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retirement

Cannot roll Roth IRA into 403(b)


Don Taylorq_v2.gifDear Dr. Don,
Can I roll over or transfer a Roth IRA to a 403(b) plan? If so, would I have to pay any fees or taxes?
-- Chris Combo

a_v2.gifDear Chris,
I struggled with why you would want to move the money from your Roth IRA into your employer's 403(b) retirement plan. I got over it after reading the "Rollover From a Roth IRA" section of Internal Revenue Service Publication 590, "Individual Retirement Arrangements."

That section pointed out:

A rollover from a Roth IRA to an employer retirement plan is not allowed.

You can move your money, with certain restrictions, as a rollover contribution, it just has to be to another Roth IRA. I recommend a trustee-to-trustee, or direct rollover, to avoid any issues of not meeting the 60-day time frame for a rollover contribution.

If you're not happy with how your Roth IRA is invested, you have choices. Rolling it into your employer's 403(b) plan is not one of those choices.

Bankrate's content, including the guidance of its advice-and-expert columns and this Web site, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this Web site is governed by Bankrate's Terms of Use.

To ask a question of Dr. Don, go to the "Ask the Experts" page, and select one of these topics: "Financing a home," "Saving & investing" or "Money." Read more Dr. Don columns for additional personal finance advice.

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