Employee Questions About 403(b) Accounts

Find answers to questions about participation, contributions, investments, fees, rollovers, and withdrawals.

Contributing to a 403(b) plan is an effective way to build your retirement savings. Your before-tax contributions reduce your taxable income to help you save on taxes, and your contributions and earnings grow tax-deferred until you begin making withdrawals—usually during retirement. You make your own investment decisions, and T. Rowe Price offers you more than 70 professionally managed funds to choose from.

You can contribute up to $18,000 in 2015 or $24,000 for those age 50 and over. Employees who have completed 15 years of service with certain organizations may make additional "catch-up contributions" (catch-up contribution ordering rules apply).

Yes. You are permitted to stop contributing at any time by notifying your employer.

You do. Your employer sends your contributions to your T. Rowe Price account, and contributions are invested based on your investment allocations. Your salary reduction contributions are immediately 100% vested.

There is a $20 account service fee for each T. Rowe Price mutual fund in your 403(b) account with a balance below $10,000. The $20 account service fee will be waived for the following circumstances: Subscribe to electronic delivery of statements and confirmations*; maintain an individual combined balance of $50,000 or more for all T. Rowe Price accounts (including mutual funds, Brokerage, Variable Annuity, and Small Business Retirement Plans); or qualify for T. Rowe Price Select Client Services based on higher asset levels of $100,000 or more. If the Participant Account is closed during the year, a $20 closeout fee will be deducted automatically from the proceeds of the total redemption. However, the closeout fee is waived when an account service fee was previously assessed to the participant for that year or when the proceeds are being used for a rollover, transfer or conversion to a T. Rowe Price retirement plan account or T. Rowe Price IRA account.

*Participants can subscribe to paperless delivery via the T. Rowe Price website once their account is established.
  • Direct rollover from a 403(b) account with a prior employer
    After establishing your 403(b) account at T. Rowe Price (by giving your completed Participant Account form to your employer), confirm with the plan administrator that the plan accepts rollovers, then call T. Rowe Price to obtain the Rollover Contribution Form, which includes instructions for completing your rollover. In most cases, you will also need to fill out a distribution form for your current custodian. Indicate that you want your distribution in a direct rollover, and your current custodian or insurance company will send your 403(b) distribution directly to T. Rowe Price.
  • Indirect rollover from another 403(b) account
    With an indirect rollover, you will first receive a check for a distribution from your current 403(b) custodian or insurance company. You then have 60 days from the date of receipt to roll over all or part of your distribution.

  • How do I exchange assets from another investment provider?

    You can initiate an exchange of existing 403(b) assets in your current employer's plan from another investment provider to T. Rowe Price by completing the 403(b)(7) Exchange-In Request form. (Roth plan contributions are not eligible for exchange to T. Rowe Price.) Follow the instructions on the form for plan administrator approval and return the completed form to T. Rowe Price.

You can begin withdrawing money from your account without penalty at age 59½, even if you are working at the time. You also may be eligible to receive an early distribution in case of:

  • Termination of Employment. You are eligible to take a distribution from your
    403(b) account when you end your employment.
  • Death. When you die, your beneficiary or the executor of your estate should call T. Rowe Price for information regarding distributions at death.
  • Disability. You may request a distribution if you are permanently disabled.
  • Plan Termination. In most cases you may request a plan distribution if your 403(b) plan is terminated.