Jump to content
KER

Working In New District...should I Transfer Old 403B?

Recommended Posts

I have been working in a district (New York state) where I was contributing to my 403b under plan member. I just got a new job in a new district. They do not offer plan member as a provider. I think I am going to go with Aspire. Should I transfer my old funds to the new 403b account? Should I keep them in plan member and just not contribute? If I do transfer funds, do I contact my new provider (Aspire) or the old one (plan member)?

 

Thank you so much for any feedback!

 

Share this post


Link to post
Share on other sites

I'm assuming you don't have Vanguard, Fidelity, or Security Benefit on your new vendor list?

 

I'm not 100% clear on the rules for rolling over a 403b since I haven't had to do it yet. If you're able to roll it into an IRA then I'd strongly consider going that route. That way you could put it with somebody like Vanguard and avoid the AUM fee (0.15 percent?) that ASPire adds on. One con to this approach is that it makes it less desirable to do a backdoor roth (fancy maneuver for higher income people to get money into a roth ira) in the future.

Share this post


Link to post
Share on other sites

Do not transfer it over to a new 403b account. No need. You are currently separated from service which opens the door to an IRA. You have better options in a Vanguard IRA like Access to any fund in their arsenal. You won't have to pay Aspire fees that way and you will have Admiral shares.

 

Transfer it over to a Vanguard IRA ASAP directly . Don't delay. Call them (Vanguard)and they will help you with the process. You have a window open where you can bypass the aggregators and invest directly with Vanguard. Then once you start your new job go with Aspire self-direct and invest with vanguard if you can't access it directly with your new employer.

 

 

Thats what I would do. You are in a sweet spot at the moment. Take advantage of it!!!

 

Tony

 

P.S. Vanguard will need a letter that you just left your position on official stationary to facilitate the transfer. Ask for that letter without delay and send them the original and make two extra copies to file for yourself.

Share this post


Link to post
Share on other sites

Speaking from experience of having transferred a 401k to a traditional IRA, which I assume is the same as a 403b to traditional IRA, yes. It is all still pre tax.

Share this post


Link to post
Share on other sites

Kerr

 

Since no-one has responded I will again step in on behalf of myself and others. You are certainly welcomed. May you become wiser, richer and and more prosperous with your new plan.

 

Tony

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...