Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Rollover 403b to IRA
Old 11-11-2015, 03:15 PM   #1
Recycles dryer sheets
Join Date: Apr 2011
Location: Castro Valley
Posts: 329
Rollover 403b to IRA

I retired several years ago and left my 403b in tact with my previous employer. I'm 58 and have not begun any withdrawals yet. My question is should I rollover my 403b to an IRA? What might be the advantages or disadvantages? I've left it in place mostly due to inertia.


jkern 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 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!

Old 11-11-2015, 03:42 PM   #2
Recycles dryer sheets
Join Date: Sep 2014
Location: Grapetown
Posts: 251
I just moved my wife's 403b to an ira because of the high fees; didn't need any other reason.

Winemaker is offline   Reply With Quote
Old 11-11-2015, 03:47 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
Join Date: Mar 2007
Posts: 8,491
Does the 403(b) offer a stable interest fund? These can provide better low risk returns than bonds and are not available in an IRA. Other advantages to a 403(b) - withdrawals at age 55 vs 59 1/2 and greater shielding from lawsuits, depending on your state.
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 11-11-2015, 03:57 PM   #4
Thinks s/he gets paid by the post
steelyman's Avatar
Join Date: Feb 2011
Location: Triangle
Posts: 3,216
I had two 403(b) plans from the same employer. One was a traditional (tax-deferred) plan, the other a Roth 403(b) that became available much later, I think in 2008. Once it became available, I stopped all contributions to the traditional in favor of the Roth.

After I left, at some point I converted the traditional in its entirety to a traditional IRA. I left the Roth 403(b) in place. I'd been doing some shifting of investments this year among plans (I also have a 457 plan) and realized that the Roth 403(b) offered some share classes (institutional) that were not available in the traditional IRA (both are with Fidelity). The expenses can be quite a bit lower for the institutional ("K class") funds, so I'll stay with that.

It happens that the Fidelity fund choices available to us were quite a few, so the common problem of lousy investment selections in an employer plan wasn't an issue for me.

I also keep the 457 as it was, and a big reason for that is that it offers a stable value fund, which is not available to me elsewhere.

steelyman is offline   Reply With Quote
Old 11-11-2015, 05:59 PM   #5
Full time employment: Posting here.
Join Date: Jul 2011
Posts: 636
typically the reasons to roll over are either fees or limited fund choices. A rollover allows you to choose any investment you want and manage the fees. If you have good fund choices at a reasonable cost, you may just want to stay where you are. +1 regarding Travelover's comment on stable value funds. Can't find these in a rollover IRA so if you have access to one of these it may be worth sticking around longer.
panacea is offline   Reply With Quote
Old 11-12-2015, 04:43 AM   #6
Recycles dryer sheets
Join Date: Aug 2013
Posts: 135
Your decision also depends what your 403b plan is invested in. For many, it's an annuity. Annuities don't give you much flexibility and the fees are typically much higher that mutual funds.
Al18 is offline   Reply With Quote
Old 11-12-2015, 05:39 AM   #7
Recycles dryer sheets
Join Date: Aug 2009
Location: westerville
Posts: 217
My wife 55 at the time she retired had a 403b that we rolled over to an IRA due to the fact she could make one withdraw penalty free but the plan forced you to vacate the 403b at time of said withdraw. The Rollover IRA gave us the opportunity to invest how we wanted to as in more choices as well as do Roth conversions. We do Roth conversions while we have low (no) earned income to avoid income tax and lower our mandatory withdraws later..
Trawler is offline   Reply With Quote
Old 11-12-2015, 06:37 AM   #8
Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,103
My former employer's 401K had no fees and good investment choices so I stayed invested in it until last week when I was notified of changes affecting all of my investment choices. That's when I rolled it over to an IRA where I will decide on which funds to invest in and not the 401K committee.
Corporateburnout is offline   Reply With Quote
Old 11-12-2015, 09:06 AM   #9
Recycles dryer sheets
Join Date: Apr 2011
Location: Castro Valley
Posts: 329
Thanks to all for your inputs. My 403b has low fees and a wide range of investment choices. I think I will rollover to an IRA to reduce paperwork for withdrawals and Roth conversions. I'm doing a Roth conversion now and I had to fill out paperwork for Fidelity, mail it to my former employer for approval, rollover to an IRA, and then convert to Roth. I plan to marry in a year or so and that would add a notarized signature from future wife.

jkern is offline   Reply With Quote

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
Advice please for rollover from 403b to IRA Tailgate FIRE and Money 4 08-12-2013 11:39 AM
401k rollover INTO 403b? jasg FIRE and Money 2 08-02-2013 07:51 PM
403b Rollover mjrsr0403 FIRE and Money 4 02-25-2012 07:59 PM
Need Advice: Roth 403b vs. traditional 403b SingleMomDreamer Young Dreamers 0 01-10-2008 07:57 AM
? rollover of 403b to IRA at retirement. tednvon FIRE and Money 1 05-09-2005 01:49 PM


All times are GMT -6. The time now is 03:46 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.