Withdrawals from a 403(b) Plan - T. Rowe Price

You have several options on how to take withdrawals from your 403(b) account. Here is some basic information to help with your distribution request.

When Can I Withdraw Money From My T. Rowe Price 403(b) Account?

Generally, you may take a distribution for any of the reasons listed below. Please refer to the T. Rowe Price 403(b) Custodial Account Agreement for specifics.

  • Age 59½: You may withdraw money once you reach this age, even if you are
    still working.
  • Separation From Service: When you leave your job, you are eligible to take a distribution from your 403(b) account. If you want to keep your money tax-deferred, you may be able to leave your money in the Plan (check with your Plan administrator), or you can roll over the distribution to another 403(b) account or an individual retirement account (IRA).
  • Disability: You may request a distribution if you are totally and permanently disabled. You are responsible for justifying a disability distribution in an IRS inquiry.
  • Death: If you die, your beneficiary or the executor of your estate should contact T. Rowe Price for information regarding distributions at death.
  • Plan Termination: In most cases, you may take a distribution if your plan is terminated.

All distributions not directly rolled over are subject to immediate taxation. Consult your tax advisor concerning possible taxes and penalties.

What Are the Distribution (Payment) Options?

You have several options to choose from:

  • Single Payment: You receive a one-time payment representing all or a portion of your 403(b) account balance.
  • Installment Payments: You receive periodic installment payments based on the time period you choose, which cannot exceed your life expectancy or the joint life expectancy of you and your beneficiary. You may receive these amounts monthly, quarterly, semiannually, or annually through the T. Rowe Price Fund Systematic Withdrawal Program.
  • Annuity Contract: You may request that your total or partial account balance be used to purchase a single-premium annuity contract. You select the annuity provider and ask that T. Rowe Price Trust Company send the proceeds to the annuity provider to purchase the contract on your behalf.
  • Direct Rollover: 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: 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.
  • Stay in Your Plan: If your old plan allows, you may be able to leave your retirement assets right where they are without incurring current income taxes and possible additional taxes for early withdrawal.
How Can I Get the Appropriate Forms?

Call 1-800-492-7670 to speak to a T. Rowe Price client services representative.

How Long Can I Postpone Taking a Distribution?

In most cases, you can postpone taking distributions until the later of:

  • April 1 of the calendar year after you turn age 70½, or
  • April 1 of the calendar year following your retirement.