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Everything posted by bigred

  1. bigred

    Contact With Tpa

    There is a way that you will likely have access to and it is through a company called Aspire Financial. https://www.aspireonline.com/ I know they have worked in a bunch of scenarios with TPA's similar to yours. They basically have access to a mutual fund platform with 20,000 choices. They charge something the $40/hd and 15 basis points so there is a little cost but that is miniscule compared to the insurance crap and the fund company would charge something annually until your account reaches a certain level anyway.
  2. Steve, From what I glean about your situation I think you are on the right path. The end game of your money will go to a user that will no tax liability so deferring it as long as you can and only taking minimums make sense. The conversion strategy make sense if you have an estate tax issue and/or will have more than enough resources to survive. The fact that you do not need to take RMD's from Roth allows for a large amount of accumulation in framework that can allow large amounts of money to accumulate that has no tax paid against it. Also, when when people get up in age their tax rate is often lower than the heirs that will have to take it out in future years so there is an arbitrage opportunity if A is at 15% and the beneficiaries are at 28% it and you want to pay now. And it can stay tax qualified in the roth. Does that make any sense?
  3. If you convert to Roth you do not have to take an RMD on Roth's so if you don't need the cash to live on you can keep it in a tax qualified status and save yourself and heirs taxes for the rest of your life and that of the beneficiary.
  4. (On the front) I am average, I invest in index funds. (On the back) I will beat 75% of you.
  5. TDS Group is an administrator not a vendor if I'm informed of the right group. Capital Bank and Trust is the main custodian for American Funds.
  6. Yes they can limit the timing of a distribution to death, disability or termination. The IRS states lots of things but it all revolves around individual situations, which in these cases are individual plan docs. In 403bs you oftentimes are allowed the 59.5 provision but that does by no means make it the standard across the country. I would agree that most 403bs allow for the 59.5 but it is not near 100%. In the 401k world I don't know of any #'s but I would be fairly confident it is way below 50% allow for taking it out @ 59.5. http://www.investmentnews.com/article/20130407/REG/304079976 Just because you understand how to move your balance into a similar/better option when you roll out does not mean that most of the population does, actually quite the opposite. The rollover business is where big amounts of variable and equity indexed annuites sales are generated from. I think most people will agree that is generally not in peoples best interest so I think you will see more attempts to restrict withdrawals at that age based on trying to keep them out of those generous products for the insurance industry.
  7. Yeah they can. The overall plan document can restrict in-service withdrawals if they so choose. The plan doc governs all contracts as part of the plan.
  8. It depends if the plan document allows it or not. Some plans restrict that just for the reason you are referencing above.
  9. Thanks for the reply. Well, it sounds like you're saying whether or not the school allows the $3,000 contribution catchup is up to the school's 403b plan (as administered by the TPA). I've never heard of a TPA or school that didn't allow age-based catchups, so I wasn't sure if I could make the same kind of assumption about "lifetime" catchup payments. The rest of my questions were particular to the IRS rules and shouldn't have anything to do with the school/TPA unless they make the rules more restrictive. Correct on whether or not it may allow it. It is a complicated calculation and I know some attorneys encouraged schools not allow it. The age based catch-up of $5,500 for 2013 is standard but not necessarily this piece.
  10. You are asking some of the most complicated questions in administering a 403b so you will want to make sure you get to someone who knows what they are talking about. You will want to figure out who the 3rd Party Administrator for your district is because they will be able to guide you through the transaction. They should be able to answer the question about whether or not it is in the plan docs and if it is be able to help calculate it.
  11. I tried to pull the information off of morningstar but I can't get it pasted into here in a decent format. In addition to the charges that are being referenced there is a 1.25% annual M&E charge plus the charges for the investments in the range of .7% to 1.2%. So it would be easy to get your overall cost to nearly 4% annually.
  12. Is this guy over 75? Is that why you are avoiding the Vanguard one? If so he might want to try to "get tough' with Prudential. They shouldn't sell a variable annuity with big surrenders to someone so old. Otherwise you can calculate the cost of this guarantee which looks like would cost 1.9% @ Fidelity and he could purchase life insurance for that amount and be in roughly the same place because that is what he is in essence doing.
  13. I am definitely the technophobe and my wife says something like we need amazon prime to get it on her ipad.
  14. If you're getting phased out on some of those credits by all means jack that back up to bring down AGI and that will help make you eligible for the Roth IRA. I still have never heard anyone regret moving money into a roth.
  15. One thing you are not talking about is eligibility for a Roth IRA. If you have the funds and your combined income isn't above about 170k you can fund the Roth IRA's to the tune of 11,000 for 2012. I feel that with the current situation of our country I think tax(I know it is a bet, although a bet on current historically low rates) rates will be higher in the future for everyone so the Roth locks it in now. You also don't have to take RMD's out of Roth IRA's so big advantage.
  16. My wife has trouble on her Ipad doing it. Forgive me as I am the technophobe.
  17. It is generated by a software that weights the cashflows. Needless to say I don't calc it myself, I just read the #.
  18. Totally get that point. What I get is a time weighted return that weights the contributions. The portfolio I am in did about 19.5% for the year but I started the year with about 105k and added about 15k during the year to end up at nearly 140k.
  19. I went back and found that I was -8.5% in 2011. I am also from the younger crowd and fine with that but one thing that does throw this off is that the amounts I add annually to account are large in comparison to the account so that has more ability to skew it.
  20. You're going to pay it now in the surrender or later through the higher costs for a longer period. I think Tony has the right idea, just do it and move on.
  21. If you've gone as far as to engage an attorney ask him also what you can do to avoid ERISA, if possible. By avoiding ERISA you avoid the 5500 and audit fees.
  22. There really isn't a whole heck of a lot you can do because you cannot go to a Simple IRA because of the # of employees. It seems like a waste to try to create separate plans. Also, you are going to have to go through and audit if you're a 401k and over 100 participants.
  23. bigred

    Form 5500

    FYI it is not going to take 15-30 but more like 2-3 hours(if they received good information the 1st time), especially when considering you have two vendors. I'm guessing the 401k referenced is a single vendor plan. $1000 is too much and $500 would be about right.
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