Texa$aver Rollovers for Retirees

Consolidating your accounts saves money on fees. Rolling over your money is easy. You can roll over your:

  • Texa$aver 401(k) Plan into your Texa$aver 457 Plan; and/or
  • Texa$aver 457 Plan into your Texa$aver 401(k) Plan.

How to Get Started

First, decide whether it is a direct or indirect rollover. Use the forms located on the Texa$aver website:

Prior Employer Plans

You can also roll prior employer 401(k), 401(a), 403(b), or prior eligible governmental 457 plans into either the Texa$aver 401(k) or 457 Plan. When you consolidate plan accounts, you only have to pay fees on one account. This means you may pay less in fees and would have fewer accounts to manage.

Texa$aver 401(k) Plan

You can roll your Texa$aver 457 Plan to your Texa$aver 401(k) Plan. However, you must have a qualifying reason. A qualifying reason is either retirement or separation of service.

  • You can roll money from a governmental 457 plan into the Texa$aver 401(k) Plan.
  • Any money you roll into the 401(k) plan becomes subject to a 10% early withdrawal penalty if taken from the account before you are 59½.

Texa$aver 457 Plan

  • You can roll your Texa$aver 401(k) Plan to your Texa$aver 457 Plan. However, you must have a qualifying reason. A qualifying reason is retirement, separation of service, or turning age 59½.
  • You can roll money from a 401(k), 401(a), or 403(b) plan into the 457 Plan (the early withdrawal penalty still applies to the 401(k), 401(a) and 403(b) monies).

Any money you roll into the 457 that was subject to the 10% early withdrawal penalty continues to be subject to a 10% early withdrawal penalty if taken from the account before you are 59½. Rollovers from other eligible governmental 457 Plans will not be subject to an early withdrawal penalty if directly rolled into the Texa$aver 457 plan.

Direct Rollover

A direct rollover is when a distribution from your former employer is made to your Texa$aver 401(k) or 457 Plan. This lets you avoid a 20% withholding by the IRS. Follow these steps:

  1. Complete the appropriate Incoming Transfer/Rollover Request form, sign it, and mail it the address on the form. Include a copy of your statement from your former employer's retirement plan.
  2. Once you receive an approval letter, complete your previous employer's required form using the payment instructions indicated in the approval letter.

Indirect Rollover

An indirect rollover is when you get a check from your previous employer 401(k) or 457 Plan. The previous employer usually withholds 20% of this check for federal income tax. Follow these steps:

  1. Complete the appropriate Incoming Transfer/Rollover Request form.
  2. Sign the form and mail it to the address on the form. Include a copy of your statement from your previous employer's retirement plan and the check for the amount you are transferring.
  3. To avoid an IRS penalty, mail the rollover distribution check within 60 days of receipt.