From Tenure to Retirement: Options for Yale Faculty
In my previous article, YURAP: A Guide to The Yale University Retirement Account Plan, I analyzed the structure and core components of the retirement plan available to esteemed Yale faculty. I explored how to maximize your benefits, understand your options, and make well-informed decisions throughout your career.
In today’s article, let’s take the next step: what comes after retirement? Many of you reading this are either approaching or have already completed your years of service to Yale University. Now, you're looking to determine how best to manage your 403(b) retirement account going forward.
Your decisions at this stage are crucial. They can impact your available investment options, your ability to manage costs effectively, and your access to professional wealth management, tax, insurance, and estate planning resources.
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Understanding the 403(b) During and After Your Yale Career
The Accumulation Stage: YURAP in Practice
During your working years at Yale, you likely participated in the Yale University Retirement Account Plan (YURAP), administered by TIAA (Teachers Insurance and Annuity Association). This plan includes:
Employee contributions
Employer match contributions
University Core Contributions
All of these are directed into a 403(b) retirement savings account.
A 403(b) plan, designed for public school and tax-exempt organization employees, is similar to a 401(k) in the private sector. It includes:
Annual contribution limits and catch-up contributions
Limited investment selections
Administrative fees
Vesting schedules
YURAP has served as an effective tool to build your retirement nest egg—particularly with the added benefit of contribution matching and university core contributions from Yale.
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Transitioning to Retirement: Key Considerations
1. Are the Investment Options Still Right for You?
Once you begin withdrawing from your retirement savings, it's important to assess whether keeping your funds in the 403(b) is the best choice. Most 403(b) plans—including YURAP—offer a limited range of investment options, typically between 15 and 30, including:
Mutual funds
Annuity contracts
Target-date funds
While these may have served you well during your accumulation phase, they might not support the level of diversification needed in retirement when contributions stop, and investment flexibility becomes more critical.
2. What Will It Cost to Keep Your Account?
Another factor is account-related fees. If you’ve reviewed your quarterly statements, you’ve probably seen a “plan servicing fee.” If you participated in the Yale Target-Date Plus Service, you also incurred additional quarterly fees to cover fiduciary oversight.
Upon retirement, Yale may no longer subsidize these expenses. As noted in the Plan Summary Description, Yale reserves the right to charge your account a pro rata share of administrative costs—even if it continues covering them for current employees. Be sure to contact your plan administrator to understand exactly what fees will apply moving forward.
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Considering a Rollover: IRA Options and Benefits
Given the limitations we discussed, one option worth exploring is a direct rollover of your 403(b) account into:
A Traditional IRA, for pre-tax contributions
A Roth IRA, for any after-tax contributions
Managing the Rollover
While working with a financial advisor is strongly recommended, you can initiate and manage the rollover on your own by opening an IRA through a reputable brokerage such as:
Vanguard
Fidelity
Charles Schwab
Why Work with a Fiduciary Advisor?
A fiduciary financial advisor is legally required to act in your best interest. Partnering with one gives you access to:
Personalized investment allocation strategies
A comprehensive retirement and financial plan
Active management of withdrawals and asset allocation
Guidance on spending levels based on your goals and portfolio
Tax, estate, and insurance planning tailored to your needs
This level of personal attention is often not available within the 403(b) structure.
Unlocking More Investment Options Through an IRA
Rolling over to an IRA opens up a broader array of investments compared to the limited offerings in your 403(b). These include:
Individual stocks and bonds
U.S. Treasuries
Real estate funds
Cryptocurrency
Exchange-Traded Funds (ETFs)
Why ETFs Deserve Special Attention
ETFs stand out as an excellent retirement investment option due to:
Low costs: Most passive ETFs have expense ratios between 0.10% and 0.15%
Diversification: Gain exposure to entire markets or sectors through a single fund
Liquidity: Unlike mutual funds, ETFs can be traded throughout the day
Ease of access: Simple to buy, sell, and manage across asset classes
This broader access allows you to build a more customized portfolio aligned with your unique financial needs and risk tolerance.
Final Thoughts: Is Rolling Over Right for You?
Two common questions we often hear are:
“Is leaving my 403(b) plan a bad decision?” – Not necessarily.
“Can rolling my account into an IRA create more opportunities and better align with my goals?” – Absolutely.
Choosing the best path forward is a highly personal decision. It should be made thoughtfully and with clarity.
Next steps:
List out all of your questions about your 403(b) plan and contact your current plan administrator to get the answers you need to make the best decision for you.
Meet with a qualified financial advisor who can elaborate further on the rollover process and offer personalized guidance to help ensure your financial strategy remains aligned with your retirement goals.
Your retirement deserves the same level of care and planning as your career—and your next financial chapter starts with the right advice.
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If you have a question or topic that you’d like to have considered for a future episode/blog post, you can request it by going to www.retirewithryan.com and clicking on ask a question.
As always, have a great day, a better week, and I look forward to talking with you on the next blog post, podcast, YouTube video, or wherever we have the pleasure of connecting!
Written by Ryan Morrissey
Founder & CEO of Morrissey Wealth Management
Host of the Retire with Ryan Podcast