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PAvibes t1_iyeicqy wrote

Reply to comment by rnelsonee in 403b question for a new job by [deleted]

I apologize if this is a dumb question but I'm really new to all of this. I wasn't aware that you can roll over the money from a 403b or 401k into an IRA. I'm aware that an IRA has a max of 6,000 a year in regards to contribution. Does this rule still apply for rolling over?

For example, let's say I had 10,000 in my 403b and I plan to transition to a new job and roll the money over into a IRA. Would I have to face penalties for the 10,000 being over the 6000 mark?

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rnelsonee t1_iyemxvq wrote

The $6,000 is for direct contributions, there's no limit on the amount to roll over. If you have a 403b after leaving an employer, you can keep it there (if >$5,000, otherwise your old company can force a cash-out to transfer), roll it to your own IRA, or transfer it over into your new work's plan if they allow it.

So if you had $10,000 in a 403b, you can keep it, roll it to an IRA, or if your new job allows move it to them. The money stays pretax, there's no tax added to your 1040, and no penalties. A small wrinkle if the transfer is done via paper check, but if that happens just ask us... within 60 days of getting the check.

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