Direct Withdrawals of TDA funds are generally taxable. Other than hardship withdrawals, TRS is required to withhold 20% of any taxable amount over $200 you withdraw and do not instruct TRS to directly roll over to an eligible successor program(s). If you receive a Direct Withdrawal and do not roll over the distribution within 60 days of the withdrawal check, the withdrawal would generally be federally taxable and may be subject to state and local taxes. The IRS may impose an additional 10% tax on all Direct Withdrawals unless the withdrawal is made: a) in conjunction with your separation from service during or after the year in which you attain age 55; or b) during or after the year you attain age 59½; or c) as a qualified hardship withdrawal; or d) in conjunction with your disability retirement; or e) by your beneficiary in conjunction with a death benefit payment.

TRS suggests that you consult with your tax advisor should you have any specific tax questions.