Transferring 403b funds to Vanguard

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DonDraper
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Joined: Sun Mar 25, 2012 3:34 pm

Transferring 403b funds to Vanguard

Post by DonDraper »

My spouse has 403b money from her current employer at two different companies. One company is Vanguard and other is a crappy high fee annuity product at a life insurance company. I would like to rollover the money from the insurance company into Vanguard.

Here's the kicker, Vanguard is no longer an option for new 403b money . Given that fact do u think Vanguard will permit the rollover?

I know I have to call and ask but I wanted to get some opinions here first to make sure I don't accidentally trigger a taxable event.
sawhorse
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Re: Transferring 403b funds to Vanguard

Post by sawhorse »

My guess is that the decision is up to the employer, not Vanguard.
stormswami
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Re: Transferring 403b funds to Vanguard

Post by stormswami »

As far as I know, you should be able to, at the very least, rollover the life insurance-related 403b to an IRA with Vanguard. My wife has a small 403b (USAA) that we plan to eventually rollover/convert to a Roth IRA mainly for the sake of account consolidation (aside from lower fees going forward). Correction: Oops, overlooked the still-employed part -- so this wouldn't be an option until separation.
Last edited by stormswami on Sat Jul 04, 2015 8:51 pm, edited 1 time in total.
sawhorse
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Re: Transferring 403b funds to Vanguard

Post by sawhorse »

stormswami wrote:As far as I know, you should be able to, at the very least, rollover the life insurance-related 403b to an IRA with Vanguard. My wife has a small 403b (USAA) that we plan to eventually rollover/convert to a Roth IRA mainly for the sake of account consolidation (aside from lower fees going forward).
This is a current employee, and many employers don't allow current employees to roll into an IRA.

DonDraper, what are your wife's other 403b provider options if any?
sschullo
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Re: Transferring 403b funds to Vanguard

Post by sschullo »

Yeah, your spouse has to be terminated from current employer to conduct roll overs. I know the frustration about those crappy insurance company 403(b)s.
Have you asked the company to add a low cost company. Its worth a try.
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Topic Author
DonDraper
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Joined: Sun Mar 25, 2012 3:34 pm

Re: Transferring 403b funds to Vanguard

Post by DonDraper »

sawhorse wrote:
stormswami wrote:As far as I know, you should be able to, at the very least, rollover the life insurance-related 403b to an IRA with Vanguard. My wife has a small 403b (USAA) that we plan to eventually rollover/convert to a Roth IRA mainly for the sake of account consolidation (aside from lower fees going forward).
This is a current employee, and many employers don't allow current employees to roll into an IRA.

DonDraper, what are your wife's other 403b provider options if any?
That's the problem. The other choices are high expense mutual funds or annuities. If my memory serves I recall my wife saying Vanguard dropped her employer and not vice versa. Vanguard did let her keep her existing money with Vanguard.

My gut tells me we won't be able to move the other money to Vanguard. If we were able what would stop everyone from continously rolling over new money into Vanguard even though Vanguard isn't supposed to be an option anymore? That doesn't make sense.
sawhorse
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Re: Transferring 403b funds to Vanguard

Post by sawhorse »

So TIAA CREF isn't an option?

Are there any good choices within the bad providers? I was surprised to find in a former employer plan that amid a bunch of not so good options with VALIC was one Vanguard index and a good stable value fund.
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Ged
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Re: Transferring 403b funds to Vanguard

Post by Ged »

Some employers allow in-service rollovers. You need to check with your employer to see what the rules are.
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