My previous employer was a university with a TIAA 403b. Now that it's been over a year since I left, I am interested in transferring some or all of those funds to Vanguard, with whom I've had a Roth IRA for well over a decade.
TIAA provides a dire warning that:
Your rollover may be subject to a 10% federal tax penalty if you were under age 55 when your employment ended and you’re under age 59 ½ when you take this rollover.
My research indicates that this penalty applies to the two tax-deferred annuity contracts within the 403b, and that I should not roll them over until I reach age 59 ½. Unless I misunderstand, my TIAA defined contribution plan (which also has two contracts) is safe to rollover.
A couple of points to consider:
- I am younger than 55 years of age.
- I've already maxed out the yearly contribution to my Vanguard Roth IRA.
- I do not have any other IRA.
What rollover paths, if any, might I consider under these circumstances?