Reply To: leaving job, now what with 403(b)

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Thanks, Alan.

You mention rolling the 403(b) into an IRA with a custodian of her choosing. Can she incorporate a small business, e.g., one making cupcakes at home, and have a solo 401(k) to roll the 403(b) plans into? Does the IRS or DOL care if it is only a “nominal” business that exists to support a retiremnent plan, as opposed to a business with a real economic purpose and a retirement plan incidental to it? Might the IRS or DOL disqualify a plan though it was otherwise proper in all ways but was not a very active business, turning out only dozens of cupcakes a week rather than thousands of them? (I’m thinking of “artisanal” cupcakes, gluten-free ones made with non-GMO, organic ingredients, and eggs from free-range chickens.)