My current employer changed 403B plan providers 3-4 years ago. My old account is still with the old provider company. However, my new contributions go into the new Provider Plan. I am over 59 1/2, can I roll the funds from the old plan over to a Traditional IRA without issue?

Also, if I take the funds as a Rollover, and I use the 60 Day rollover Provision, what happens with the 20% they may withhold? Is there a way to get that back to put into the rollover account?

Thank you for your guidance

I believe you should be able to roll your old 403(b) into a rollover IRA, much the same way that one can roll a 401(k) to an IRA. However, I am not an expert on the differences between 401(k) and 403(b) plans, so there may be "gotcha" I'm not aware of. I suggest you call the firm that you would plan on rolling the money into, and ask.

As for the 60 day period - my advice is to have the funds rolled directly from one institution to the other to avoid the problem of taxes being withheld and the risk of missing the 60 day window. Direct rollovers are painless to you - the custodian for your new account will handle all the paperwork on your behalf. If you do decide to do this yourself - when you take the withdrawal the amount will be reduced by the 20% they withhold for income taxes. However, the amount you then put into your new IRA must equal the total amount of the withdrawal, which means you have to come up with the extra cash to make up for the taxes withheld. For examnple, if you withdraw $100K from the old plan, they will withhold $20K and send you a check for $80K. You must then fund the new account with the full $100K, so you have to come up with the $20K yourself. There's no way to get this amount back until early next year when you file your income taxes and get a $20K refund. If you don't fund the new account with the full $100K, you will owe income taxes and early withdrawal penalty on the difference. Clearly you would be better off doing a ditrect rollover so this doesn't occur.