How to Roll Over a 403(b) to a Roth IRA
- 1). Request a withdrawal from your 403b plan by contacting your financial institution. Most financial institutions also make these forms available online for you to print out and mail in.
- 2). Make a deposit into your Roth IRA equal to the amount of money you requested on the distribution form within 60 days. If you do not complete the rollover within 60 days, the IRS will deem the money to have been permanently withdrawn from your account, and you will not be permitted to roll it over.
- 3). Fill out Form 8606 with your tax return. The IRS requires this form to document the conversion to a Roth IRA. If you have made any nondeductible contributions to your 403b plan, which are very rare, the amount of those contributions reduces the taxable amount of the rollover.
- 4). File your taxes using Form 1040 or 1040A. Report the total amount of the rollover as a nontaxable pension distribution and the taxable portion, found using Form 8606, as a taxable pension distribution.
- 5). Report the amount of money withheld by your financial institution as federal income tax withheld. This amount will be credited against your federal income tax owed.