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24

Would it be wise to begin investing into this plan? Provided you have no other consumer/educational debt to take care of first, yes. How does it work when I leave my current place of employment? You own the investment even after you leave your employer (voluntarily or involuntarily). Most people will either roll it to an IRA account or to their new ...


10

The simple answer is that with the defined contribution plan: 401k, 403b, 457 and the US government TSP; the employer doesn't hold on to the funds. When they take your money from your paycheck there is a period of a few days or at the most a few weeks before they must turn the money over to the trustee running the program. If they are matching your ...


9

You can move money from a 403b to a 401k plan, but the question you should ask yourself is whether it is a wise decision. Unless there are specific reasons for wanting to invest in your new employer's 401k (e.g. you can buy your employer's stock at discounted rates within the 401k, and this is a good investment according to your friends, neighbors, and ...


7

From your first link: IRS.gov: IRA One-Rollover-Per-Year-Rule IRA One-Rollover-Per-Year Rule Beginning in 2015, you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own (Announcement 2014-15 and Announcement 2014-32). The limit will apply by aggregating all of an ...


7

WRONG. Assuming each account has the same investment option the rate of return is not dependent on the initial amount of money in the account, but rather the allocation amongst said investment. Suppose based on your investment allocation in either account you gain 10% interest over the year. In the first scenario your ending balance will be (30000+4800)*1....


7

Having money held from one paycheck hardly counts as being covered by a retirement plan in my book! It's not your book that counts, it's the Congress' book called the Internal Revenue Code. No, you cannot rescind a contribution after the fact. Maybe during the year you can do something with employer balancing it out, but not after the year is closed. (That,...


7

They could let you go immediately, and you would not be vested. Even though you're trying to do the right thing by giving notice, it's safer to stay silent until you're vested, then quit.


6

I assume you get your information from somewhere where they don't report the truth. I'm sorry if mentioning Fox News offended you, it was not my intention. But the way the question is phrased suggests that you know nothing about what "pension" means. So let me explain. 403(b) is not a pension account. Pension account is generally a "defined benefit" account,...


6

You need to determine: if in your situation you want to contribute to a Roth account. If the answer is yes, then you need to decide on the split between Roth and non-Roth. Then you need to determine the split between company and non-company accounts. This is related to the amount of matching funds you get. But it also includes the cost of the funds and the ...


6

The money you put into a nonRoth 403(b) account is not included in the taxable income reported on the W-2 form and so you don’t get to deduct it on Form 1040; it’s already been deducted. The money you put into a Traditional IRA is from taxable income and so you can deduct it on Form 1040. But the maximum you can contribute to an IRA is much smaller than the ...


5

but simply asking how one invests in that hypothetical scenario. Thanks for understanding in advance the terms of this question! Because you explicitly asked about this scenario, and explicitly don't want answers about any other: the best place to be if you think that the markets are a big, fat, highly margined bubble is, obviously, cash. That's because ...


5

These are plans similar to 401k plans. 457(b) plans are available for certain government and non-profit organizations, and 403(b) plans are available for certain educational, hospital, religious and non-profit organizations. Your school apparently fits into both classes, so it has both. These plans don't have to allow ROTH contributions, but they may, so ...


4

403b plans are used by school districts, colleges and universities, nonprofit hospitals, charitable foundations and the like for their employees while 401k plans are used by most everybody else. I would suspect that a school district etc can use a 401k plan instead of a 403b plan if it chooses to do so, but the reverse direction is most likely forbidden: a (...


4

Since the I in IRA is individual. The retirement money from your accounts will end up in one or more IRAs. The retirement money from your spouses retirement accounts will end up in one or more IRAs owned by your spouse. How many IRA each will need depends on if the retirement fund contains pre-tax, post-tax, Roth and company match; and if you want to do any ...


4

You need to obey whatever your accountant gave you for written advice. If you lost it, ask him for a copy of it. Why? When you retain a tax professional, and seek and follow her advice, then any penalties which arise out of following that advice are waived by the IRS. IRS nasty-grams are one of two things: Andover being Andover. Doesn't mean they ...


3

However I'm already mostly in index funds so I'm not sure how much lower in fees I can go. There are fees paid to the 403(b) administrator. Compare the fund fees in your 403(b) to the fees you'd pay if it were a plain old IRA. If they're less in the IRA, then start contributing to the IRA instead of the 403(b). Even though you can't move your existing ...


3

It depends on how soon you think this crash might happen. If it is more than a couple years away, I would say stay away from just keeping cash because this is the lowest-value use for your money. I have a 50/50 mix of low-fee mutual funds and higher-risk index funds I'm assuming you mean 50% in low-risk mutual funds and 50% in high-risk index funds. The ...


3

Do you think your 403b will earn more than the mortgage interest rate? If so, then mortgage seems the way to go. Conservative investment strategies might not earn much more than a 3-4% mortgage, and if you're paying 5-6% it's more likely you'll be earning less than the mortgage. From another point of view, though, I would probably take a loan anyway just ...


3

Both will grow at the same rate. If everything else was equal:fees, investment options, flavor (Roth or deductible); Then I would put the money into the 403B. Why? putting the money into the 403b directly from your paycheck during the year allows you to have all of the $5,500 available to make an end of the year contribution, or to put the money from your ...


3

You need to check with the 401(k) administrator. Years ago, my company plan loans were taken from the short term fund, the fund that was billed as having a short duration, made up of these loans and sub-3yr government securities. This was the best of both worlds as the loan didn't impact my own returns and was still very competitive on rates. Now, it comes ...


3

When you pick a company for your IRA, they should have information about rolling over funds from another IRA or a 401K. They will be able to walk you through the process. There shouldn't be a fee for doing this. They want your money to be invested in their funds. Once your money is in their hands they are able to generate their profits. You will want to ...


3

No, there are not. Provided both your 401(k) and 403(b) allow rolling over (in most cases this means you no longer work for the company associated with them), you can roll both into the same IRA. Where you currently work isn't relevant, unless you still work for either the company that sponsored your 401(k) or the company that sponsored your 403(b).


2

As stated above, the IRA accounts themselves are individual. But if you want to simulate a joint account, the following actions would help: Make sure to setup each account with the other spouse as the beneficiary so that each account goes to any surviving spouse should the unexpected happen. Some brokers (I know TDA does this) allow you to grant access to ...


2

From the employer side there are A LOT of legal duties attached to sponsoring a 401(k). If you are asking this question I would not suggest attempting to meet all of the regulations related to handling employee money internally. There are certain annual filings, periodic notices, accounting etc related to these kinds of plans, and the fines for non-...


2

It is not absolutely clear that transitioning all your retirement money from mutual funds, stocks, bonds, CDs etc to an annuity (either now, or just before retirement) is the best decision, especially once you are old enough to have to take Required Minimum Distributions (RMDs). The IRS says in Publication 590 Distributions from individual retirement ...


2

Yes, get this fixed. There is obviously an problem between HR, the payroll company and the 403b provider. You want to make sure that this doesn't become a common mistake that will impact your wife and other employees. You want to avoid the situation where 2 years from now if your wife leaves the company, they don't return all the initial contribution ...


2

Everything here is yours and can be rolled into your new plan or IRA. The "employer" assets are actually all the assets in your 403(b) plan. You own these assets, but they are in the plan managed by your employer. If you also had a personal IRA with that management company, it would presumably show up under "personal" assets. The "elective deferral" ...


2

Much of the exact answer to your question lies in how much money you have now relative to what you'll need to retire, and in how much ability to contribute you will have. To start with, you should be in a moderately safe investment portfolio now regardless of your opinion on the market. Vanguard's Target 2030 retirement fund, for example, has a 75% Stock ...


2

A 401(a) plan is a money-purchase similar to a 401(k) plan but is for employees of governmental organizations, educational institutions, non-profit organizations etc. It is sponsored by the employer who can select the contribution level, rules for eligibility, vesting etc (just as with 401(k) and 403(b) plans) subject to IRS limitations. Employee ...


2

Based on the image you posted, you are eligible for the defined contribution plan (pension) after 1 year of service, provided you are over 21 and worked at least 1,000 hours in that year. You are eligible to contribute to the 403(b) after 60 days, but are not eligible for the match until 2 years of service (again provided you worked 500 hours and are over ...


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