3 Replies Latest reply on Jun 29, 2009 4:18 PM by stagehand

    403B Account

    Panda
      I am recently retired and am confused as to what is the best thing to do with my 403B Account.  Should I roll it over to a Roth IRA or leave it in the account?
        • Re: 403B Account
          MyR Community Manager

          Response from TIAA-CREF:

          Panda,  Congratulations on your recent retirement!

          Your dilemma is a common one experienced by participants as they transition out of full-time careers.  The reality is that no one solution works best for everyone.  Your options depend primarily on the rules of your retirement plan as established by your former employer.

          Since some plans require action within a certain period of time following your last day of employment, it may be to your advantage to talk with a TIAA-CREF consultant soon to discuss your options and potential implications of taxes, penalties, etc. as a result of the decision you ultimately make.

          To speak with a consultant, you may call the National Contact Center at 800 842-2776 between the hours of 8 a.m. and 10 p.m. Eastern Monday through Friday or 9 a.m. to 6 p.m. Eastern Saturdays.

          Best regards, CommunityManager

          • Re: 403B Account
            If you roll the monies into a roth ira wouldn't you have to pay taxes immediately? If you roll it into a rergular IRA then yo udon't have to pay taxes until you withdraw the funds. Can anyone verify if I am correct?
              • Re: 403B Account
                stagehand
                As a general rule, you would have to pay income tax to put tax-deferred funds (like a 403(b)) into a Roth IRA. But the OP may have been thinking about the 2010 transition rules that might permit spreading the taxes over more than one year, or he may have been interested in having investment options beyond those he currently has, or he may expect a very low-income year when he could consider paying extra taxes on purpose. But there are many additional considerations, like state taxability of 403(b) funds, bankruptcy and judgment protection of different types of retirement funds. This is a fantastically complicated issue, even beyond the good warnings and suggestions in the first reply, from the Administrator. (I don't want to start a discussion about whether income tax rates will be higher or lower in the future, because no one knows for sure.)