My wife has a 403b with $18k from a previous job. She has been self employed running a day care for the last several years so the 403b is sort of "abandoned". We're in our late 30's; should we just leave the account to sit there until retirement with everything parked in an index fund?
Other relevant details... This past year is the first year our income has been high enough that we can't contribute to a Roth IRA so we are doing the backdoor Roth starting in 2017. Specifically we're above 200k and expect to stay that way in future years. For me this is strait forward -- I have an empty traditional IRA so I will be contributing to it and then moving the funds to my Roth IRA. For my wife it is less strait forward -- she already had 10k in her traditional IRA, but the advice we got in a previous thread is to just move all those funds into the Roth and pay the taxes this year which will set us up for strait forward backdoor contributions in future years.
We recently remembered her old 403b. What should we do with it? Let it sit? Rollover into her traditional IRA and pay the penalty to move it into the Roth account? Something else?
(deep regret about not converting to roth years ago when we were in lower tax brackets; never thought we'd be this "successful")
Submitted May 13, 2017 at 12:24PM by tax-tax http://ift.tt/2pJkUo5
