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slikster

Axa 403b Rollover Or Cash Out?

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I have tried unsuccessfully to get to my money in my 403b. I have searched the net adn canot figure out how to get access to what little I have in my account. Maybe 4k right now.

 

I need this money to invest in another rental property. I tried to do a total surrendr but the paperwork was sent back with a nice little letter stating that federal law will not allow this. I don't care about the fees or the taxes. I can make that up the first year in tax write offs from the new property.

 

I have seen where it could be rolled over to an IRA. I have a Roth IRA through etrade that I have had for 9 years now. Can I roll this money over to that then cash out? I really hate the fact that you can't get ot your own money. I don't know what would qualify as a hardship to go that route either.

 

Any help to get my money away from the AXA bandits would be appreciated.

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Guest Skeptical
I have tried unsuccessfully to get to my money in my 403b. I have searched the net adn canot figure out how to get access to what little I have in my account. Maybe 4k right now.

 

I need this money to invest in another rental property. I tried to do a total surrendr but the paperwork was sent back with a nice little letter stating that federal law will not allow this. I don't care about the fees or the taxes. I can make that up the first year in tax write offs from the new property.

 

I have seen where it could be rolled over to an IRA. I have a Roth IRA through etrade that I have had for 9 years now. Can I roll this money over to that then cash out? I really hate the fact that you can't get ot your own money. I don't know what would qualify as a hardship to go that route either.

 

Any help to get my money away from the AXA bandits would be appreciated.

 

In exchange for the huge benefit of a tax deduction you do of course give up some control over the account. Are you still employed by the same organization for which you were working when you enrolled in the 403B? This is likely the reason for the refusal by the vendor to close your account and would explain the statement "federal law will not allow this". If you are then you are likely at a dead end until you have an event that would allow a withdrawal, like changing employers. If you are no longer employed by that organization it would seem that you could initiate a rollover or surrender without problem.

 

Best.

 

Jim

 

 

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unfortunately I am still with the same district. There has got to be a loophole that will allow me to direct that money to something more profitable. If I don't put anymore cash into it, which I haven't in over a year now, it is entirely possible that it would lose money over time due to the fee's involved.

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Any help to get my money away from the AXA bandits would be appreciated.

 

To folks who are relatively new to this forum:

 

Have you noticed how often it is that people write in with this same complaint? Doesn't this tell you something about dealing with insurance companies and salespeople?

 

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Any help to get my money away from the AXA bandits would be appreciated.

 

To folks who are relatively new to this forum:

 

Have you noticed how often it is that people write in with this same complaint? Doesn't this tell you something about dealing with insurance companies and salespeople?

 

 

As much as I'd like to jump on the bandwagon, that comment really doesn't apply to this situation. It is the actual IRS regulation that prevents slikster from obtaining access to the money. The same answer would apply even if the money was held at Fidelity or Vanguard. If you're with the same district, and you're not 59.5, you really have very limited access to the money.

 

Like Chrys mentioned, you can try to take a loan, or you can try to build a case for a hardship withdrawal.

 

 

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As much as I'd like to jump on the bandwagon, that comment really doesn't apply to this situation. It is the actual IRS regulation that prevents slikster from obtaining access to the money. The same answer would apply even if the money was held at Fidelity or Vanguard. If you're with the same district, and you're not 59.5, you really have very limited access to the money.

 

Like Chrys mentioned, you can try to take a loan, or you can try to build a case for a hardship withdrawal.

 

Vince,

 

Can't a person get his 403b money as long as he pays taxes and penalties? I stand corrected if I am wrong.

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As much as I'd like to jump on the bandwagon, that comment really doesn't apply to this situation. It is the actual IRS regulation that prevents slikster from obtaining access to the money. The same answer would apply even if the money was held at Fidelity or Vanguard. If you're with the same district, and you're not 59.5, you really have very limited access to the money.

 

Like Chrys mentioned, you can try to take a loan, or you can try to build a case for a hardship withdrawal.

 

Vince,

 

Can't a person get his 403b money as long as he pays taxes and penalties? I stand corrected if I am wrong.

 

No, you can't. 403bs don't work the same as IRAs do. You are subject to the rules defined in your district's Plan Document.

 

 

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Unlike 401ks, the tax law does not provide for an in service distribution from a 403b. Unless you have had a distributable event, you cannot take a distribution. It is totally a function of tax law and has nothing to do with the vendor. In fact, the vendor is doing the correct thing by not allowing it. If they did, they would be putting the employer at risk.

 

You can take a loan, but make sure you pay it back on time. Buying investment property is not a hardship.

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