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commanderjon

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  1. Thanks for confirming. I still have to pay a 3% surrender fee through AXA. The reason the non-qualified (in-service) distribution makes sense now, rather than waiting the full 12 year period to waive the surrender fees is that I would have to pay 3 more years worth of maintenance fees compared to the one-time 3% surrender fee. My AXA advisor tells me that my only other options for my Roth 403B funds in my school district's plans are all tax-sheltered annuities (TSAs), with the exception of the Vanguard traditional 403B, which I plan to transfer my traditional 403B funds into. In order to get out of paying 30 years of AXA's fees on the Roth 403B account, I feel that my only other option is to take an in-service distribution and use some of that money to max out a Roth IRA. I think taking the 10% withdrawal penalty now and paying taxes on the earnings portion is nothing compared to the total fees I will pay to keep the money where it is now. The question remains whether or not my AXA advisor is being truthful when he says that an IRS rule forbids an in-service distribution (non-qualified) from my Roth 403B.
  2. Thank you for the information. I was under the impression that a non-qualified distribution of Roth 403b funds (also called in-service distribution if still working for the same employer) would only assess tax on the earnings, not the contributions. I'll look into the other options you've mentioned also.
  3. Hi everyone, 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!!
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