Consolidating 403b accounts

Posted by / 05-Oct-2019 22:29

Consolidating 403b accounts

Based in Greenville SC, Eric Bank has been writing business-related articles since 1985.

By Paul Menchaca NEW YORK (Main Street) --For professionals in their 30s, a decade-plus spent in the workforce not only means that they've held a number of different jobs at different companies but also that they've held multiple 401(k)s spread across their former employers.

Roth IRAs give you no tax deductions, but if you follow the rules, you can siphon your money out tax-free.

The easiest way to combine IRAs is through a trustee-to-trustee transfer.

You arrange this by contacting the current custodian or trustee and requesting a transfer to another IRA. It therefore is tax-free, has no deadlines and you can do transfers without any waiting periods between them.

Another method of combining IRAs is through a rollover, in which you withdraw money or property from one IRA and deposit it in another.

A rollover is tax-free if you finish it within 60 days of taking a distribution.

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Nondeductible contributions can occur when you or your spouse are also enrolled in a qualified employer plan.