Get the answers to our most frequently asked questions.

TOPICS

1. TRS Pension

2. 403(b)

3. IRA

4. Roth IRA

5. Non-Qualified Accounts

6. Debt Consolidation

7. Life Insurance

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TRS PENSION

If I leave the school system, what happens to my TRS? 

As of now, if you have five years or more in the TRS system, you are fully vested. Although you are not eligible for the TRS health insurance, you could still receive a monthly pension.

Is it expensive to buy back years of service? 

For every year bought back, you will pay a 9% fee.

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.

NON-QUALIFIED ACCOUNTS

Why invest in a non-qualified account? 

Your savings account through your bank is classified as such. Contributing in a non-qualified account through an insurance company allows you to have a much higher earnings potential.

How is a non-qualified account taxed? 

Contributions are not deductible, and taxes are only paid on earnings in the years withdrawn.

Can I withdraw from a non-qualified account at any time?

Yes, but there may be a 10% early withdrawal penalty on the gains only if not withdrawn for a qualified event.

DEBT CONSOLIDATION

During this process, do we open other lines of credit to consolidate monthly payments?

While that is an potential option, it's not always a requirement. Restructuring your bill payment methods to pay off debts quicker and not necessarily opening other lines of credit in the process is the primary focus.

LIFE INSURANCE

Term, Whole or IUL? 

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