Can I Withdraw My TRS Contributions?
While you are employed in a TRS covered position, as stated in Georgia law, you cannot make withdrawals or borrow funds from your account. If you terminate your TRS covered employment you may apply for a refund of contributions and interest. However, you are not eligible for a refund after you accept other TRS covered employment.
The fact that you are not actively employed during the summer months because the school year has ended cannot be considered as termination from TRS covered employment.
Your refund from TRS is a lump-sum distribution of the contributions and interest in your account. The taxable portion of your refund is subject to federal and Georgia taxes. To defer taxation, you may elect a direct rollover of the taxable funds in your account to:
- another qualified retirement plan -- 401(a), 403(a) or 401(k);
- a 403(b) tax sheltered annuity;
- a governmental 457 plan; or
- a traditional or rollover IRA and a Roth IRA.
If you do not elect a rollover, federal tax law requires that TRS withhold 20% federal tax from the taxable portion of your refund. You may also be required to pay an additional 10% federal tax if you are younger than age 59.5 when you withdraw your funds.
TRS will not withhold the additional 10%. However, you will pay this tax at the time you complete your federal tax return for the year in which you receive your refund. Georgia tax withholding from your refund check is not mandatory and may be paid when you file your Georgia tax return.
To apply for a refund of contributions, please complete the Application for Refund of Contributions Form.