Ep10: Rolling Over vs Leaving It Behind – What’s the Smarter Move?
Ep10: Rolling Over vs Leaving It Behind – What’s the Smarter Move?
The Hidden Cost of “Set It and Forget It” Retirement Accounts
When teachers change districts, many simply leave their 403(b) with the old provider. Jacob, a high-school teacher, assumed this was normal. After three years, he discovered the account earned 2.1% annually, while fees cost him 1.5%, leaving almost no growth.
This is how thousands of educators lose thousands of dollars without knowing it.
What CalSTRS & IRS Guidelines Reveal About Rollovers
IRS rollover rules allow teachers to transfer 403(b) money tax-free, but teachers must understand:
- Fees
- Vendor limitations
- Surrender charges
- Investment restrictions
CalSTRS planning materials highlight that teachers with multiple scattered accounts “may unknowingly reduce retirement readiness.”
Trusted Tools and Government Resources for Decision Making
- IRS Rollover Chart
- CalSTRS Retirement Planning Calculator
- FINRA Fee Analyzer
- Consumer Financial Protection Bureau (CFPB) rollover guide
Practical Decision Framework: When to Roll Over vs When to Leave It
Roll over if:
- Your old plan has high fees
- Your new district offers better investments
- You want a single account
Leave it if:
- You are locked into a surrender period
- It offers exceptionally low fees
Need help deciding?
Get a no-pressure 403(b) rollover assessment tailored to your district and teaching career.