Can I Withdraw Money From My County Retirement Account

Business relationship Portability

You don't have to withdraw your account only because you're leaving your task. At that place are a lot of adept reasons to get out your money in TCDRS.

Car with driver on road

With TCDRS, youtin can have information technology with you

Sometimes the road to retirement includes job changes, but leaving your county or district job doesn't mean leaving your retirement savings behind.

Standing to earn service time

Even if you lot're not vested when you leave your task, y'all may want to keep your money in TCDRS, in example you take a job with some other TCDRS employer or a job covered past a proportionate retirement organization, such as one for the state, a city or a school commune. This will enable you to continue saving for your retirement while working for your new employer. You lot may fifty-fifty be able to count electric current — or past — military time, you earn with your new employer, toward your TCDRS retirement eligibility. See our Service Time page for more information.

Account Options

You lot don't have to withdraw your account just because yous're leaving your job. There are a lot of skilful reasons to leave your money in TCDRS:

Your account continues to abound at 7% compound interest.
Upon retirement eligibility, you will receive a lifetime monthly benefit.
If you've completed four years of service, y'all remain eligible for a Survivor Benefit.
Lookout this short video to learn more near your options.

Pick 1: Go on Your Money in TCDRS

To keep your money in your TCDRS account, all you lot have to do is keep your business relationship information up-to-date with us. Nosotros need your current address and your current beneficiary information.

Your money will earn interest for as long as you go on it in TCDRS.

Yous may also be able to count service time you earn with some other TCDRS employer or from armed services service toward your retirement eligibility. If you piece of work for the state, a city or a school, the time you earn in those retirement systems can also count. Our Service Time page can tell you lot more about your options.

Choice 2: Scroll Over Your Account

You tin avoid paying taxes or penalties past rolling your money over into some other taxation-deferred retirement account. These accounts include traditional IRAs or your new employer's retirement plan (if it allows rollovers). Yet, yous lose employer matching with whatsoever rollover and you forfeit your lifetime benefit.

To roll over your account, you demand to fill out a Withdrawal Application (TCDRS-xi). When you lot consummate the awarding, choose the direct rollover choice and provide the name of the plan or account into which you're rolling your coin.

We volition transport you a check fabricated out to the fiscal institution y'all designate ii to four weeks after we receive your application.

The following January, nosotros volition send y'all an IRS Form 1099-R detailing how much money y'all rolled over. You lot'll need to file your 1099-R with your income taxation return.

Option 3: Withdraw Your Account

If you cull to withdraw your money from TCDRS, you lot may want to check with a tax professional or the IRS get-go. Your withdrawal will exist subject to a minimum 20% withholding for taxes, you may face a 10% withdrawal penalization at revenue enhancement fourth dimension and your withdrawal could significantly affect your income taxes. Read our Special Revenue enhancement Find (TCDRS-87) to learn more about tax implications with withdrawals.

In addition, withdrawing your TCDRS business relationship ways you lose employer matching and forfeit your lifetime do good from that account.

To withdraw your money, sign into your TCDRS account online and consummate the withdrawal process.

We will ship you a check made out to you for the full corporeality of your account balance, minus the tax withholding, two to four weeks after we receive your application.

The following January, we will send you lot an IRS Form 1099-R detailing how much coin you withdrew and any taxes you withheld. You'll need to file your 1099-R with your income tax return.

Benefits

Source: https://www.tcdrs.org/library/account-portability/#:~:text=Your%20withdrawal%20will%20be%20subject,significantly%20affect%20your%20income%20taxes.

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