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Shannon

403(b) help!

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Shannon

Yes you should definetly contact Michael. Have you done so?  He can do this. This is a complicated situation and we best not give advice we are not sure of. Michael ???

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Shannon, let’s not worry about your inherited 457 account right now and go to some basics that we all agree on. First off, about how much can you currently contribute to your retirement accounts? If it’s only about $5500, then all you really need right now is the Roth IRA you opened at Vanguard. If you can contribute more than 5.5k/yr, then also opening a 403b with Vanguard or Fidelity is the way to go. In both the IRA and the 403b, you can choose an all-in-one Target Retirement, low-cost index-based mutual fund. If you want input on which one (2020 or 2055?), just ask.

If you can contribute more than the 5.5k to the IRA and the 18.5k to the 403b per year, then working on your school district to add a low-cost 457 plan is worth doing. Either the CalSTRS Pension2 or Fidelity would be excellent. Yes the district and the TPA will resist, but if you persist, it’s very likely they will give in and do the right thing. Other posters here can advise you because success stories are frequent.

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Hi Sorry for the late reply! So this morning I cleared some things up. My 403(b) account is set with Vanguard and will begin to contribute next month. My ROTH IRA with Vanguard is set up and will contribute $500 a month. Both are set to the default target retirement "2045" (they choose for me). My Vanguard 403( b) will accept my 457 to rollover. I just cleared up with Voya, that I can keep the account but I would have to begin to make the minimum withdrawals by IRS when my dad becomes 70.5 on the account. He was the original account/employee of City of La.

Therefore, I am going to rollover into my 403(b) or Vanguard says I can put into a Traditional IRA with them. Thoughts? 

 

 

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I’m going to steer clear of the inheritance/rollover issues because I don’t have the knowledge to provide trustworthy answers.

I believe investing with Vanguard is a great choice. I think the target date fund is awesome because you probably would prefer to pay the slightly higher fees than manage a three fund portfolio.

I think it is important that you choose the date for the target fund. You need to understand the risk and be okay with it.

I still think a Traditional is likely to be better for you than a Roth, but I think you’ll be just fine either way. Just save as much as humanly possible and never sell your investments (short of paying for bills in retirement).

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