Post by Admin/YBB on Sept 8, 2023 8:38:54 GMT -6
Out of a discussion at M*, this information came along.
It is now possible to do 1-step transfer/rollover from TIAA 403b into TIAA or External Roth IRA (R-IRA) with all tax withholding options - No withholding OR withholding >= 20%. Form F40508 is attached.
Of course, if you don't have TIAA withhold tax, you may have to file quarterly estimated tax with 1040-ES or pay online via IRS Direct Pay. But you can use taxable funds for this purpose.
This seems a recent change at TIAA that some of you may be familiar with already. It used to be that only 403b to Traditional IRA (T-IRA) transfers/rollovers could avoid withholding. It may still be so at other firms.
Note: Attached is a combo F40508 (403b Rollover, pg 1-13) & F11303 (403b Annuitization, pg 14-19). Although I was able to separate those 2 forms, each of those forms became too large to post here (>> 1 MB). At the TIAA Group by YBB, the larger, separated F40508 is posted.
Edit/Add. While the TIAA Form F40508 is for all kinds of transfers/rollovers FROM 403b or Roth 403b TO T-IRA or R-IRA, the notable part is that FROM 403b TO R-IRA (TIAA or external) with all options for tax withholding.
BTW, the TIAA IRAs aren't very attractive now except for the access to Traditional & T-REA/QREARX. The CREF VAs available have high ER R1 classes & T-C mutual funds also have high ERs.
Edit/Add2. Direct link for Form F40508 from PDF.host
pdfhost.io/v/diQBZ3SoQ_F40508Rollover_From_Your_Retirement_Investments_ERISA
It is now possible to do 1-step transfer/rollover from TIAA 403b into TIAA or External Roth IRA (R-IRA) with all tax withholding options - No withholding OR withholding >= 20%. Form F40508 is attached.
Of course, if you don't have TIAA withhold tax, you may have to file quarterly estimated tax with 1040-ES or pay online via IRS Direct Pay. But you can use taxable funds for this purpose.
This seems a recent change at TIAA that some of you may be familiar with already. It used to be that only 403b to Traditional IRA (T-IRA) transfers/rollovers could avoid withholding. It may still be so at other firms.
Note: Attached is a combo F40508 (403b Rollover, pg 1-13) & F11303 (403b Annuitization, pg 14-19). Although I was able to separate those 2 forms, each of those forms became too large to post here (>> 1 MB). At the TIAA Group by YBB, the larger, separated F40508 is posted.
Edit/Add. While the TIAA Form F40508 is for all kinds of transfers/rollovers FROM 403b or Roth 403b TO T-IRA or R-IRA, the notable part is that FROM 403b TO R-IRA (TIAA or external) with all options for tax withholding.
BTW, the TIAA IRAs aren't very attractive now except for the access to Traditional & T-REA/QREARX. The CREF VAs available have high ER R1 classes & T-C mutual funds also have high ERs.
Edit/Add2. Direct link for Form F40508 from PDF.host
pdfhost.io/v/diQBZ3SoQ_F40508Rollover_From_Your_Retirement_Investments_ERISA
