Fund Limits for 403b

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dkview
Posts: 31
Joined: Wed Aug 26, 2015 1:47 pm

Fund Limits for 403b

Post by dkview » Mon Oct 02, 2017 7:08 pm

Hi,

Is there any way around the 5 fund limit for 403b contribution allocation for Vanguard? I wanted to do Large Cap, Mid Cap, Small Cap, Emerging Market, Total Int Market, and some specialty funds but Vanguard is preventing me from changing my contribution allocation to more than 5 funds. Thanks

ResearchMed
Posts: 5350
Joined: Fri Dec 26, 2008 11:25 pm

Re: Fund Limits for 403b

Post by ResearchMed » Mon Oct 02, 2017 7:26 pm

dkview wrote:
Mon Oct 02, 2017 7:08 pm
Hi,

Is there any way around the 5 fund limit for 403b contribution allocation for Vanguard? I wanted to do Large Cap, Mid Cap, Small Cap, Emerging Market, Total Int Market, and some specialty funds but Vanguard is preventing me from changing my contribution allocation to more than 5 funds. Thanks
Is this a restriction of your Employer's 403b plan?
If so, you should speak with them.

It's not a restriction at "Vanguard" itself, absent some other rules applied by some other program.

Or perhaps you haven't yet got enough money for the minimum for more than 5 separate funds?

If it can't be avoided, can you use IRA money for "other funds" you want to buy?

RM
This signature is a placebo. You are in the control group.

dkview
Posts: 31
Joined: Wed Aug 26, 2015 1:47 pm

Re: Fund Limits for 403b

Post by dkview » Mon Oct 02, 2017 7:35 pm

It's not a restriction for my Employer's 403b plan. Vanguard won't let me change my contribution allocation to more than 5 funds. I want my money to be allocated to more than 5 funds automatically.

ResearchMed
Posts: 5350
Joined: Fri Dec 26, 2008 11:25 pm

Re: Fund Limits for 403b

Post by ResearchMed » Mon Oct 02, 2017 7:46 pm

dkview wrote:
Mon Oct 02, 2017 7:35 pm
It's not a restriction for my Employer's 403b plan. Vanguard won't let me change my contribution allocation to more than 5 funds. I want my money to be allocated to more than 5 funds automatically.
I didn't realize you were referring to an "automatic process" constraint.
And I didn't know about the constraint, as we don't automate. We have all incoming money going into a money market account, and then we allocate into other mutual funds as desired each month.

You can't just have extra placed into one of the 5 accounts, and a day or so after the money arrives, just move the "extra" from the more heavily weighted fund into whichever funds you wish?
Or do it every few months if once a month is too tedious for you?

RM
This signature is a placebo. You are in the control group.

dkview
Posts: 31
Joined: Wed Aug 26, 2015 1:47 pm

Re: Fund Limits for 403b

Post by dkview » Mon Oct 02, 2017 7:51 pm

yeah. i might have to do that for now. hopefully, with the new changes to the 403b, they will lift that restriction.

ResearchMed
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Joined: Fri Dec 26, 2008 11:25 pm

Re: Fund Limits for 403b

Post by ResearchMed » Mon Oct 02, 2017 7:55 pm

dkview wrote:
Mon Oct 02, 2017 7:51 pm
yeah. i might have to do that for now. hopefully, with the new changes to the 403b, they will lift that restriction.
What "new changes to the 403b"?

RM
This signature is a placebo. You are in the control group.

dkview
Posts: 31
Joined: Wed Aug 26, 2015 1:47 pm

Re: Fund Limits for 403b

Post by dkview » Mon Oct 02, 2017 8:23 pm

This right here:

viewtopic.php?t=223355

ResearchMed
Posts: 5350
Joined: Fri Dec 26, 2008 11:25 pm

Re: Fund Limits for 403b

Post by ResearchMed » Mon Oct 02, 2017 8:31 pm

dkview wrote:
Mon Oct 02, 2017 8:23 pm
This right here:

viewtopic.php?t=223355
I didn't read the entire thread, but it seems (by the end of the thread) that this is not applicable for all 403b plans.
It seems to be only for some smaller plans.

So I wouldn't refer to it as "changes to the 403b plan" at Vanguard in general.

RM
This signature is a placebo. You are in the control group.

krow36
Posts: 1392
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

Re: Fund Limits for 403b

Post by krow36 » Mon Oct 02, 2017 11:07 pm

Scott Dauenhauer, CFP writes: “Vanguard will no longer be the record keeper of their small market 403(b) plans ($20mm and below), the Newport Group will take over those duties.” http://teachersadvocate.blogspot.com

So most (all?) K-12 school districts will have their generic non-ERISA Vanguard 403b through Newport Group. I don’t know if the number of funds allowed will change. Large universities and non-profits like hospitals usually have ERISA 403b plans with Vanguard.

dkview
Posts: 31
Joined: Wed Aug 26, 2015 1:47 pm

Re: Fund Limits for 403b

Post by dkview » Mon Nov 13, 2017 8:57 pm

dkview wrote:
Mon Oct 02, 2017 7:51 pm
yeah. i might have to do that for now. hopefully, with the new changes to the 403b, they will lift that restriction.
With the new changes to the 403b, the restriction has been lifted. I was able to change my contributions to more then five funds. Now, my contributions goes into 9 different funds.

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