403b rollover question

[persa]

Newbie money question: What should I do with my Transamerica 403b account from my job I left in April?My brother works for New York Life and wants me to rollover to one of their accounts, I guess that would an annuity or Roth IRA?

I start a new job next month and I haven't heard back yet who manages their 401k.

[awkwardpenguin]

Most people should roll their old retirement plans over into a Traditional IRA. I prefer a low-cost brokerage like Vanguard. I'd stay away from being talked into something you don't understand by your brother.

[persa]

Aug 1, 2017 22:41:59 GMT -5 awkwardpenguin said:

Most people should roll their old retirement plans over into a Traditional IRA. I prefer a low-cost brokerage like Vanguard. I'd stay away from being talked into something you don't understand by your brother.

If I do rollover to NYL, can I get out of it and move to another brokerage?

[awkwardpenguin]

Aug 1, 2017 22:44:46 GMT -5 persa said:

Aug 1, 2017 22:41:59 GMT -5 awkwardpenguin said:

Most people should roll their old retirement plans over into a Traditional IRA. I prefer a low-cost brokerage like Vanguard. I'd stay away from being talked into something you don't understand by your brother.

If I do rollover to NYL, can I get out of it and move to another brokerage?

It depends what type of account you're rolling into, but probably.

You could also roll it into your new job's 401k. Then you could tell your brother you wanted to keep things all in one place.

[mich1]

I'd probably roll it into an IRA at an investment firm (Vanguard and Fidelity are 2 of the biggies). General rule of thumb is that you buy insurance from insurance co, bank at banks and invest at investment companies.

I would not roll your account over into your new 401k. To do so, you are going to be limited to the investments that your new company offers.....which may be good or bad. An IRA is going to give you more control and more investment options.

[whitemerlot]

I rolled my old 403b into an IRA at Vanguard. They were very helpful and I've been very happy there.

[persa]

Aug 1, 2017 23:09:10 GMT -5 mich1 said:

I'd probably roll it into an IRA at an investment firm (Vanguard and Fidelity are 2 of the biggies). General rule of thumb is that you buy insurance from insurance co, bank at banks and invest at investment companies.

I would not roll your account over into your new 401k. To do so, you are going to be limited to the investments that your new company offers.....which may be good or bad. An IRA is going to give you more control and more investment options.

The advisor at Transamerica said this same thing.

[persa]

Traditional IRA's- my H and I were going to do some reading about backdoor IRA's but my early understanding is that if you have a traditional IRA(or sep IRA, which I had never heard of) , you can't do a backdoor IRA

[awkwardpenguin]

Aug 2, 2017 10:02:24 GMT -5 persa said:

Traditional IRA's- my H and I were going to do some reading about backdoor IRA's but my early understanding is that if you have a traditional IRA(or sep IRA, which I had never heard of) , you can't do a backdoor IRA

Are you above the Roth income limits?  Pre-tax contributions in a Traditional IRAs do limit your ability to do a backdoor Roth, so if you are going to do a backdoor Roth I would roll over into your new 401k.