TRB: July 1, 2016 Retirees’ Withdrawal of Supplemental and/or Voluntary Funds

July 1, 2016 Retirees’ Withdrawal of Supplemental and/or Voluntary Funds

 

Members who retired effective July 1, 2016 and elected a refund or rollover of their supplemental and/or voluntary account funds should have received the necessary forms and instructions from the Teachers’ Retirement Board (TRB) in July, 2016. Completed forms received by August 30th will result in a refund or rollover issued on September 30th (no refunds or rollovers will be issued prior to that date).  Completed forms received by September 30th will result in a refund or rollover issued on October 31st.

 

Members who do not return a completed form by September 30, 2016 will automatically be issued a refund of the entire account balance on October 31, 2016.  Pre-tax funds included in the refund will become taxable and will be subject to 20% withholding for federal income taxes.  If you receive the payment before age 59 ½, you may also have to pay an additional 10% tax.  Within 60 days of receiving the payment, you may roll over 100% of the payment to a Qualified Plan by replacing the 20% that was withheld for federal income taxes.  



Content Last Modified on 7/27/2016 2:07:36 PM