So today I met with a representative of TransAmerica, which is one of the companies that offers 403(b) plans. We went over a couple of things, and I would just like some clarification/advice on the information he provided.
Background of me:
~7k Roth IRA with Vanguard (2060 Target Retirement)
Monthly rent soon to be $900
$50,000 annual income
The meeting was with my co-workers and the adviser.
1. The adviser (NOT fiduciary) told us that since we contribute to a pension plan, we are not able to contribute to a Traditional IRA on our own. I searched the IRS website and found this, which seemingly contradicts his statement:
So is the adviser misleading us, or are we not able to fund a Traditional IRA on our own?You can contribute to a traditional or Roth IRA whether or not you participate in another retirement plan through your employer or business. However, you might not be able to deduct all of your traditional IRA contributions if you or your spouse participates in another retirement plan at work.
2. I received his fund 'manual' and all funds have a Plan Service Fee of 0.310%. In his list, the funds that interest me are:
Vanguard Total Stock Market Index Adm
Vanguard Mid-Cap Index Adm
Vanguard Small Cap Index Adm
One of my co-workers in interested in the JP Morgan SmartRetirement 2050 R2.
I'm assuming I would just be paying his Plan Service Fee of 0.310% as well as the fee for the respective funds. Is this correct? Do you have any suggestions/advice regarding the funds mentioned above? I know with my Roth IRA I am at a 90/10 allocation, and I have read quite a bit on here about Vanguard Mid-Cap Index being a good fund to diversify with.
The Adviser assured that there are no other funds besides the 0.310% service fund on his end. I assume I can trust him with that, and the only other cost incurred will be the Vanguard fee.
As always, I appreciate all the advice given on this forum.