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JillDavis

90-24 Transfers? Do They Still Exist?

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I was reading my Bogleheads book and it mentioned that for people with bad 403B options that a 90-24 transfer MIGHT be possible into a brokerage of your choice. Does this still exist and has anyone done it?

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I think the 90-24 is no longer in effect since the new IRS regs came into effect. You can now usually only transfer from or to choices within your plan document. However you can transfer your money to an IRA once you separate from your current service or reach 59.5 years of age. Thats my understanding.

 

Tony

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If you went to work in a neighboring district, would that be considered a separation from service? If so I wonder how feasible it is for educators with bad options to bounce between a couple neighboring districts every 5 years or so. Repeatedly funneling that money to a low cost IRA would really cut down on the amount paid in fees.

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If you went to work in a neighboring district, would that be considered a separation from service? If so I wonder how feasible it is for educators with bad options to bounce between a couple neighboring districts every 5 years or so. Repeatedly funneling that money to a low cost IRA would really cut down on the amount paid in fees.

 

Yes! that is a good strategy. Millionaire teacher, Ed, and his teacher wife did this! Check out his website and podcast: Podcast #18. http://teachandretirerich.com/podcasts/ Ed shows how he and his wife saved $100,000 in one or two years. Now if any of you live in expensive states or cities such as California, New York, SF, DC or New Jersey, forget it! But if you live in the rural south, heck yes! It is so cheap to live there according to Ed.

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Revenue Ruling 90-24 was one of many rulings made obsolete by Revenue Ruling 2009-18, which was issued in June, 2009.

 

Hope this helps.

 

HEY! Michael! How are you?

Now that you have been retired for a few years, what have you been up to?

Great hearing from you, and will you be coming back and giving us all of those compliance facts? And setting me straight? :- )

 

Best,

Steve

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