So, my campus is no longer offering 403(b) plans through TIAA-CREF, as they have for years. There is a new provider, one I won't name here, but I'm not sure I trust them to still be around when I hit 70 1/2 (well, I'm not sure I trust TIAA to be around, but that's for different reasons).
They will still permit 457(b) plans through TIAA.
So here are a couple of quick questions, if anyone knows the answer:
Supposedly one difference is that the employer "owns" the 457(b) account, while the employee "owns" the 403(b). Is that going to come back to bite me in the backside someday? Does that mean that my university could decide it needs cash and pilfer our retirement savings? Or is the "ownership" just a piece of legalese?
This "withdrawal direction from employer only" bothers me - apparently that means my university can set how much I get per month out of my account. True?
Gah. I hate this. Apparently this is because of some stupid IRS tinkering. At first, I thought I'd just stay with TIAA and do a 457(b) but I do NOT like the concept that my employer will "own" my account rather than me, because that suggests that if we got someone with sticky fingers in the accounts office, all of us with 457(b) plans might find ourselves looking for jobs as greeters at Wal-Mart after retirement.
But there are apparently some changes to the 403(b) account...I can't find any clear discussion of them online, other than one fund provider saying, "We are now a 403(b) provider; go with us or you'll be SORRY!"
Frick. Maybe I should just rip a hole in my guest room mattress and stuff money in there. It bugs the hell out of me that I have a Ph.D. and yet I can't make my way through the jargon on prospecti well enough to determine if I'm going to get screwed or not.
Thursday, January 22, 2009
quick financial question
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4 comments:
Sorry, Ricki. I had not had a chance to read this post yet, but Joel was very thoughtful of you, and e-mailed me about it.
I am a CPA, and he thought I might be able to help.
I am not well versed in 457(b) plans (I am more a 401(k) girl), but I have access to the informaiton you seek. I will try to look up the answer for you sometime today. Bear with me.
Maggie thanks - but I got the answer by calling TIAA-CREF this morning; apparently there are two types of plans, private and public. The public plan is what TIAA offers; it is one in which we are "fully vested" and apparently WE own the plan, not the university.
The website I found talked about "private" plans, which seem to be more common in other areas of work, which the employer DOES own.
Thanks for the thought - if you do come up with anything else I'd appreciate knowing, it kind of sucks that I have to deal with it but that's the IRS for you.
Sorry I didn't get back to you sooner, Ricki. I'm glad you found your answer.
I will try not to suck so much the next time you need advice from an accountant ;)
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