Roll a govt 457b into 403b or not?

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tenkuky
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Joined: Sun Dec 14, 2014 4:28 pm

Roll a govt 457b into 403b or not?

Post by tenkuky » Fri Jun 22, 2018 10:10 am

Bumping this from last week and tweaking due to lack of responses..

I just realized that Univ California retirement programs had not yet (but soon will be) implementing a quarterly fee of $8.75 for my 457b account held with them, regardless of separated or active employee status. My legacy 457b is mid 5-figures, mainly in Fidelity BrokerageLink index funds.
I am contributing to a Fidelity run 403b at my workplace which will allow a rollover and it already has a $6 quarterly fee.
I'd rather not pay 2 fees.

Is there a disadvantage to rolling over the 457b into the 403b to save $35 a year?
I know the 457b allows you to distribute penalty free before 70.5, but is that the only reason not to, and how valuable is this feature?
I assume creditor protection exists either way.

Thanks!

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