403B plans at retirement leave or convert?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
Topic Author
Quintock
Posts: 15
Joined: Sat Sep 07, 2024 8:42 pm
Location: New England

403B plans at retirement leave or convert?

Post by Quintock »

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 :moneybag
thanks
bh1
Posts: 498
Joined: Thu Dec 30, 2021 1:49 pm

Re: 403B plans at retirement leave or convert?

Post by bh1 »

VIIIX isn’t a special deal. Schwab’s SP500 fund is also 0.02%.
VT & chill
lakpr
Posts: 12550
Joined: Fri Mar 18, 2011 9:59 am

Re: 403B plans at retirement leave or convert?

Post by lakpr »

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.
User avatar
A440
Posts: 1333
Joined: Mon Sep 02, 2013 7:46 am
Location: NJ

Re: 403B plans at retirement leave or convert?

Post by A440 »

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.
Post Reply