Join Early Retirement Today
Thread Tools Search this Thread Display Modes
403b Rollover
Old 02-24-2012, 11:55 AM   #1
Confused about dryer sheets
Join Date: Feb 2012
Location: Rexford
Posts: 1
403b Rollover

Now that the market has come up a bit, I wondered if it would be possible to move my 403b (which is mostly mutual funds) into a fixed-rate annuity. I'm 58, but would like to take advantage of the increased value of my 403b, and secure it in a fixed rate investment in case the market drops before I retire in the next 6-12 months. I'd like to think the market will continue up, but between European monetary and mideast issues, etc. things could turn on a dime.

Can a rollover to an annuity be done before I turn 59-1/2? Is there some other investment vehicle beside an annuity that would secure the funds at a fixed-rate and still maintain the tax-deferred status of the present 403b funds? Thanks!
mjrsr0403 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 02-25-2012, 01:22 PM   #2
Recycles dryer sheets
Join Date: Apr 2005
Location: World Citizen
Posts: 148
I think a 1035 exchange would do what you want.
Helios is offline   Reply With Quote
Old 02-25-2012, 01:51 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
Join Date: Mar 2005
Location: Chicago
Posts: 11,525
Originally Posted by mjrsr0403 View Post
Is there some other investment vehicle beside an annuity that would secure the funds at a fixed-rate and still maintain the tax-deferred status of the present 403b funds? Thanks!
Does your 403b offer fixed investment choices such as short term bond funds, money market fund or other? When my DW was in a 403b (she's since RE'd and rolled over her savings to a rollover IRA), one of her choices was a "fixed" investment which paid a fixed rate of interest for a set period similar to a CD. Do you have a choice like that?

Your post seems to imply that you think all mutual funds are equity mutual funds. I'd be quite surprised if your 403b doesn't offer some fixed investment choices. I understand your interest in making your AA more conservative prior to retirement, but I'm surprised you feel you must abandon your 403b to do so.
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 02-25-2012, 01:58 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 29,762
I think what you would do is to roll the 403b to an IRA. Then the IRA buys an annuity that makes payments to you and the payments are considered to be distributions from the IRA.

I think any distributions that you receive prior to turning 59.5 would be subject to penalty unless the structure of the annuity payments fell under the exclusion rules, but you will be so close you may be better off to just have the annuity payments begin after you turn 59.5.

That said, my personal view is that an annuity is a suboptimal solution in the long run compared to a conservative mix of low cost index equity and fixed income mutual funds, but I am comfortable with the risk.
pb4uski is offline   Reply With Quote
Old 02-25-2012, 08:59 PM   #5
Thinks s/he gets paid by the post
nun's Avatar
Join Date: Feb 2006
Posts: 4,867
I'm not sure an annuity is a good move right now with interest rates being so low, but TIAA-CREF would be a good place to ask your question.

You could also change your AA inside your 403b. Most offer some sort of stable value fund or short term bond funds. tell us what funds you have access to in the 403b and we can suggest an AA.
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote

403b ira fixed annuity

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
Newbie 403b question (TIAA-CREF) LRDave FIRE and Money 7 02-22-2012 06:38 AM
401k rollover to IRA keithw1977 Stock Picking and Market Strategy 5 02-14-2012 03:28 PM
Rollover IRA/back door Roth quandary coalcracker FIRE and Money 5 02-08-2012 09:16 AM
401k rollover eridanus FIRE and Money 12 02-07-2012 08:36 AM
Early 401k rollover - Diversification mmgoebe FIRE and Money 5 02-06-2012 10:13 PM

» Quick Links

All times are GMT -6. The time now is 11:40 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.