AboutWillard R. Brumbaugh, LUTCF Expertise I have answered many questions regarding 401ks, IRAs and annuities as well as life insurance.
I have been counselling against most Qualified Plans since 1994.
Experience Ranked in the top 5 in retirement catagories at Askme.com most of its last 2 1/2 years. Organizations I belong to:
National Association of Insurance and Financial Advisors-California
Inland Empire Estate Planning Council
Education/Credentials Life Underwriters Training Council Fellow
Question I am 60. I am told I can withdraw funds from my 403(b) plan but only those that came from salary deduction not from what my employer contributed on my behalf. Is that a correct interpretation? Our plan is so bad, read high fees, that I have not contributed to it after an initial couple thousands of dollars. I want to get as much out of this bad plan as I can. It is an ING 403(b) annuity. And I still work for the agency. Thank you.
Answer Dear Lucille,
The first of this year, as far as I understand it, 403(b)s are required to conform to 401(k) rules. After age 59 1/2 both ERISA and the IRC permit transfer of all 401(k) funds into self-directed IRAs. This is only limited by the wording in your employer's Summary Plan Document.
If your employer's SPD does not allow these transfer while still employed by the organization, the SPD can be amended. In light of the stock markets actions over the last 10 years, it is in your employer's best interest to implement this change. Though I am not a lawyer, it seems to me that to resist this change, when many employers have already made these transfers possible, is to invite legal action.
