Q. I just got a job with the federal government and am thinking about transferring my money from my 403(b) account to my FERS account. However, I took the maximum loan allowed under my plan, which I am currently paying. How do I transfer money from the 403(b) to my FERS and continuing paying my loan without paying an IRS penalty.
A. If you are referring to transferring your 403(b) account assets to your TSP account, then you can transfer the net-vested, pretax value of the account, but not the loan. The loan is not transferable.