403b to IRA-any benefit

[Guest nahe3]

My non-profit employer will shortly terminate most of its employees due to loss of funding and a number of employees have 403(B) savings. Can you indicate what are the advantages or disadvantages in those employees rolling over their 403(B) savings into an IRA. Most of the 403(B) savings are now maintained at various mutual fund companies. Is there any difference between such an IRA and simply letting the 403b accounts continue other than the wider selection of investment vehicles (e.g., stocks)?

Thanks!

[Guest CVCalhoun]

About the only advantage in moving from a 403(B) to an IRA is that distributions from an IRA which are not directly rolled over to another plan are not subject to the mandatory withholding which applies to 403(B) plan distributions not rolled over. However, IRAs have other disadvantages, including an inability to permit plan loans. In most instances, the issue is what investments are available in the 403(B) versus the IRA will be more critical than the differences between the two plans.