In most cases, the direct transfer is the best 403b IRA rollover option, as you won’t have to worry about handling the money yourself or about whether or not you’ll be able to complete the rollover in time to receive your 20% mandatory withholding back. For this reason, it’s a good idea to discuss your entire 403b IRA rollover options with your financial advisor in order to fully understand all of the rollover rules and regulations surrounding your 403b IRA rollover. Of course, in the case of a direct rollover, you can rest a little easier, as the bank will handle the entire process without your involvement.

If you’re looking to complete a 403b rollover to a different IRA plan, there are several things that you’ll want to consider before initiating the transfer.  This is because the 403b plan is one that’s only available to people who are members of a specific tax exempt status.  This can include some health care providers, ministers, public education organizations, and some employers who have a non-profit status.  Because of this, 403b accounts aren’t technically considered to be qualified plans, and may be handled differently in some cases.  For this reason, you’ll want to discuss the implications of the rollover with your financial advisor before moving.

If you’re thinking about completing a 403b rollover, you’ll need to consider the tax implications of different types of transactions available so that you can make an informed decision.  For example, the monies in the 403b account haven’t yet been taxed.  If you were to have the money rolled into a Roth IRA, you’d need to make sure that the taxes were taken out and applied to the transfer.  Alternatively, if you did a direct 403b IRA rollover into a new traditional IRA account, you wouldn’t have to worry about taxes being withheld, as the money would simply be transferred between banks.

Another option that some people use to complete a 403b rollover is what’s known as an indirect transfer.  This is a transfer in which the money is taken out of the 403b account and given directly to you.  When this happens, a 20% fee will be automatically withheld for tax purposes.  You then have 60 days to deposit the full amount of the check into a new IRA account.  When you do this and provide the documentation to the new account provider, the remaining 20% will then be released into the new IRA account.

If a 403b rollover sounds right for you, be sure to go over all of the available options and make an informed decision on your new IRA account based on your retirement plans and current lifestyle options. The best way to do this is to review all of your different plan choices with your financial advisor before deciding on the 403b rollover plan that will best meet your needs.  Once you do this, arrange for a direct rollover to have the money directly transferred into the new account with a minimum of hassle.