TRS Pension

403(B)

  • If I move school districts, what happens to my existing 403(b)?

    While most school districts allow you to transfer your current 403(b) to your new ISD and continue your contributions, there are a few districts that do not authorize the transfer. In this case, you will need to open a new 403(b) contract with your existing provider, or a new one of your choice, in order to stay on pace for your retirement goal.

  • Can I withdrawal from my 403(b) at anytime?

    The 403(b) follows the same IRS regulations as a 401(K). You are not able to withdraw until a qualified event occurs, i.e., separation from service, age 59 1/2...

IRA

Coming soon...

Roth IRA

  • What's the advantage of contributing to a Roth?

    While your contributions are not tax deductible, your earnings are 100% tax-free.

  • Can a Roth IRA be used for college education?

    Yes! You will forgo the early withdrawal penalty of 10% at tax time for that year; however, if the withdrawal is made before the owner turns 59 1/2, taxes will be assessed on the gains only.

     

    To qualify for the federal tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 1/2 or due to death, disability, qualified education expenses, qualified medical expenses, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending upon state law, Roth IRA distributions may be subject to state taxes.

Non-Qualified Accounts

Life Insurance

  • Term, Whole or IUL?

    While a whole life policy does build up a cash value, you can save in monthly premiums by choosing term and investing the difference.

Medicare

  • Do I have to take Medicare at 65?

    Probably. Here’s the exception:  If you are still employed and have employer’s group insurance AND the company has MORE THAN 20 employees), you (and your covered spouse) do NOT have to sign up at 65.  

    You will NOT be penalized as long as you are covered with your employer’s group plan. For all others- YES, you need to sign up at 65 to avoid paying late enrollment penalties for the rest of your life (for Part B & Part D).

  • Is Medicare free?

    YES and NO-

    Part A (which covers Hospital services) - is “free” to most people.  Your lifetime contributions of your FICA taxes have paid for your Hospital benefits. You are responsible for the Hospital deductible for days 1-20.  The deductible changes every year ($1,676 for 2025). You can buy a Medigap plan to cover all hospital deductibles  (Plans G & N are the most popular options), or you can leave Original Medicare and get a Medicare Advantage plan to cover some of your Part A costs.

    Part B (which covers Medical/Outpatient services) - has a monthly premium which changes every year. The Part B premium for 2025 is $185.  Original Medicare covers the cost of 80% of Medical services, and you are responsible for remaining 20%.  You can buy a Medigap plan to help cover the 20% (Plans G & N are the most popular options), or you can leave Original Medicare and get a Medicare Advantage plan to cover some of your Part B costs.

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