Yes. You may transfer the taxable portion of your withdrawal to another eligible Section 401 Plan or an IRA account. To do so, you must file a QPP Direct Rollover Election Form (code RW29) in conjunction with your withdrawal application. Any amount that is distributed through a Direct Rollover is not taxable until it is received as income, and you would not be subject to the 20% withholding tax that applies to direct withdrawals. In addition, you would not have to pay the additional 10% tax that applies to some direct withdrawals.

No, based on an Internal Revenue Service change effective after 2019. However, you would not be eligible for a hardship withdrawal unless you have maximized any reasonably available funds or distributions from non-TRS sources before you apply for a hardship withdrawal. Note that hardship withdrawal applications based on domestic abuse are exempt from this requirement.

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.

• Educational expenses
• Eviction foreclosure expenses
• Funeral expenses
• IRS qualified natural disaster expenses
• Medical expenses
• New rental lease based on eviction from prior residence
• Purchase of primary residence
• Multiple hardship reasons
• Domestic abuse (SECURE Act 2.0, Sec 314)

You may request to withdraw all or part of your TDA or Roth account balance if a sudden and heavy financial hardship leaves you unable to reasonably meet certain expenses, and other resources are unavailable to you. For a list of hardship expenses and required documents for each expense, see What are the expenses and required documents for each hardship type?

A decision is made 5-7 days after TRS receives your application and the required supporting documentation.

Any pre-1987 contributions in your excess funds are tax-free; however, any other excess amounts are taxable upon receipt and would be reported to the IRS. The IRS requires that TRS withhold 20% of any taxable amount you withdraw unless you instruct TRS to directly roll over the amount into an eligible IRA(s) or other successor program(s). An additional IRS-imposed 10% tax would apply 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.

No, based on an Internal Revenue Service change effective after 2019. However, you would not be eligible for a hardship withdrawal unless you have maximized certain other available TRS resources. These include any pre-1989 funds and if you are a Tier I or Tier II member, any excess Annuity Savings Fund (ASF) accumulations. You should also ensure that you have maximized any reasonably available funds or distributions from other resources before you apply for a TDA hardship withdrawal.

You may request to withdraw all or part of your post-1988 TDA contributions if a sudden and heavy financial hardship leaves you unable to reasonably meet certain expenses, and other resources are unavailable to you. As defined in the Internal Revenue Code, hardship conditions include certain medical expenses, funeral expenses, post-secondary school tuition for you or a dependent, payment to prevent eviction or foreclosure, and the purchase of a principal residence. Expenses resulting from certain federally declared disasters may also qualify as eligible hardships, subject to IRS guidelines. Valid documentation would be required in all cases.

You may apply for a hardship withdrawal in the secure section of our website or by filing a TDA Hardship Withdrawal Application (code TD44).

All withdrawals are paid through Electronic Fund Transfer (EFT) directly into your bank account. TRS will issue payment via paper checks only for members residing abroad whose bank will not accept ACH/EFT deposits.

For in-service members paid on the Department of Education payroll, their bank information is already on file; no action is required. You may provide or update bank account information in the secure section of TRS’ website, under Payments. Please note that establishing or changing an EFT account generally takes at least 21 days.

You will not be allowed to submit a withdrawal request unless TRS has your bank account information on file.