roll 457 and tax sheltered annuity to a Roth?

[crabbypatty]

I have old plans 403's 457's from previous employers. Since I can't add to them, it just seems like unnecessary clutter keeping track of small amounts at various companies.

Does anyone have thoughts about the negatives and positives to rolling them into a traditional IRA? (I would also be opeining a Roth for "new money")

[jIM_Ohio]

Pros-

checkups take less time if statements are from one place
you have 100% control over fund selection
rebalancing at one place is easier than buying/selling across multiple custodians


Cons- ???
custodial/account maintainance fees (403's and 457's might be "free", where as IRA custodians will charge small accounts)
you need to fill out paperwork

in 2010 you can roll over rollover IRA's to a Roth IRA (paying taxes on the rollover amount). Something else to consider.

[sweeps]

TIAA-CREF, perhaps? We did a rollover recently from there to Vanguard. TIAA-CREFs annuities were underperforming and we wanted more flexibility with the funds.

Beware though, it was like pulling teeth performing the rollover (on TIAA-CREF's side, not Vanguard). Took 8 weeks to complete.

[Saving in So Cal]

I know we are all sort of financial DIYers, but this may be an instance where you want professional advice. For instance, my understanding (which may not be current) is that, regardless of your age, 457 funds can be accessed without penalty after termination of employment. In other words, you do not necessarily have to be 59-1/2 to use the money. You would still have to pay ordinary income taxes, but not the 10% penality associated with early withdrawals of IRAs and 401ks. If my understanding is correct and if you think you might need to access your money before 59-1/2 (perhaps if you retire early), then it may be better to keep the 457 as a 457.