Withdrawals and Rollovers FAQs

When you leave your county or district job, you have the option of withdrawing your account or rolling it over into an IRA or other qualified retirement account. But there are advantages to keeping your TCDRS account open.

Q) What are my account options if I leave employment?

A) You have three options when it comes to your TCDRS: Keep your money in TCDRS, roll your money into an IRA or other retirement savings account, or withdraw your money.

  • Option 1: Keep your money in TCDRS
    As long as your money is in TCDRS, it will continue to grow at 7% compound interest. You don’t need to do anything to keep your account open --- just be sure to keep your contact information up to date with us.

  • Option 2: Roll over your account
    You can choose to roll your money over into another tax-deferred retirement account, such as a traditional IRA or your new employer’s retirement plan (if it allows rollovers). The advantage of a rollover is that you do not have to pay taxes on the money. However, you lose employer matching, and you forfeit your lifetime benefit.

  • Option 3: Withdraw your account
    If you choose to withdraw your money from TCDRS, you may first want to check with a tax professional or the IRS. Your withdrawal will be subject to a minimum 20% withholding for taxes, you may face a 10% withdrawal penalty at tax time and your withdrawal could significantly affect your income taxes. In addition, withdrawing your TCDRS account means you lose employer matching and forfeit your lifetime benefit from that account.


Q) Can I borrow against my account or take a partial withdrawal?

A) Member loans are not authorized under the TCDRS plan. If you decide to withdraw your account, you must take the full amount. You can choose to receive the money in a lump sum, roll it over into an IRA or other qualified retirement account, or a combination of both. Your withdrawal will not include employer matching. Remember that you only get employer matching if you retire.


Q) How can I apply to withdraw or roll over my account?

A) Before you can withdraw or roll over your TCDRS account, you must have left your county or district job.

You can apply for a withdrawal or rollover from your online account. The “Apply for Withdrawal” link is in the footer when you sign into your online TCDRS account. Your former employer must provide us with your last date of employment to complete processing. We will reach out to your former employer for this information.

You can also apply for a withdrawal or rollover by calling TCDRS Member Services at 800-823-7782.


Q) When can I expect my withdrawal or rollover payment?

A) You will receive your payment within 10 to 14 days of when we receive your application, in general. To process your application, we will need to verify your last date of employment with your employer and verify your identity.


Q) Why do you need my last date of employment from my employer?

A) TCDRS cannot pay out any money from your account if you are still employed. Therefore, we have to verify that you are no longer working for your county or district employer in order to issue payment.


Q) How can I expect to receive payment?

A) TCDRS will deposit your withdrawal directly into the bank account you indicate on your application. For rollovers, we will send you a check made out to the financial institution you named on your application.


Q) Where can I see the status of my application?

A) If you submitted your application online, you can sign into your account at TCDRS.org to check your application status. We will send you communications throughout the application process, letting you know we received your application, if we need additional information and when your application has been processed.


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