Fill - Free fillable A Plans 1 and 2 Withdrawal of Retirement (Washington) PDF form

Plans 1 and 2

Withdrawal of Retirement Contributions

Washington State Department of Rerement Systems

s a member of one of the Washington state

retirement systems named below, you may withdraw

your employee contributions plus interest if you leave

employment. The Internal Revenue Service (IRS) calls

these systems 401(a) dened benet plans:

• Public Employees’ Retirement System (PERS)

Plans 1 and 2

• Teachers’ Retirement System (TRS) Plans 1 and 2

• School Employees’ Retirement System (SERS) Plan 2

• Law Enforcement Ofcers’ and Fire Fighters’

Retirement System (LEOFF) Plans 1 and 2

• Public Safety Employees’ Retirement System

(PSERS) Plan 2

• Washington State Patrol Retirement System

(WSPRS) Plans 1 and 2

This publication is not intended for Plan 3 members. Find

out more about Plan 3 investment options at

drs.wa.gov/

plan3

or contact the DRS record keeper at 888-327-5596.

When can I withdraw or roll over

my retirement contributions?

You must be separated from your DRS-covered

employer to withdraw or roll over your employee

contributions plus interest. You can withdraw your

contributions plus the interest they earned. Employer and

state contributions remain in the trust fund and aren’t

eligible for withdrawal.

Questions

answered inside

If I leave my job, what

can I do with my

contributions?

If I choose to roll over

funds, what do I need

to know?

If I return to public

service, can I restore

my withdrawn service

credit?

I want to withdraw my

contributions. What

should I do now?

2 Points to consider

before withdrawing

4 Denitions

6 General information

6 How to contact DRS

Request for Refund

of Retirement

Contributions

form

Also inside

Do you have ve years of service credit in your plan? If so, you’re

vested! That means you have earned a lifetime monthly benet at

retirement age — unless you withdraw your contributions.

Are you vested?

Washington State Department of Rerement Systems

Points to consider before withdrawing

Service credit: When you withdraw your funds, you are also withdrawing your service credit.

For vested members of all systems, this means forfeiting a monthly benet at retirement age.

Waiting period: The IRS requires a 30-day waiting period before your funds are distributed

to ensure you have time to review the options in this booklet. You can check the box on the

Request for Refund of Retirement Contributions

form to waive the 30-day waiting period.

Voluntary action: Withdrawing your funds is voluntary. You don’t have to withdraw

just because you are leaving an eligible position or terminating employment. If you

choose to keep your money in your account, it will continue to earn interest.

Taxes: The law requires DRS withhold 20% federal income tax on all tax-deferred

contributions and interest paid directly to you. If you are younger than age 59½, you might

also have to pay an additional 10% for withdrawing early when you le your taxes. The IRS

can tell you whether this would apply to you. Taxes aren’t withheld on qualied rollovers.

Restoring withdrawn service credit: If you return to membership with a DRS-covered

employer, you can recover your withdrawn service credit. Payment deadlines do apply.

Contact DRS or review our publication

Recovery of Withdrawn or Optional Service

Credit

for

Plan 1

Plan 2

, available on the DRS website at

www.drs.wa.gov

Disability: If you ended employment because of an illness or disability, contact

DRS before withdrawing. You might be eligible for a disability retirement.

Employer notication: Before DRS can release your funds,

your employer must report your separation date to us.

Washington State Department of Rerement Systems

Path 1

Leave your contributions

in the plan

As a member, you don’t have

to withdraw your employee

contributions when you leave your

job. Regardless of your employment

status, DRS currently pays 5.5%

annual interest compounded

quarterly on employee contributions

that remain in the retirement fund.

This rate could change. If you leave

your contributions in the plan, you

will keep your service credit and

any right to a potential retirement

benet.

Path 2

Withdraw your money

You can withdraw your employee

contributions plus interest any time

you leave DRS-covered employment.

If you do, the IRS requires a 20%

withholding on all tax-deferred funds.

If you are younger than age 59½,

the IRS might require you to pay an

additional 10% for withdrawing early.

A withdrawal is treated as income

for the year in which you receive

payment. DRS will mail you

Form

1099-R

for your tax ling purposes.

See page 4 for more federal tax

information.

Path 3

Roll over all your money to an IRA

or eligible retirement plan

You can roll over your employee

contributions plus interest to any

qualied account that accepts

rollovers. Taxes aren’t withheld when

you roll over funds.

Path 4

Roll over a portion of your money

to an IRA or eligible retirement

plan

You can ask DRS to roll over a

specic portion of your employee

contributions plus interest to any

qualied account that accepts

rollovers and have the remainder

paid directly to you as described in

Path 2. The portion you receive will

be subject to the IRS withholding(s).

If I leave my job, what can I do with my contributions?

You have four paths to choose from. If you choose to withdraw or roll over your contributions

plus interest, you cancel all rights to service credit and any potential benet you have earned in your

retirement system.

You might want to talk with a professional tax advisor before

making a decision about withdrawing your contributions.

Tax tip

Washington State Department of Rerement Systems

If I choose to roll over funds,

what do I need to know?

You can choose a direct rollover of all or any

portion of your payment. In a direct rollover,

the distribution is transferred directly from

DRS to a traditional IRA or another eligible

retirement plan that accepts rollovers. It is your

responsibility to conrm whether your chosen

institution will accept rollover funds.

If you roll over your funds into a traditional IRA

or eligible retirement plan, the portion of your

payment that is rolled over won’t be taxed until

you later take it out. If you roll over into a Roth

IRA, the rules could be different. Check with the

IRS to learn how this choice will impact you.

Taxes on withdrawals

Only federal taxes are withheld from cash

withdrawals. Any tax-deferred contributions and

interest paid directly to you will automatically

have 20% income tax withheld.

The payment is taxed in the year you receive

it unless you roll it over within 60 days into a

traditional IRA or another plan that accepts

rollovers. No taxes will be withheld on the

portion you roll over until you later take it out.

The IRS requires that any after-tax funds be

tracked separately within your account. This

ensures you aren’t taxed again when you

withdraw them from the IRA or retirement plan.

We encourage you to talk with a professional

tax advisor before making a choice. More

information about taxes on retirement

contributions is available on the IRS website at

www.irs.gov

or by calling 800-TAX-FORMS.

Sixty-day rollover option

Your cash withdrawal is taxed in the year you

receive it. You have 60 days from the date the

check was received to deposit the funds into

a traditional IRA or another eligible plan that

accepts rollovers. Doing so could allow you to

recover the taxes that were withheld and avoid

the 10% early withdrawal penalty when you le

your annual taxes with the IRS.

Tax-deferred

contributions

After-tax

contributions

Contributions

deducted from

your paycheck

that have been

taxed.

Contributions

deducted from

your paycheck

that haven’t been

taxed.

Denitions

Known as

an IRA,

this can be

composed

of individual

retirement

accounts or

annuities. An

IRA can be

classied as

traditional or

Roth.

Individual

Retirement

Account

Transfer

or roll over

A way to

send your

withdrawal

to an IRA

or another

eligible

retirement

plan that

accepts

rollovers.

Washington State Department of Rerement 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

this option.

Example

Sixty-day rollover

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

withholding.

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

service credit.

To learn more, read the DRS publication

Recovery of Withdrawn or Optional Service

Credit

for

Plan 1

Plan 2

, available at

www.drs.wa.gov

I want to withdraw

my contributions.

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

from.

Fill in and have notarized

the

Request for Refund of

Retirement Contributions

form at

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

nal paycheck.

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.

Washington State Department of Rerement Systems

MultiWithD 10/20

This document is a summary. It is not a complete description of withdrawing contributions. State retirement laws govern your benet. If a

conict exists between the information in this document and what is contained in current law, the law governs.

This is your legal notice

This document constitutes legal notication

of your rights for recovery of service credit. By

signing the form attached to this booklet, you

ac knowledge receiving this information.

If you want more information, it is your

responsibility to contact DRS. For more detailed

information, read the DRS publication

Recovery

of Withdrawn or Optional Service Credit

for

Plan

Plan 2

, available on the DRS website at

www.drs.wa.gov

DRS can’t offer tax advice

DRS team members aren’t allowed to give tax

advice. Please consult your tax advisor or the IRS

before deciding how to take payment of your

tax-deferred funds.

Mandatory federal withholding

Federal law requires DRS to withhold 20% of

the tax-deferred portion of withdrawal

payments unless you request that DRS

transfer the funds directly to another eligible

retirement plan.

General information

Write Email

Website

Call

HoursVisit

http://www.drs.wa.gov http://www.drs.wa.gov

http://www.drs.wa.gov/administration/map

http://www.drs.wa.gov/administration/contact

mailto:drs.contact@drs.wa.gov

http://www.drs.wa.gov/oaa http://www.drs.wa.gov/oaa

360.664.7000

800.547.6657

TTY 711

Department of

Retirement Systems

PO Box 48380

Olympia, WA 98504

General inquiries:

drs.contact@drs.wa.gov

Send a secure message

through your online account:

drs.wa.gov/oaa

drs.wa.gov

You can also send email

through the Contact Us

page on the DRS website.

Monday - Friday

8 am to 5 pm

Pacific Time

6835 Capitol Blvd. SE

Tumwater, WA 98501

See the DRS website for

directions.

To contact DRS

How to nd your routing and account numbers:

On your checks, the routing number is on the bottom

left. The next numbers are your account. Optional: You

can also attach a voided check with your application.

If you don’t have checks, contact your nancial

institution and ask for the numbers.

Routing Number Account Number

Pay to

Waiver of 30-Day Notice Period

The IRS requires us to give you 30 days from the date of notarization to review the options outlined in this document. If you

don’t want to wait 30 days and would like DRS to proceed with your withdrawal, check the box below.

c I waive my right to have 30 days to review the withdrawal options.

Withdrawal Options

Choose only one of the options in this box.

c Roll Over 100% of Eligible Funds: I choose to transfer ALL of my contributions and interest to the account I name on the

back of this form.

c Roll Over Designated Portion of Eligible Funds: I choose to transfer $___________________________________ of my tax-deferred

contributions and interest and/or $___________________________________ of my after-tax contributions to the account I name on the

back of this form. Pay the remaining balance, minus the 20% IRS tax withholding (if applicable), directly to me. The amount sent

to me will include any required minimum distribution amount.

c Cash Payment: I choose to have my contributions and interest paid directly to me, minus the 20% IRS tax withholding for

tax-deferred contributions. (If you choose not to use direct deposit, we’ll mail a check to the address you provide.)

*DRSMS287*

Request for Refund of

Retirement Contributions

This form is for Plan 1 and Plan 2 members to

use to withdraw their retirement contributions.

Send completed form to:

Department of Retirement Systems

PO Box 48380 ꔷ Olympia, WA 98504-8380

www.drs.wa.gov

ꔷ 800.547.6657

360.664.7000 ꔷ TTY: 711

DRS MS 287 10/18

Instructions

Withdrawal Options: Choose only one of the withdrawal options in the box below. To read more about

your options, review the previous pages in this booklet.

If you withdraw tax-deferred contributions and interest and do not roll the funds into a qualied pension

plan, DRS withholds 20% for income tax. If you are younger than 59½ when you cash out tax-deferred

contributions, the IRS could require you to pay an additional 10% for withdrawing early.

Consult a tax advisor for more information.

Member Information

Name (Last, First, Middle) Social Security Number

Mailing Address City State ZIP

Phone Number Date Employment Ended (mm/dd/yyyy)

Employer

Email Address

Retirement System

c Public Employees’ Retirement System (PERS) c Law Enforcement Ofcers’ and Fire Fighters’ Retirement System (LEOFF)

c School Employees’ Retirement System (SERS) c Public Safety Employees’ Retirement System (PSERS)

c Teachers’ Retirement System (TRS) c Washington State Patrol Retirement System (WSPRS)

Please complete the other side of this form as well.

Clear Form

Your Social Security number is needed so DRS can report to the IRS any funds paid to you. DRS will not disclose your

Social Security number unless required to do so by law. See IRC sections 6041(a) and 6109.

Applicant Signature (notarization required)

This document creates a permanent agreement between DRS and me. I have read the booklet attached to this document. By

signing below, I state all information on this form, including my full name and Social Security number, is correct.

Applicant Signature Date

State of County of

Date Signed or Attested Before Me Date My Appointment Expires

Notary Signature

Notary Name Notary Title

Rollover Instructions

Direct Deposit Authorization (optional)

Rollover Institution: You are responsible for making sure the rollover institution you name will accept the

funds. DRS doesn’t conrm whether the funds will be accepted before transferring them. If your rollover

institution rejects the funds, your distribution will be delayed.

Due to federal restrictions, we cannot transfer funds electronically if the funds will be immediately credited

to an account outside the United States.

By completing the Direct Deposit section, you authorize that: DRS will transfer the full amount of your

withdrawal, after required IRS withholding, to the designated nancial institution for deposit. Additionally,

you authorize the designated nancial institution to refund DRS any payments made in error.

Instructions for Direct Deposit: This is usually your personal bank or credit union. Your nancial

institution’s representative can help you use the correct routing and account numbers for your direct

deposit. These are two different numbers. The routing number is a nine-digit bank code.

Rollover Institution (only ll in if you’re rolling over funds)

Name of Rollover Institution Phone Number

Account Type (check one)

c Traditional IRA c Inherited IRA c Eligible Retirement Plan

c Nonspouse Roth IRA c Nonspouse Inherited Roth IRA

Account Number

Financial Institution Branch Mailing Address City State ZIP

Seal

Stamp

Direct Deposit Financial Institution

Name of Financial Institution Routing Number (see example check on page 6)

Account Type

c Checking c Savings

Account Number (see example check on page 6)

Download
Save PDF to desktop

Email
Email completed PDF

Send for Signing
Email for others to sign

Print
Print document

NAME

A Plans 1 and 2 Withdrawal of Retirement (Washington)

View Audit Log
Print With Audit Log
Duplicate Document

Fill Online, Printable, Fillable, Blank A Plans 1 and 2 Withdrawal of Retirement (Washington) Form

Related forms

Fillable A Plans 1 and 2 Withdrawal of Retirement (Washington)

Fill Online, Printable, Fillable, Blank A Plans 1 and 2 Withdrawal of Retirement (Washington) Form

Related forms

First 20 documents completely FREE!