Individuals are able to convert their 403(b) into a traditional Roth IRA when they leave their job that carries the 403(b), states Investopedia. However, if a person leaves his current job for an employer who does offer a 403(b), he cannot convert his retirement plan into a Roth IRA.
Individuals who convert their employer-backed pretax retirement account into a Roth IRA do not face any income taxes or penalties. Converting a traditional employer-backed retirement account into a Roth IRA does incur penalties and income taxes, according to Teachers Insurance and Annuity Association-College Retirement Equities Fund. Many people convert their plans because withdrawing money from Roth IRA?s does not create any new income taxes.