Any Experience with Rollover from VALIC 'Fixed' Account+ (to Vanguard IRA) ?

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Topic Author
PGR
Posts: 387
Joined: Thu Apr 10, 2008 6:25 pm

Any Experience with Rollover from VALIC 'Fixed' Account+ (to Vanguard IRA) ?

Post by PGR »

Have an elderly retired family member who has recently decided to roll their employer 403b from VALIC (employer) plan to Vanguard Rollover IRA.

Family member called and mentioned something that caught my attention. One of the two investments they hold in their VALIC 403b is something called the "Fixed Account Plus" - it's a guaranteed return account. Specifically they were informed they may only withdraw 20% from that particular investment annually. (TIAA has a similar investment option called Guaranteed I think) Online search also found documents referencing the same 20% (albeit I don't have access to their specific contract restrictions).

If anyone here has any experience with VALIC and more specifically rolling out of their Fixed Account Plus - does this potentially mean 5 Rollovers over a 5 year period?

Yes - VALIC would be the authoritative source of info - but I'm not an account holder and this family member is in their 80s and can get easily confused and lives long distance away.

If it helps any, we're talking about something less than $100k, individual is in their 80s, and has held the account and investment for decades now thru former employer.

Thanks
Topic Author
PGR
Posts: 387
Joined: Thu Apr 10, 2008 6:25 pm

Re: Any Experience with Rollover from VALIC 'Fixed' Account+ (to Vanguard IRA) ?

Post by PGR »

If indeed they limit one to 20% withdrawal per year - that would put you on the '5 year plan' to completely rollover and out of the fund and close the account. (likewise it takes 10 years or 10% per year at TIAA to get out of their 'Guaranteed' fund).

Just thinking out loud - Any thoughts on whether this would fly to expedite getting out of the Valic Fixed Plus?

1. First of the year transfer the maximum allowed 20% out of the Fixed fund and into say a money market or whatever.
2. Second month of the year do a rollover to take the balance of that money market over to your Vanguard IRA.
3. Later in the year, the dust settles, and you only have funds in the Valic Fixed fund. Time to request your RMD from Valic ...

So you'd take BOTH 20% *and* your RMD out of the Valic Fixed...
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