Can 403b funds be used as part of a 72t early with

L1: Can 403b funds be used as part of a 72t early withMy 403bfunds are inTIAA.These funds can only be transferred to an IRAover a9 year period. I can draw an interest only amount for a minimum of 5 years. This is within 5% of the annuity amount TIAA would allow. What i would like to do is take interest only from the tiaa money, draw from other ira accounts to withdraw the amount necessary based on the wonderful calculater on this site, avoid annuitizing my 403b TIAA funds,and live happily ever after 🙂
I have been told yes and no, that I can use my 403 retirement accounts in addition to my other traditional IRA accounts to calculate a 72t early withdrawal amount. Could anyone point me to a reference that clearly says 403b money can be treated as part of a group of retirement accounts to effect this? Or just give me any helpful thoughts?
Thanks,
Bill2004-01-21 14:02, By: Bill, IP: [66.41.73.178]

L2: Can 403b funds be used as part of a 72t early withThe devil is in the details. 403(b) and IRA”s are different plans and distributions from one does not count as a distribution from the other. If you are still employed, you might roll the IRA to 403(b) and the numbers might work. Good Luck
2004-01-21 20:04, By: doug, IP: [68.224.212.185]

L2: Can 403b funds be used as part of a 72t early withWhile TIAA-CREF is a good company and does a lot in the 403(b) market, you have found the little quirk in their plan that is a nightmare. While I”m not an expert on their plans, you should have two parts: TIAA which is a fixed annuity and, as you stated, can only be moved out over a 9 or 10 year period. CREF is the variable side of the annuity and it is more portable, but not without a hassle. If you are still working I suggest you stop putting new money into the TIAA side which has the restrictions on movement, and start using the CREF side. Or, and this might be better if you are still working, see if you have another 403(b) provider that you could use besides TIAA-CREF that doesn”t have their restrictions.
As far as moving your IRA into the 403(b) as the first reply suggested, I have to question this logic. The IRA would probably have to be a “conduit IRA” which means the funds came from another 403(b) plan and you haven”t added or “co-mingled” non-403(b) funds to the IRA. Once you add “non-qualified” money to an IRA which came from a “qualified plan,” you lose the ability to move the IRA money into another “qualified plan.”
We really need more information about your situation like are you working or retired; making contributions or not, etc.
Jim2004-01-22 08:29, By: Jim, IP: [68.1.147.61]

L2: Can 403b funds be used as part of a 72t early withFollowup information/clarification
I have a 403b retirement annuity TIAA that currently yields 6.24%. This account can be rolled over to an IRA over 9 years, 10 payments. Any rollover transfer loses the 6.24% to whatever the current rate is at time of transfer, currently 3.25% for TIAA IRAs. I can annuitize it and take a monthly distribution without the 10% penalty that is only about 12% more than another option of taking interest only, which would incurr the 10% penalty. I cannot direct any other payout of this account
I have another 403b suppemental retirement annuity that yields 5.73% that can be rolled over, borrowed against, withdrawn, etc. Rolling this over to a TIAA IRA would allow the 5.73% yield tocontinue.
I have three other traditional IRAs.
I am 55. I have been a stay at home Mr. Mom for the last 10 years. I will not reenter the workforce for another 7 years if at all. I am a cancer survivor with recent reocurring symptoms….thus a significant possibility annuitizing with TIAA may be a very bad investment for my estate 🙂
Reading past posts and the IRCit seems to me I can add all of these accounts up,treat the total as a sepp, draw the appropriate amount by electingthe interest only option available from the 403b retirement annuity, and draw the remainder from one of the IRAs to draw the correct amount.Where would this be found wanting. If there is a rule that I could not comingle 403b and traditional IRA, I can”t find it. My credentials include flunking out of the Peat Marwick Main, tax department 25 years ago plus lots of reading on this good site 🙂
Thanks for your thoughts.
Bill2004-01-22 22:41, By: Bill, IP: [66.41.73.178]

L2: Can 403b funds be used as part of a 72t early withDoug writes: The devil is in the details. 403(b) and IRA””s are different plans and distributions from one does not count as a distribution from the other.
Bill asks, Why? 72(t) specifically uses the language “retirement plans.” Retirement plans include 403b and traditional iras(408?). I understand if you use more than one ira, whichira is used for the payment, makes nodifference.
Of course as previously noted my credentials are at best weak 🙂
Thanks
Bill2004-01-22 22:50, By: Bill, IP: [66.41.73.178]

L2: Can 403b funds be used as part of a 72t early withBill, don”t you love all this free advice. The Economic Growth and Tax Reconciliation Act of 2001 (EGTRA) changed section 402(c) to allow rollovers between IRA”S and 403(b). Prior to EGTRA you probally did need to use a conduit IRA.With the number of accounts you have and the small distributions that a 72t would give you I would think a solutioncould be found. Doug2004-01-27 16:47, By: doug, IP: [207.40.145.38]