Austin: Sorting Out Retirement Accounts After a Job Change
Who this helps: Austin-area workers with plans from technology employers, startups, higher education, or state agencies
One Austin career can produce a 401(k) from a private employer, a 403(b) from a university or nonprofit, and a governmental 457(b) or state retirement system account. This page separates those account types, explains what happens when a startup is acquired or a plan is terminated, and compares staying, moving to a new plan, rolling to an IRA, or taking a distribution.
One labor market, several kinds of retirement plan
Semiconductor and software employers, fast-growing startups, a large public university system, and the state agencies headquartered in the capital all draw from the same talent pool. People move between those sectors mid-career, and the sectors do not use the same retirement plans.
Public school and higher-education employees may have service credit with the Teacher Retirement System of Texas, and many state agency employees participate in the Employees Retirement System of Texas. Those are separate from any supplemental 403(b) or 457(b) savings account, and separate again from a 401(k) at a private employer. Sorting the account types is the first real step.
When a startup is acquired, merged, or shut down
Small-company plans change hands often. In an acquisition the plan may be merged into the buyer’s plan, frozen, or terminated; in a wind-down it is typically terminated and balances are distributed or transferred. A recordkeeper change alone can also make an old login stop working while the balance is perfectly intact.
When a plan terminates, participants generally receive notices and an election window, and balances left unclaimed may be moved to an individual retirement account or another default destination. If you ignored that mail during a stressful layoff, ask the former plan or its recordkeeper for the distribution date, amount, and receiving institution.
Equity compensation is not retirement plan money
Vested shares, options, an employee stock purchase plan, and a taxable brokerage account are not eligible for rollover to an IRA, even though they often sit in the same online portal as a 401(k) and often show up in the same job change. Rolling over applies to eligible retirement plan and IRA amounts.
Keeping the two categories separate prevents two common mistakes: assuming equity proceeds can be sheltered in an IRA after the fact, and overlooking an actual plan balance because the portal was mentally filed under “stock stuff.” List each account with its type before making any decision.
Identify each account, one employer at a time
Work employer by employer rather than portal by portal, since one company may have used several providers over the years.
- Note the exact plan name and recordkeeper from a statement, notice, or enrollment email
- Check each year’s W-2 for the retirement plan indicator to confirm participation
- For public employment, contact the state system named on your records for service credit questions
- Ask each plan for vested balance, loan status, and Roth versus pre-tax and after-tax amounts
- Use the DOL Retirement Savings Lost and Found when a company no longer exists
A job-change checklist worth running every time
Equity vesting deadlines tend to crowd out retirement paperwork during a transition. These items take minutes and prevent months of untangling later.
- Download final statements before your access to the employer portal is cut off
- Record the recordkeeper’s name, plan number, and participant service phone number
- Confirm whether an outstanding plan loan must be repaid on an accelerated schedule
- Update mailing address and beneficiaries on the old plan, not only the new one
- Ask the new employer’s plan whether it accepts rollovers, and which documents it needs
Compare the four options, then verify anyone who advises you
Staying in the old plan, moving to a new employer plan, rolling to an IRA, and taking a distribution all remain on the table until you compare fees, investment menus, services, tax treatment, and protections. Match tax character when you move money: Roth amounts belong in a Roth destination unless you intend a taxable conversion.
If you bring in help, search the individual and firm on FINRA BrokerCheck and confirm state registration through Texas State Securities Board resources. This site publishes educational guides and does not claim to have Austin technology-industry specialists on call; advisor availability varies and is confirmed case by case, with no obligation to move an account.
Sources to verify
- DOL Retirement Savings Lost and Found
- IRS — Rollovers of Retirement Plan and IRA Distributions
- Teacher Retirement System of Texas
- Employees Retirement System of Texas
- Texas State Securities Board
- FINRA BrokerCheck
Educational information only — not tax, legal, or investment advice. Plan rules vary. Advisor availability is confirmed case by case.
Common questions
Can I roll my RSUs or ESPP shares into an IRA?
No. Rollover rules apply to eligible retirement plan and IRA amounts, not to vested equity, an employee stock purchase plan, or a taxable brokerage account. Those follow their own tax rules, so keep them in a separate column when you inventory accounts after a job change.
My startup terminated its 401(k) plan. What happened to my money?
Terminating plans generally notify participants and provide an election window, then distribute or transfer remaining balances, sometimes to a default individual retirement account. Ask the former plan or recordkeeper for the date, amount, and receiving institution, and check the DOL Lost and Found if nobody responds.
Is my TRS or ERS account the same as a 403(b) or 457(b)?
No. State retirement system participation is separate from a supplemental 403(b) or 457(b) savings account, and each has its own administrator and rules. Contact the system named on your records for service credit and benefit questions, and the plan’s recordkeeper for the supplemental account.
Should Roth 401(k) money go into a Traditional IRA?
Generally no. Roth amounts belong in a Roth destination to preserve their tax character; mixing them into a Traditional IRA is usually incorrect. Confirm on your statement how much is Roth, pre-tax, and after-tax before requesting a direct rollover.
Do I need an advisor to handle this?
Not necessarily. Identification and direct rollovers are administrative processes you can run yourself. Advice is most useful for the decision itself, and if you want it, verify the person’s registration and ask exactly what they will do and how they are paid.
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