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Yo, Mastevens.

>>I'm a 36 y/o with a 403(b) from a previous employer totalling around $80k. My current employer offers an unappealing 401(k) to which they will make contributions whether I do or not.

At present my 403(b) is with Zurich Kemper in some Kemper mutual funds (generally around 8% avg. return) and can be moved into a S&P 500 index fund. What I'd really like to do is move it into a self-directed tax-deferred retirement stock account. I'd also like to be able to continue to contribute deductible $$ but fear that the situation prohibits this.

Incidentally, my wife has a 403(a) from the same employer and would like to put that money (around $18k) somewhere useful but is not working now.

Any thoughts about how to accomplish what I'm after?>>

Essentially, I just answered your question via the post just before this one. You can set up a self-directed account as I described before, but your contributions will not be deductible because you are covered by a retirement plan (the 401k) through your present employer. And, as this will be an IRA, you wil be limited to a maximum of $2K per year. However, nothing says you can't put something into your employer's 401K on top of that. Because that's a tax deferred investment, it's something you may want to consider if for no other reason than to avoid taxes. :-)

As far as you wife's 403a account, on that one I'm not sure. It is, I believe, an annuity. If so, she may not be able to cancel out of that contract. I just don't know enough about 403a plans to help, nor do I have anything around that talks about them. Maybe someone else can throw their two cents in here and give both of us an education.


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