I have a question about rollovers - I have a 401(a) (run by Company A) at work, and my city is switching us from that to a 457 (run by Company B). We’ll have to roll our 401(a) balance into another account. They’re telling us that, per IRS regulations, they are only allowed to let us roll our 401(a) into our 401(k) (also run by Company B), because a 401 account can only be rolled into another 401 account. They are not giving us the option of rolling it into any other type of qualified plan (including our new 457) or making a withdrawal.
I’m unfamiliar with any IRS regulation that says a 401 must be rolled into another 401. Does anyone know if this is correct? I’m looking for documentation I can take to them to show to them, so that we have more rollover options.