What type of consolidation transactions are there?

There are three types of consolidation transactions you need to be aware of. Each one is dependent on where the money is coming from and what type of plan it is.

EXCHANGE 

When you are moving money from one 403(b) company to the CTA 403(b) program when both accounts are associated with your current school district. 

For example, you are moving money from your American Fidelity 403(b) associated with Folsom Cordova USD to your new CTA 403(b) with Folsom Cordova USD. This type of transaction is considered an EXCHANGE. You are exchanging 403(b) companies all within the same school district.

Important: Do not turn in your Exchange paperwork until after you have confirmed your new contributions are going into the CTA 403(b) and money is no longer being contributed to American Fidelity in this example.

TRANSFER
This type of transaction is when you are moving money from an old employer program into your current school district. 

For example, I used to work in Folsom Cordova USD and now I am working in Elk Grove School District. 

If I want to consolidate my old 403(b) in Folsom Cordova to my new 403(b) with Elk Grove, it is called a TRANSFER.

DIRECT ROLLOVER

This type of transaction happens when you are moving from one plan type to another. 

For example, you have an old 401(k) account that you would like to consolidate into your CTA 403(b) account. 

Moving from a Rollover IRA or a 457 to the CTA 403(b) is also considered a direct rollover.

Note: Current regulations do not permit someone to rollover funds from a 457 to a 403(b), IF the 457 is in the same district.