Transfering your IRA

[joney1]

could someone direct me to a site where I can get information regarding moving your 403b from one site to another - am in the process of changing jobs after being with the same company for over twenty years - who handles the transfer? can I take money out - what are the implications re penalty, tax etc. - is it better to take money out now or wait for new set up and then take a loan?

[shop_free]

I'm no PRO...but when I left my job I contacted the financial department at my company and gave them the information to transfer the money into an IRA that I opened up at my credit union. SO I would think you would first contact the new company and inform them that you have an account at your first company and ask them what do you need to do to have the money transferred over.

Then you contact the first company and give them your new account information and they will transfer the money over.

 

Do you have to take money out? It's generally not a good idea because of the huge tax penalty and the loss of potential earnings .

[joney1]

thank you for your response - shop free

[ginaandamber]

could someone direct me to a site where I can get information regarding moving your 403b from one site to another - am in the process of changing jobs after being with the same company for over twenty years - who handles the transfer? can I take money out - what are the implications re penalty, tax etc. - is it better to take money out now or wait for new set up and then take a loan?

<{POST_SNAPBACK}>

I am an IRA professional, so here's what's what....

 

1. Open an account with the receiving institution (The place you want you money to go to.)

2. Contact institution where the plan is currently held to get their transfer form (There will be a blank to indicate the receiving account information)

3. Submit form to current inst.

4. The current inst will then cut a check to the new folks directly. This keeps your assets in "qualified status", That means you haven't created a taxable event.

 

That is all there is to it!

 

Also...you really don't want to withdraw the assets yourself (In other words, get a check payable in your name); because this is a taxable distribution. You will have to pay income tax and early withdrawl penalties on the amount of the distribution. Make sense?

[sercfm]

Hi:

 

Gina was proceduraly(?) right on in transferring you 403b. As a financial planner, my only question is why you would transfer it to a new employers plan when you can just move it into a roll over IRA and maintain control and flexibility over your investment options. Any wirehouse or even discount broker could easily do this for you at, possibly, a lower overall cost than your new employer plan.

[stormblade]

Something that none has addressed yet.

 

Why move it at all? Are the investments that you have in the current plan good ones? What investments are available in the new company plan? Make sure you check that before just arbitrarily moving it from one place to another.

 

You can keep your retirement account with your former employer (except for certain types of limited company stock) as long as you want even if you are no longer employed by them.

 

I have retirement accounts with two former employers and do not intend to transfer them because the assets that they are invested in have been great performers and are not available in the new company plan. Just make sure that you keep track of them and update the mailing address and e-mail address if they change.