It is long over due for cleaning out your paperwork! We will be holding a shred day on June 9th, 2022 at our Pasadena branch. You can find all of the details listed below.
10lb limit per member
No paper clips
No hanging files
Drop off will be located on the left side of the building near the drive thru. We will have employees there ready to assist you with shredding your sensitive documents.
As a teacher’s credit union, one of the many ways we demonstrate our support and gratitude for educators is through our Appreciated Teacher Awards. This is a recognition program that commends outstanding teachers within our field of membership, which now includes all districts and accredited schools in Texas. For our 2022 Appreciated Teacher Awards, we received hundreds of nominations from over 31 different school districts across the state of Texas. A committee composed of credit union management team members selected five finalists from all the nominations received, who are listed below.
The finalist with the most votes will be awarded the title of Gulf Coast Educators Federal Credit Union’s 2022 Appreciated Teacher of the Year and receive a $2,500 grand prize. The remaining finalists will receive a $500 honorarium. The 2022 Appreciated Teacher of the Year will be announced the week of May 16th, 2022.
2022 Appreciated Teacher Award Finalists
Click the names below to read a description for each of our Appreciated Teacher Award Finalists.
1. Victoria Way - Katy ISD
1. Victoria Way – Katy ISD
Victoria Way is the founding Director of the Jordan High School Legacies Dance Team. She was the first Tompkins High School Crimson Cavalettes Assistant Director. Prior to opening Jordan High School, she established the first JV Dance Team at OTHS, Crimson Pride. She has instructed all levels of dance throughout her teaching career and truly loves the relationships she develops with all of her students. She has built the Legacies Dance Team and dance program at Jordan from the ground up and is passionate about resilient relationships with her students, building confidence in students and teaching them valuable life lessons through dance. She is passionate about fine arts advocacy and loves sharing with her students the ways that fine arts has impacted her life and can impact theirs, regardless of their future careers!
Victoria is a graduate of Texas State University where she earned a Bachelor of Fine Arts degree in Dance Education with a minor in English. She currently holds teaching certification in dance, physical education as well as in English. Victoria was very involved in the Texas State University Dance Department, receiving several scholarships including the Gwen K. Smith Endowed Scholarship for Dance Educators. She is a former member of Orchesis Dance Company and danced in Austin, Texas for a semi-professional cheerleading team. Victoria was on her high school drill team, the Creekview Chevals, where she found her love of dance and served in leadership her junior and senior year. Victoria was also in orchestra all throughout her high school career.
She has been married to her husband, Stephen, for 6 years. They just welcomed their daughter Karsyn Elise into the world in May of 2021!
2. Brandi Perry - Friendswood ISD
2. Brandi Perry – Friendswood ISD
Teaching is not always an easy profession, however my approach is fairly simple. I design my classroom around these ideas and principles: consistently show all students love, meet students where they are in their personal learning journey, and set high and individualized expectations. This recipe has helped all students to show success in the classroom. My coworkers attest that through well planned and high interest lessons, my young four and five year old’s acquire strong foundational learning skills in both academics and social emotional development. I have the privilege of teaching the youngest and most at risk full time learners in our district. Students that are educationally disadvantaged, have been in the conservatorship of the Texas Department of Family and Protective Services, children of active military, students who are homeless, and students who are unable to speak and comprehend the English language are students entrusted to my care. This is a job that I don’t take lightly. I consider it a privilege and a unique charge to be the one who is responsible for laying their foundation. The foundational bricks that begin in my classroom will be the very starting place where all other educators and life experiences will be built upon. It is this foundation that they will carry throughout their academic career.
My journey as an educator began with educating my own two children. I began homeschooling my boys due to the medical needs of my youngest son and later when they attended public school, I spent time as a substitute teacher. In 2015, I was hired in my current district as a paraprofessional while I completed my Texas teaching license. While I was a paraprofessional, I served in both Pre-Kindergarten and Kindergarten populations. While serving in this capacity, my administrators surprised me with a “Making a Difference” award. This award recognizes one staff member for going above and beyond in order to support students. In 2017, after completing my Texas Teaching License, I began teaching full time as a certified teacher. When our district decided to become a full day Prekindergarten program in 2019, I was one of the implementing staff members in the full day program. I was instrumental in choosing the curriculum, as well as setting the expectations and goals for the full day program. When the full day program began, I knew that I wanted it to be a success and I believed although it was a new concept, that It would be a good change for students and would allow for students to blossom. In 2022, I was nominated for Teacher of the Year by my campus peers. Their nominations recognized me for my work in the Pre-Kindergarten department, my work ethic, my high expectations for my students, and my positive attitude towards students with challenging needs.
The growth Pre-Kindergarten students show daily is exponential and it is one of the main reasons why I love teaching. Although their academic and social emotional growth is significant and oftentimes stunning, the growth does not occur without a tremendous amount of work. Acquiring new skills are often met with difficulty, resistance, uncertainty, and can be labor intensive. Knowing that it will be challenging, I ask my students to show up daily with a positive outlook. I challenge my students to learn a new skill; to try something they have never tried before. I ask them to stretch themselves and I push them beyond their comfort zone on a daily
basis. Because my students put in such an effort, they in turn, inspire me to show up, even when it is hard. This year it has been hard. In early January 2022 my husband suddenly and unexpectedly became ill and he passed away in late January. I push my students to overcome the hardest of obstacles, and this year, it was my students who in turn pushed me to show strength. My students exude happiness and life. They laugh, they cry, they squeal, they run, jump, hop and skip. They always persevere when life is hard. Together we show up, we challenge ourselves, and together we try our very best.
3. Lauren Palos - Pasadena ISD
3. Lauren Palos – Pasadena ISD
Lauren Palos is a first-grade self-contained teacher at Stuchbery Elementary in Pasadena ISD, a school in which 82% of the students are identified as economically disadvantaged. Ms. Palos is an alumna of Pasadena ISD and began her journey as a professional educator five years ago as Title 1 instructional aide, a role through which she serviced students in small groups for intervention and enrichment. She has spent the last four years teaching first-grade students, and Ms. Palos’s resiliency as an educator is evident in how she takes classrooms of six-year-olds who come from various backgrounds and with diverse needs and creates communities of mathematicians and readers within the walls of her school, a school in which she was once a student herself.
Ms. Palos’ unique blended learning teaching style, particularly with mathematics, is evident when you walk into her classroom and see her young students engaged in mathematics and empowered with strategies and tools to help them be successful with their learning. Her teaching style is student-directed and includes mathematics routines that promote students’ number sense such as Number Talks, Choral Counting, and Counting Collections; whole group and data-informed small group instruction that includes student engagement, student discourse, student use of academic language, mathematics tools such as manipulatives and toolkits, and the use of technology-based platforms to guide and monitor student learning; and data-informed workstations that promote students’ retention of previously learned concepts and proficiency with number-based fact fluency strategies. Because of Ms. Palos’ belief that parents are full-time partners in their child’s education, she has created two classroom initiatives, “Mystery Reader” and “Mystery Mathematician”, in which parents are invited into her classroom to participate in content-specific activities with all of her students. These initiatives have created excitement in her classroom and have empowered parents to feel confident as valued contributors to their child’s learning environment.
Ms. Palos’s instructional strategies have impacted the lives of her students and the success of the other teachers and students at her school and across her school district in many ways. Within her school community, she has facilitated campus presentations such as “Technology Training” and “Launching Seesaw” and served as a Team Leader, New Teacher Mentor, and Mathematics Vertical Alignment Committee Member. Ms. Palos has co-facilitated several initiatives at her campus including “Mathematizing the Campus”, “Mathematics Spirit Week”, and the district’s first ever elementary “Mathematics Bee”. Within her district community, Ms. Palos has facilitated district presentations such as “Seesaw for Reading Instruction K-2 Professional Development” and “Seesaw Updates for Mathematics Coaches” and served as an Elementary Mathematics Teacher Leadership Team Member, an Emerging Teacher Leaders in Mathematics Education Academy Member, and an exemplar classroom for virtual instruction and blended learning. She has supported numerous district-level mathematics curriculum projects such as “Mathematics Routines: Number Talks, Choral Counting, Counting Collections” and “Seesaw Digital Library for K-2 Mathematics” as well as district-level literacy curriculum projects. Ms. Palos was the 2020-2021 Teacher of the Year for Stuchbery Elementary.
Outside of her school and district community, Ms. Palos is active on Twitter (@LaurenPalos), a platform through which she shares the work of her classroom and connects with other educators throughout the nation. She authored the article” Choral Counting in Action” for the 2021 Fall/Winter Texas Mathematics Teacher journal, a publication of the Texas Council of Teachers of Mathematics (TCTM) and also received one of TCTM’s grants to purchase manipulatives for her mathematics classroom.
Ms. Palos is a Seesaw Learning Ambassador, a Kahoot! Certified Educator, a TCEA Certified Educator Effective Math: K-2, and a Flipgrid Certificated Educator and has presented conference sessions at the regional (Region 4 ESC), state (CAMT), and national/global (Seesaw Connect Global Conference) levels. She is a member of the Texas Council of Teachers of Mathematics and the Texas Computer Education Association.
Ms. Palos’ commitment to educational excellence is evident in the ways in which she works to support her students’ success in mathematics while also supporting other mathematics educators in their efforts to ensure that all students learn at high levels. Ms. Palos is a particularly special teacher in that she is changing the trajectory of the lives of students at Stuchbery Elementary and it is evident in her students’ sense of efficacy with mathematics … and their performance in mathematics!
4. Jacob Miller - Cleveland ISD
4. Jacob Miller – Cleveland ISD
I am currently in my third year teaching at Southside Elementary in Cleveland ISD serving as a third grade math and science teacher in our dual language program. Over the course of my short career I have accomplished being grade chair, participated in our school’s STEM club; I also attended the 2021-2022 aspiring administrators academy for Cleveland ISD. This year I became a mentor for student teachers through our partnership with the University of Houston and was nominated for the 2022 Southside Elementary teacher of the year. My students have blossomed this year academically and I look forward to continuing my career in the field of education!
5. Teresa Black - Goose Creek CISD
5. Teresa “Faye” Felder Black – Goose Creek CISD
Upon selecting Ms. Teresa Black as a 2022 Appreciated Teacher Award Finalist, we were informed that Ms. Black unexpectedly passed away on April 24, 2022. In recognition of her accomplishments and with special permission from her family, the credit union is honoring Ms. Black’s nomination and including her in this year’s 2022 Appreciated Teacher Awards. Gulf Coast Educators FCU would like to extend condolences to Ms. Black’s family, her students, and the entire Goose Creek CISD community.
Teresa “Faye” Felder Black was a proud graduate of Ross S. Sterling High School – Class of 1981, Lee College and Lamar University in Beaumont, Texas. An educator for the past twenty-one years, Faye excelled in her work. She was a beloved member of the Baytown Junior High (BJS) staff working as a Special Education Teacher since 2006. She thoroughly enjoyed teaching Language Arts & Writing Composition to 6th-8th graders. During her tenure at BJS, Faye also tutored students in STAAR objectives, implemented the “Fast ForWord” Reading Program and served as the Robotics UIL Coach and the Special Education Team Lead. Prior to teaching at BJS, she taught at St. Joseph School from 2001-2006.
Among Faye’s many accomplishments was implementing Science Labs in collaboration with retired ExxonMobil Scientists; leading after school tutoring through the GCCISD Title 1 program; serving as Student Council-Sponsor, OLWEUS Bullying Team member, 8th Grade Banquet-Planner, PTO Teacher Representative, sponsor and member of the Christian Student Union/Fellowship of Christian Athletes and Washington D.C. – School Trip Coordinator. She was also an AVID Team Member and actively involved in the Boys Athletic Booster Club.
Faye’s genuine commitment to educating and supporting students did not go unnoticed. While at St. Joseph School, she was awarded Teacher of the Year and the Monsignor O’Sullivan Teacher Excellence Award. She was awarded Teacher of the Year again at BJS for the 2018-2019 school year.
One vote per valid email address is allowed. Voting ends May 9, 2022 at 11:59 pm CST. The finalist with the most votes will be awarded the title of GCEFCU’s 2022 Appreciated Teacher of the Year and receive a $2,500 honorarium. Remaining finalists will each receive a $500 honorarium. Results will be announced the week of May 9, 2022.
Understanding your escrow analysis statement for your mortgage can be confusing. Luckily, your friends at Gulf Coast Educators FCU are here to help. Let’s break it down.
What is escrow and do I have it?
Escrow is an account balance tied to your mortgage loan to pay your escrowed entities whenever they become due. Escrowed entities can include property taxes, insurance, and/or private mortgage insurance (PMI) when applicable. You can tell if you have escrow by reading your disclosure, reviewing your loan payments, or contacting the credit union.
How is my escrow payment calculated?
Escrow payments are calculated by adding the annual amount of escrowed entity’s payments and dividing this amount by 12 (months). View the example below:
Your escrow analysis statement has three main sections.
First – Your escrow account history. This is where you will see the payments you have made towards your escrow account. Here you will also see the payments that the credit union has made towards the entities in your escrow, such as your property taxes and homeowner’s insurance.
Next, you’ll see the escrow projections from the previous year. This section shows the differences in your payments from this year compared to last year. This will help you visualize the increase or decrease in your monthly payments.
The last page of the statement is your escrow projections for the upcoming year. The credit union reviews your account history with your current monthly payment to determine if your new payment will need to increase or decrease.
Surplus, Shortage, Deficiency…What does it all mean?
Now to decipher what it all means. You may see the following words next to a dollar amount on your statement: Surplus, Shortage, and Deficiency.
Surplus means that you paid more than you needed to into your escrow account. Typically, this means that the annual payment for one or more of your escrow entities decreased or remained the same. For example, if your property taxes or homeowners insurance cost decreased from the previous year. That surplus amount goes back directly to you.
Shortage means that you did not pay enough into your escrow account. Typically, this means that one or more of your escrow entities annual payments increased. As your lender, we pay your escrow entities, regardless of your balance. The shortage amount is how much you owe to your escrow account.
Deficiency means that you have shortage, but you are also negative in your escrow account as well. An escrow account requires at least 2 months worth of payments as a cushion, or safety balance. If you have a deficiency, that means you do not have enough money in your escrow account to cover the 2 months of payments and the shortage amount.
Putting It All Together
If you have a shortage or deficiency, you can pay this amount up front in full. If you cannot afford to make the full payment for the shortage or deficiency, that amount will be split into 12 equal amounts and rolled into your escrow payment for the next year.
At the end of your escrow analysis statement there is a recalculation of your escrow payment. If you have a surplus, your monthly payment will decrease. If you have a shortage or deficiency, your monthly payment will increase.
We hope this has helped you understand more about understanding your escrow account. If you have any questions, we are here to help.
Located conveniently in your GCEFCU app, Zelle® enables you to send and receive money with friends and family, no matter where they bank. Follow these easy tips to use Zelle® safely:
Only send to those you know and trust
Beware of payment scams
Treat Zelle® like cash
Zelle® is a fast, safe and easy way to send and receive money with people you trust, like your babysitter, your fellow PTA mom, your son’s soccer coach, or your coworker. Whether you just enrolled with Zelle® or have been an active user for a while, there are a few tips you should always keep in mind to ensure you are being safe when sending money.
Only send money to people you know and trust
Money moves fast with Zelle®, directly from checking account to checking account within minutes*. So, it’s important you know and trust the people you’re sending money to.
Why? Because you can’t cancel a payment once it’s been sent, if the recipient is already enrolled with Zelle®. And if you send money to someone you don’t know for a product or service you might not receive (like paying for something in advance), you may not get your money back. Keep in mind that sending money with Zelle® is similar to handing someone cash.
Beware of payment scams
One example of a payment scam is buying event tickets at a price that seems too good to be true from a stranger and never receiving them. If the seller asks you to use Zelle® to purchase the tickets, you should refuse unless the seller is a person you personally know.
Also, keep in mind that no one from GCEFCU will ask you to send them money with Zelle® as a test or to send money to avoid a fraud event. Neither GCEFCU nor Zelle® offers a protection program for authorized payments made with Zelle®. So, if you aren’t sure you will get what you paid for, you should use another payment method with purchase protection, such as a credit card.
Treat Zelle® like cash
Did your friend change phone numbers recently? It’s easy for people to change their phone number or email address. When in doubt, contact your friend to verify the email or U.S. mobile number they used to enroll with Zelle® before you hit “Send.” Another good check point for ensuring you’re paying the right person is to confirm the first name that is displayed for enrolled emails and U.S. mobile numbers.
If a person has already enrolled a U.S. mobile number or email address with Zelle®, you can’t cancel the transaction, so it’s important you get it right the first time.
If you’d like more information on safely using peer-to-peer payments, check out these articles from the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB).
*U.S. checking or savings account required to use Zelle®. Transactions between enrolled users typically occur in minutes.
Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.
Gulf Coast Educators Federal Credit Union’s 2022 Annual Meeting
Save the Date!
Gulf Coast Educators FCU will hold its 2022 Annual Meeting on Tuesday, February 22, 2022. All members are invited to join us as we review the credit union’s success over the last year and discuss what is in store for our future.
At least 120 days prior to each annual meeting the Chairman shall appoint a nominating committee of not fewer than three members. It shall be the duty of the nominating committee to nominate at least one member for each vacancy, including any unexpired term vacancy, for which elections are being held, and to determine that the members nominated are agreeable to the placing of their names in nomination and will accept office if elected. The nominating committee shall file its nominations with the secretary of the credit union at least 90 days prior to the annual meeting, and the secretary shall notify in writing all members eligible to vote at least 75 days prior to the annual meeting that nominations for vacancies may also be made by petition signed by one percent of the members with a minimum of 20 and a maximum of 500.
The election will not be conducted by ballot when there is only one nominee for each position to be filled. There will be no nominations from the floor. A brief statement of qualifications and biographical data in such form as shall be approved by the board of directors will be included for each nominee submitted by the nominating committee with the written notice to all eligible members. Each nominee by petition shall submit a similar statement of qualifications and biographical data with the petition. The closing date to receive the petition is January 12, 2022 at 12:00 a.m. The credit union’s Board Nominating Committee announces the following members as Board Nominees for the upcoming Annual Meeting which will be held on Tuesday, February 22, 2022: Jerry Dennis, Damico Bartley, and Richard Mills. The petitions are to be mailed to Gulf Coast Educators Federal Credit Union; 5953 Fairmont Parkway, Pasadena, Texas 77505. To be effective, such nominations shall be accompanied by a signed certificate from the nominee or nominees stating that they are agreeable to nomination and will serve if elected to office. Such nominations shall be filed with the secretary of the credit union at least 40 days prior to the annual meeting and the secretary shall cause such nominations along with those of the nominating committee to be posted in a conspicuous place in each credit union office at least 35 days prior to the annual meeting.
An individual who wishes to be nominated must be a member of Gulf Coast Educators FCU (Owner of an account in his/her own name) in good standing and must be at least eighteen (18) years of age. The petition and application and agreement to serve are available at the Pasadena office.
Election Procedures
All elections shall be determined by plurality vote and shall be by ballot except where there is only one nominee for each position to be filled. Nominations shall not be made from the floor unless sufficient nominations have not been made by the nominating committee or by petition to provide for one nominee for each position to be filled or circumstances prevent the candidacy of the one nominee for a position to be filled. Only those positions without a nominee shall be subject to nominations from the floor. In the event of nominations from the floor, when permitted herein, result in more than one nominee for a position to be filled, and when nominations have been closed, tellers shall be appointed by the president, ballots shall be distributed, the vote shall be taken and tallied by the tellers, and the results announced. When only one member is nominated for each position to be filled, the chair may take a voice vote or declare each nominee elected by general consent or acclamation at the annual meeting.
Board Nominees
Board Nominees
Jerry Dennis – Position 1 for a 3 year term Damico Bartley – Position 8 for a 3 year term Richard Mills – Position 11 for a 3 year term
Nominating Committee
Nominating Committee
Andrea Wenke – Chairman Jim Rubach Lisa Nixon
Meeting Details
Meeting Details
Date & Time:
February 22, 2022 at 6:30 pm
Location:
Pasadena Convention Center
7902 Fairmont Parkway
Pasadena, TX 77505
Santa Claus is coming to town! He will be visiting our Pasadena branch to take pictures and visit with our members on Friday, December 17, 2021. Remember to bring your own camera!
Sandy Saver members, now is your chance to win big! Enter your drawing to win GCEFCU’s Design A Christmas Card Contest. The grand prize winner will receive $50!
You may submit your artwork by dropping it off at any GCEFCU location, or by mailing it to the address listed below. Please include the child’s name, parent’s name, child’s member number, and a good phone number. You can download and print the form here.
Gulf Coast Educators Federal Credit Union ATTN: Marketing Department 5953 Fairmont Pkwy Pasadena, TX 77505
Credit union members age 12 and under are eligible. Must have a Sandy Savers account to enter. Please turn in by November 20, 2021.
Medicare Open Enrollment for 2022 Begins October 15
Medicare beneficiaries can make new choices and pick plans that work best for them during the annual Medicare Open Enrollment Period. Each year, Medicare plan costs and coverage typically change. In addition, your health-care needs may have changed over the past year. The Open Enrollment Period — which begins on October 15 and runs through December 7 — is your opportunity to switch your current Medicare health and prescription drug plans to ones that better suit your needs.
During this period, you can:
• Switch from Original Medicare to a Medicare Advantage Plan
• Switch from a Medicare Advantage Plan to Original Medicare
• Change from one Medicare Advantage Plan to a different Medicare Advantage Plan
• Change from a Medicare Advantage Plan that offers prescription drug coverage to a Medicare Advantage Plan that doesn’t offer prescription drug coverage
• Switch from a Medicare Advantage Plan that doesn’t offer prescription drug coverage to a Medicare Advantage Plan that does offer prescription drug coverage
• Join a Medicare prescription drug plan (Part D)
• Switch from one Part D plan to another Part D plan
• Drop your Part D coverage altogether
Any changes made during Open Enrollment are effective as of January 1, 2022.
Review plan options
Now is a good time to review your current Medicare benefits to see if they’re still right for you. Are you satisfied with the coverage and level of care you’re receiving with your current plan? Are your premium costs or out-of-pocket expenses too high? Has your health changed? Do you anticipate needing medical care or treatment, or new or pricier prescription drugs?
If your current plan doesn’t meet your health-care needs or fit your budget, you can switch to a new plan. If you find that you’re satisfied with your current Medicare plan and it’s still being offered, you don’t have to do anything. The coverage you have will continue.
Information on costs and benefits
The Centers for Medicare & Medicaid Services (CMS) has announced that the average monthly premium for Medicare Advantage plans will be $19, and the average monthly premium for Part D prescription drug coverage will be $33. CMS will announce 2022 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs soon.
You can find more information on Medicare benefits in the Medicare & You 2022 Handbook on medicare.gov.
Non-deposit investment products and services are offered through CUSO Financial Services, LP (“CFS”) a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS:are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal.Investment Representatives are registered through CFS. The Credit Union has contracted with CFS for investment services. Atria Wealth Solutions, Inc. (“Atria”) is a modern wealth management solutions holding company. Atria is not a registered broker-dealer and/or Registered Investment Advisor and does not provide investment advice. Investment advice is only provided through Atria’s subsidiaries. CUSO Financial Services, LP is a subsidiary of Atria.
Prepared by Broadridge Advisor Solutions Copyright 2021.
What do I do with my old 403(b) when I switch jobs?
If you are an educator, changing jobs means you must decide what to do with the money in your 403b retirement account. Leaving the money in an old 403b may not be the best option since it is not growing and there will be no new contributions. Withdrawing the money makes it taxable income and Uncle Sam wants his fair share.
The best thing to do may be to roll that money over into a retirement account that earns money and will help the balance grow. An old 403b plan can be rolled into a traditional or Roth IRA, tax-free, giving you access to limitless investment options. It can also be transferred to a current employer’s 401k or 403b retirement plan where contributions can continue to be made up to annual federal limits.
Traditional or Roth IRA
One of the most popular options for rolling over an old 403b plan is to put the money into a Traditional or Roth IRA account. An IRA account is an independent account that is typically not offered by the employer. Basic IRAs typically have lower interest rates, but your money is completely safe and insured. If you opt to go with a financial advisor and open an IRA that is tied to stocks and bonds, you may earn more at a faster rate, but you also put your money at risk.
A good in-between option is a Premium Market IRA. With this type of IRA, your funds are completely secure, but you earn a higher rate that is tied to the market. It is tax-privileged, earns higher dividends, and your money is insured and safe, so you won’t have to worry about losing money because of the market.
Sometimes, rolling over an old 403b means putting the money into a new 403b plan. If a new employer offers a plan with investment options you are comfortable with, then this may be right for you. It is important that you first familiarize yourself with the investment options and potential constraints of the new plan. However, many people enjoy the benefit of growing their nest egg quickly by keeping the bulk of their retirement in a 403b plan. An employer-sponsored 403b plan typically offers low administrative costs, making it an affordable option. There are no tax penalties for rolling money over into a new 403b plan, and you can still make tax-free contributions.
401k
If your new employer offers a 401k, then the IRS allows you to roll your old 403b retirement savings into that new account. This is known as a tax-free conversion. There are no tax penalties for this conversion, and you can still make tax-free contributions, subject to annual limits. Many employers also match contributions into a 401k plan, up to a certain percentage, allowing savings to grow quickly. As with the 403b option, the contribution limits are higher, and there is a catch-up provision for people over 50 years old. If you happen to max out your annual contributions, some employer-sponsored 401k plans have provisions that allow participants to make after-tax contributions as well.
Aside from growing your money quickly, a 401k plan offers a certain amount of asset protection, too. First, plan administrators must abide by the Employee Retirement Income Security Act, also known as ERISA. This means that they must comply with a set of fiduciary standards that put your best interest first, instead of pushing investments that may maximize profits. Plans are subject to full disclosure of historical performance and administrative fees. Assets are also protected from creditors and can’t be garnished, with a few minor exceptions. Many employer-sponsored 401k plans offer payroll deductions, making it easier to save for retirement.
The opinions expressed on this page are for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author of the article and may not reflect the views of the credit union.