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Instead of receiving a retirement annuity, can I receive a refund of the money in my ATRS Member's Deposit Account? |
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Yes. You can receive your contributions plus interest when you terminate employment with a covered employer. The portion contributed by the state, however, cannot be withdrawn and is not used to calculate the amount of the refund. |
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If I am eligible to withdraw my funds, how may I choose to receive the payment? |
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You will receive a lump sum payment, but any pre-taxed contributions and interest earned is taxable. However, your pre-taxed contributions and interest can be rolled into a qualified tax-deferred annuity. |
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Can I withdraw only a portion of the total in my Member's Deposit Account? |
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ATRS does not allow members to make withdrawals from member deposit accounts for other than total refunds. Unlike a credit union, the ATRS is not equipped nor legally permitted to make such transactions. |
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Is my refund taxable by the State of Arkansas? By the federal government? |
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Interest and pre-taxed contributions are taxable both by the State of Arkansas and the IRS, along with any employee contributions not previously taxed. |
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Are there any tax penalties for early withdrawal of my funds? |
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The taxable portion of your refund is as follows: |
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The required federal withholding is 20% and the required state withholding is 5%. An additional early withdrawal penalty of 10% for members under age 59 1/2 may be applicable by the IRS.
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How will taking a refund affect my record of creditable service if I later return to ATRS? |
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All service, both contributory and noncontributory, is canceled when you receive a refund. Refunded service may be repaid should you re-enter the system using an actuarial cost method. |
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If I leave covered ATRS service but do not want to withdraw my funds may I just leave them in my account with ATRS? |
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Yes. If you have 5 or more years of service, at age 60 you would be eligible to receive a monthly annuity. |
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If I am eligible to withdraw the money in my Member Deposit Account, how do I apply for a refund. |
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Contact a retirement counselor at
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in our office to request a refund. |
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If you have any questions, please contact us at (501) 682-1517, toll free at 1-800-666-2877, or email us at
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to submit your question. |
