Does combining 403B and IRA make sense?
My wife, age 57, recently retired. She presently has three retirement accounts – Roth, IRA, 403 B. I’m considering merging the 403 B into the IRA. Are there any disadvantages to combining those (403B and IRA) accounts? FYI – I’m 67 and retired
Permalink Submitted by Alan - IRA critic on Tue, 2021-11-09 15:04
She could receive penalty free distributions from the 403b before 59.5 due to separation at 55 or later. Possible other disadvantages are if the rollover IRA has higher investment costs than the 403b, and in a few states IRA creditor protection is weak. She is too young to have a pre 1987 403b balance of much value which would not be subject to RMDs until age 75.