Teacher sick day payout

[Guest danfarley]

I am working with a retireing teacher who has accumulated a significant amount of unused sick days. The state of CT will make a payment to him for these days, and he is being told his options are to roll it either into his 403(b) or into a 457 plan, both of which have variable annuity investment options with lock ups we are looking to avoid. Does anyone know if there is also the option of rolling something like this out to an IRA? Thx

[Guest getaxa]

Usually sick pay is not in a plan so therefore you cannot "roll" it over. You may use the sick pay as a source of funding to electively defer to a 457 or a 403b plan. Once in a 457 or a 403(b) you can roll it over but why bother. Electively defer it into the 403(b) (up to 402(g) limit) and leave it there. 403(b)s are individually owned and therefore there is usually no reason to use an IRA.

[Guest Mpowers]

I am working with a retireing teacher who has accumulated a significant amount of unused sick days. The state of CT will make a payment to him for these days, and he is being told his options are to roll it either into his 403(b) or into a 457 plan, both of which have variable annuity investment options with lock ups we are looking to avoid. Does anyone know if there is also the option of rolling something like this out to an IRA? Thx

[Guest Mpowers]

I am working with a retireing teacher who has accumulated a significant amount of unused sick days. The state of CT will make a payment to him for these days, and he is being told his options are to roll it either into his 403(b) or into a 457 plan, both of which have variable annuity investment options with lock ups we are looking to avoid. Does anyone know if there is also the option of rolling something like this out to an IRA? Thx

Nine districts in CT have done work with me on converting sick pay to an employer contribution into an employer plan. We use both a medcial trust and A 403B PLAN ...feel free to call.

Mark Powers

Precision Retirement Group

203-453-3151