403(b)
my client is retiring in July and had a question of, if there are any advantages of leaving her account as a 403(b) rather than rolling it over to an IRA?
Are there any advantages to leaving it as a 403(b)?
my client is retiring in July and had a question of, if there are any advantages of leaving her account as a 403(b) rather than rolling it over to an IRA?
Are there any advantages to leaving it as a 403(b)?
Permalink Submitted by Alan - IRA critic on Mon, 2016-04-18 18:41
Most 403b accounts do not offer attractive low expense investment options, but client would have to determine that. If client had a balance in the plan at the end of 1986, that balance is exempt from RMDs until age 75, but any rollovers come first from the pre 1987 balance and IRA RMDs start at 70.5. If the pre 1987 balance is large enough and client wants to delay RMDs this might be worth considering, but not if the investments in the 403b are high expense investments.