The taxable portion of any withdrawn QPP funds is taxable upon receipt and would be reported to the IRS.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.

When you retire, any outstanding QPP or TDA loan balance would be deducted from your funds in the corresponding program, reducing the amount available for your retirement. In addition, the balance would be considered a distribution, and any taxable portion of the balance would be subject to 20% withholding. TRS would take this withholding from any subsequent cash payment made to you from the corresponding program in the same tax year. This would be a loan at retirement, and if necessary, a QPP excess withdrawal to a Tier I or II member, or a TDA withdrawal. If the withholding due were greater than the subsequent cash payment, TRS would issue you a check in a nominal amount of $10 and would take the balance of the payment towards your withholding obligation.

The IRS requires that TRS withhold 20% of the taxable portion of any lump-sum death benefit paid to a surviving spouse, unless the spouse instructs TRS to directly roll over the amount into an IRA or a Section 401 Plan. In addition, the IRS requires that TRS withhold 10% of any death benefit paid to a non-spouse beneficiary, unless that beneficiary elects to have a percentage greater than 10% withheld. Any withheld amount will be sent to the IRS as credit toward the beneficiary's federal taxes for the year of distribution.

For a list of forms on taxes and death benefit payments, please see the Withdrawals/Distribution category in the Forms–Beneficiaries section.

Spouses of deceased members are permitted to roll over the taxable portion of a Qualified Pension Plan (QPP) and/or Tax-Deferred Annuity (TDA) Program death benefit to an eligible Individual Retirement Arrangement (IRA) or other successor program. Non-spouse beneficiaries may roll over the taxable portion of a QPP and/or TDA death benefit to an Inherited IRA or other successor program.

For a list of forms on rolling over a death benefit, please see the Withdrawals/Distribution category in the Forms–Beneficiaries section.

For more information, please see the FAQs in this section.

Yes. You may do so by submitting a withdrawal request in the secure section of the TRS website.

If you request a Direct Payment Withdrawal, TRS sends the withdrawn amount directly to you. If you request a Rollover, TRS sends the withdrawn amount to the IRS-qualified Individual Retirement Arrangement (IRA) or other eligible successor program that you elect. Unlike Direct Payment Withdrawals, Rollovers are not subject to current taxes.

If you request a Direct Payment Withdrawal, TRS sends the withdrawn amount directly to you. If you request a Rollover, TRS sends the withdrawn amount to the IRS-qualified Individual Retirement Arrangement (IRA) or other eligible successor program that you elect. Unlike Direct Payment Withdrawals, Rollovers are not subject to current taxes.

If you make a Direct Withdrawal, TRS sends the withdrawn amount directly to you. If you make a Direct Rollover, TRS sends the withdrawn amount directly to the IRS-qualified Individual Retirement Arrangement (IRA) or other eligible successor program that you elect. Unlike Direct Withdrawals, Direct Rollovers are not subject to current taxes and penalties.

If you request a Direct Payment Withdrawal, TRS sends the withdrawn amount directly to you. If you request a Rollover, TRS sends the withdrawn amount to the IRS-qualified Individual Retirement Arrangement (IRA) or other eligible successor program that you elect. Unlike Direct Payment Withdrawals, Rollovers are not subject to current taxes.

In most cases, TRS issues payments two months after the online claim is filed AND the following are received: all required documentation and/or forms; the “Attestation and Notarization for Online Death Benefit Claim”; and any payment due.