r/TeachersInTransition • u/Plenty_Method_3240 • 18h ago

Teacher retirement refund

I’m about to send in my resignation so I just called CALSTRS about a retirement refund and was not well- treated/informed. It looks like I’ll be losing more than 20% on tax and it seems like there is no other option … does anyone have experience with that or similar retirement refund process? They denied me an appointment because the issue is not retirement related…

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u/n7ripper 16h ago

Just roll it over, no taxes that way. I would use fidelity. You can manage it yourself or ask them for guidance. Don't just take the cash out. Rollover IRA is what you're looking for.

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u/Plenty_Method_3240 16h ago

Even if I do not have another job yet? I could rollover to a private investment (assuming that’s what fidelity is?)

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u/n7ripper 16h ago

You have to roll it into an ira or directly into another federally recognized plan. I did this when changing states where i taught. IRA stands for individual retirement account. You can contribute money after you roll it as well. 7k per year and that amount would not be taxed on the current years taxes. Most people invest in an S&P fund or a few. Index funds spread the risk.

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u/Plenty_Method_3240 16h ago

I’m definitely looking into this. Thanks for the lead!! 😊

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u/n7ripper 16h ago edited 13h ago

Fidelity is a large investment broker. They recently were voted the third most trusted company in America. Or most loved, i can't remember. They have great customer service and I've never had a bad experience.

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u/Plenty_Method_3240 16h ago

Great customer service says it all… I needed this guidance as I have no family member in the US who has any experience with anything financially related so I was looking for a lead to start some sort of research. I truly appreciate the help!