Author Topic: 403b rollover + contribution limits  (Read 471 times)

edmundblackadder

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403b rollover + contribution limits
« on: October 24, 2019, 09:55:14 AM »
I have a 403b at a former employer, which I left earlier this year; let's call that the Christopher account. My new employer has a 403b plan as well, which we can call the John account. Both 403bs are managed through Vanguard. With my next paycheck, I will hit the 19K contribution limit on these accounts combined.

If I roll the Christopher account over to my IRA in this calendar year, does that effectively "re-set" my contributions so that I can continue contributing to the John account? Or am I just done with 403b contributions for the year?

(I've never done a rollover before.)

Ockhamist

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Re: 403b rollover + contribution limits
« Reply #1 on: October 24, 2019, 09:58:45 AM »
I am 99+% sure that the rollover is irrelevant.   The money you contributed to that 403b was contributed to a 403b.   That you roll it over later to an IRA does not change that fact.   So, unless there is some weird loophole rule that I am not aware of, you're done for the year.   Sorry!

dandarc

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Re: 403b rollover + contribution limits
« Reply #2 on: October 24, 2019, 10:01:03 AM »
No. You get $19K in contributions combined for the year for all 401K's and 403B's combined.

Do you also happen to have access to a 457b at the new job? A lot of times those go together and that would be a separate $19K bucket. Ideally a governmental employer - school district or public university often will have both a 403B and a 457B.

edmundblackadder

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Re: 403b rollover + contribution limits
« Reply #3 on: October 24, 2019, 10:08:12 AM »
I am sad but unsurprised to hear this. The 457 is available only to people making >200K, alas, and that is not me.

dandarc

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Re: 403b rollover + contribution limits
« Reply #4 on: October 24, 2019, 10:10:00 AM »
I am sad but unsurprised to hear this. The 457 is available only to people making >200K, alas, and that is not me.
Ah - a top-hat plan. You'd likely have some credit risk you might not want to take on there anyway. Non-governmental 457 assets can be seized in a bankruptcy of the employer.