How to keep your retirement savings working when you leave UC

Have you ever cashed out your 401(k) or 403(b) when changing jobs? If so, you may have been stunned to receive a lot less than you expected. That’s because taxes and early withdrawal penalties can approach 50% for people in the top federal income tax bracket. If you recently joined UC—or have left UC and have an account in the UC 403(b), 457(b), and/or DC Plans—there’s an easy way to help keep your retirement savings intact and potentially growing.

Consider bringing your money together under one plan: UC’s 403(b) or 457(b).

Five Reasons UC’s 403(b) and 457(b) Make Sense Now

1. Fund expenses are low.

Every fund available in the UC 403(b), 457(b), and DC Plans is designed to offer fees that are generally lower than many similar, publicly available mutual funds.

2. It’s easier to keep track of your savings.

If you have investments in several locations, it’s difficult to stay in control of your overall portfolio. Whether you’re watching your savings change over time, managing your investments, or planning your withdrawals, it’s easier to understand your complete financial picture when everything is in one place.

3. All of the investment options are managed by professionals.

Just like publicly available mutual funds, the funds available through the 403(b), 457(b), and DC Plans are professionally managed.

4. You have access to your money.

If you’re working for UC and need to access your retirement savings, you may be able to take a loan from the UC 403(b) Plan. If you’re no longer working for UC, the 403(b), 457(b), and DC Plans offer flexible withdrawal options to help better manage your tax liability. For example, you might qualify for penalty-free withdrawals.

5. You can get one-on-one help from Fidelity, at no additional cost.

You can schedule a one-on-one meeting online to meet with a specific UC workplace financial consultant and set up a time that works for you.

Prefer to talk now? Call a UC-dedicated workplace financial consultant at 1-800-558-9182. No appointment necessary.

New to UC?

Rolling over your old 401(k) or 403(b) is easier than you think! Make the process painless by calling a UC-dedicated workplace financial consultant and saying that you want help rolling money to a UC 403(b) or 457(b) Plan account.

  • Your UC-dedicated workplace financial consultant will help you contact the prior recordkeeper for your previous employer’s retirement plan and request that all required paperwork be mailed or emailed to you.
  • Then, your workplace financial consultant can email or mail you a pre-filled Transfer/Rollover/Exchange Form.

Left UC for a New Job?

Leaving UC doesn’t mean you have to give up the benefits of being a UC investor. Staying in your UC plan means your money will continue to benefit from generally low fees and tax-deferred growth potential. Here are a few things to consider:

  • If you have accounts in multiple UC plans—a balance in both the 403(b) Plan and the 457(b) Plan, for example—consolidating your multiple accounts into one UC plan could help you manage and monitor your assets more easily.
  • You can consolidate outside assets into your UC plan, too.