What can I do with my 403(b) if I am retiring early?
I have a 403(b) that I invest $100 a month in. I can retire from the public school system in 9 years at age 46. I do not want to take any money out of my 403(b), but I want to be able to continue contributing to the account so it will continue to grow. Can I roll it over into something when I retire? I'm pretty sure I will not be able to continue contributions since I will no longer be a non-profit employee.
That is amazing retiring at 46!!!! You can rollover your 403b to an IRA. You won't be able to contribute to your 403b if you are no longer working as a teacher. If you are working elsewhere you may have access to a retirement plan there or you can contribute to the IRA where you rolled your 403b over to.
Here is some helpful info on the other types of retirement accounts out there:
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DAVID RAE, CFP®, AIF® is a Los Angeles Wealth Manager with Financial Planner LA, a regular contributor to the Advocate Magazine, Huffington Post, Investopedia and other fine publications as well as a financial planner proudly serving the great friends of the community for over a decade. Author of the Fiduciary Financial Planner LA blog.
You can and should roll it into an IRA rollover as soon as you leave employment. This way, your investment choices will be almost limitless and the fees much lower if done correctly. Then you can make annual contributions of $5,500/year (currently in 2017) and a little more once you turn 50 due to catch-up provisions.
Now, if you go to work elsewhere that offers a retirement plan - 401k/403b/etc.. - and you contribute to the retirement plan AND your income is above a certain level, you may be phased out of taking the tax deduction for IRA contributions at that time. You can still make contributions, you just can't deduct them.
Hope this helps and best of luck, Dan Stewart CFA®
As with all employer retirement accounts including 401(k), 403(b), and 457, you can do a double transfer. Don't do a rollover as the IRS imposed severe restrictions and penalties in 2015 regarding rollovers which hardly anyone seems to know about.
Here is the proper method once you are retired: 1) transfer your before-tax 403(b) contributions to a traditional IRA with any bank or broker; 2) transfer your after-tax 403(b) contributions to a Roth IRA with any bank or broker--ideally the same one where you have your new traditional IRA. Make sure you do two transfers, not two rollovers.
You can then continue to contribute 6500 dollars to your Roth IRA annually for yourself and 6500 for your spouse after retirement, assuming you or your spouse (only one is sufficient to qualify) has some other source of earned income. Otherwise, you can't make contributions but you can handle these accounts as you wish. You can't contribute to your traditional IRA in the year you reach 70-1/2 and in all future years, but you can contribute to a Roth IRA even if you are over 100 years old.