CalSTRS Pension2 – Rollovers

Updated : Nov 14, 2019 in Articles

CalSTRS Pension2 – Rollovers


Hi I’m Rachel, an employee here at
CalSTRS. If you have old retirement accounts, like an IRA, a 401(k), a 403(b) or
457 to which you no longer contribute, or are no longer able to contribute, these
accounts can be moved to CalSTRS Pension2 and consolidated. This process is
called a rollover. Let’s look at how it works. To roll over these old accounts, or one in which you believe you’re earning less
than what the Pension2 plan can earn for you, simply contact a representative
from our accounts consolidation team at 866-865-2660. This team, dedicated to
help with transfers and rollovers, is designed to take the stress and
complication out of moving accounts. We’ll contact your previous vendor and work
with them to have the funds moved. It’s an easy way to consolidate all of your
retirement accounts. Pension2 also has noncommissioned licensed advisors who can review your current supplemental savings accounts and compare them to the
Pension2 plan, to see if we can save you even more money. All we need is a
copy of the latest statement from each account you’d like reviewed and compared
to Pension2. If you’re interested in taking advantage of this free service,
please contact Pension2 at 888-394-2060 for more details. When you’re nearing retirement age there’s another account you’ll have
to make a decision about. Your CalSTRS Defined Supplement, or DBS account. It can also be rolled into Pension2, continuing to earn a return that will
always be accessible at any time during your retirement. First, to receive the CalSTRS retirement benefit, you’ll need to complete the
CalSTRS Service Retirement Application. A section of the application requires you
to decide what to do with the funds in your DBS account. There are three options.
You can choose to take your funds out in a lump sum in which you pay taxes on all
of it. You can choose to annuitize it and take it out over a period of years, or
you can roll it over into another qualified plan, such as Pension2 and
have it continue to work for you until you need to make withdrawals. To roll
your DBS account into a CalSTRS Pension2 plan, complete the steps beginning in
section 4.1 of your application. First, select lump sum payment. Then go to
section 4.2 and check the rollover option. Next, check the box labeled “other
eligible plan”. You’ll be asked to enter the amount or percent of your DBS
account funds that you’d like to roll over. Finally, under “Financial Institution”
information, write Pension2 above the “make check payable to” line. Since Pension2 is a CalSTRS program, no other information or signatures are needed to
complete your rollover and your selection will be routed to the
appropriate CalSTRS department. If you have any other questions, visit
Pension2.com, or call us at 888-394-2060. Thanks for watching.

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