question about 403b plans

[battricia]

Hi i have some questions. I don't know much about this as it is for someone else, but I figured you guys would know, you're all so smart!

Say you have a 403b plan, what exactly can you do with it? Could you take your money out and put it into an IRA w/o being penalized? This is for someone who is under the age of being able to use the money without penalties, but who feels like the money could be doing better somewhere else (possibly an IRA). The money is still for retirement, We're just trying to figure out what would be best for it.

Do you think it'd be a wise choice to do something like this if it is possible. Could you break down what something like that would entail? Would it be similar to transferring IRA from bank to bank?

Any advice would be appreciated!

Thanks.
tricia.

 

[leight]

Are you still working with the same place that sponsored the 403b? If not, find out from them if you can 'rollover' to an IRA- that would give you control of how it is invested. If you still work for the same school or hospital, etc- then contact the plan and find out if it is a portable 403b- meaning you can choose which company holds the 403b- some places have an 'approved' list of providers-that way you can choose which one suits you best. If the plan can't be moved- then find out what ALL of the investment options are for you where it is. Most companies have specialists who can review the investment options with you to help you determine which are best for you. When doing comparisons look at expenses as well as performance over long periods of time 5-10 yrs. Many companies will also have investment tools on their websites to help you determine what mix of investment are best for you- stocks/fixed income/ money market. Good luck!