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403(b) to other IRS approved pension plan ?

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Cedrus

Member
What is the name of your state (only U.S. law)? Oregon

My 74 y.o. wife has $$ in her CA 403(b) from her days as a state employee. We are in the "savings" plan which produces a very low rate of interest. This is OK. We are interested in safety. This plan has 58% of her funds FDIC insured. The other 42% is GSE (Government Sponsored Enterprises, such as Freddie and Fanny, etc.) Not so good :eek:

CA is in bad financial shape and may never go bankrupt (does federal law permit this?), but who wants 42% of their savings converted to IOU's or CA script or promises or whatever? Not her.

We are having a hard time finding an IRS approved vehicle to deposit this $$, without incurring a taxable event. A local bank has said informally, that part of the $$ can go into CD's without a taxable event occuring. We are still asking for clarification about this.

Wife has to take yearly/quarterly distributions per IRS regs.

So......what is out there that will fill our bill?

Many thanks
 



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