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flummoxed

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Posts posted by flummoxed


  1. Thanks for the advice Joel and John.

     

    My designated Roth account offers an excellent fixed interest account option and my Roth IRA's only offer stocks and bonds.

     

    If the stock market would again drop 50%, I believe that loss would be completely on me for both types of Roth, whereas the loss in my traditional IRA would be shared with Uncle Sam.

     

    For example, if I had 100k in a traditional IRA with a 50% drop and cashed in I would pay taxes on 50k, whereas with a Roth account I would pay taxes on 100k.

     

    Therefor I'd like to rollover my Roth IRA to designated Roth fixed rate account, balancing with the traditional IRA in stocks and bonds.

     

    I'm 62 and retired, and my 457(b) account is governmental and includes both designated Roth and pre-tax.

     

    Thanks again


  2. I am retired and have a 457b plan which has a designated Roth account.

     

    I also have separate Roth accounts, in addition to a 401a account with post-tax contributions.

     

    Does IRS allow:

     

    1. Rollover of Roth accounts to the designated Roth account?

     

    2. Rollover of post-tax 401a contributions to designated Roth account?

     

    Thanks


  3. The sole administrator of our employer's governmental 457(b) plan recently introduced a new plan. While existing funds may remain in the old plan, new contributions may only go to a menu of mutual or target funds, each having an operating cost. In addition to that, an additional administration fee of 0.69% is added across the board. The only option to avoid this across the board fee is a very low rate fixed account.

     

    We understand costs associated with actively managed funds, but the blanket 0.69% administrative fee on top of the operating fees seems very high for the service provided. Is this typical?

     

    What options are available to avoid what we believe to be an excessive fee, particularly since this is an employer plan?

     

     

    Is this a state, county or local government? How many employees?

     

     

    County government, 1605 employees

     

     


  4. The sole administrator of our employer's governmental 457(b) plan recently introduced a new plan. While existing funds may remain in the old plan, new contributions may only go to a menu of mutual or target funds, each having an operating cost. In addition to that, an additional administration fee of 0.69% is added across the board. The only option to avoid this across the board fee is a very low rate fixed account.

     

    We understand costs associated with actively managed funds, but the blanket 0.69% administrative fee on top of the operating fees seems very high for the service provided. Is this typical?

     

    What options are available to avoid what we believe to be an excessive fee, particularly since this is an employer plan?

     

     

    Is this a state, county or local government? How many employees?

     


  5. The sole administrator of our employer's governmental 457(b) plan recently introduced a new plan. While existing funds may remain in the old plan, new contributions may only go to a menu of mutual or target funds, each having an operating cost. In addition to that, an additional administration fee of 0.69% is added across the board. The only option to avoid this across the board fee is a very low rate fixed account.

     

    We understand costs associated with actively managed funds, but the blanket 0.69% administrative fee on top of the operating fees seems very high for the service provided. Is this typical?

     

    What options are available to avoid what we believe to be an excessive fee, particularly since this is an employer plan?


  6. I have a 457(b) with a portion being designated Roth. May I rollover the designated Roth to my individual Roth account, either 1) prior to retirement, or 2) after retirement?

     

    If so, would the 5 year minimum withdrawal wait be based on the designated Roth or prior individual Roth, or something else?

     

    Thanks


  7. Thanks John for the exceptionally fast and clear response.

     

    Here are points of clarification:

     

    1. Both are governmental 457(b)'s

    2. The 457 sponsor cites IRS rules in denying the rollover

    3. The 457 sponsor cannot find a copy of the plan

    4. With regard to you last statement, he based his advice on something that was not allowed, which he has done since.

     

    My goal was to achieve some sort of balance between our taxable and tax-exempt accounts, and to make them more liquid. I clearly negated both those possibilities with the transfer, ouch!

     

    Moral: Before making a major financial decision based on someone's advice, get a second opinion.

     

    I am within 3 years of retirement, and I understand IRS rules allows double the standard $16.5k, or $33k. I do meet prior years deferral provisions.

     

    I just applied to increase my deferral to the $33k level, which will help a bit, but am not optimistic that it will be allowed.

     

    Thanks again John


  8. I transferred the assets from a previous job's 457b to my current job's 457b with the assurance of my 457b plan adviser that it could be rolled over within the current 457b to a Roth IRA. Now he indicates I can't. We have been withholding federal and state taxes to cover the Roth conversion all year.

     

    I can defer to a designated Roth from my salary to the end of the year, but that won't be nearly enough to cover the witholdings. We've withheld far more now than we need even with future designated Roth deferral.

     

    Do I have any options other than stop withholding?

     

    Thanks

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