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Tim Hayes - MA Public Employee Retirement Advisor

403(b) Rollover Options for Massachusetts Educators: Rules, Fees & IRA Strategies

Independent guidance on moving away from district annuity vendor lists, coordinating with your MTRS pension, and deciding between fee-based advice or one-time implementation.

The Game Has Changed: The WEP/GPO Repeal

For 40 years, Massachusetts educators were penalized for their public service. That era has ended.

  • WEP Repeal: You now receive your full earned Social Security benefit from other jobs or prior careers. No more “Windfall” cuts.
  • GPO Repeal: This is the nice payday. Most MA teachers previously saw their spousal or survivor benefits reduced to zero. Now, you are eligible for the full benefit—often adding $800–$1,200+ per month in guaranteed income.

What This Means for Your 403b Rollover and Retirement Savings

The Strategic Shift: Many educators were enrolled in high-fee 403(b) annuities because those were the only plans available in the school system. Now that the Fairness Act has boosted your Social Security, you have a much larger financial “cushion.”

This extra income gives you the freedom to move away from restrictive, guarantee-based products and pivot toward a lower-cost strategy focused on growth and legacy.

A Higher Legal Bar: the Best Interest Standard for Rollovers

When you retire and we discuss a direct rollover, the bar is raised significantly. We move from the old “Suitability Standard” (which allowed high-fee annuities) to the SEC’s Regulation Best Interest.

  • The Rollover Reset: A rollover recommendation today must clear a much higher bar. Under modern “Best Interest” standards, we aren’t looking for “just okay”—we are looking for a provably more efficient, lower-cost way to manage your retirement assets.
  • The “Reason Why” Documentation: I am required to provide you with a written comparison of your school plan’s fees and investments compared directly to those of the new IRA.

Who you would be working with

I'm Tim Hayes, an independent fiduciary advisor with 35 years of experience. I'm a statewide specialist: I meet educators at their schools, local libraries, or virtually, and I coordinate directly with your district's third-party administrator. You work directly with me.

More about me and how I work →

Your Two 403b Rollover Options for 2026

I believe the way you pay for advice should match the service you actually need. I offer two distinct paths:

  • Ongoing Management: Best if you want a partner for long-term fiduciary oversight, active rebalancing, and professional coordination of your IRA or employer plan assets with your MTRS pension and Social Security.
  • The One-Time Commission: Best if you want to move out of your school’s high-fee 403(b) and into a world-class portfolio without a recurring management fee. You “own” the allocation and maintain your account without an annual advisory charge.

Path 1: Ongoing Management with Full Fiduciary Oversight

This is an advisory relationship where I manage the day-to-day logistics of your portfolio so you don’t have to.

  • Fiduciary Oversight: A fee-based model where I act as a fiduciary to keep your risk aligned with your retirement timeline.
  • Lower Internal Costs: I prioritize low-cost Index Funds and ETFs to keep your total investment expenses as low as possible.
  • The Pershing Advantage: Your assets are held securely at Pershing (Bank of New York Mellon). This gives us “Open Market” access to over 10,000 mutual funds and ETFs, far beyond any school district’s limited list.
  • Active Management: I am responsible for building your allocation, monitoring market shifts, and rebalancing your accounts.
  • Strategic Distributions: When you need income, I decide which specific assets to sell to maintain your portfolio’s health, rather than just liquidating whatever is on top.

Path 2: One-Time Implementation

  • The “Slice of the Pie” Management: Unlike most funds that rely on the “whims” of a single star manager, American Funds uses a multi-manager system. Each fund is divided among several independent managers who each manage a separate “slice” of the portfolio. This ensures your retirement isn’t dependent on one person’s opinion; instead, it’s a blend of the highest-conviction ideas from a diverse team.
  • Well-Suited for Retirees (Growth & Income): Most retirees with a pension need a blend of growth to outpace inflation and income to supplement their lifestyle. American Funds’ specialty is this “Growth and Income” mix, providing a stable core for your 403(b) rollover.
  • The “Big Rollover” Advantage: Through Rights of Accumulation (ROA), the bigger the rollover, the lower the sales charge. We focus on utilizing the size of your rollover to hit lower-cost “breakpoints” on day one. While the sales charge reaches 0% (NAV) at the $1 million mark, the costs drop significantly at levels like $250k and $500k.

Read More: How Financial Advisors Get Paid: Fees, Commissions & Fiduciary Advice →

IRMAA Planning and Roth IRA

At age 65, most retirees enroll in Medicare, including Part B for outpatient care.

The cost of Part B is typically deducted from Social Security payments. However, your income level can affect your premium amount. This connection is important because it is where Roth IRAs may be relevant when considering a 403 (b) rollover.

Because Roth withdrawals are not counted as income for IRMAA, we review the current IRMAA tables together. By projecting your potential IRMAA status, we help determine if moving some or all of your 403b rollover into a Roth IRA could benefit your future premiums.

Navigating Massachusetts-Specific Rules

The 2009 IRS rules turned 403(b) accounts into employer-sponsored plans, making them far more cumbersome to manage. I handle that administrative burden for you.

  • TPA Management: Whether your district uses OMNI or TSACG, I manage the paperwork and the process to ensure a seamless transition.
  • Sick Time Buy-Backs (Boston Only): For Boston educators, I help you maximize your final 403(b) deferral to shield your sick time buy-back from the IRS.
  • Full Control: A rollover moves your money into an environment where you have full control over assets and beneficiary designations.

When you leave your employer, you can also leave your 403(b) for a better option in a Traditional IRA →

View Directory of Massachusetts School Districts Served (Statewide)
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Is a 2026 Rollover Right for Your Current Retirement Plan?

  • Creditor Protection: Under federal law (11 U.S.C. § 522(n)) and MA State Law (MGL Ch. 235 § 34A), funds rolled from a 403(b) into an IRA maintain protection in bankruptcy court. You aren’t giving up a shield; you are moving it to a different bucket.
  • The “Rule of 55”: If you are under age 59½, we must check if you need “Rule of 55” access to your current plan. Once rolled into an IRA, you generally wait until 59½ to avoid the 10% penalty. We ensure you have enough liquid cash set aside elsewhere so this is never an issue.

The Cost Comparison: DIY vs. Professional Help

The absolute lowest-cost option is a do-it-yourself (DIY) rollover to a low-cost provider like Vanguard or Fidelity.

But here’s what they won’t do:

  • Maximize your new Social Security benefits—a decision worth tens of thousands over your lifetime.
  • Provide structured guidance for a major, one-time investment. Moving a large sum amid market uncertainty requires a plan to manage sequence-of-returns risk and your own peace of mind. I help implement a prudent strategy (like systematic investing) based on your personal risk tolerance.
  • Coordinate it all into one personal income plan with your MTRS pension.

My value is in executing a strategic, behaviorally sound transition, not just a paperwork shuffle.

I offer two professional alternatives: my One-Time Commission setup or my Ongoing Management service.

Reach out to find out if my services are right for you.

Request a Free Intro Call → Direct Line: (508) 277-5847

These are the opinions of Financial Advisor Tim Hayes and not necessarily those of Cambridge Investment Research. They are for informational purposes only and should not be construed or acted upon as individualized investment advice. Content provided via links to third-party sites should not be considered an endorsement of content that we cannot verify completeness or accuracy of.

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