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Greetings, V Soto, and welcome.

<<My wife has a variety of 403(b) plan providers from which to choose from. I've already eliminated the insurance co.s from the list. Whcih accounted for about 90%. I've found the mutual fund provider with the lowest fees and index funds to boot. But my big question regards transfers. If I understand correctly, funds from one 403(b) provider can be transfered to another within certain limits. I like this. Is it true? Secondly, is it possible to likewise transfer funds from a 403(b) provider to an IRA
account without discontiuting employment and without tax penalties?>>

You may indeed transfer 403b funds to a mutual fund of your choice *provided* the fund agrees to accept 403b accounts. Not all do, so you have to check first. You're already looking at ones that do, so that should be no problem for you. Just call, and they should be able to help you through the necessary procedures to get the money to them.

While still employed by the 403b plan sponsor, you may not move those funds to an IRA. In general, that's only allowed when the employee retires, leaves employment, or dies. Can't say I recommend the latter as an option, though. Do so before those events, and all is immediately taxed and subject to the 10% excise tax if the employee is under age 59 1/2.

Hope that helps, and thanks for stopping by Fooldom.

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