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What can I do with state retirement when leaving for private?
Posted on 1/30/15 at 7:31 am
Posted on 1/30/15 at 7:31 am
Left state job for private job a little while ago...I had contributed about $8,000 to their state retirement/pension system (LASERS). My question is what options do I have to do with that money?
Can/should I roll it over into an index fund in my vanguard account penalty free or my work 401k?
Or should I leave it there just in case I ever go back with the state so I will already have my 2ish years invested in their retirement program? I currently have no intentions of returning but you never know.
Can/should I roll it over into an index fund in my vanguard account penalty free or my work 401k?
Or should I leave it there just in case I ever go back with the state so I will already have my 2ish years invested in their retirement program? I currently have no intentions of returning but you never know.
This post was edited on 1/30/15 at 7:39 am
2
Posted on 1/30/15 at 7:43 am to YankeeDoodle
We're you in a self directed plan? Then you can roll it over. If you were in the traditional plan, your money did not belong to you, as you weren't vested or making additional contributions beyond the states contribution on your behalf. LASERS has a website full of info......
Posted on 1/30/15 at 7:49 am to hungryone
I left state service after about a year. I rolled mine to a vanguard Ira.
Posted on 1/30/15 at 7:56 am to 318TigerFan
quote:
I left state service after about a year. I rolled mine to a vanguard Ira.
This is what I was hoping to do. Did you do this through their website or an HR person at the company?
Posted on 1/30/15 at 7:58 am to hungryone
quote:
We're you in a self directed plan? Then you can roll it over. If you were in the traditional plan, your money did not belong to you, as you weren't vested or making additional contributions beyond the states contribution on your behalf. LASERS has a website full of info......
I am a little slow on some of this so bear with me...I contributed 8% of my paycheck to their retirement system but that was basically required of me. I did not do anything additional to that.
This post was edited on 1/30/15 at 7:59 am
Posted on 1/30/15 at 8:04 am to YankeeDoodle
I just gave vanguard a call. The process took about a month from start to finish for me. I called vanguard to open the account; there's some paperwork you fill out and send to LASERs; and LASERs sends a check directly to Vanguard. Once at vanguard, it goes into a Money Market account, from there just buy whatever funds you want.
This post was edited on 1/30/15 at 8:07 am
Posted on 1/30/15 at 8:40 am to 318TigerFan
That sounds easy enough. Thanks! 
Posted on 1/30/15 at 9:34 am to YankeeDoodle
quote:
Or should I leave it there just in case I ever go back with the state so I will already have my 2ish years invested in their retirement program? I currently have no intentions of returning but you never know.
If you take the money out, you get only the amount you've contributed with no interest. You don't get any of what the state contributed on your behalf. They love for people to take their money out. I'd leave the money in there. If you ever manage to get ten years of service, you'll get a nice supplemental retirement check worth far more that what you've contributed.
Posted on 1/30/15 at 1:51 pm to Layabout
They've more than likely got a limit on the amount of time you can just leave it sitting there.
I don't work for the state, but our agency gets to participate in state retirement. I left the first time right around 2 years and cashed that out. Wasn't much, but the thing I do regret is the service credit that I lost by not leaving it. I've now been back for 7 and would only be one year, instead of three away from vesting if I had left it alone.
BUT...it wasn't a lot of money for me, and I came back at 25. Still could retire with full benefits at 50.
I don't work for the state, but our agency gets to participate in state retirement. I left the first time right around 2 years and cashed that out. Wasn't much, but the thing I do regret is the service credit that I lost by not leaving it. I've now been back for 7 and would only be one year, instead of three away from vesting if I had left it alone.
BUT...it wasn't a lot of money for me, and I came back at 25. Still could retire with full benefits at 50.
Posted on 1/30/15 at 2:16 pm to AUjim
quote:
They've more than likely got a limit on the amount of time you can just leave it sitting there.
There is no time limit but the money earns no interest while it sits there. Leaving it in does preserve your service credit. If you simply withdraw the money instead of rolling it over, you will owe tax on it plus a 10% penalty if you're under 59-1/2.
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