My ex-employer automatically rolled over my 403b into a rollover IRA after I was terminated. Is this an OK thing?
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My ex-employer automatically rolled over my 403b into a rollover IRA after I was terminated. Is this an OK thing?
Yes, it's OK. Most plans require that if an employee leaves and the value of their 403(b) or 401(k) is less than a certain amount (typically $5K) the amount will be distributed. This is to keep their administrative costs down, so they don't have to manage a lot of tiny accounts for years and years. However they should have given you some time to roll the account to an IRA of your chosing. I suggest that you carefully review what this new IRA has to offer, and make sure you're comfortable with the investement choices and fees. You have the option of rolling the funds from this new IRA to another IRA if you want, so do some comparison shopping.Quote:
Originally Posted by pininas
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