Both my wife and I have a couple of 403B plans each that now we are at retirement we can either stay in the plans or transfer the funds
to TIRA or Roth IRA. The plans have annual fees of $20 & $35 each. Fidelity & Vanguard. Also there are some funds available in the plans that
we could not invest outside the plans the have low fees, like VIIIX - Vanguard Institutional Index Fund Institutional Plus Shares 0.02%
So we are trying to decide to continue in the plans for roll over to IRAs. any thoughts on the best option here or it all just depends
thanks
403B plans at retirement leave or convert?
Re: 403B plans at retirement leave or convert?
VIIIX isn’t a special deal. Schwab’s SP500 fund is also 0.02%.
VT & chill
Re: 403B plans at retirement leave or convert?
What state are you in, and are those 403(b) plans governmental? Generally employer plans are protected from creditors, whereas IRAs may not be. California is an egregious example, where the IRAs are fair game in case you lose a law suit (think at-fault accidents exceeding the limits of your auto liability insurance).
A secondary consideration is the distribution fees. My 401(k) plan for example, charges a flat $25 fee for each withdrawal from the plan regardless of the amount. But if the money were in an IRA, at least I assume that there would be no fees for monthly withdrawals from the nest egg for living expenses.
A secondary consideration is the distribution fees. My 401(k) plan for example, charges a flat $25 fee for each withdrawal from the plan regardless of the amount. But if the money were in an IRA, at least I assume that there would be no fees for monthly withdrawals from the nest egg for living expenses.
Re: 403B plans at retirement leave or convert?
You didn't mention your ages. But if under 591/2 you can use the 55 rule to tap your 403bs penalty free. If you move them to IRA you'll need to wait.
I don't know what the future holds, but I know who holds my future.