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Retirement Saving for retirement - questions about pensions and pension schemes, 401k's, public and private company pensions, and other saving schemes.

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Old 02-11-2009, 02:50 PM
A Greens A Greens is offline
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Location: Indiana
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Default Question about 403b

Hello everyone,

I am just trying to figure out my options on what to do with a small 403b my wife has. Her father set it up for her before we were married when she first started teaching.

Long story short, the company stopped offering it, I didn't even know it existed, so now we are putting her contributions into a different account. Basically, there is only 5,000 dollars in this thing, and it's losing money. One option is to roll it over to another carrier, which is also losing money, the other is leave it where it is. With something as small as 5,000 i am just trying to get rid of the headache and surrender the money. A letter we received from the company said that all surrender/transfer charges are waived for customers who wish to do so. (I am expecting to have to pay taxes if I do this of course, since it is pre tax money as far as I understand)

The agent for this company is clueless as far as I can see. This morning I got the FOURTH different answer from his as to whether or not I can have the money, so I am just trying to get my facts straight before I call someone else, mainly because I feel like this guy is screwing me around.

Thanks a TON to anyone who can tell me what my real options are, I would really appreciate it.

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  #2  
Old 02-11-2009, 10:59 PM
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GarySpicuzza GarySpicuzza is offline
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Join Date: Oct 2007
Location: Florida/PascoCounty/USA
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Default Re: Question about 403b

While $5,000 isn't that much money it's foolish to pay any money needlessly to the broke bass towards of the United States Gubment. An early withdrawal will cost your wife a 10% penalty if she's under age 59 1/2 PLUS she'll be taxed as oridinary income on the $5,000.

In a 28% tax bracket that ends up costing you $1,400 in tax and you would only net $3,600 after tax.

Simply roll the 403b into an IRA. That's a tax free transaction.

If you put the money into the new FIXED Annuities that are on the market you'd get an immediate 10% bonus on the $5,000 and the contract can be designed with an Income Account Value that has a guaranteed growth rate of 6% with all principal SAFE and sound.

Click THIS LINK for rollover chart.

For more information tune into The Financial Power Hour streaming live on www.whnz.com beginning Thursday, February 19th 2009 @ 1:00 PM.
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Old 02-12-2009, 09:32 PM
A Greens A Greens is offline
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Join Date: Feb 2009
Location: Indiana
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Default Re: Question about 403b

Gary,
Thanks much for the information, if only the agent that is in charge of this could give me such a clear answer and have taken less than three weeks to get to it, many headaches could be saved.

Not that I plan on surrendering the money, how concerned should I be that the agent has told me twice that that isn't an option? I mean, if that's not true, it seems to me that would be something that should be told to the people he is working for?

Thanks again!
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Old 02-13-2009, 05:48 AM
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GarySpicuzza GarySpicuzza is offline
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Location: Florida/PascoCounty/USA
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Default Re: Question about 403b

A Greens,

You and the Mrs just need to take a little vacation to Florida, bring all your paperwork with you and I'll get that rolled over/transfered for you in minutes.

It's a simple thing to do.
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