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Can I Roll This Over?

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Guest Joel L Frank

SACT stands for the Supplemental Annuity Collective Trust of New Jersey. The reference to "withdrawal" means withdrawal from the basic retirement system.

 

With the SACT there is just one triggering event----no longer an active member of the basic retirement system... this can be the result of withdrawing from the basic retirement system, dying, or retiring.

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SACT stands for the Supplemental Annuity Collective Trust of New Jersey. The reference to "withdrawal" means withdrawal from the basic retirement system.

 

With the SACT there is just one triggering event----no longer an active member of the basic retirement system... this can be caused by withdrawing from the basic retirement system, dying, or retiring.

 

Is that a 403b or 457?

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Dan, Steve Etc

 

Would you know the answer? Can a 403bplan document keep employees from pulling their money out at 59.5 years of age if its stated by the IRS that you can?

 

 

Tony

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Dan, Steve Etc

 

Would you know the answer? Can a 403bplan document keep employees from pulling their money out at 59.5 years of age if its stated by the IRS that you can?

 

 

Tony

Yes they can limit the timing of a distribution to death, disability or termination. The IRS states lots of things but it all revolves around individual situations, which in these cases are individual plan docs. In 403bs you oftentimes are allowed the 59.5 provision but that does by no means make it the standard across the country. I would agree that most 403bs allow for the 59.5 but it is not near 100%. In the 401k world I don't know of any #'s but I would be fairly confident it is way below 50% allow for taking it out @ 59.5.

 

http://www.investmentnews.com/article/20130407/REG/304079976

 

Just because you understand how to move your balance into a similar/better option when you roll out does not mean that most of the population does, actually quite the opposite. The rollover business is where big amounts of variable and equity indexed annuites sales are generated from. I think most people will agree that is generally not in peoples best interest so I think you will see more attempts to restrict withdrawals at that age based on trying to keep them out of those generous products for the insurance industry.

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Guest Joel L Frank

 

SACT stands for the Supplemental Annuity Collective Trust of New Jersey. The reference to "withdrawal" means withdrawal from the basic retirement system.

 

With the SACT there is just one triggering event----no longer an active member of the basic retirement system... this can be caused by withdrawing from the basic retirement system, dying, or retiring.

 

Is that a 403b or 457?

Bob,

 

It is a 403(b).

 

Joel

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"In the 401k world I don't know of any #'s but I would be fairly confident it is way below 50% allow for taking it out @ 59.5."

 

If the government was worried people would take all their money out and blow it at 59 1/2 they should have raised the limit to a higher age. What a boon for high fee 403b plans that can now prevent employees from getting their money out and putting it into a lower fee IRA.

 

J Frank,

 

Then I guess that's not the perfect 403b afterall...

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Guest Joel L Frank

Bob:

 

Here are the facts about the Supplemental Annuity Collective Trust of New Jersey: There are two plans: One is the SACT-Tax Sheltered Plan under section 403(b) and the other is the SACT-Regular Plan under section 401(a). Go back to the appropriate thread and you will see that I refer to the SACT-Regular Plan as being the perfect IRA because the after-tax contributions may be rolled over to a Roth IRA and the earnings portion of the account may be rolled over to a Traditional IRA. Additionally, the law requires the State of NJ to pay all costs associated with participation; thus, 100.0 percent of the investment return is credited to the participant's account. Most observers would consider this Plan quite remarkable if not "perfect"

 

That being said, I look at not having an in-service option to rollover the account (both plans) at age 59-1/2 irrelevant.

 

Joel

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Bob:

 

Here are the facts about the Supplemental Annuity Collective Trust of New Jersey: There are two plans: One is the SACT-Tax Sheltered Plan under section 403(b) and the other is the SACT-Regular Plan under section 401(a). Go back to the appropriate thread and you will see that I refer to the SACT-Regular Plan as being the perfect IRA because the after-tax contributions may be rolled over to a Roth IRA and the earnings portion of the account may be rolled over to a Traditional IRA. Additionally, the law requires the State of NJ to pay all costs associated with participation; thus, 100.0 percent of the investment return is credited to the participant's account. Most observers would consider this Plan quite remarkable if not "perfect"

 

That being said, I look at not having an in-service option to rollover the account (both plans) at age 59-1/2 irrelevant.

 

Joel

 

 

Sorry Joel. I was just being flip. I never even read your "perfect IRA" thread other than the topic heading. It does sound like a good plan. However, I do see a value in being able to take your money out at 59 1/2, no matter what 403b plan you are in and it would have been nice if they had that option.

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Guest Joel L Frank

 

Bob:

 

Here are the facts about the Supplemental Annuity Collective Trust of New Jersey: There are two plans: One is the SACT-Tax Sheltered Plan under section 403(b) and the other is the SACT-Regular Plan under section 401(a). Go back to the appropriate thread and you will see that I refer to the SACT-Regular Plan as being the perfect IRA because the after-tax contributions may be rolled over to a Roth IRA and the earnings portion of the account may be rolled over to a Traditional IRA. Additionally, the law requires the State of NJ to pay all costs associated with participation; thus, 100.0 percent of the investment return is credited to the participant's account. Most observers would consider this Plan quite remarkable if not "perfect"

 

That being said, I look at not having an in-service option to rollover the account (both plans) at age 59-1/2 irrelevant.

 

Joel

 

 

Sorry Joel. I was just being flip. I never even read your "perfect IRA" thread other than the topic heading. It does sound like a good plan. However, I do see a value in being able to take your money out at 59 1/2, no matter what 403b plan you are in and it would have been nice if they had that option.

Bob,

 

Do you know why I used the word "irrelevant" in my last sentence?

 

Joel

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Bob:

 

Here are the facts about the Supplemental Annuity Collective Trust of New Jersey: There are two plans: One is the SACT-Tax Sheltered Plan under section 403(b) and the other is the SACT-Regular Plan under section 401(a). Go back to the appropriate thread and you will see that I refer to the SACT-Regular Plan as being the perfect IRA because the after-tax contributions may be rolled over to a Roth IRA and the earnings portion of the account may be rolled over to a Traditional IRA. Additionally, the law requires the State of NJ to pay all costs associated with participation; thus, 100.0 percent of the investment return is credited to the participant's account. Most observers would consider this Plan quite remarkable if not "perfect"

 

That being said, I look at not having an in-service option to rollover the account (both plans) at age 59-1/2 irrelevant.

 

Joel

 

 

Sorry Joel. I was just being flip. I never even read your "perfect IRA" thread other than the topic heading. It does sound like a good plan. However, I do see a value in being able to take your money out at 59 1/2, no matter what 403b plan you are in and it would have been nice if they had that option.

Bob,

 

Do you know why I used the word "irrelevant" in my last sentence?

 

Joel

 

 

No Frank, as I said I didn't read your post about the perfect IRA because I don't live in NJ and never will. Are you saying that you can take the money out any time you want and you don't have to wait until your 59 1/2? Is THAT your point? I'm dying to know.

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Guest Joel L Frank

 

 

 

Bob:

 

Here are the facts about the Supplemental Annuity Collective Trust of New Jersey: There are two plans: One is the SACT-Tax Sheltered Plan under section 403(b) and the other is the SACT-Regular Plan under section 401(a). Go back to the appropriate thread and you will see that I refer to the SACT-Regular Plan as being the perfect IRA because the after-tax contributions may be rolled over to a Roth IRA and the earnings portion of the account may be rolled over to a Traditional IRA. Additionally, the law requires the State of NJ to pay all costs associated with participation; thus, 100.0 percent of the investment return is credited to the participant's account. Most observers would consider this Plan quite remarkable if not "perfect"

 

That being said, I look at not having an in-service option to rollover the account (both plans) at age 59-1/2 irrelevant.

 

Joel

 

 

Sorry Joel. I was just being flip. I never even read your "perfect IRA" thread other than the topic heading. It does sound like a good plan. However, I do see a value in being able to take your money out at 59 1/2, no matter what 403b plan you are in and it would have been nice if they had that option.

Bob,

 

Do you know why I used the word "irrelevant" in my last sentence?

 

Joel

 

 

No Frank, as I said I didn't read your post about the perfect IRA because I don't live in NJ and never will. Are you saying that you can take the money out any time you want and you don't have to wait until your 59 1/2? Is THAT your point? I'm dying to know.

Bob, you're being "flip"

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Bob:

 

Here are the facts about the Supplemental Annuity Collective Trust of New Jersey: There are two plans: One is the SACT-Tax Sheltered Plan under section 403(b) and the other is the SACT-Regular Plan under section 401(a). Go back to the appropriate thread and you will see that I refer to the SACT-Regular Plan as being the perfect IRA because the after-tax contributions may be rolled over to a Roth IRA and the earnings portion of the account may be rolled over to a Traditional IRA. Additionally, the law requires the State of NJ to pay all costs associated with participation; thus, 100.0 percent of the investment return is credited to the participant's account. Most observers would consider this Plan quite remarkable if not "perfect"

 

That being said, I look at not having an in-service option to rollover the account (both plans) at age 59-1/2 irrelevant.

 

Joel

 

 

Sorry Joel. I was just being flip. I never even read your "perfect IRA" thread other than the topic heading. It does sound like a good plan. However, I do see a value in being able to take your money out at 59 1/2, no matter what 403b plan you are in and it would have been nice if they had that option.

Bob,

 

Do you know why I used the word "irrelevant" in my last sentence?

 

Joel

 

 

No Frank, as I said I didn't read your post about the perfect IRA because I don't live in NJ and never will. Are you saying that you can take the money out any time you want and you don't have to wait until your 59 1/2? Is THAT your point? I'm dying to know.

Bob, you're being "flip"

 

Well, thank you so much for pointing out that your NJ plan doesn't have the 59 1/2. It's been very valuable to this discussion in the same way that a 59 1/2 would be valuable to a plan that lets you take your money out whenever you want. In fact, you've "helped" with many of my threads. Never in the way of actually answering my questions or helping me obtain the information I'm looking for. Usually more in the way of telling me to go look for information that you already know, or telling me to charge a windmill or something like that. In the past I've tried to recognize that you're only trying to help and so I've tried to acknowledge you and be polite which typically gets me more of the same usually from a soap box. It's not that I haven't enjoyed the goose chase of trying to understand the relevancy of your comments only to find out there is none, but I do have a suggestion. Consider that, in the future, if you find yourself in a situation where you are reading a thread where you have nothing of value to add, it's within your options to just not post to it.

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