Seeking rollover advice [for 403b account]

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dpwoods
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Joined: Thu Oct 12, 2017 8:03 am

Seeking rollover advice [for 403b account]

Post by dpwoods » Thu Oct 12, 2017 9:24 am

My wife recently retired from a teaching job at the age of 59 ½. She has a 403B (1) account with Valic that was jointly funded by her and a cash match from the school district (the rules at the time limited accounts to annuities if the school provided any dollars to the account). The Valic annuity account has an unfriendly fee structure. Now that she is retired, we would like to roll over those funds to a lower cost account.

She also has a 403B (7) account with Vanguard that was only funded by her, as well as a Vanguard traditional IRA account. The intention is to move the Valic funds to one of those accounts and use a simple 3 fund portfolio.

Which one makes the most sense? The Vanguard 403B (7) has the new $5 monthly account fee, but 403B accounts have some legal protections that IRAs don’t have. The Vanguard IRA has no fees associated other than those of the underlying mutual funds. Admiral funds are available in both.

Should we instead simply roll both 403B accounts into the IRA and call it good (not to mention simple)? A pension and eventually social security are the other two legs of her retirement income.

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