Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
403(b) rollover Q
Old 07-30-2010, 09:32 AM   #1
Dryer sheet wannabe
 
Join Date: Jul 2010
Posts: 10
403(b) rollover Q

Long long time lurker (10 years now!), but first time poster. Have really appreciated all of the advice I've read over the years, it's really helped guide our strategies as we've established our retirement plans.

Have a question about a 403(b) that my wife has from a previous employer, and would appreciate any thoughts folks have. Basically, trying to decide whether to roll over an older cost-prohibitive account and pay surrender charges, or wait it out.

1. the account is about $20k, and is in index funds within an AXA variable annuity. This is a very small portion of our retirement assets (vast majority are in roth/401(k)/taxable low-expense index mutual funds), and we understand it's a terrible option, given other choices. Which is really what this is about, now that we have other choices

2. Her new employer allows Vanguard as a 403(b) provider, and we'd like to utilize that as additional tax-deferred savings. Already max'ing Roths, 401k, healthy contributions to taxable accounts, etc.

3. We want to rollover the older 403(b) into a Vanguard IRA. But at the moment, as far as I can tell we pay a 5% surrender charge for any contributions that haven't been in the account for more than 6 years, which is probably 70% of the account value right now.

4. We haven't contributed to it for the last 2.5 years, so over the next couple of years the % of the account that's been there long enough will increase pretty rapidly. But we'll need 3-4 more years to avoid the charge entirely.

If we elect to wait on the rollover to avoid the surrender charges, can we still start up the 2nd Vanguard 403(b) with the new employer (I assume you can have more than one?)? And then rollover the older account into an IRA in a few years once the account funds are fully vested? Or should we bite the bullet now and pay the surrender charges?

Thanks for any thoughts!
__________________
PSUgrad2 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Rollover RMD ? Delawaredave5 FIRE and Money 4 11-18-2009 09:51 AM
Rollover IRA JOHNNIE36 FIRE and Money 7 03-15-2009 02:16 PM
Rollover? lets-retire Young Dreamers 4 08-05-2008 07:25 AM
Rollover and 72t bow-tie FIRE and Money 3 03-27-2008 12:53 PM
IRA Rollover yAyA Young Dreamers 7 10-16-2006 10:18 AM

 

 
All times are GMT -6. The time now is 07:56 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.