403b and IRA questions

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land2341's picture
land2341
Status: Gold Member (Offline)
Joined: Aug 20 2009
Posts: 402
403b and IRA questions

This is not my area so if some one could tell me anything about this area of law I would be really grateful.

I was just contacted by some one who had several 403b7's.  All of them had over $5,000 in them (I believe this is the lower limit beneath which an employer may force you to move the money??)

She had elected to leave the money in these accounts - I believe she had three.

She just found out that all three had been rolled into an IRA.

 I did not think ANYONE,  prior employers or financial advisors or anyone could do that without the consent of the person who has the account.  She is getting ready to retire and knows she may not be able to,  but this really shocked her - and me.

Under what circumstances could this be done?  Is it legal??

Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
Re: 403b and IRA questions
land2341 wrote:

This is not my area so if some one could tell me anything about this area of law I would be really grateful.

I was just contacted by some one who had several 403b7's.  All of them had over $5,000 in them (I believe this is the lower limit beneath which an employer may force you to move the money??)

She had elected to leave the money in these accounts - I believe she had three.

She just found out that all three had been rolled into an IRA.

 I did not think ANYONE,  prior employers or financial advisors or anyone could do that without the consent of the person who has the account.  She is getting ready to retire and knows she may not be able to,  but this really shocked her - and me.

Under what circumstances could this be done?  Is it legal??

 

There must be more to this story. The 403b could not be rolled into an IRA unless she opened the IRA and transferred the funds. Something has been left out of the story.

 

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