Washington State Department of Rerement Systems
You can deposit up to 100% of your withdrawal
into an eligible account, including an amount
equal to the 20% already withheld for taxes.
However, you will need to nd other funds to
replace the amount already withheld for taxes
(see example below).
Contact your tax advisor to learn more about
If you have $10,000 that’s tax deferred
paid to you, you will receive $8,000 and
$2,000 will be sent to the IRS as income tax
Within 60 days of receiving the $8,000,
you can roll over the entire $10,000 into a
traditional IRA or eligible retirement plan.
To do this, you deposit $8,000 and nd
$2,000 from other sources (for example,
your sav ings or a loan). So when you le
your income tax return, you might receive a
refund of the $2,000 withheld.
The entire amount of your deposit into the
eligible account isn’t taxed until you later
take it out. For example, if you roll over only
$7,000, the $3,000 you didn’t roll over is
taxed in the year it was withheld.
If I return to public service, can I
restore withdrawn service credit?
Yes, but payment deadlines do apply
and can affect the cost. If you return to
membership in Washington state, you have
the right to recover your previously withdrawn
To learn more, read the DRS publication
Recovery of Withdrawn or Optional Service
, available at
I want to withdraw
What should I do now?
Follow the steps below.
Fully separate from DRS-
covered employment in the
system (such as PERS) you
plan to withdraw from. You can’t
withdraw from a system you still
work in or are on a leave of absence
Fill in and have notarized
Request for Refund of
the end of this publication.
Send the completed form to
DRS at the address listed on
the top right of the form. If your
form is incomplete or not notarized,
you’ll be asked to ll it out again.
DRS will process your request.
This step can take up to 90 days
from the date your employment
ended. Your payment cannot be
sent to you until your employer
sends DRS your separation
information. That usually occurs
about the time you receive your
DRS sends any portion of a
cash withdrawal to you and
any portion of a rollover to your
chosen nancial institution.
It’s important to keep your
address up to date with DRS.
We will send you a 1099-R form
in January of the following year.