In the case of in-service transfers, both the transferor plan and the transferee plan must permit such transfers before they will be allowed. Technically, a transfer at a time that the individual is not entitled to a distribution is not a rollover, so the rule that a plan must agree to roll over a distribution if the transferee plan agrees to accept it would not apply.

Under the new rules effective 1/1/2002, can a government employee (city) rollover or transfer an amount from her city-sponsored 457 plan to her city-sponsored 401(a) defined benefit plan to purchase years of service (from when she was working for the city but was not participating in the DB plan) towards retirement eligibility while she is still working for the city? That is, assuming the DB plan accepts such a rollover.