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.
