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Author: Abe99 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76422  
Subject: 403(b) Rollover Date: 12/27/2000 1:13 PM
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Hi,

I have a 403(b) from 2 jobs ago which I would like to rollover because the investment options are quite limited. I have discovered that I can roll it over into a Rollover IRA and would like to do this. However, it is a small amount of money ($1,200) and the yearly fees for Rollover IRA's seem to make this an unattractive option. I don't intend to add to the IRA in the future because I take part in my current employers 401(k) plan. Is there anything else I can do with this 403(b) money or is it best left where it is?

thanks!
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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26810 of 76422
Subject: Re: 403(b) Rollover Date: 12/27/2000 1:21 PM
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If yearly fees for rollover IRAs are too high, find a different custodian. There shouldn't be any, particularly if you can add to it.
With this amount, you could roll it into a traditional IRA and then sully the rollover money by contributing your $2000 a year. You can also roll into a Roth after having it in a traditional IRA.
If you add even $1 of contributory money to a rollover, you lose the right to someday roll in into a new employer's 401k, 403b or other qualified plan. But since in an IRA you manage yourself, you have more choices, that isn't a big disadvantage.
If you have decent choices, to leave it where it is is a possibility.
If you roll it into an IRA and then start adding to it, the amount of the rollover does NOT count toward your $2000 annual allowed IRA contribution.
Best wishes, Chris

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