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  1. Many 403(b) platform providers have this odd "invest all your asset types as if they were commingled" policy due to their systems and/or technology platforms not being up to the task of recordkeeping these accounts separately. It sounds like it should be an easy fix, but many of these recordkeepers are finding they have other places to spend their $. They are not violating any IRS or DOL mandates, because by your description, your Roth money is still being treated as Roth, and Traditional as Traditional. You simply are not being provided the option to maintain distinct asset allocations for the different source IDs. Vince
  2. That has already happened in the state of California. Certain teachers hired by a certain date retired at the age of 60.5 will receive the full benefit of 24% of pay per year worked. Current teachers and newly hired teachers must work until the age of 63 to receive this same level of benefit. In the situation you present, you would have maintained the same formula; however, there is no guarantee that future negotiations wouldn't result in different results. So to answer your question, nobody really knows until the pen hits the paper.
  3. If you have reached the age of 59.5, you can roll your 403b money to a 457 plan under the same employer. The downside to this move is that the funds now hold the characteristics of both a 403b & 457 - meaning you cannot access your money now until you leave your current employer. (Keep in mind you would have had full access to your funds had they remained in a 403b.)
  4. There are a few significant differences between the two plans: 1. There is no income limitation for participation in the Roth 403b. Regardless of how high your income is, you are always allowed to make contributions. 2. You may not pull out your contributions without consequence from a Roth 403b like you can from a Roth IRA. 3. Funds held in a Roth IRA may not be rolled into your Roth 403b plan. 4. Roth 403bs are subject to RMD, Roth IRAs are not. The list goes on.. I think only difference is contribution limits (currently $16,500 + applicable catch-ups for Roth 403(b) plan) and the fact Roth 403(b) is an employer based plan. Otherwise, my understanding is the workings are the same. Dan Otter
  5. Vince

    459b Loans

    To the OP: Your "headline" and the contents of your post ask two completely different questions. John was correct in that you cannot take any distributions except for the posted reasons. HOWEVER, you may be eligible to take out a loan from your 457 plan. You will need to consult with the plan administrator to see if loan provisions are outlined in your plan document.
  6. Your colleague needs to become the superintendent of a failing school district - last for one year, and enjoy the increase in salary for the rest of his/her lifetime :)
  7. No triggering event was necessary as you moved your assets from a 403b into another like 403b plan. A rollover into an IRA would require you to qualify for distribution. You're fretting over a decision you were never allowed to make in the first place.
  8. One possible reason: Contributions made by employer to your 457 plan will count against your annual maximum contribution limit. Contributions in a 401(a) are applied against your annual maximum contribution limit as prescribed by section 415, which generally applies towards 403bs/401ks, and allow for a certain amount of employer contributions without reducing your personal contribution limits.
  9. http://www.irs.gov/publications/p519/ch05....ublink100039181: Nonresident Aliens Self-employed SEP, SIMPLE, and qualified retirement plans. If you are self-employed, you may be able to deduct contributions to a SEP, SIMPLE, or qualified retirement plan that provides retirement benefits for yourself and your common-law employees, if any. To make deductible contributions for yourself, you must have net earnings from self-employment that are effectively connected with your U.S. trade or business. Get Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans), for further information. It looks like the answer is "yes"
  10. Vince

    Add To 403b

    It looks like there is no new employer. You can no longer contribute to your 403b since you no longer have an employer supporting the 403b plan.
  11. Are you a government employee, or do you work for a non-government entity?
  12. Regardless of the market performance, if all else is equal (investment performance, taxes before/after) then you will not find a net gain in either the Roth or the Traditional as shown in Dave's math. You will only find a gain if there is a change in circumstance - if taxes are higher/lower in the beginning or the end. Or if there was an actual difference in performance between the choices in each plan. Dave, you're spot on with your evaluation :)
  13. According to his post he plans to move to TX next year which will result in his termination from his present state job in IL where he has a 403b. Ah, thanks for the correction. I see that now under point #1.
  14. Correct me if I am wrong, but you are not able to convert a 403b to a Roth 403b. Conversions to Roth IRAs are allowed, but you are only 52, and still employed. You do not have a qualifying distribution event, so your 403b money is stuck as is.
  15. Last I heard, those mom and pop shops weren't a part of the 2% paying for "most" of public workers' salaries. Where do you think those young guys borrowed their money from? Could it be those evildoer financiers aka banks? Oh yes, and if their business went under, and they defaulted on their mortage, I assume it was the lenders taking advantage of those two young guys right? We would be told that they were sold a mortgage that they could not afford.
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