403b Changes

[Gworker]

My wife is a teacher, she recently received a raise so we were going to increase her 403b contributions. Well now with the new 403b rules the district is no longer going to use Vanguard. The only company they will use is Lincoln Financial. The districts response was this:

If you like Vanguard, Lincoln Financial has a platform to assist you in ultimately using Vanguard funds. Your actual contribution will be made to Lincoln.

I don't even feel like contacing Lincoln Financial and going through the sales pitch. Plus why pay them a fee to invest in another low fee fund? We haven't been maxing our Roth's so it looks like that is the route we will take. It was just nice using the 403b because the money was taken directly out of the check.

The question is what to do with the 403b already at Vanguard. Just let it sit until retirement? I don't think there is much else we can do with it.

[ziggy29]

Is the existing 403b money in Vanguard remaining with Vanguard (i.e. you're not "forced" by your employer's plan to move it to the new custodian)? Check with your HR folks to see if that portion can be rolled into a Vanguard IRA.

[youbet]

Originally Posted by Gworker

The question is what to do with the 403b already at Vanguard. Just let it sit until retirement? I don't think there is much else we can do with it.

Move it to a rollover IRA at Vanguard.

[Gworker]

I've been researching the rules for a 403(b). It looks like we can't do a rollover unless she quits, retires, or at 59 1/2. We'll just leave it there until that time.

[youbet]

Originally Posted by Gworker

I've been researching the rules for a 403(b). It looks like we can't do a rollover unless she quits, retires, or at 59 1/2. We'll just leave it there until that time.

Ask the Vngd 403b folks. I'm betting you can.