Re: Proposed changes in 403b plan

[newellcr]

Re: Proposed changes in 403b plan

Ronin,

This might be a mixed blessing of sorts provided the new language requires a responsible selection of companies by the company/school district.

When we started my wife's 403(b) plan, we had a heck of a time even finding a company who would take the business. The HR department wouldn't even mention any companies who had filed the proper paperwork with the district so that transfers were possible. I can appreciate the fact that they didn't want to "advise" us of investments, but this was bizarre.

Please post any more news you find.

Thanks,

Chris

 

[cute fuzzy bunny]

Re: Proposed changes in 403b plan

Yeah, I'd like to know when this takes effect, if in fact it does do so.

I was planning on trying to roll my wifes 403b over into a vanguard IRA. I've got her fund costs in the 403b down to about 1.25%, but I can shave another 1% off of that using vanguard funds instead of the 403b's offerings.

 

[WanderALot]

Re: Proposed changes in 403b plan

How does this work in the first place? Can you transfer the money out of the 403(b) into an IRA while you are still working? I didn't know this was possible. My wife's school district allows Vanguard (finally!) but for the longest time they only had high-fee annuities.

If you can transfer the money while still being employed at the same job, does this also apply to 457 plans?

Why, oh why does this have to be so freaking complicated?!

 

[cute fuzzy bunny]

Re: Proposed changes in 403b plan

Easy. So you'll take the prescribed offerings, get back to work, and stop trying to make life difficult for your plan administrators.

 

[ats5g]

Re: Proposed changes in 403b plan

WanderALot,

I believe they are talking about 90-24 Transfers. I believe that you have to transfer the money from one 403(b) to another 403(b). I think that this is possible because those 403(b)'s that can use this transfer are contracts between the employee and the investment/insurance company. For example, a 403(b) that only the employee contributes to [no matching]. If you can transfer the 403(b) money from a provider to Vanguard, you'd have to transfer the money into Vanguard's 403(b)(7) custodial accounts, not into an IRA.

- Alec