5 Big Reasons Why You Should Consider Rolling Over Your 403b to an Ira
You might disagree with me but hear me out on this. 403b retirement plans are much like standard 401k plans in the way they are set up and taxed. 403b plans are severely limiting and the returns are generally pretty low. If you want to maximize your returns and have more control over your account, you should consider rolling over to a self-directed IRA. Here are 5 big reasons why this is something to consider.
1. 403b retirement plans do not have tax-advantages. They are set up like traditional accounts, meaning that the contributions are tax-deductible but your earnings and withdrawals are taxed. This means more paperwork and generally more taxes. If you think you are going to be in a higher tax bracket when you retire or if you expect tax rates to be higher, your best bet would be to rollover your 403b plan to a self-directed Roth IRA. Contributions to Roth IRAs are taxed but the earnings and withdrawals are tax free.
2. 403b plans are severely limited in terms of what assets you can hold. They are generally limited to mutual funds and annuity contracts. With a self-directed Roth IRA you have a much wider range of options and freedom to choose the investment venues you prefer. This means you have more opportunities to increase your returns.
