I retired with a 457(b) in Voya - now what?

[rennem]

I retired two weeks ago. I'm 72. I have (now) $95,000 in a Voya 457(b) in these funds:

Voya Intermediate Bond Fund 41.7% (IIBPX)
Vanguard Target Retirement 2050 58.3% (VFIFX)

The agent who manages the 457(b) suggested that I move this money into an IRA, specifically the Voya Select Advantage Fund. That fund contains IIBPX, but no Vanguard Funds. I know Voya isn't well-loved here and I'm a little put off by the fact that he only had that one recommendation.

Some other salient information: Spouse and I both have SS and pensions and don't plan to live on this money. We own our home and 5 acres and our only debt is $17,000 on a car. We also have $25,000 in a savings account.

Any thoughts would be welcome. TIA.

[Wrench]

I retired two weeks ago. I'm 72. I have (now) $95,000 in a Voya 457(b) in these funds:

Voya Intermediate Bond Fund 41.7% (IIBPX)
Vanguard Target Retirement 2050 58.3% (VFIFX)

The agent who manages the 457(b) suggested that I move this money into an IRA, specifically the Voya Select Advantage Fund. That fund contains IIBPX, but no Vanguard Funds. I know Voya isn't well-loved here and I'm a little put off by the fact that he only had that one recommendation.

Some other salient information: Spouse and I both have SS and pensions and don't plan to live on this money. We own our home and 5 acres and our only debt is $17,000 on a car. We also have $25,000 in a savings account.

Any thoughts would be welcome. TIA.

If you are going to roll the money into an IRA, you can do that to any brokerage like Fidelity, Schwab or Vanguard. No need to stay at Voya if you don't like the offerings.

Wrench

[tonyclifton]

Check the fees for the various funds. Last time I did this (for my spouse) the Voya and AXA funds had high fees and an absurd number of choices but zero low cost options. And if you are somewhat stuck there, having a big chunk in a 457 is better than no 457 at all

Also, check your plan docs, since you are retired you may be able to rollover to a rollover IRA at another provider like Vanguard, Fidelity or Schwab with no tax consequences. Vanguard, Fidelity, Schwab should assist and take care of most of the process - you will need to fill out and sign some forms.

Congratulations on retirement!!!

[Onlineid3089]

Since the early withdrawal benefits of a 457b are not an issue for you I'd roll it out into an IRA at whatever low cost brokerage you prefer. There is a good chance your former employer is passing at least some additional fees on to you in the 457b that you won't be paying if you roll it out.

[Peter Foley]

I too would roll it into an IRA at Schwab, Fidelity or Vanguard.

The IRA will give you the option to do qualified charitable distributions from your retirement account if you are so inclined. With SS and pensions that cover your basic expenses, you don't seem to need the RMD's for living expenses.

[sandburg]

I transferred my relatively expensive 457 to Fidelity. Fido handled the paperwork and it took about two weeks. Nothing to it.

[niagara_guy]

Make sure you know all the fees Voya is charging you. I personally would move this to a provider like Vanguard, Fidelity or Schwab (all are very good), they all have low cost funds and charge no other fees. I would call at least one of them (they all want your business) and move it. I assume the Vanguard fund will move in-kind and that the Voya fund won't. The institution pulling your 457 will do all the paperwork (I assume) so it will be simple for you. After they submit the paperwork send a nice note to your 'agent' at Voya thanking them. They will probably try to convince you to stay but having the paperwork submitted means you don't have to argue with them.

[Dottie57]

I transferred my relatively expensive 457 to Fidelity. Fido handled the paperwork and it took about two weeks. Nothing to it.

This. I have done partial rollovers from 401k at fidelity. Worked well.

[retiredjg]

https://presents.voya.com/retirement/se ... 154346.pdf

The Voya advisor is suggesting you roll your money into an IRA at Voya....where they can charge you high fees that you do not need to pay.

• Record keeping fees starting at .5%
  
  Maintenance fee of $50 a year.

If instead you roll your money to an IRA at Vanguard, Fidelity, Schwab, and probably others, there is no record keeping fee and likely not a maintenance fee.

He wants to sell you a product that you do not need. Just say no.

[rennem]

Thank you - that's what I was feeling and I'm glad for the validation. I called Fidelity yesterday and they told me what steps to take to do the rollover to them. Because it's in a state plan, it will take a little longer than I'd like, but the rollover forms are in Voya's hands now.