I gather that it is possible to transfer accumulated savings from a 403(b) to a 403(b)(7) custodial account (set up, for example with a mutual fund company). My understanding is that this cannot be done with funds contributed by one's employer, but does this mean one can differentiate between funds contributed by the employee and those contributed by the employer (and still transfer the funds contributed by the employee)? My question is driven by the desire to find ways to get better returns than those many annuities offer.

Revenue Ruling 90-24 governs 403(B) transfers. The Ruling does not mention that employer contributions cannot be included in a direct transfer of 403(B) balances. Employer contributions may indeed be included in such a transfer.

Best wishes,
Joel L. Frank