I work in a hospital and i have a 403B plan (hospitals are non-profit organizations). Let’s say i got a job someplace that had 401K plans instead. Would the money be transferred or would i have to cash out and reinvest?
From here.
Looks like it depends on the new employer.
It certainly can be done in most cases. The question is whether one would want to move the money. I don’t see any compelling advantage to doing so. Your employer plan limits your investment choices and may charge additional fees relating to plan sponsorship.
An IRA allows you to have the money invested where you want it to be. You can move it at any time and you don’t have to conform to any rules set up by your employer. So to answer a short question with as many words as possible, you can usually do it, but you may not want to.
An IRA may charge you fees in order to invest and keep your money. While the different fund options available in a 401(k) may have fees imbedded in their daily net asset value (NAV), you won’t have bank fees deducted directly from you account. However, fruitbat is correct, you should examine all the available options before completing a rollover from a 403(b) into any other qualified plan (401(k) or IRA) and once you have looked at all the factors (investment options, fees, administrative ease, etc.), choose the option that is best for you.