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Do 457's In School Districts Have To Have The Annuity Wrapper

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I just off the phone with an AXA rep and he told me that a 457 plan within a school district HAS to have an annuity wrapper (mandatory) and the 403 does not. Is this true? The SD is in Illinois.

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I just off the phone with an AXA rep and he told me that a 457 plan within a school district HAS to have an annuity wrapper (mandatory) and the 403 does not. Is this true? The SD is in Illinois.

 

 

The rep is either ignorant or lying.

 

Scott

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I just off the phone with an AXA rep and he told me that a 457 plan within a school district HAS to have an annuity wrapper (mandatory) and the 403 does not. Is this true? The SD is in Illinois.

 

 

Hi fty,

Did you read my response to you at Bogleheads.org?

Steve

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I just off the phone with an AXA rep and he told me that a 457 plan within a school district HAS to have an annuity wrapper (mandatory) and the 403 does not. Is this true? The SD is in Illinois.

 

 

Hi fty,

Did you read my response to you at Bogleheads.org?

Steve

 

Yes I did Steve, Thank you and sorry about the delay in responding.

 

Steve and others, I have another question. A teacher that is currently contributing to a 403(b) with Putnum wants to know if she can roll that money in her 403b with Putnum into the Fidelity 457 if we succeed in getting Fidelity. I think she can do a rollover if memory serves me correct. I remember my wife doing a rollover from Zurich Kemper to Vanguard 12 years ago, is this still allowed and can rollovers be from a 403b to a 457?

 

Thanks I will check back later.

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I just off the phone with an AXA rep and he told me that a 457 plan within a school district HAS to have an annuity wrapper (mandatory) and the 403 does not. Is this true? The SD is in Illinois.

 

 

Hi fty,

Did you read my response to you at Bogleheads.org?

Steve

 

Yes I did Steve, Thank you and sorry about the delay in responding.

 

Steve and others, I have another question. A teacher that is currently contributing to a 403(b) with Putnum wants to know if she can roll that money in her 403b with Putnum into the Fidelity 457 if we succeed in getting Fidelity. I think she can do a rollover if memory serves me correct. I remember my wife doing a rollover from Zurich Kemper to Vanguard 12 years ago, is this still allowed and can rollovers be from a 403b to a 457?

 

Thanks I will check back later.

 

 

 

I just got off the phone with the Fidelity 457 dept and here is what they said.

 

If a person is still employed with the same employer that is providing the 403b and 457 plan, they can not roll the money over from the 403b to the 457.

 

If they leave the employer and go to work for another employer that offers a 457, then they can roll the old 403b money into the 457 plan with th new employer, provided the 457 plan with the new employer allows this (see plan documents)

 

So as long as you remain employed with your current employer you can not roll money from a 403b to a 457, however you can roll it to another 403b that your current employer provides.

 

My friend has a 403b with Putnum at her school district, at least she can tranfer to another low cost 403b, so all is not lost fortunately for her.

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DEAD WRONG!!! It is the only was the AXA Rep may be able to sell their product to you. There are many districts in Illinois that have 457b and 403b without an annuity wrapper. Many with a negotiated single platform that have saved their participants thousands of dollars in fees annually. AXA can not compete in an open, fee disclosure environment.

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I just off the phone with an AXA rep and he told me that a 457 plan within a school district HAS to have an annuity wrapper (mandatory) and the 403 does not. Is this true? The SD is in Illinois.

 

 

DEAD WRONG!!! It is the only was the AXA Rep may be able to sell their product to you. There are many districts in Illinois that have 457b and 403b without an annuity wrapper. Many with a negotiated single platform that have saved their participants thousands of dollars in fees annually. AXA can not compete in an open, fee disclosure environment.

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I just got off the phone with the Fidelity 457 dept and here is what they said.

 

If a person is still employed with the same employer that is providing the 403b and 457 plan, they can not roll the money over from the 403b to the 457.

 

If they leave the employer and go to work for another employer that offers a 457, then they can roll the old 403b money into the 457 plan with th new employer, provided the 457 plan with the new employer allows this (see plan documents)

 

So as long as you remain employed with your current employer you can not roll money from a 403b to a 457, however you can roll it to another 403b that your current employer provides.

 

My friend has a 403b with Putnum at her school district, at least she can tranfer to another low cost 403b, so all is not lost fortunately for her.

 

 

 

If you have reached the age of 59.5, you can roll your 403b money to a 457 plan under the same employer. The downside to this move is that the funds now hold the characteristics of both a 403b & 457 - meaning you cannot access your money now until you leave your current employer. (Keep in mind you would have had full access to your funds had they remained in a 403b.)

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"If you have reached the age of 59.5, you can roll your 403b money to a 457 plan under the same employer."

 

That assumes the 403(b) plan allows for an "in-service" distribution - many do, but some do not. Check your SPD or the plan document.

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