Drop it into MDParticipantStatus: PhysicianPosts: 440Joined: 09/20/2018
Prior to my current employment my wife and I had 403b accounts at our old employer through Trans-america. I rolled mine over to my current 403B when I became financially literate last year. I have been pestering my wife to get me the information for her account so I can review and make changes. I listed her current allocation below. It is full of garbage! I am thinking about just moving everything to the fidelity 500 index and adjusting my AA accordingly. It is not a huge chunk of money so it does not matter too much. Any other suggestions?
She does not have a retirement plan at her current job so I cannot roll this over. I did not want to move into an IRA because we do back door roths. I could convert it all to roth but I do not think it is worth the taxes. 24% bracket with another 6.8% for NY.
Thanks for the help!
Short Bonds/Stable/MMkt Standard Stable Asset Fund I 0% % Interm./Long-Term Bonds PGIM Total Return Bond Z 15% % American Century Ginnie Mae R5 14% % Large-Cap Stocks American Century Value R6 15% % Columbia Contrarian Core Instl 10% % Fidelity 500 Index Institutional Prem 0% % American Funds AMCAP R5 10% % Small/Mid-Cap Stocks T. Rowe Price Mid-Cap Value 5% % Hartford Mid Cap R6 4% % Principal SmallCap Value II Instl 4% % T. Rowe Price New Horizons 3% % International Stocks American Funds EuroPacific Gr R5 20% % American Funds New Perspective R5 0% % Vanguard International Value Inv 0% % Multi-Asset/Other Columbia Balanced Instl 0% % Totals 100% 0%January 15, 2019 at 2:22 pm MST #181725PedsModeratorStatus: PhysicianPosts: 4666Joined: 01/08/2016
Can’t see any actual funds or ER..January 15, 2019 at 3:41 pm MST #181755LithiumParticipantStatus: PhysicianPosts: 1221Joined: 02/15/2016
Does the plan charge separate fees?
This is when it’s good to have a Solo 401(k) from trivial numbers of surveys, etc.
Otherwise, yeah, I’d probably leave it in the Fidelity fund.January 15, 2019 at 4:06 pm MST #181769Faithful StewardParticipantStatus: Financial Advisor, Small Business OwnerPosts: 519Joined: 06/12/2017I am thinking about just moving everything to the fidelity 500 index and adjusting my AA accordingly. It is not a huge chunk of money so it does not matter too much. Any other suggestions?Click to expand…
I think your inclination is spot on if you must leave the money in the 403(b).
Rolling over for better investment options doesn’t make sense, since I also agree that you don’t want to pay to convert this all at once, given your tax bracket.
Lithium brings up a good point, if your wife could create some self-employed income, she would be able to open a Solo 401(k) and roll the 403(b) into the Solo 401(k). This would afford her the choice of investments within the Solo 401(k) and also not interfere with your Back Door Roth IRA strategy.
Michael Peterson, CFP® | Faithful Steward Wealth Advisors
https://ProsperousPhysician.com | (717) 496-0900January 16, 2019 at 8:54 am MST #181940Drop it into MDParticipantStatus: PhysicianPosts: 440Joined: 09/20/2018
She is a W2 employee working Per Diem. My understanding is that this does not count as self employed.
This will likely only be the case for a few years. Once the kids grow up a little the general plan is to get a more permanent position that will likely have a traditional retirement plan that we can roll this into.January 16, 2019 at 9:15 am MST #181946