Next step after you quit a job that offered 403b

#1

Hi @Jeremy and PFC fam, I used to work at a place that offered 403b and had a financial institution managing the whole yard. As I just finished the course now, I realized that I don’t even know where that money was allocated as I used not to pay attention at all the retirement paperwork.

Now as a traveler nurse I want to be more financial literate. Since I’m “going solo” without any employer’s retirement plans, what would you suggest to do with my previous 403b? Looking at the Ultimate investing checklist, 401/403 aren’t an option for me, Should I open a fidelity account and roll it over to a Roth IRA and taxable brokerage account (I prefer target index funds from what I’ve learn from the course)?
if the money in my previous 403b is above the $6000 limit of the Roth IRA, can I still contribute to 2021 roth since it’s not April 15 yet? And what to do with the rest of that $$?
How to better avoid Sin #1 ?

P.S i’m very new at this! looking forward to hear from you all.

#2

You can leave it in that account and let it grow. You don’t have to roll it over. I would look up the legal protections and benefits of 401k/403b vs. IRAs and determine if you want to potentially lose the benefits.

#3

Thank you.
I followed the advice and talked to the financial representative. I noticed that it had a higher % expense ratio and is actively managed. Should I instead allocate those funds to a target index fund if offered or a 3 fund portfolio with lower expense ratio? I think the 3 way portfolio expense ratios will be the average of of the 3 index funds?

Another question, is it possible to open (with Vanguard or Fidelity) a roth IRA for 2021 because it’s not April 15th yet?

#4

Yes! You have until April to open a RothIRA for 2021!

1 Like