When you retire, you can keep your money with the Texa$aver program as long as you like, without losing your options.
- Leave your money in your 401(k) or 457 program as is.
- Receive periodic payments, which is like still getting a paycheck in retirement
- Take a partial lump sum distribution(s); withdrawal what you need, when you need it, or take all of the money in a single lump-sum distribution
- Roll over the balance in whole or part to another qualified plan or an IRA.
While you don’t need to do anything to maintain your Texa$aver program account(s), once you reach age 70½, you must start taking required minimum distributions (RMD). See “Required Minimum Distribution Rules.” By staying with your trusted partner in retirement, you can authorize the Texa$aver program to calculate your RMD and send you the required payment each year.
You can initiate a distribution from Texa$aver after you retire by submitting a distribution form. You can download and print a Distribution/Direct Rollover Request form.
Texa$aver program account withdrawals may be subject to ordinary income tax. A 10% early withdrawal penalty may apply to withdrawals made prior to age 59½. The 10% federal early withdrawal penalty does not apply to the 457 plan withdrawals except for withdrawals attributable to rollovers from another type of plan or account.
This information is not intended as tax, financial planning or investment advice. Please consult with your financial planner, attorney and/or tax advisor as needed.
Manage Your Investments
Withdrawals & Distributions
If you were hired by a state agency on or after September 1, 2008, you were automatically enrolled in the Texa$aver 401(k) plan, with 1% of your salary contributed directly from your paycheck, pre-tax. If you weren’t enrolled automatically, you had the opportunity open a Texa$aver account at any time. If you are unsure whether you were enrolled, please contact the Texa$aver program administrator.
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