[lobewiper]

I am still employed and doing a direct roll-over of my 403b accumulation to another, non-employee sponsored provider(Vanguard) because I am over 59 and one-half, and because my current provider is discontinuing its participation in my employer's 403b plans.
I presume that once having made this transfer, it will in effect be an IRA (as vs. a 403b), since I will not be able to make any future payroll reduction contributions due to its not being on my employer's approved provider list.
Question: are my funds soon to be with Vanguard subject to the proposed new 90-24 transfer rules, or will I be able to transfer these funds FROM Vanguard to another provider at some future point?

[Michael Devault]

It's difficult to say until the proposed regulations are issued in final form. However, I would suggest that, since the employer is discontinuing the 403(b) plan, the new regulations would not be applicable.

One thing is for certain: Since you are over age 59½, you are entitled to take a distribution from your 403(b). Additionally, you are permitted to make a direct (trustee-to-trustee) rollover from your 403(b) to an IRA, as you mentioned. If you were to do so, your IRA would be insulated from the effects of the final regulations when they become effective. If the proposed vendor offers the investment choices you want in the form of an IRA, there are few reasons to retain the account as 403(b) funds.

I hope this helps. Good luck!