Any active or inactive member who has previously received a refund of
contributions or is entitled to purchase service credit may elect to roll
over pre-tax funds from 401(a), 401(k), 403(b), 457 or traditional or
conduit IRA plans. Also members who retire on or after January 1, 2002
and before August 24, 2002, are eligible to rollover pre-tax funds to
purchase service credit or redeposit previously withdrawn contributions
from 403(b) or 457 plans providing the pre-tax funds are received by CalSTRS
no later than October 23, 2002. (If you are planning on retiring soon,
however, see the next question.)
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No. Any billing request made before your retirement date will be honored
as a request from an active member and is not subject to the October 23
deadline. If you receive the billing statement after your effective date
of retirement, you will have 30 days after you receive the statement to
complete the purchase. We understand it can take longer than 30 days for
CalSTRS to receive a rollover from your financial institution. As long
as you respond back to CalSTRS within 30 days, we will accept your rollover.
You will be able to roll over pre-tax funds from 401(a), 401(k), 403(b),
457 or acceptable IRA plans.
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Yes. CalSTRS will prorate the equivalent amount of service credit based
on the dollar amount you rollover.
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The total amount rolled over must not be greater than the amount required
for the redeposit or to purchase the available service credit. If your
rollover amount(s) is more than the amount required for the redeposit
or purchase of service credit, CalSTRS will return all pre-tax funds to
the rollover company.
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No direct payments or installment payment plans will be accepted. The
redeposit or purchase must be paid exclusively by pre-tax funds rolled
over from a qualified plan.
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If you redeposit or purchase additional service credit, your
monthly retirement allowance will be increased. The CalSTRS
web site can assist you in estimating how much your allowance
would increase.
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No. CalSTRS cannot accept a rollover unless the member's name is on the
account from which the money is being rolled over.
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No. Under AB 131, retired members are only able to make such purchases
using pre-tax funds from 403(b), and 457 plans. You can, however,
receive pro-rated service credit for the amount your rollover
pre-tax funds will purchase.
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If you believe you have service credit available to purchase
you may contact CalSTRS' Member Services by mail to receive
a billing statement. If you know the amount of time you can
purchase, you may use the Permissive Service calculator on
the CalSTRS web site to calculate an estimated amount for
permissive service purchases. (A calculator for estimating
the cost to redeposit previously withdrawn contributions is
not available at this time.)
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