403 B and retired- what to do?

[Anonymous]

I just retired and I've got 300K in a 403B. Per my employer I can't put anymore money in.
I can begin to take monthly distributions, but will pay tax on the money since it was put in pre tax.
Any ideas what to do with the funds? Should I roll it over into something else to lessen the tax hit?
Thanks!

[Anonymous]

Ha ha you never paid taxes on the contribution and don't want to pay taxes on withdrawal either?

[Anonymous]

You don't have to take distribution until you are in your 70s unless you want to.

[Anonymous]

No matter what, you’ll pay taxes when you withdraw the funds. Until then, you can leave the money in the 403b.

[Anonymous]

We need a few more details. Age? Any other sources of income? Social security? Spouse?

You might want to start rolling it over to a Roth IRA a bit before RMDs hit. In which case it is maybe some of the last money you use in retirement. If so, you should Keep it in an SandP 500 fund or something else aggressive (QQQM?).

Ideally, You want to stay in lower tax brackets and below IRMAA income penalties.

[Anonymous]

Of course “rolling it over to a Roth” means paying taxes on it

[Anonymous]

Should have put minimum into 403b or avoided it completely. I bet your put in $100k and now it has tripled after many years. This would could have been done in Roth within two years with growth stocks.
You need to learn all about taxes now in order to pay as little as possible. Lots of books out there to help you do that.
Empty it.Then empty your investment accounts and leave Roth last.

[Anonymous]

Anonymous wrote:Should have put minimum into 403b or avoided it completely. I bet your put in $100k and now it has tripled after many years. This would could have been done in Roth within two years with growth stocks.
You need to learn all about taxes now in order to pay as little as possible. Lots of books out there to help you do that.
Empty it.Then empty your investment accounts and leave Roth last.

There is my favorite finance poster. The one who thinks everyone else is dumb because they aren't doubling their money every 3 years.

[Anonymous]

OP- is this all the money you have or do you have a brokerage or a Roth?

[Anonymous]

Anonymous wrote:I just retired and I've got 300K in a 403B. Per my employer I can't put anymore money in.
I can begin to take monthly distributions, but will pay tax on the money since it was put in pre tax.
Any ideas what to do with the funds? Should I roll it over into something else to lessen the tax hit?
Thanks!

It's deferred income. Sorry, you never really had $300K, just like you never really had your nominal salary.
Just withdraw when you need it and pay the tax like normal person.