I responded to your post on another board, without realizing that the 403(B) plan was with an ineligible employer. In that case, it would not be a 403(B) plan at all. However, you would need to look at applicable state and local law to determine what the employer's obligations might be under it. For example, annuity contracts under a 403(B) plan must be owned by the employee. If this was done, the employer may not have the ability to take the annuities back, even if they do not constitute 403(B) annuities for tax purposes. Moreover, even if the employees do not have the right to keep the existing annuities or custodial accounts, the employer would probably not be able to move the existing 403(B) money to a 457(B), because a transfer from a nonqualified annuity to a 457(B) plan is treated as if it were a new contribution, subject to the normal limits under section 457. Thus, any transfer of more than $11,000 for any employee not subject to a catch-up provision would be impermissible.

I need info on how to terminate a 403b and move it over to a 457 plan. I have a copy of Rev Proc 2001-17. I could use some help in gleaning what I actually need to submit for correction. The problem is that the 403b is with a city which is an ineligible employer. Thanks.