Rolling Over Your 403(b)

Last Updated: July 30, 2026

Many people in their 50s and 60s have worked for more than one employer — which means they may have more than one 403(b), or a mix of 403(b) and 401(k) accounts from different jobs. Understanding your rollover options is an important part of getting organized as retirement approaches.

When you leave a job — whether by retiring, changing positions, or taking a separation — you generally have four options for your 403(b):

• Leave it where it is — if your former employer allows it, your money stays in the existing plan. This can make sense if the plan has good investment options and low fees.

• Roll it into your new employer's plan — if you are moving to a new job with a compatible retirement plan, you may be able to transfer your balance directly into your new account.

• Roll it into an IRA — this gives you broader investment choices and keeps your money growing without being taxed until you withdraw it. Your financial institution can help you explore what options are available to you.

• Convert it to a Roth IRA — future withdrawals are tax-free, but you will owe taxes on the amount you convert in the year you do it. Your financial institution can help you think through whether this makes sense for your situation.
  
  

Direct vs. Indirect Rollover

The mechanics of how you move the money matter. A direct rollover means the funds go straight from your 403(b) to the new account — you never touch the money and there is no tax withholding. An indirect rollover means the check is issued to you, and you have 60 days to deposit it into the new account. If you miss that 60-day window, the entire amount is treated as a taxable distribution. If you are under 59½, you will also owe the 10% early withdrawal penalty.¹

When moving retirement funds, a direct rollover is generally the cleaner option and eliminates the risk of a costly mistake.

Consolidating Multiple Accounts

If you have accumulated 403(b) or 401(k) accounts at multiple past employers, consolidating them can make your retirement income planning considerably easier. Fewer accounts means fewer RMD calculations, simpler beneficiary designations, and a clearer picture of what you actually have. Your financial institution can help you explore your options and find an approach that works for your situation.

Qualified Charitable Distributions (QCDs)

Once you roll your 403(b) into a traditional IRA, you may become eligible for a Qualified Charitable Distribution, or QCD. A QCD allows you to donate money directly from your IRA to a qualifying charity — and that amount is excluded from your taxable income entirely. You never touch the money; it goes straight from your IRA to the organization.

To be eligible, you must be at least 70½ years old. The annual limit is adjusted each year for inflation — check the current year's limit with your plan contact or at IRS.gov. If you are subject to Required Minimum Distributions, a QCD can also count toward satisfying your RMD for the year, meaning you fulfill your IRS obligation while supporting a cause you care about, without the distribution adding to your taxable income.²

Note that QCDs are not available directly from a 403(b) or 401(k). Rolling to an IRA first is what makes this option available. Your financial institution can help you get started.
 

SOURCES

1. "IRC 403(b) Tax-Sheltered Annuity Plans." Internal Revenue Service. irs.gov/retirement-plans/irc-403b-tax-sheltered-annuity-plans. Accessed July 2026.
   
   
2. "Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)." Internal Revenue Service. irs.gov/publications/p590b. Accessed July 2026.