diff --git a/collects/tests/typed-scheme/optimizer/tests/with-type.rkt b/collects/tests/typed-scheme/optimizer/tests/with-type.rkt
new file mode 100644
index 00000000..a15fbeb3
--- /dev/null
+++ b/collects/tests/typed-scheme/optimizer/tests/with-type.rkt
@@ -0,0 +1,16 @@
+#;
+(
+with-type.rkt line 13 col 19 - + - binary float
+34.6
+)
+
+#lang racket
+
+(require typed/racket)
+
+(with-type ([fun (Float -> Float)]
+            [val Float])
+  (define (fun x) (+ x val))
+  (define val 17.3))
+
+(fun val)
diff --git a/collects/typed-scheme/core.rkt b/collects/typed-scheme/core.rkt
index 6889d2da..fefdf970 100644
--- a/collects/typed-scheme/core.rkt
+++ b/collects/typed-scheme/core.rkt
@@ -6,7 +6,6 @@
          (private with-types type-contract)
          (except-in syntax/parse id)
          racket/match racket/syntax unstable/match
-         (optimizer optimizer)
          (types utils convenience)
          (typecheck typechecker provide-handling tc-toplevel)
          (env type-name-env type-alias-env)
@@ -18,13 +17,6 @@
 
 (provide mb-core ti-core wt-core)
 
-(define (maybe-optimize body)
-  ;; do we optimize?
-  (if (optimize?)
-      (begin0 (map optimize-top (syntax->list body))
-        (do-time "Optimized"))
-      body))
-
 (define (mb-core stx)
   (syntax-parse stx
     [(mb (~optional (~or (~and #:optimize    (~bind [opt? #'#t])) ; kept for backward compatibility
diff --git a/collects/typed-scheme/private/with-types.rkt b/collects/typed-scheme/private/with-types.rkt
index bf2c6035..b79178c0 100644
--- a/collects/typed-scheme/private/with-types.rkt
+++ b/collects/typed-scheme/private/with-types.rkt
@@ -6,6 +6,7 @@
           "../base-env/prims.rkt"
           (prefix-in c: (combine-in racket/contract/region racket/contract/base)))
          "../base-env/extra-procs.rkt" "../base-env/prims.rkt"
+         "../tc-setup.rkt"
          syntax/parse racket/block racket/match
          unstable/sequence  "../base-env/base-types-extra.rkt"
          (except-in (path-up "env/type-name-env.rkt"
@@ -97,7 +98,7 @@
                 [(ex-id ...) exids]
                 [(ex-cnt ...) ex-cnts]
                 [(region-cnt ...) region-cnts]
-                [body expanded-body]
+                [body (maybe-optimize expanded-body)]
                 [check-syntax-help (syntax-property #'(void) 'disappeared-use (type-name-references))])
     (if expr?
         (quasisyntax/loc stx
diff --git a/collects/typed-scheme/tc-setup.rkt b/collects/typed-scheme/tc-setup.rkt
index 176b6636..87ce15f0 100644
--- a/collects/typed-scheme/tc-setup.rkt
+++ b/collects/typed-scheme/tc-setup.rkt
@@ -5,6 +5,7 @@
          unstable/mutated-vars
          racket/pretty
          scheme/base
+         (optimizer optimizer)
          (private type-contract)
          (types utils convenience)
          (typecheck typechecker provide-handling tc-toplevel)
@@ -18,12 +19,19 @@
          (for-syntax racket/base)
          (for-template racket/base))
 
-(provide tc-setup invis-kw)
+(provide tc-setup invis-kw maybe-optimize)
 
 (define-syntax-class invis-kw
   #:literals (define-values define-syntaxes #%require #%provide begin)
   (pattern (~or define-values define-syntaxes #%require #%provide begin)))
 
+(define (maybe-optimize body)
+  ;; do we optimize?
+  (if (optimize?)
+      (begin0 (map optimize-top (syntax->list body))
+        (do-time "Optimized"))
+      body))
+
 (define-syntax-rule (tc-setup orig-stx stx expand-ctxt fully-expanded-stx checker result . body)
   (let ()
     (set-box! typed-context? #t)