Hello, I am new here and read a few things. So forgive me if this is basic stuff.
Our scenario…My wife currently has a 403b through First Investors who where she was contributing every paycheck. In March of 2006 she made her last contribution. At the time we stopped it to pay of credit cards, which are gone as of March 2009. At this time we opened a Roth IRA in her name, and did not start the 403 contributions back up. We have about $40,000 sitting with First Investors. Her district is re-vamping the 403b vendors and told her to wait until the end of the year enrollment and she will be giving a new list.
If Vanguard, T Rowe Price or Fidelity is on the list, can her balance be transferred to them without a fee? If there are no suitable vendors, what can we do with this money? What are her options? I believe there was a 5 year surrender period after the last contribution to First Investors, what exactly does that mean to us?(looking to move it to some type of retirement account, not cash it in) Should we just stick to the Roth? Her teacher’s retirement in Missouri is currently deducting 12.6% of her salary, so we are not looking to put more than 5% additional money away to retirement accounts. Which leads to another question, do you count your pension contribution towards your retirement savings?
After reading the Bogleheads (which pointed me to this site) and several posts, I looked at our fees and load. Both funds have a 5.75% front load, then about 1.40% in additional expenses. So needles to say, I don’t think any more funds will be going to First Investors.