Trustee-to-Trustee Transfers and Rollovers

Moving money from a 457(b) or 403(b) plan that you plan to keep open is a trustee-to-trustee transfer.
Moving money from an eligible employer plan that you plan to close after the payment is a rollover.

Trustee-to-Trustee Transfers (keeping account open)

With a trustee-to-trustee transfer, you transfer money from an account that you will keep open after the transfer. The plan must be either a 457(b) or 403(b) plan. You can transfer any amount up to the total amount of your service purchase and your account remains open. You can continue to participate in the plan.

There are two requirements to purchase KPERS service credit with a trustee-to-trustee transfer.

1. Your 457(b) or 403(b) plan must allow a trustee-to-trustee transfer. The State of Kansas deferred compensation plan does. If you participate in another plan, you should contact your plan administrator to see if your plan allows transfers.
2. Your transfer amount must be equal to or less than the service purchase cost.

Rollovers (closing account)

With a rollover, you move all the money from a plan you previously participated in. If there is more money in your account than is needed to purchase your service credit, you must rollover the leftover portion into another eligible retirement account (like a plan with your current employer or an individual retirement account through a financial institution). You can also take the extra balance in cash and pay any taxes and penalties. Your account is closed after the transaction.

KPERS can receive rollovers from a:

• 401(a) tax qualified plan
• 401(k) profit-sharing plan
• 403(a) qualified annuity plan
• 403(b) annuity
• 408(a) individual retirement account (IRA)
• 408(b) individual retirement annuity
• 457(b) governmental deferred compensation plan