Rollover 403b + Order of Operations Questions

Investing
#1

Hi! I currently only have a 403b through a hospital but will no longer be getting a match this year onward. I am now self employed in addition to working PRN for the hopspital. The 403b is invested in JTYBX which is a JPMorgan SmartRetirement Blend Target Date 2055 with an exp ratio (net) .19% and gross .41%.

I have not opened any other accounts so just currently have the 403b but as of this year have an HSA. My plan is to max out HSA and ROTH IRA then any remainder put in a SEP investing in the same target date index fund VFFVX 2055 (born in 1990) in both.

Few questions:

  1. If I am not getting a match in my 403b should I rollover this account? If so, can I rollover a 403b to a ROTH IRA or am I limited to a traditional IRA?
  2. Any insight between opening up a SEP vs. Solo401k?
  3. Am I correct in thinking to invest in the same target date index fund VFFVX across my HSA, IRA and SEP or SOLO401k?
#2

Hey Angela. I can’t comment too much on the first 2 questions because I do not know too much about SEP’s.

However for question number 3 it should be fine to invest in the same target date index fund across all of your accounts!

#3

based on what you’ve said, I’m assuming you’re no longer planning to contribute to your 403b. if that’s the case it may be advisable to roll it over.

to answer question 1, whether or not you can roll it over to traditional or roth IRA depends on whether the 403b is roth or traditional itself. i.e. if the 403b is a tax deferred account then you can only roll it over to a traditional IRA.

#4

Hi @Angela_LaGambina!

First off, congratulations on becoming self employed!! That’s very exciting!

For your first question, rolling over is a personal choice. The article below lists some of the pros of rolling over a 401k (or 403b in your case!).

For your second question, there are some slight differences between a SEP IRA and solo 401k. The SEP IRA is easier to set up. But depending on what your self employment income is, there are some limitations with how much you can put into the SEP. The solo 401k can be more involved to setup, but can allow you to put more money toward retirement (again, it depends on your overall situation!).

For your third question, it’s a personal choice, but I see no problem with using the same across all of the accounts!