Rollover 403b to IRA (question about fund allocation)

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Chasen311
Posts: 1
Joined: Tue May 14, 2024 11:26 pm

Rollover 403b to IRA (question about fund allocation)

Post by Chasen311 »

So I am leaving my employer for another and both companies use TIAA. I worked to move funds around to where I have low expense index funds, majority Vanguard. I have in the 403b:

Vanguard SP 500 Index Admiral
Vanguard Growth Index Admiral
Vanguard Total International Index Admiral
Vanguard Small Cap Index Admiral
IShares Mid cap Index k
TIAA Annuity

The annuity I plan on dumping to put into the other funds, since I am planning on doing a rollover to traditional IRA for tax purposes. My questions are:

1.) Since I have an HSA, a Roth and an HSA all separate through Fidelity, what are any cons off rolling this account to Fidelity Rollover IRA if majority is Vanguard funds?
2.) Should I transfer to Fidelity equivalent funds (ex: FXAIX for the Vanguard 500, FSPGX for the Vanguard Growth, etc) to lower any transaction fees?
3.) Or, should I just open a Vanguard IRA and transfer to that since majority of the 403b is Vanguard funds anyway?

I could use your help and input. Trying to make the transfer smooth as possible and I will still be adding to it while employed, even though the new company will use TIAA. I'm just worried that their only options will be high expense ratios funds (unless I can just drag my above mentioned portfolio within TIAA. Just not sure yet if the new company already offers these funds in their benefits package.
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retired@50
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Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Rollover 403b to IRA (question about fund allocation)

Post by retired@50 »

Chasen311 wrote: Tue May 14, 2024 11:40 pm So I am leaving my employer for another and both companies use TIAA. I worked to move funds around to where I have low expense index funds, majority Vanguard. I have in the 403b:

Vanguard SP 500 Index Admiral
Vanguard Growth Index Admiral
Vanguard Total International Index Admiral
Vanguard Small Cap Index Admiral
IShares Mid cap Index k
TIAA Annuity

The annuity I plan on dumping to put into the other funds, since I am planning on doing a rollover to traditional IRA for tax purposes. My questions are:

1.) Since I have an HSA, a Roth and an HSA all separate through Fidelity, what are any cons off rolling this account to Fidelity Rollover IRA if majority is Vanguard funds?
2.) Should I transfer to Fidelity equivalent funds (ex: FXAIX for the Vanguard 500, FSPGX for the Vanguard Growth, etc) to lower any transaction fees?
3.) Or, should I just open a Vanguard IRA and transfer to that since majority of the 403b is Vanguard funds anyway?

I could use your help and input. Trying to make the transfer smooth as possible and I will still be adding to it while employed, even though the new company will use TIAA. I'm just worried that their only options will be high expense ratios funds (unless I can just drag my above mentioned portfolio within TIAA. Just not sure yet if the new company already offers these funds in their benefits package.
Welcome to the forum.

1. I wouldn't move the old 403b anywhere just yet.

2. Wait to find out more information about your new plan once you start working there. Ask for any documentation they might have that pertains to the workplace retirement plan.

3. If you do decide to move the old 403b plan to an IRA, it's possible that all funds will be sold anyway, and a check will be mailed to you or to the new custodian. At that point, you can send the check to your new custodian and direct them as to how you'd like to invest the money from the old 403b plan.

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
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