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Author: windknot Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Transfering Annuity Funds Date: 1/20/2000 12:05 AM
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From 1974-1990 I made monthly contributions to a TSA which now is worth about $31,000. I would like to re-invest a large chunk of this into the stock market, but am wondering what the tax consequences such a move would have for me? I am 51 and in the 28% tax bracket.
Thanks for any help you can offer.
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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: 18017 of 74759
Subject: Re: Transfering Annuity Funds Date: 1/20/2000 7:46 AM
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Greetings, Windknot, and welcome. You wrote:

<<From 1974-1990 I made monthly contributions to a TSA which now is worth about $31,000. I would like to re-invest a large chunk of this into the stock market, but am wondering what the tax consequences such a move would have for me?>>

Assuming this is an old 403b plan from a prior employer, there shouldn't be any reason you cannot surrender the TSA and have the net proceeds transferred to a self-directed IRA at the broker of your choice. Both your present custodian and the broker can guide you through the necessary steps to do that without any tax impact to you.

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: 18018 of 74759
Subject: Re: Transfering Annuity Funds Date: 1/20/2000 7:46 AM
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windknot -

You said: "From 1974-1990 I made monthly contributions to a TSA which now is worth about $31,000. I would like to re-invest a large chunk of this into the stock market, but am wondering what the tax consequences such a move would have for me? I am 51 and in the 28% tax bracket. Thanks for any help you can offer."

If you are still employed by the same employer you may transfer 403b/TSA funds to another 403b/TSA if you feel you can do better with another TSA provider. Does your current TSA offer stock funds? If so, you could transfer monies between investment accounts, keeping the same TSA itself.

If you've left that employer more choices are available - you could also transfer your TSA funds to an IRA of your choice...

Whichever is the case, you might not want to "withdraw" the funds yet, postponing taxes (+ 10% penalty because you're under 59 1/2 years of age...)

Best wishes, PP

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Author: DoktorDi Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18025 of 74759
Subject: Re: Transfering Annuity Funds Date: 1/20/2000 10:50 AM
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<<Assuming this is an old 403b plan from a prior employer, there shouldn't be any reason you cannot surrender the TSA and have the net proceeds transferred to a self-directed IRA at the broker of your choice.>>

Unfortunately, my 403b had strings attached by my two former employers who had the same plan and the current custodian. From one employer, I can roll out 100% of the value. From the other, I can only roll out my own contributions. Thanks to the custodian's rules, both of these can only be rolled out 10%/yr over a 10 yr period.

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