What is a rollover and how is it used?

A rollover is the process of moving tax-deferred money from a qualified pretax investment account or retirement plan to TRS to pay for the purchase of optional service, reinstatement of terminated service, payment of 2.2 upgrade contributions, or for the member Early Retirement Option (ERO) contribution.

What types of rollovers will TRS accept?

We can accept rollover contributions (other than after-tax contributions) from:

• another qualified Section 401(a) or 401(k) or Keogh plan;
• an annuity plan described in Internal Revenue Code (IRC), Section 403(a);
• a tax-sheltered annuity contract described in IRC, Section 403(b);
• an individual retirement account or annuity (IRA) under IRC, Section 408(a) or Section 408(b) that is eligible to be rolled over and would otherwise be included in gross income;
• a conduit individual retirement account described in IRC, Section 408(d);
• a Simplified Employee Pensions Plan (SEP) under IRC, Section 408(k);
• a Savings Incentive Match Plan for Employees (Simple IRA) under IRC, Section 408(p), if there has been participation in the plan for at least two years; and
• an eligible deferred compensation plan under IRC, Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.

Additionally, TRS will also accept spousal rollovers of distributions from Section 401(a), 401(k), Keogh, 403(a), 403(b) and 457(b) plans that the member’s deceased spouse participated in or that have been divided by a Qualified Domestic Relations Order.

Roth IRAs are not rollover eligible at this time.

How do I start the rollover process?

You must first establish an accounts receivable for the purchase of optional service credit, to repay a refund, to pay the 2.2 upgrade contribution, or to pay the member Early Retirement Option contribution. The amount rolled over cannot exceed the receivable balance(s).

Then, contact your plan administrator to determine what paperwork they will require and when the rollover will occur. A TRS Trustee to Trustee Transfer/Rollover Certification form must be completed by you and the plan administrator issuing the rollover check to us. We cannot process the payment without the completed form because it provides written confirmation from the transferring plan that the amounts to be deposited are eligible for roll over.

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