Can A Roth IRA Account be Rolled Over Into a 403(b) Plan?

Q: We have a participant in our 403(b) plan who is attempting to roll her Roth IRA account into our 403(b) plan. Our plan allows IRA rollover contributions into the plan, but our recordkeeper is saying she cannot roll over the funds into the plan. Is our recordkeeper correct?

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:

A: Indeed, your recordkeeper is correct! If the plan allows, traditional IRAs can be rolled over into a 403(b) or any other qualified plan. However, Roth IRAs can only be rolled over into another Roth IRA; they cannot be rolled into a traditional IRA, 403(b) or any type of qualified retirement plan.

There have been bills that have been introduced in Congress that would change this, but none have yet become law. To help with determining which type of rollovers are permitted, the IRS has published this handy chart listing all the possible rollover types and whether they are allowed.

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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