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Stephanie

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  1. And further : >>> Stephanie Hammonds 4/26/2006 11:17 AM >>> Pardon me for being obtuse, but if you are citing this reference as the income lower limit for the 457 program, then it seems that it would be clearly spelled out. Where does the confusion come from then, that the DOL did not establish a limit, if in fact they are linked? I have cited your information to my discussion group about this topic in the event that they are disseminating bad information to the public. Thanks, S His reply: These are the IRS rules for qualified plans. The DOL has the authority over nonqualified plans and has no obligation to accept IRS guidance. My next question: And just to clarify - ours is a non-qualified plan? (yes, since we are large non-profit hospital). So since the DOL has no obligation to accept the IRS guidance, technically, it would NOT apply to the 457 plans? Thanks, S
  2. Dear all - please help. I called my benefits office (a large non profit hospital) and they are unwilling to allow me to sign up for the 457 program. Based on information I read on this site, I'm not sure why not. It seemingly contradicts some of the information here. Here's the reply that I received: Unfortunately its not that simple if the IRS/DOL deems the 457(b) inappropriate it not only effects you, but all of the other participants in the plan, so hence our concern and conservative approach, which we understand may differ from other organization. Second you need to read the Internal Revenue Code (IRC) 403(b) which cross references IRC 401(m), in which cross references IRC 414(q) and thus its applicability. Finally governmental 457(b) plan (which includes some teachers) are not the same as nonqualified 457(b). They are different animals and thus have different rules. Effectively a governmental 457(b) is equivalent to our 403(b) program. Thanks, S
  3. I actually emailed fidelity this morning because the fee they have on their website does not match any information that I have obtained from sources using morningstar. It is certainly a point of confusion ... which could hurt their marketing. I pointed this out to them and they wrote me back saying that they had passed "my" observation onto their "senior management" ... ie... they probably yelled at the person who operates the website ... :) ... but hopefully there will be less confusion on what fidelity's fees actually are! :). Thanks all. :)
  4. Good call on the fidelity freedom fund as far as what it's making now. I might pick another fund through fidelity that is doing better ... which requires some research. As far as the fee that fidelity is charging - what is on their website may not be up to date (3/31/0-five) since Vanguard is quoting 3/31/0-six information of 0.08 that they obtained from morningstar when I did the comparison shop thing. My concern with my 403b is that I do not have the option to work outside of Lincoln Financial Group unless I pay $50 to work with Wilmington Trust and do it myself. Although - I looked at Wilmington Trust on the internet and at first glance, it appears that their choices are WORSE. Johns Hopkins distinguishes between the health system and the university. I'm in the health system - but the university folks CAN choose to work with fidelity, vanguard, and a few others. Thanks : ) -S
  5. Thanks everyone for helping me make sense of it :) I guess I'm running on a little bit of information overload trying to make sense of all the stuff on my coffee table. I'm definitely going to fund the IRA. The 403b will at mimimum help me get my ed tax credits. Good call on the cush fund. Thank God Excel cells are cut and paste as the plan (which is a work in progress) starts to come together. Thanks again. -S
  6. Fidelity has Roth IRA that you can do $200/mo instead of the upfront big amount. :)
  7. Hi all :) I have a 403b with Hopkins run through Lincoln Financial Group. I'm currently only meeting the match because they match 50% of 2% of my salary. Pretty sure it is an autmatically rebalanced "lifecycle" fund. My profile is currently aggressive since I'm 28, unmarried (tho engaged) and no kids. The portfolio is as such: 10% Lincoln Fixed Annuity - no expense ratio available - 3.85% current earnings; 5 year: 4.27% 10% PIMCO Total Return Admin (expense ratio: 0.68%); 5 year 6.25% 15% American Century Small Company Inv (expense ratio: 0.88%); 5 year 21.04% 20% American Funds American Mutual A (expense ratio: 0.56%); 5 year 6.91% 15% American Funds Growth Fund of America A (expense ratio: 0.62%); 7.15% 5% Scudder / DWS 500 Index (expense ratio: 0.25%); 5 year 3.71% 10% American Funds EuroPacific Gr A (expense ratio 0.83%); 5 year 11.41% 15% Oppenheimer Main St Opportunity A. (expense ratio: 1.17%); 5 year 11.12% I'm calculating a 5 year average yield of 9.59% but an average expense ratio of 0.676% and I would think a net of 8.914%? Is this correct? If I read my 403b plan correct tonight - I think I can withdraw from my lincoln fixed annuity free of charge. I'll talk to them tomorrow. My thought is that using the information that I read about: I can do better elsewhere. I'm considering putting all of my contribution into my 403b in to the fixed annuity part and then transferring (tax free?) into a Fidelity Freedom Fund or Vanguard Target Retirement Fund. (Vanguards website actually lets you compare the 2 and recommended that my longterm earnings with the Fidelity Freedom Fund over 35 years would be potentiall greater than the Vanguard Fund - but I'm guessing this doesn't take into account capital gains taxes? But if I'm transferring pre-tax and reinvest my earnings, I could bypass this? I just really want to avoid the 20% tax and the 10% penalty tax (at the very minimum). We don't have a Roth 403b or a 403b(7) option here - so I'm debating how much I should put into the 403b to start with. I'm a grad student and was sickened that I had not "maximized" opportunity and lost loads in ed tax credits this year because I "made too much money." Should I put in just enough to put me under that ceiling and then put the rest of the money in the IRA and something else ... but it would be after tax? I have enough money to fully ($15,000) fund a 403b AND an IRA every year. (I'm under the income ceiling so i can still do a Roth.) Will eventually buy a house in 2-5yr - which putting some money into the fixed annuity or a money market account will help with down payment too. Can you please help me refine this thought process? Thanks :) -Stephanie
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