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Author: klibra Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76398  
Subject: 403 b to 403b or maybe not? Date: 12/7/2000 5:28 PM
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Hi Pixy and friends;

I'm new and have been schoolin' myself in the retirement area of the site. I've found a lot of valuable information, but need some help on a point:

I have a 403b from a previous employer. My new employer offers a 403b plan and contributes a modest sum. I understand that as they are parallel vehicles, I am able to transfer the old into the new.

Is there an advantage to doing this? Or, should I transfer the old into an IRA and not co-mingle it with the new 403b I plan to establish?

thanks
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26484 of 76398
Subject: Re: 403 b to 403b or maybe not? Date: 12/7/2000 5:40 PM
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Greetings, Klibra, and welcome. You asked:

I have a 403b from a previous employer. My new employer offers a 403b plan and contributes a modest sum. I understand that as they are parallel vehicles, I am able to transfer the old into the new.

Is there an advantage to doing this? Or, should I transfer the old into an IRA and not co-mingle it with the new 403b I plan to establish?


While you are correct in that normally you may transfer your old 403b into your new 403b, whether you should do so or not really depends on how you will invest the money and the options available in the new 403b plan. If you put the old 403b money into an IRA, you will have a far wider range of investment selections that go beyond mutual funds. So, look at what you can do within the new plan versus what you can and would do outside of it. Then make your decision.

Regards..Pixy

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Author: peppermintpatty Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26491 of 76398
Subject: Re: 403 b to 403b or maybe not? Date: 12/8/2000 8:13 AM
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Klibra -

Excellent question!

I would generally agree with Pixy...

403b rollover to an IRA may make a lot of sense, however one feature of the 403b that might be important is its loan provision. Review the rules at you new employer & try to look into the future - if you want to preserve the loan feature to its maximum availability, roll the old 403b into the new account. But if a loan feature is not very important, moreover if the new IRA pre-age 59½ withdrawal opportunities could be important to you, then roll into IRA.

...just my 2¢... PP

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Author: dozer183e Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 30925 of 76398
Subject: Re: 403 b to 403b or maybe not? Date: 7/23/2001 12:24 AM
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Hi Pixy and friends;

I'm new and have been schoolin' myself in the retirement area of the site. I've found a lot of valuable information, but need some help on a point:

I have a 403b from a previous employer. My new employer offers a 403b plan and contributes a modest sum. I understand that as they are parallel vehicles, I am able to transfer the old into the new.

Is there an advantage to doing this? Or, should I transfer the old into an IRA and not co-mingle it with the new 403b I plan to establish?

thanks


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