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Subject:  Re: 403(b)7 custodial plan: am I stuck in it? Date:  12/18/1999  10:12 AM
Author:  TMFPixy Number:  16549 of 88455

Greetings, Goldtut, and welcome. You wrote:

<<I've got a small chunk in a 403(b) custodial Plan with my employer and I just read through the Annunities information and was floored. Does anyone know if there is any way to convert it over time or as a lump to a Roth? In 98, the employer allowed IDP for the 401(k) plan, which I now max out. The annuity article has my head swimming with all kinda ugly stuff.>>

You may or may not have a Tax Sheltered Annuity within your 403b plan. Your subject line talks about a 403b(7), which is the section of the Internal Revenue Code that addresses the investment of 403b contributions in mutual funds, not annuities. A 403b plan may only invest in annuities and/or mutual funds. My guess is you have a mutual fund investment, but check with your HR folks to be sure.

If you have an annuity and if your employer makes no matching contribution to the 403b plan, then you can move those funds to a mutual fund family that accepts 403b(7) money. Vanguard and Fidelity do so. That would give you a much broader selection for the investment of your account. However, to do so you would have to surrender that annuity. That could involve surrender fees that would make such a transfer less attractive.

Search this board on the topic 403b plans, and you will come up with a slew of posts that talk to this issue and will give you a better feel of what you can do with the plan you now have.

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