You are permitted to leave the money in your annuity contract or 403(b) custodial account. This may be convenient, but you will not be able to continue to contribute to the plan.
You may be able to roll over your contract to your new employer’s plan, e.g., 401(k). Make sure the 403(b) transfer goes directly from your old plan to the new one, to avoid having taxes withheld. Not all employers will accept money from a previous plan.
You can roll your money into a separate Individual Retirement Account (IRA) or an Annuity. If you do that, make sure the 403(b) transfer goes directly from institution to institution so you avoid having taxes withheld.
One final option is to withdraw the money. You can take your money—in a lump sum—and pay ordinary income tax and any penalties on the amount you withdraw.
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