Author Topic: Questions about rolling over a 403(b)  (Read 431 times)

TwoJays

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  • Posts: 13
Questions about rolling over a 403(b)
« on: June 23, 2017, 01:57:39 PM »
Hi All,

I'll be leaving my current employer in 6 weeks to head back to school. By that time I'll have just shy of $11k in my 403(b) and I'm considering moving it to Schwab or Vanguard for the low cost index funds due to the high expense ratios in our plan. I have a few questions and would appreciate any other insight as well!

Current allocation in American Funds: 70% Growth Fund of America (1.42% expense ratio) and 30% International Growth Fund (1.70% expense ratio).
  • Would I wind up paying tax to switch to Vanguard/Schwab index funds?
  • If tax would be due, is it worth it to switch anyways? (I'm assuming it is.)
  • What other options, if any, would be worth considering?
  • Am I correct in that I'll be moving the money into an IRA through a rollover?
I appreciate the help! Really wish my employer had more options in our current plan (nothing below 1.4% expense ratios!) so that this wasn't an issue.

slugsworth

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  • Posts: 263
Re: Questions about rolling over a 403(b)
« Reply #1 on: July 14, 2017, 12:50:56 AM »
A rollover is not a taxable event. Do not have them cut you a check, funds should go from your current 403b to the new IRA. Vanguard has a good system for this as I'm sure others do too.