403(b) question

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JohnnyO
Posts: 16
Joined: Sun Feb 26, 2012 5:27 pm
Location: Idaho

403(b) question

Post by JohnnyO » Sun Sep 02, 2012 9:39 am

I have spent months reading posts on this forum and have come to respect the depth of knowledge shared among the members. Now I find I have a question that I do not have the answer to nor can I simply find an answer to. :oops:

We have a dormant 403(b) that we started in 1996 through my wife's employer. She is still with this employer and will be another 6 years or so. But, the vendor is no longer used by her employer and has not been for years. Now we have learned a lot in the past 16 years, but this 403(b) was started through - The College Life Insurance Company of America which has since changed to Americo Financial Life and Annuity Insurance Company. In cleaning up all of our investments this one is just sitting out there making a 3.5% return (interest) minus their hard to find fees. I do not wish to have money in an annuity at all as we will both have defined benefit pensions upon retirement and wish to invest fairly aggressively in the market with these funds, knowing all of the associated risks.

My first preference would be to rollover this dormant account into a Vanguard IRA. But, My wife still works for the same employer. Does that rule come into play if the vendor is no longer approved by her employer?? And, if it does, do we then have to seek to roll it over into a more current approved 403(b) vendor plan?? We are requesting answers from Americo but lacking faith in receiving a straight forward understandable reply. The account has been dormant over five years at this point while we have concentrated on other 401(k) and 457 plans. I think it is time to clean this one up one way or another. I am a fan of Vanguard and their investment philosophy and low fees.

Any help or advice would be greatly appreciated Bogleheads, JohnnyO

Johm221122
Posts: 5072
Joined: Fri May 13, 2011 6:27 pm

Re: 403(b) question

Post by Johm221122 » Sun Sep 02, 2012 10:16 am

1. First ask phone rep
2. Ask for superior or compliance officer
3 ask HR department at job
4. Ask vanguard

3.5% interest is good,are you sure/do you want to give that up
Just my 2 cents
john

JohnnyO
Posts: 16
Joined: Sun Feb 26, 2012 5:27 pm
Location: Idaho

Re: 403(b) question

Post by JohnnyO » Sun Sep 02, 2012 10:22 am

Johm221122 wrote:1. First ask phone rep
2. Ask for superior or compliance officer
3 ask HR department at job
4. Ask vanguard

3.5% interest is good,are you sure/do you want to give that up
Just my 2 cents
john
From one John to another, Thank you, we have current requests into them for info. The HR department is overwhelmingly underwhelming on knowledge and has no idea. Vanguard will be a phone this week. 3.5% isn't too bad if it were not for the fact that after their fees it may be closer to 2 - 2.5%.

Johm221122
Posts: 5072
Joined: Fri May 13, 2011 6:27 pm

Re: 403(b) question

Post by Johm221122 » Sun Sep 02, 2012 11:24 am

JohnnyO wrote:
Johm221122 wrote:1. First ask phone rep
2. Ask for superior or compliance officer
3 ask HR department at job
4. Ask vanguard

3.5% interest is good,are you sure/do you want to give that up
Just my 2 cents
john
From one John to another, Thank you, we have current requests into them for info. The HR department is overwhelmingly underwhelming on knowledge and has no idea. Vanguard will be a phone this week. 3.5% isn't too bad if it were not for the fact that after their fees it may be closer to 2 - 2.5%.
Yield for TBM is 1.66%
https://personal.vanguard.com/us/FundsS ... IntExt=INT

Alan S.
Posts: 7558
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: 403(b) question

Post by Alan S. » Sun Sep 02, 2012 1:27 pm

If she is still working for the same employer, she cannot roll the orphaned or grandfathered plan to an IRA before 59.5. She may or may not be able to transfer it into the current vendor's plan if she wishes, but will have to secure that information from the administrators.

JohnnyO
Posts: 16
Joined: Sun Feb 26, 2012 5:27 pm
Location: Idaho

Re: 403(b) question

Post by JohnnyO » Sun Sep 02, 2012 2:23 pm

Alan S. wrote:If she is still working for the same employer, she cannot roll the orphaned or grandfathered plan to an IRA before 59.5. She may or may not be able to transfer it into the current vendor's plan if she wishes, but will have to secure that information from the administrators.
Thank you Alan, we thought that may be the case, so first course may be rolling it into a current plan if possible.

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