re: What does Louisiana tax a 403b pulled out early?

"Small amount under $2k...sounds more complicated than it's worth"

Let's assume it's ~$2k. First you lose 10% to penalty (-$200). Then you pay your federal marginal tax rate likely 12 or 22% (another -$240-$440). Then LA tax rate of 3.5 or 4.25% (-$70-85)

So you'd be looking at roughly a $510-725 tax on $2k. (Maybe a bit less if income tax is only on the remaining amount after penalty, I'm not sure) Is your time (less than an hour to rollover to IRA) worth that? You should be more concerned with the penalty and federal tax than smaller state rate anyway.

Keep it invested. Compounding works same if it's a large amount or smaller. $2k in its own account grows same as $2k in a larger account. Makes no sense to withdraw yet continue contributing to new 403b unless only doing enough to get employer match.