403(b) from residency

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  • Avatar rajeeeram 
    Status: Physician
    Posts: 1
    Joined: 07/27/2019

    I have accumulated some $30,000 in my 403(b) account from residency. I am currently doing a fellowship (this program offers 403(b) too) for 1 year and I would prefer not to move the my previous 403(b) contributions to my fellowship program due to the short duration of the fellowship. What other options are available to me? Thank you

    #234133 Reply
    Avatar jacoavlu 
    Status: Physician, Small Business Owner
    Posts: 2382
    Joined: 03/01/2018

    1 leave it where it is. could move it later

    2 rollover to IRA

    3 convert to Roth

    consider option 3 if your marginal tax rate is low enough (<25% or so)

    The Finance Buff's solo 401k contribution spreadsheet:

    #234156 Reply
    Liked by Lordosis, Peds
    Avatar Peds 
    Status: Physician
    Posts: 4452
    Joined: 01/08/2016

    Did you read the other posts?
    Thanks @jac

    #234158 Reply
    Lordosis Lordosis 
    Status: Physician
    Posts: 1863
    Joined: 02/11/2019

    As long as it has a somewhat decent choice I would just leave it where it is for now and roll it into your next plan.
    Consider the Roth conversion if you are in a low tax bracket.

    “Never let your sense of morals prevent you from doing what is right.”

    #234185 Reply
    Faithful Steward Faithful Steward 
    Status: Financial Advisor, Small Business Owner
    Posts: 519
    Joined: 06/12/2017
    1. Leave it where it is.
    2. Roll it into your current plan, then roll the entire current plan into your next employer’s plan.
    3. If you have the money to pay the conversion taxes on the $30,000, roll it directly into a Roth IRA.
    4. If you plan to do annual Backdoor Roth IRA strategy, do not roll it over into a Rollover IRA, as it will cause pro-rate rule issues.

    Michael Peterson, CFP® | Faithful Steward Wealth Advisors | (717) 496-0900

    #234391 Reply

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