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garrman

tranferring 403b

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Hi have a quick question.  My wife opened a 403b with ameriprise in 2004.  we have not been contributing for many years.  She left the district and about 5 years later returned to that district.  she is opening a vanguard account for next school year.  can she move here ameriprise 403b to vanguard?  She left her district and paid nothing to ameriprise since before leaving or when she returned.  So can she move it to vanguard?

 

thanks guys

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Yes, she can move her Ameriprise 403b balance to Vanguard if Vanguard is on the district's 403b vendor list. It's called a contract exchange. Call the Ameriprise 800 help # and ask for their transfer form. Also ask for her surrender fee if she has a variable annuity, which is likely. The annuity probably has an M&E fee of 1.10% and the surrender fee runs for 10 years, starting at 8%, decreasing to 1%. Ugly! You can look up the fees at 403bcompare:                          https://www.403bcompare.com/products/145 

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Does your district have a low-cost 403b vendor? What state are you in? Many states have a low-cost state-run 457b that is available to school districts.

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Our Stinks.  we have all the bad ones. Thank you so much for the help and advice.  i have been listening to your programs on audible.  Any thing with this list could work?

Voya is the one backed by the district and always around and helping. 

Ameriprise,

security Benefit (NEA Direct invest is one im leaning to.),

Valic,

Athene,

AXA,

Franklin Templeton,

General American life,

GWN marketing,

NY life,

oppenheimer funds,

Plan Member,

Horace mann,

industrial alliance,

Lincoln investment planning,

midland national ins,

National life group. 

thats all.    

Im in Edinburg Texas about 10 miles from the border.  We neighbor mcallen where my wife works.  I asked our Employee Benefits guy about 2 weeks ago if we could get something with less feels like vanguard, fidelity, aspire, etc....  havent heard back.

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Go with Direct Invest.  Just avoid advisor at all costs.   Internet only and couple phone calls to set up.  After set up, the website is great, automatic rebalance, and best of all nobody bothers me.

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There is a pretty good thread on this board that gives more details.

 

I estimate I've saved more than 20k in fees alone since I switched to direct invest from Voya.

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Bashdash, thanks for the testimonial on NEA Direct Invest! Here's my spiel on NEA Direct Invest:

The only low-cost vendor on your vendor list appears to be Security Benefit’s NEA Direct Invest. It is internet based, not local rep based. It is a SB 403b and NEA has no direct involvement. There is no local rep (salesperson) to ask about it. It offers a small number of low-cost Vanguard index funds and charges only $35 per year for balances under 50k, no admin fee for balances over 50k. Its phone service has been reported as poor at times. With patience and perseverance, you can get the job done. We can help with any questions.

The only NEA Direct Invest funds needed are:

Vanguard Total Stock Mkt Admiral, expense ratio (ER) = 0.04%

Vanguard Total International Stock Mkt Admiral, ER = 0.11%

Vanguard Intermediate-term Bond Index Admiral, ER = 0.07% (a good substitute for Total Bond Mkt Index Admiral fund)

You should not use their TR Price target retirement funds as they are too expensive (ER 0.77 to 0.99%).

This webpage gives the basics of NEA Direct Invest

https://securitybenefit.com/individuals/product/nea-directinvest

On this webpage, click on “Enroll Now” to access the steps to get started.

https://www.nearetirementprogram.com/nea-directinvest   Here’s my interpretation of the Steps:

Read over Step 1.

Your district will likely require their own Salary Reduction Agreement. Hold off on giving this to your district.

Hold off on moving other accounts into this 403b until this account is established.

Complete the application form and mail it to SB. If you have questions about the form, ask us rather than trying to talk to SB about it.

After about 2 weeks, call if they haven’t contacted you, and inquire about your account’s progress.

  6. After the account is set up and you have internet access to it, you can work on moving your wife's Ameriprise balance to NEA Direct Invest.

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ok  thank you.  just sent the form thru doc sign.  so waiting to hear from them.  Do they normally send set up info through email or will i probably need to follow up?

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From reports, they seem to have been somewhat slow in getting the account set up. I'd wait about 2 weeks before calling, but who knows, maybe they've improved their service? Maybe you will be pleasantly surprised? Some posters have had some difficulty getting the district to give them the plan number for Security Benefit's form, but that's something the district has to sort out.

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