Are you considering refunding your Trsmember account, which entails canceling your membership and withdrawing your accrued contributions? You should carefully consider your options before making this critical decision, as withdrawing will result in you losing your years of service credit and waiving your right to receive TRS benefits. This video will cover eligibility, factors to consider, tax information, payment methods, steps to a refund, and returning to Trs to help you make an informed decision. After a Refund, Membership First, let’s discuss eligibility. To be eligible for a refund, you must have terminated your employment with all Trs-covered employers and not applied for or received a promise of future employment with a Trs-covered employer. It is not possible to get a partial refund on your membership account. You must refund all accumulated contributions, including member contributions withheld from your pay, interest credited to your member account, and any other amounts deposited in your account.
Amounts Paid for a Service Credit Purchase in Your Member Account It’s important to remember that you’re not obligated to refund your account if you leave a Trs-covered employer. You should think about the following factors when making your decision: If you refund your account, you will lose your Trs membership and any accrued service credit as well as any retirement benefits. You may be subject to different retirement eligibility requirements and early-age retirement reductions if you return to Trs membership after a refund. While you are eligible to purchase Withdrawnservice, the price includes the amount of the refund plus an annual reinstatement fee calculated from the date of the withdrawal. Your Trs account balance will continue to earn interest for up to five years if you leave your account with Trs and have less than five years of Trs service. You may retire once eligible if you have at least five years of Trs service credit. Your Trs Account Balance will continue to earn interest until you retire. If you plan to work for an employer covered by a retirement system that participates in the proportionate retirement program, or if you plan to return to work for a Trs-covered employer, you may want to leave your account withtrs. Let us now discuss tax information. The amount of tax deducted from your refund is determined by your age and whether you choose to roll your refund over to another retirement plan. You’re in charge of submitting propertax reports to the IRS. Irs, as well as any additional taxes or penalties that may be owed. Following a refund, Trs will send you a tax statement at the end of the calendar year. , How Do You Want To Get Your Refund? Direct Deposit Is Always The Fastest Way To Get A Refund If you prefer this method, be sure to include your banking information on the Trs 6, Application for Refund. If you choose to roll over to an eligible plan or choose a bank outside of the United States, you will receive a check. a To request a refund, fill out Form Trs 6, Application for Refund, which can be found on the trs website’s Forms page. Have the application notarized after you sign it. Send the completed form, along with any additional information requested. Trs documentation After we receive your application, we’ll contact your previous employers to confirm your termination and final monthly contributions. If You’ve Examined The
We’ll send you Form Trs6a, Refund Rollover Election, if you check the appropriate box that indicates you want to roll over all or part of your refund. Your refund payment will be made after we receive all required documents from you and your employer, and your account has been reconciled with final deposits. Printed In most cases, payments are made within 60 days. Depending on your last date of employment, the process could take up to 90 days. Certain circumstances, such as being re-employed by a Trs-covered employer, may cause a refund to be delayed.
What If You Want To Return To Trs After A Refund? If You Want To Reinstate Service Credit After A Refund, We Encourage You To Watch Should I Get A Refund To Learn More About Financial Considerations. Read our Requesting a Refund Brochure on the Trs website for more information, or call 800-223-8778 to speak with a Benefit Counselor.