How does one choose a new 403b provider? My wife is a teacher and has happily had her 403b account with Fidelity for several years. As of 11/08, fidelity will no longer be on the approved list (due to non-compliance with new IRS regs). There is a list of 34 providers few of which I've heard of. Many are insurance companies and others appear to be "full-service" investment companies. No discount brokerages (Vanguard, Schwab etc) appear on the list.Thanks for your input.
Is TIAA-Cref on the list ? T. Rowe Price ?rad
Can you list the providers?
Yes, thank you.AIG Retirement (VALIC)Americo Financial Life Annuity CompanyAmerican Fidelity Assurance CompanyAmeriprise Financial Inc.Annuity Investors Life Insurance CompanyAXA Equitable Life Insurance CompanyCalSTRSConseco Annuity Assurance Co/Conseco Ins CoFirst Investirs CorporationGreat American Life Insurance Company (GALIC)GWN Securities, IncHorace Mann CompaniesIndustrial-Allince Pacific Life Inurance CompanyING Life Insurance and Annuity CompanyING - Reliastar Life Insurance CompanyLegend Group, Inc., TheLife Insurance Company of the SouthwestLincoln Investment Planning, IncMetropolitan Life Insurance CoMidland NationalNational Health Insurance CompanyNationwide Trust (FBC Deferred Compensation Program)North American Company for Life and Health (NACOLAH)Oppenheimer Funds Distributor, Inc.PFS Investments Inc. (Primerica Shareholder Services)PlanMember Securities Corp/PlanMember Services CorpSecurity Benefit GroupSymetra Life Insurance CompanyThrivent Financial for LutheransThrivent Investment Management Inc.United Teacher Associates Insurance CompanyVeritrust fiancial, L.L.C.Waddell & Reed, Inc.Washington National Insurance Companyend.
I would be frankly shocked if all of those companies are there next year.There is quite a shake-up going on with 403bs.You could always ask the administration to have Vanguard, American Funds, or some other company come in as a provider.None of those really jump out at me. You might try Thrivent Financial. The key is to ask for a 403b7 (mutual fund program) and avoid the 403b1 (annuity program).The vast majority on that list will be annuities. Even AXA (which used to provide both) sold away their mutual fund accounts last year.
I advise clients to max out their Roth IRA first unless there is a match from the employer.With 403b plans usually there ain't one.buzman
OppenheimerFunds jumps out as one of the few pure mutual fund companies on the list, all others appear to be Insurance, and thus, annuity related. Check and see if Oppenheimer is being offered without the upfront or back end loads. If not, then Class A Shares would be the best bet for the long term even with the upfront charge. Over time this will be less expensive than the other share classes and less expensive than the annuities. Unless they add some names, and if you dont go with the funding the IRA option first, that may be the best option.
Wow, your employer is not doing you any favors!foolazis
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |