403 (b) With Outstanding Loan, Can You Transfer?

[Norwayguy]

I am thinking if she owes a lot of money, possibly she will want to pay off the loan before transferring to avoid a significant tax?

Maybe going to a 403(b) would make more sense.

Who are the insurance companies in that market?

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Good point!

Just clarifying, the loan can't be transferred to an IRA even if its for primary residence?

The loan can be a max of 5 years for the primary residence?

I am curious what the loan terms typically are? (years and interest)

No Loans in an IRA there is the provision for a withdrawal without the 10% penalty for the purchase of a primary residence. To take a 403b loan the loan can be a max of 50% of the policy value up to a max of 50k except for small balances where they can take almost all the first 10k. The loan is for a max of 5 years unless it is used for the purchase of the primary residence in which case it can be up to 30 years.

To transfer to another 403b it will be dependent on the plan document of her employer and you would be limited to their approved carriers.

How large is the loan and how many more years on it, the client may want to just pay off the balance of the loan with a partial withdrawal of 403b values prior to the purchase.

 

[CALTCAgent]

How large is the loan and how many more years on it, the client may want to just pay off the balance of the loan with a partial withdrawal of 403b values prior to the purchase.

That is the info I really need to get still.


Thanks!