First time poster here...hoping for some valuable input to help me make the best decision.
For the past 10 years, I've had AXA Equivest for both a traditional 403(b) and a roth 403(b) through my school district (I'm a teacher). Recently, I learned about the fees associated with TSAs and I want to transfer these funds into superior options.
I plan to transfer my traditional 403(b) balance, around $25k, into a Vanguard 403(b) and pay the surrender fee to do so. So that's good to go.
I also want to get out of the roth 403(b) account with AXA, also around $25k. However, since Vanguard doesn't have a roth option to transfer into and the only other options in my school district are other TSAs with similar fees, I decided that rather than paying these fees until retirement (another 30 years), I would rather take a nonqualified withdrawal (since I'm under 59 1/2 years old and still employed at the same school district) and pay the IRS penalty on the earnings portion.
When I asked by AXA advisor for the form to do this, he responded by saying that my only option is roll the amount into another Roth 403(b) within my school's offerings, based on an IRS rule.
I looked through the IRS rules and I couldn't find anything that said I couldn't do this. The fact that he said the money has to be rolled into another roth 403(b) makes me think he doesn't know the difference between a transfer and a rollover. Can anyone with more expertise provide some guidance on my options here?
Thank you so very much in advance!!