employee establishes his own annuity contract or custodial account to hold his 403(b) plan assets.
Resign from Employer QUESTION
If I resign from my job with a 403b (and I’m under 50 years old), can I rollover my 403b into a solo 401k without tax penalty?
ANSWER:
Yes you can as separation from service is a “triggering event” and the solo 401k plan allows for incoming transfers from former employer 403b plans.
Spouse 403b QUESTION
My wife has an old 403b from a job she had 5 years ago and I wanted to know if it was possible for us to roll that into my solo 401k so that we could use that for another property purchase and what we would need to do if it was possible?
ANSWER:
Yes the rules allow for the transfer of a 403b to a Solo 401(k) plan provided your spouse is also self-employed in the business that sponsors the Solo 401(k) plan. If she is self-employed, please let me know and we can help prepare the 403B transfer forms, as well as add her to the plan. Subsequently, we can assist in setting up a bank or brokerage account to hold her funds under the solo 401k plan.
