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mdcoon127

Need Advice On Whether To Rollover An Ira Into A 403(B) - The Other Wa

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I am a newbie to this forum. And to my own investing in general. I have an IRA that was my former employer's 401(k) which I rolled into an IRA at Morgan Stanley 6 years ago. My TRAK Personalized Investment Advisory Service in 6 years has yielded exactly nothing - I am at the same place as when I gave it to them to work for me - that is my problem. I now work for a nonprofit with a 403(b) which is invested in some very well performing funds and I'm making a lot of money there. I'd like to roll my IRA into the 403(b) - and I can't find any information as to tax consequences if any, or whether it is a Roth IRA or not matters. Does anyone on this message board have any experience with this? Please advise.

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Hi Mdcoon,

Sure, we have experience with this. First off, congrats on getting out of that brokerage firm.

It is amazing. The entire world has been making nice returns in the last 6 years just be being invested in the stock market and Morgan Stanley has netted ZERO returns!!!! Unbelieveable!

 

As you painfully learned now is to get your money out of Morgan Stanley immediately. The good folks around here have suggested for years to keep your money out of the big banks, brokerage firms and large insurance companies and invest with Vanguard, TIAA CREF or the Spartan Funds at Fidelity. My suggestion is to roll your 401k over to Vanguard since you have terminated your employment. It doesn't make any sense to transfer your old money over to your current 403b pay the costs associated with the current 403b.

 

There are no tax consequences with transferring from a 403b or 401k into a rollover IRA. There no tax consequences with the Roth IRA either.

 

That's all I can suggest at the moment. You need to provide more information: What are your 403b choices for new money that you will be contributing? What are the costs of your new 403b plan? You say you are making a lot of money, what the funds that are making you a lot of money. Around here, we can help you set up a low cost, diversified portfolio that covers all of the major asset classes and think long term.

Looking forward to your response,

Steve

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FidAdv StkSel MdCap A

 

11.91%

 

14,677.521300

 

1.751822

 

$25,712.41

 

FidAdv Strat Inc A

 

8.95%

 

10,309.909600

 

1.874102

 

$19,321.82

 

LeggM ClrBrdg LgCap Gr A

 

11.94%

 

12,230.089500

 

2.107739

 

$25,777.84

 

LeggM ClrBrdg SmCap Gr A

 

12.22%

 

12,231.326500

 

2.156933

 

$26,382.15

 

NW Inv Dest Cnsrv Svc

 

16.77%

 

26,258.517800

 

1.378670

 

$36,201.82

 

NW Mny Mkt Inst

 

14.83%

 

32,060.622800

 

0.998098

 

$31,999.64

 

NW S P 500 Indx Svc

 

23.36%

 

37,923.740000

 

1.329398

 

$50,415.73

 

Total:

 

$215,811.41

 

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Dan and Steve,

 

I noticed an "A" in a lot of mdcoon127's portfolio that probably indicates 5% sales charges. I think md has come to the right website!!!! Bob

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Dan and Steve,

 

I noticed an "A" in a lot of mdcoon127's portfolio that probably indicates 5% sales charges. I think md has come to the right website!!!! Bob

Agreed!

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Guest adirondacks

Why did you use a broker/dealer firm to effectuate a rollover of your 401(k) to your IRA? How old are you?

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Guest adirondacks

Hi Tony,

 

I was locked out for some high tech reason. Dan urged me to change my user name but I remain Joel L. Frank.

 

Best,

 

Joel

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Guest adirondacks

mdcoon brings to this discussion what the regulators have been looking into for a couple of years-----rollovers from employer plans i.e. 401(k) to IRAs. While it is quite legal to do so the question is should the employer sponsor be required to inform the individual that a rollover MAY not be necessary because there are certain attributes of a 401(k) plan that are not present in IRAs. AND AS WE ALL KNOW THE BROKER/DEALER WILL NOT DISCLOSE THIS INFORMATION TO THE PROSPECTIVE ROLLOVER CLIENT LEST HE/SHE BLOWS THE SALE. CASE IN POINT ARE DEMINIMUS COST PLANS LIKE THE FEDERAL THRIFT SAVINGS PLAN, THE DEFERRED COMPENSATION PLANS OF THE CITY AND STATE OF NEW YORK AND THE STATE OF CONNECTICUT. I AM SURE YOU CAN NAME OTHER GREAT PLANS WHERE SALES SHARKS CAN SPEND HIS/HER ENTIRE CAREER PREYING ON THESE UNSUSPECTING VICTIMS LIKE OUR FRIEND MDCOON 127. "As The World Turns."

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Hello

 

Your Morgan Stanley account may have been awful but your new 403b is no bowl of cherries either. I too see some A's (loads)Keep asking questions and we will set you free!!

 

I can only imagine what my account would look like today if I was able to avoid all the mistakes I made as a young investor. Luckily I saw the light in time to save myself. Stop paying people to steal from you!!!

 

Tony

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