Yes, you can roll a 401(k) into a 403(b), but the process and rules depend on whether you still work for your 401(k) employer

A rollover from a 401(k) to a 403(b) is allowed under federal tax law, but it is not automatic. If you have left your 401(k) employer, you can roll the money into a 403(b) at your current or new employer without paying taxes or penalties on the amount transferred. If you still work for the 401(k) employer, you generally cannot roll the money out while employed there — you would need to wait until you leave, retire, or meet other conditions your plan allows.

The 403(b) plan at your new employer must accept rollovers from outside plans. Not all 403(b) plans do. Before you attempt a rollover, contact your new employer's benefits office or plan administrator to confirm they accept 401(k) rollovers and what paperwork they require.

Key Takeaways

  • You can roll a 401(k) into a 403(b) only if you have separated from the 401(k) employer, unless your plan allows in-service withdrawals or you meet other exceptions.
  • The receiving 403(b) plan must accept rollovers; you must verify this with your employer's benefits office before starting the process.
  • A direct rollover (plan to plan) avoids taxes and the 60-day important date; an indirect rollover (you receive the check) requires you to deposit the money within 60 days or face taxes and penalties.
  • The amount rolled over keeps its tax-deferred status in the 403(b), but contribution limits and withdrawal rules of the 403(b) explore going forward.

Direct rollover versus indirect rollover: which route avoids taxes

A direct rollover means the 401(k) plan sends the money directly to the 403(b) plan. You never touch the funds. This route has no tax consequence and no time pressure — the money moves from one plan to the other, and your tax-deferred status continues unbroken.

An indirect rollover means the 401(k) plan sends a check to you. You then deposit that check into the 403(b) plan. This route carries risk: you have 60 calendar days from the date you receive the check to deposit it into the 403(b). If you miss that important date, the IRS treats the money as a distribution, which means you owe income tax on the full amount plus a 10 percent early withdrawal penalty if you are under 59½. Additionally, the 401(k) plan is required to withhold 20 percent of the amount for federal taxes, so you receive only 80 percent of your balance — you must deposit the full amount (including the withheld 20 percent from your own pocket) to avoid taxes on the shortfall.

Direct rollover is simpler and safer. Request it by name when you contact your 401(k) plan administrator.

Steps to roll over your 401(k) to a 403(b)

First, confirm separation from your 401(k) employer or that your plan allows in-service rollovers. Contact your former employer's benefits office or the plan administrator listed on your 401(k) statements. Ask whether you can roll out your balance and request the rollover form.

Second, confirm that your 403(b) plan accepts rollovers. Contact your current employer's benefits office or plan administrator. Ask for the plan's rollover procedures and the account information or wire instructions you will need to provide to the 401(k) plan.

Third, complete the 401(k) plan's rollover request form. Specify a direct rollover and provide the 403(b) plan's receiving instructions. The 401(k) plan will send the funds directly to the 403(b) plan. This typically takes one to three weeks.

Fourth, confirm receipt. Once the 403(b) plan receives the funds, you should see the balance in your 403(b) account. Keep copies of all rollover paperwork for your records.

Tax treatment of rolled-over money in the 403(b)

Money rolled from a 401(k) into a 403(b) retains its tax-deferred status. You do not pay income tax on the amount rolled, and the money continues to grow tax-deferred inside the 403(b) plan. You will owe income tax only when you withdraw the money in retirement.

However, the contribution limits and withdrawal rules of the 403(b) plan now explore to the rolled-over balance. The 403(b) has an annual contribution limit (for 2024, $23,500 for employees under 50, or $31,000 if you are 50 or older and your employer allows catch-up contributions). The rolled-over balance counts toward this limit going forward if you continue to contribute to the 403(b). The 403(b) also has its own rules about when you can withdraw money without penalty — typically not before age 59½ unless you separate from service, have a financial hardship, or meet other plan-specific conditions.

If the 401(k) contained both pre-tax and after-tax contributions, the rollover rules are more complex. Consult the plan administrator or a tax professional about how to handle after-tax amounts.

When you cannot roll over a 401(k) to a 403(b)

You cannot roll over a 401(k) while you are still employed by the 401(k) employer, unless the plan document allows in-service distributions or rollovers. Some 401(k) plans permit this, but many do not. Check your plan's summary or contact the administrator to learn whether in-service rollovers are available.

You also cannot roll over a 401(k) loan. If you have an outstanding loan against your 401(k), you must repay it before rolling over the remaining balance, or the loan will be treated as a taxable distribution.

If your 403(b) plan does not accept rollovers, you cannot complete the rollover to that plan. In that case, you could roll the 401(k) into an IRA instead, which accepts rollovers from 401(k) plans and offers more investment choices than many 403(b) plans.

Timing and what to expect during the rollover

A direct rollover typically takes one to three weeks from the date you submit the rollover request to the 401(k) plan. The 401(k) plan must process your request and send the funds to the 403(b) plan's custodian. The 403(b) plan then must receive and post the funds to your account.

During this time, the money is in transit and not earning returns in either plan. Once the 403(b) plan receives the funds, they resume earning returns according to the investment options you have chosen in the 403(b).

If you use an indirect rollover, the clock starts the day you receive the check. You have 60 days to deposit it. Do not delay — missing the important date results in taxes and penalties that are difficult to reverse.

Rollovers and your 403(b) investment options

Once the rolled-over money lands in your 403(b) account, you can invest it according to the 403(b) plan's available options. The 403(b) may offer mutual funds, annuities, or other investments. You are not required to keep the rolled-over balance in a money market fund or any particular investment while you wait to invest it — check with your plan administrator about the default investment for new deposits.

If the 403(b) plan has fewer investment choices than you want, or if you prefer more control, rolling into an IRA instead of a 403(b) gives you access to a much wider range of investments through most IRA custodians.

Frequently Asked Questions

Do I have to roll over my entire 401(k) balance, or can I roll over part of it?

You can roll over part of your balance and leave the rest in the 401(k) plan, or withdraw the rest as a taxable distribution. However, if you choose a partial rollover, the 401(k) plan administrator must process two separate transactions: one for the rollover and one for the amount you are leaving behind or withdrawing. Confirm with the 401(k) plan that partial rollovers are allowed.

What happens to my 401(k) employer match if I roll over?

Employer matching contributions are part of your 401(k) balance and roll over along with your own contributions. Once rolled into the 403(b), the match is treated the same as your own money — it grows tax-deferred and is subject to the 403(b)'s withdrawal rules. You do not lose the match by rolling over.

Can I roll a 403(b) into a 401(k)?

Yes, but only if your new employer's 401(k) plan accepts rollovers from 403(b) plans. Not all 401(k) plans do. The process is the same: request a direct rollover from the 403(b) plan to the 401(k) plan. Confirm with your new employer's benefits office that the 401(k) accepts 403(b) rollovers before you start.

Will rolling over my 401(k) affect my current 403(b) contributions?

No. The rolled-over balance is separate from your ongoing 403(b) contributions. Both are subject to the same annual contribution limit, but the rollover itself does not change how much you can contribute going forward. Your employer's payroll deductions for the 403(b) continue as normal.

What if I made Roth contributions to my 401(k)?

Roth 401(k) contributions can be rolled into a Roth 403(b) if the 403(b) plan offers a Roth option. Rolling Roth money into a traditional 403(b) is not allowed — the tax treatment would change. Confirm with your 403(b) plan administrator whether a Roth 403(b) is available before rolling over Roth 401(k) money.