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Should I rollover my 403(b) into an IRA or 401(k)?

I recently left my job in the nonprofit world where I had a 403(b). I now have an employer 401(k) as well as a personal IRA account. Which is the best account to rollover the money in my 403(b)? Or should I just leave the money in my 403(b)? How do I go about making this decision?

Financial Planning, 401(k), IRAs
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May 2017

A lot depends upon the fees and flexibility in your 401(k) and 403(b) accounts.  Some of these have as much choice as IRA accounts.  Other employer plans have only a few choices and all kinds of restrictions.  If you are happy with your 403(b) account then you should not move it into an IRA account purely for consolidation's sake; that is a common mistake.  However, if you like your 403(b) account the least then consider doing so.  Also remember that your pre-tax money should into a traditional IRA and your after-tax money into a Roth IRA.

Finally, don't do a rollover!  Hundreds of people here want to do rollovers; I want to grab them by their necks and wake them up to reality.  The IRS substantially changed the rollover rules a year ago and no one seems to have gotten the message.  Do a transfer from one retirement account to another, not a rollover.  If you do a rollover you will be subject to scrutiny along with an IRS audit and you may have to pay penalties if you do more than one rollover in any 12-month period.

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