No. of Recommendations: 0
I have part of our retirement savings going into a 403b at work. There is no matching employer contribution.

Most of our retirement saving are through Roth IRA's held with Vanguard.

I don't know whether to roll the 403b over to Vanguard. Since there is not an employer match is there any advantage of an employer offered 403b over a traditional IRA that I could set up with Vanguard.
Print the post Back To Top
No. of Recommendations: 1
Most of our retirement saving are through Roth IRA's held with Vanguard.

I don't know whether to roll the 403b over to Vanguard. Since there is not an employer match is there any advantage of an employer offered 403b over a traditional IRA that I could set up with Vanguard.


Yes. Assuming you're maxing your Roth contribution, that's all you can contribute to retirement accounts for the year. Lousy as your 403(b) may be, it's the only thing available to you.

You can ask your benefits people whether it's possible to roll your existing account to a Vanguard traditional IRA, but I doubt it is.

Phil
Print the post Back To Top
No. of Recommendations: 1
The 403b may have much higher yearly limits than the IRA.

...You can ask your benefits people whether it's possible to roll your existing account to a Vanguard traditional IRA, but I doubt it is....

With a 401K instead of a 401b the magic words in HR-speak is “in service withdrawal” not all 401k plans allow it at all and most that do would require you to be 59.5.

You might also check to see if the 403b would allow you to take penalty free withdrawals at 55 like a 401k instead of 59.5 in a traditional IRA. If so there is an important checklist of criteria that you will need to meet, don’t assume that you will qualify until you have researched this.

Greg
Print the post Back To Top