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lucas90

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  1. My wife and I have both retired early from teaching. I retired shortly before my 56th birthday, and my wife retired when she was 56. We are both 59 years of age now. Can we both access the 457b money that we have invested... without paying the gov't the 10% penalty? That money was bonus money that we invested into the 457b's on the same date that we retired. We could wait until age 59.5, but we could also use the money now.
  2. My wife and I have money invested in 403b's. We've both retired from teaching as part of our state's early retirement option. I've been told that we can access the 403b's (without paying the 10% penalty) because we have ended service with our employers (we are not 59.5 years of age). I have also heard that we must still wait until we are 59.5 because the rule is ...403b money can be accessed with separation of service, or when we become 59.5... WHICHEVER IS LATER! HMMMM??? Which is it?
  3. I have been retired for a couple of years. I am 58 years of age. I have not accessed my 403b's yet. Wil these new regulations affect me at all...seeing as though I am no longer making any contributions to my 403b accounts. I have 403b's with American Century, T.Rowe Price, and Zurich-Kemper. I have not contacted the companies as of yet ....I just want to be informed about these "Final Regulations"
  4. I think the 10% penalty still applies to 403b/457b plans.......except you are only allowed to take money out in equal installments until age 62 when the money will be exhausted..........or can you take out as much as you want whenever you want?????
  5. I am retired, 56 years old, have money in IRA's, 403b's, and 457b's, and I am seriously considering a direct transfer of funds from my 403b's and 457b's into traditional IRA's. I read in one of the forums that "joel" said that 457 and 403 plans were not eligible for this direct rollover of funds. I am assuming that this is the case for those who are presently contributing to those plans. I hope so.....as I am pretty sure that once you retire, a direct transfer from these plans can be made into a traditional IRA. Please let me know as I am planning to do this SOON.
  6. In looking back at previous posts, I found one person's answer to escapng the surrender charges found at the end of the "contract". According to Roberta in a July 1st 2003 post, the "trailing commission charge" actually affects the contributions that were made for the last 7 years...even if you stop contributing for seven years...the "trailing commision charges" will kick-in as of the last time you contributed. I've stopped contributing to my Kemper/Zurich 403b with the idea that in seven years, I would have no surrender charges. I've started contributing my new 403b money with a no load mutual fund. According to Roberta, after 7 years, I will still pay surrender charges on the last 7 years of contributions anyway. In talking with a Kemper/Zurich rep, he agreed with me...that I would owe no surrender charges on money that has been in the contract for seven years. Should I tape record our conversations...????sure I may not owe "surrender charges"...but will I owe "commision charges" or other charges....I feel like this 403b thing with Kemper/Zurich is like a dark cloud that just won't go away.....
  7. I've been told by the insurance co. that I'm with that the maturity date is no big thing....but they want me to postpone the maturity date to any date in the future...they've sent me several notices, the most recent one a "final notice" giving me three options. (1)Elect to begin receiving regular payments, (2)Elect to postpone my maturity date to_________________, or (3)Elect to take a withdrawal and my maturity date would be postponed until________________. In talking with a company rep, they acted like the maturity date is no big deal...and if I didn't respond...they would extend my maturity date for me...seeing as though I'm still teaching...and I am 52 years old. However, I have this feeling that if I extend the maturity date to seven years in the future, (I've stopped contributions to circumvent the old "last-in first-out scam)(and started putting contributions in a no load mutual fund)...that the surrender charges that I'm trying to avoid...may cme back to haunt me if I postpone my maturity date. They (the"Company) say no surrender charges would then apply...if I wanted to dump it all into an IRA...but I don't trust them. They also said, in the beginning, if I stayed in the program for at least 7 years, there would be no surrender charges....yeah right...no surrender charges on the money I put in seven years ago. It does mention in the prospectus that " the last years of the contract may be contribution years, therefore surrender charges may apply"....I saw that about 3 years ago while reading through the prospectus....later to be known to me as the last money I put in...will be the first money they take out to give me payments...therefore they can charge me for using my own money...even after charging me excessive fees over the last 20 years. Somehow I get the feeling that postponing my maturity date will set me up for charges at the end....or charges for the next seven years....or.....(sigh) I've got this feeling that they (the "company") is going to rape me no matter what I do.
  8. I've received a letter explaining that my maturity date is this coming August. I've been instructed to return a form that tells the "company" in which manner I would like to take distributions.......I'm only 52.66 and therefore cannot take distributions for another 7 years without penalty. I've contacted the "company" and they've said I'm right....but I need to send the form with the intent of postponing my maturity date to a future date ( there is a place on the form that says..."I elect to postpone my maturity date to __________________. Here's the rub. I don't trust any of the people at the "company". I started this 403b 20 years ago and have since found out that the old "last money in.....is the first money out" trick is the way that they screw you in the end. When you do start taking money out they charge you money to get to your money (last in...first out) ....because that money has not been in there hands for the 7 years that they say the money needs to be in there hands.......Ihope someone can help me....is this a good time to stop contributions and wait 7 years so this "last in first out" scam can be avoided.....or is there another way they are going to "get me" anyway?
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