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Monthly 403b rollover to Vanguard IRA

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  • Monthly 403b rollover to Vanguard IRA

    Let's say that your employer (hospital or in private practice) has chosen a retirement plan (403b, 401k, 457...etc) with poor investment choices and high expense ratios. Is it possible to roll that account over to an IRA with say, vanguard, on a monthly basis? or is there a one time yearly limit on rollovers?

  • #2




    Let’s say that your employer (hospital or in private practice) has chosen a retirement plan (403b, 401k, 457…etc) with poor investment choices and high expense ratios. Is it possible to roll that account over to an IRA with say, vanguard, on a monthly basis? or is there a one time yearly limit on rollovers?
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    This is called an "in-service rollover". It is relatively rare to find a plan that allows such and the answer would be found in your SPD (Summary Plan Document) or with your HR Dept.  Sorry about the poor choices, perhaps you could lobby your employer to make a change. Happy employees = better employees who stick around longer!
    Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Plans may allow in-service distributions, but only if permitted by IRS regulations.

      IRS regulations do not permit in-service distributions of 401k/403b deferrals prior to 59.5. Hardship distributions are available under very narrow rules and very likely would not apply.

      Regulations do permit 401k/403b plans to allow in-service distributions of vested employer contributions and employee after-tax contributions at any time. Very few do.

      IRS regulations generally do not permit 457b in-service distributions before 70.5.

      So as jfoxcpacfp said, it is very unlikely that you can do much of anything about rolling over 401k/403b/457b contributions.

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      • #4
        How bad are we talking here? Is there no option which can fit into your overall plan across all your accounts?

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