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Past employment 403B

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  • Drop it into MD Drop it into MD 
    Participant
    Status: Physician
    Posts: 440
    Joined: 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
    0% %
    Interm./Long-Term Bonds
    15% %
    14% %
    Large-Cap Stocks
    15% %
    10% %
    0% %
    10% %
    Small/Mid-Cap Stocks
    5% %
    4% %
    4% %
    3% %
    International Stocks
    20% %
    0% %
    0% %
    Multi-Asset/Other
    0% %
    Totals 100% 0%
    #181725 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4666
    Joined: 01/08/2016

    Can’t see any actual funds or ER..

    #181755 Reply
    Lithium Lithium 
    Participant
    Status: Physician
    Posts: 1221
    Joined: 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.

    #181769 Reply
    Faithful Steward Faithful Steward 
    Participant
    Status: Financial Advisor, Small Business Owner
    Posts: 519
    Joined: 06/12/2017
    Splash Refinancing Bonus
    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?

    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) 496-0900

    #181940 Reply
    Drop it into MD Drop it into MD 
    Participant
    Status: Physician
    Posts: 440
    Joined: 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.

    #181946 Reply

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