Transferring a 403(b) to a new employer’s plan is a direct rollover: you confirm the new plan will accept the money, request the distribution from your old provider, and let the two institutions move the funds between them. Once the paperwork is in, expect two to four weeks. A few checks up front — plan compatibility, surrender charges, outstanding loans, and spousal consent — keep the transfer from stalling or turning into a tax bill.
Confirm the New Plan Will Accept Your 403(b)
Not every employer plan accepts incoming rollovers, and some impose a waiting period for new hires. Ask your new employer’s HR department or plan administrator whether the plan takes rollovers from a 403(b), and read the Summary Plan Description you received at enrollment for the specific rules.
You also need a qualifying reason to take a distribution from the old 403(b). Leaving the job is the usual trigger. A 403(b) may also allow distributions at age 59½, on disability, or for a qualifying hardship, though hardship distributions cannot be rolled over.1Internal Revenue Service. Retirement Plans FAQs Regarding 403(b) Tax-Sheltered Annuity Plans Required minimum distributions and substantially equal periodic payments are also excluded from rollover eligibility.2Office of the Law Revision Counsel. 26 USC 402 – Taxability of Beneficiary of Employees Trust
Pre-Tax and Roth Money Go to Different Places
If your 403(b) holds only pre-tax contributions, those funds can roll into a pre-tax 401(k), another pre-tax 403(b), a governmental 457(b), or a traditional IRA.3Internal Revenue Service. Rollover Chart
Designated Roth 403(b) contributions are more restricted. They can only move to a Roth IRA or to a designated Roth account inside the new 401(k) or 403(b), never to a pre-tax account. The nontaxable portion has to move by direct trustee-to-trustee transfer; if the money passes through your hands first, only the earnings qualify for rollover into another designated Roth account.3Internal Revenue Service. Rollover Chart Check that the new plan has a Roth bucket before assuming your Roth contributions can come along.
Clear the Obstacles Before You File Paperwork
Three things routinely delay or shrink a 403(b) transfer. Address each before you request the distribution.
Surrender Charges and Annuity Restrictions
Many 403(b) plans are invested in annuity contracts, and annuity providers commonly impose surrender charges when you withdraw before a set period expires. A typical surrender period runs six to eight years, with a charge that starts around 6–7% and drops by roughly one percentage point each year until it reaches zero. If you’re still inside that window, moving the money now costs you.
TIAA Traditional Annuity contracts, one of the most common 403(b) investments, add their own wrinkle. Depending on the contract, a lump-sum transfer may not be available at all. Some versions require you to move the balance in ten annual installments, others limit you to a systematic payout over 84 months, and a few allow a lump sum within 120 days of leaving your job with a surrender charge. Call the current provider and ask which restrictions apply to your specific contract before you plan on a single check.
Outstanding 403(b) Loans
If you borrowed from the 403(b), leaving the job generally triggers full repayment. When you can’t repay, the unpaid balance is treated as a taxable distribution and reported on Form 1099-R.4Internal Revenue Service. Retirement Topics – Plan Loans
You can avoid the tax by rolling the unpaid loan amount into an IRA or another eligible retirement plan. If the loan is offset because you separated from service and it otherwise met the legal requirements, the deadline is your federal tax filing deadline (including extensions) for the year the offset occurred.5eCFR. 26 CFR 1.402(c)-2 – Eligible Rollover Distributions Any other type of loan offset falls under the standard 60-day rollover window. Either way, you have to fund the rollover from other savings, since the loan proceeds are already spent.
Spousal Consent Under ERISA
Some 403(b) plans are covered by ERISA, and those plans require your spouse’s written consent, witnessed by a notary or plan representative, before paying a lump sum instead of an annuity. This applies when the plan provides spousal survivor benefits and you’re waiving them by taking a full rollover. Balances of $7,000 or less can typically be paid out without spousal consent.
Plans sponsored by government entities, churches, and certain tribal organizations are generally exempt from ERISA, so spousal consent may not apply. Ask the plan administrator either way. Skipping the step when it’s required will block the rollover.
The Paperwork and How the Money Moves
Before you start, collect a few details. From the old plan: your account number, the plan’s legal name, and the provider’s contact information, all of which appear on your quarterly statement. From the new plan: the full legal name, the plan identification number, and the mailing address for rollover checks, available from HR or the Summary Plan Description.
You’ll need two forms. The old provider’s distribution or rollover-out form authorizes the release of funds. The new plan’s rollover contribution or incoming-rollover form tells the receiving provider to expect the money. Both usually live in each provider’s online portal under a withdrawals or transfers section. Call participant services if you can’t find them.
On the new plan’s form, you’ll typically pick how to invest the incoming funds and confirm the delivery instructions. Many receiving institutions require the check to be made payable to a specific entity “for the benefit of” (FBO) you, followed by your account number. Getting that wrong sends the check back.
Direct Rollover Is the Method You Want
In a direct rollover, the old provider sends the funds straight to the new plan, either by electronic transfer or by check made payable to the new plan FBO you. The money never touches your hands, so there’s no tax withholding and no deadline pressure.6eCFR. 26 CFR 31.3405(c)-1 – Withholding on Eligible Rollover Distributions
With an indirect rollover, the check goes to you, and the old provider is required to withhold 20% of the taxable amount for federal income tax.6eCFR. 26 CFR 31.3405(c)-1 – Withholding on Eligible Rollover Distributions You then have 60 days from the date you receive it to deposit the full original amount, including the withheld 20%, into the new plan. That means finding the missing 20% from other savings. Deposit only the 80% you received and the rest is treated as taxable income, plus a 10% additional tax if you’re under 59½.7Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions
If the old provider mails you a direct-rollover check made payable to the new plan (not to you personally), don’t cash it. Endorse the back with “For Deposit Only” and the new plan’s name, then forward it to the new plan administrator with your completed rollover contribution form.
Timeline and Confirming the Transfer
Most 403(b) rollovers take two to four weeks from submission to completion. Electronic transfers move faster than paper checks. Annuity liquidation schedules, outstanding loans, and spousal consent can stretch the timeline considerably.
After the funds leave the old account, the former provider issues a Form 1099-R. For a direct rollover, Box 2a (taxable amount) should show zero, and Box 7 should contain distribution code G, indicating a direct rollover to an eligible retirement plan.8Internal Revenue Service. Instructions for Forms 1099-R and 5498 Designated Roth 403(b) assets moved directly to a Roth IRA carry code H instead. Keep the form. Direct rollovers aren’t taxable, but you still report them on your return.
Once the new provider processes the deposit, your updated balance should appear on the participant portal within a few business days. Log in and confirm the deposited amount matches the distribution amount on the 1099-R. Anything off, contact the new plan administrator right away. Discrepancies are far easier to fix before the tax year closes.
Before You Commit: Access at Age 55
One reason to prefer the new employer’s plan over an IRA has nothing to do with paperwork. If you leave your job during or after the year you turn 55, distributions from your former or new employer’s plan are exempt from the 10% additional tax on early distributions.9Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions Qualified public safety employees get the same treatment starting at age 50.
Rolling the 403(b) into the new employer’s plan preserves that penalty-free access. Rolling it into an IRA does not; IRA withdrawals before age 59½ generally trigger the 10% additional tax regardless of when you left your job. If you’re between 55 and 59½ and might need to draw on the balance, keeping the money in an employer-sponsored plan is worth the extra steps.