My husband has been working at a hospital & has a 403b with Empower through them – So..

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  • #85257 Reply

      There’s about $400k in account. He has started a private practice & will be leaving in a few months.

      Not sure if we can/should keep it with them what would be best.

      #85258 Reply

        To always rollover when moving jobs misses some nuance.

        – It is commonly assumed that the fund’s fees are higher than what you could get from an individual IRA, though true in most cases, it may not be in all. If VTSAX has an expense ratio of .04% but the employer’s plan’s expense ratio (assuming similar fund) is .03% and your switching because an assumed higher fee, you might lose out (within that respect)

        – Backdoor Roth. I’m assuming your husband is in a high income field considering his position in the hospital and decently high savings of 400k (nice!). Do you take advantage of backdoor Roth conversions? If so, a rollover to a traditional IRA could mess up your Roth conversions (see Pro-Rata rule).

        I do personally agree of the sentiment of putting into your own account, but be aware of your reasons and potential ramifications.


        I am not a financial advisor of any sort but this is what popped into my head.

        If this is within the realm of possibility perhaps this is an idea you could play with.

        If your husband can make his own practice and create a solo 401k, then you could roll over the funds into the 401k. In this scenario you control your broker and the pro rata rule isnt triggered (only checks pretax IRAs including simple and sep IRAs)

        #85259 Reply

          You do not need a financial advisor to pick funds. Just roll it over to an IRA and choose an index fund.

          I’m sure someone will chime in about backdoor Roths, but if he’s starting a private practice, he can set up his own retirement fund an funnel huge amounts into that as the employer and employee.

          #85260 Reply

            Depends on what he’s invested in with Empower and what the fees are.

            If it’s invested in ultra low cost institutional index funds and he’s not paying to use their professional management service, then leaving it there might very well be the best option as it preserves the ERISA protections and (yes) ability to do future backdoor Roth IRA contributions should he ever be in a position to do so again.

            #85261 Reply

              You’re not at your last job, so why is your money?

              I would never keep my money at my employer sponsored, higher fee, retirement fund.

              Personally, I’d go 100% Vanguard VTSAX in an IRA.

              You can check also: Should I change the contribution to the VTSAX or keep it in the target retirement fund?

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