Account
Withdrawal
For members enrolled in the
Dened Benet Plan
Dened Contribution Plan
Combined Plan
2024|2025
888-227-7877 1www.strsoh.org
Table of Contents
Account Withdrawal Overview .............................................1
Spousal consent on account withdrawals ..................................1
Account withdrawal restrictions and considerations .................2
Loss of benets with account withdrawal ..................................3
Service credit canceled with account withdrawal ......................4
Reemployment after account withdrawal .................................5
If you are considering withdrawing your account ......................5
Monthly payments vs. account withdrawal ...............................6
If you decide to withdraw your account .....................................7
How withdrawal amounts are calculated ..............................7
Dened Benet Plan .................................................................7
Dened Contribution Plan .........................................................8
Combined Plan ..........................................................................8
Account withdrawal payment options ...................................9
Special tax notice regarding lump-sum payments ............... 10
General information about rollovers ........................................10
Special rules and options .........................................................14
For more information...............................................................18
Questions and answers ....................................................... 19
STRS Ohio Resources ...........................................................22
DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
Account Withdrawal Overview
If you are considering withdrawing your STRS Ohio account,
please review this brochure carefully. It explains who is
eligible to withdraw an account, how the withdrawal
amount is calculated and payment options. This brochure
also provides important infor mation about the taxation of
lump-sum payments.
To fully understand the information in this brochure, you
must know which STRS Ohio retirement plan you selected
— the Dened Benet Plan, the Dened Contribution Plan
or the Combined Plan. If you are unsure, this information can
be found in the Member Information section of your Online
Personal Account. Unless otherwise noted, the information
in this brochure applies to all three plans.
Spousal consent on account withdrawals
As required by Ohio law, all married members must obtain
spousal consent in the following retirement plans and
situations:
Dened Benet Plan — Spousal consent is required if you
are eligible for service retirement.
Dened Contribution Plan or Combined Plan members
— Spousal consent is required if you are age 50 or older and
your account value is $5,000 or more.
If required, your spouse must provide his or her consent by
completing the spousal adavit section of the withdrawal
application. If your spouse does not sign and notarize the
spousal adavit and one is required, your withdrawal
application will be considered an application for retirement
and you will receive a monthly benet paid as a Joint and
Survivor Annuity with one-half to beneciary.
This brochure is a summary written in plain language for use by STRS Ohio
members. It is not intended as a substitute for the Ohio Revised Code or the
Ohio Administrative Code or for any state or federal law or regulation, nor
will its interpretation prevail should a conict arise between it and any law
or regulation. More information may be obtained by contacting STRS Ohio
toll-free at 888-227-7877.
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DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
Account withdrawal restrictions and
considerations
You cannot withdraw your STRS Ohio account
if you are:
• Under any form of teaching contract, including
substitute teaching with an STRS Ohio contributing
employer;
• Under any type of verbal or written agreement for future
teaching with an STRS Ohio public employer under the
retirement law;
• On a leave of absence;
• Under a court order to name your former spouse as
beneciary of a joint and survivor plan of payment;
• In the STRS Ohio Dened Benet Plan and terminated
your employment in an STRS Ohio-covered position but
are now working with the same employer in an Ohio
Public Employees Retirement System (OPERS) or School
Employees Retirement System (SERS) position;
• Receiving service retirement or disability benets from
STRS Ohio; or
• Currently contributing to a college or university
alternative retirement plan (ARP). Only a transfer of
STRS Ohio funds to the ARP is permitted. For more
information on how an ARP aects your STRS Ohio
account, call toll-free at 888-227-7877.
If you are in the Dened Benet Plan or Combined
Plan, you should consider keeping your account with
STRS Ohio if you:
• Have completed 5.00 or more years of service as an Ohio
teacher or if you have other teaching or public service
that can be combined with your Ohio service to give you
a total of 5.00 years. With 5.00 years of qualifying service
credit,* you can meet the statutory requirements for
STRS Ohio retirement benets when you reach age 60.
• May return to service in the public or state-supported
schools of Ohio.
• Are in the Dened Benet Plan and may be employed
by an Ohio city, county, municipality or political
subdivision.
• Are entering military service. If teaching service in Ohio
is interrupted by service in the U.S. armed forces, you
may be eligible to receive additional retirement credit or
make additional contributions to your account.
If you are in the Dened Contribution Plan, you should
consider keeping your account with STRS Ohio if you:
• May return to service in the public or state-supported
schools of Ohio.
• Are entering military service. If teaching service in Ohio
is interrupted by service in the U.S. armed forces, you
may be eligible to make additional contributions to your
account.
Loss of benets with account withdrawal
If you are in the Dened Benet Plan or Combined Plan
and withdraw your STRS Ohio account, you will lose the
opportunity to qualify for valuable benets:
• Survivor benets are available to qualied survivors
(spouse, children and parents) when the member dies
after meeting eligibility requirements. Benets for
qualied survivors may continue for up to 27 months
following the member’s last contributing service (for
existing members on June 30, 2013) or up to 12 months
(for new members on or after July 1, 2013). Survivors
may also enroll in the STRS Ohio Health Care Program
if eligible.*
• Disability benets are available to members who have
met eligibility requirements and have a disabling injury
or illness that prevents the individual from performing
their most recent job duties. Disability benet recipients
also have the oppor tunity to enroll in the STRS Ohio
Health Care Program if eligible.* For existing members
on June 30, 2013, eligibility for disability benets
*For Dened Benet Plan members, qualifying service credit includes earned credit
with STRS Ohio, Ohio Public Employees Retirement System (OPERS) or School Employees
Retirement System (SERS); restored withdrawn credit with STRS Ohio, OPERS or SERS;
interrupted Ohio public service due to military service; and earned and restored credit
that transfers from Ohio Police & Fire Pension Fund, Highway Patrol Retirement System or
Cincinnati Retirement System.
*The STRS Ohio Health Care Program is not guaranteed. STRS Ohio may change or
discontinue all or part of the program for all or a class of eligible benet recipients and
covered dependents at any time.
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DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
continues for two years following the member’s last
date of STRS Ohio-covered employment. For new
members on or after July 1, 2013, disability benets
continues for one year following the member’s last date
of STRS Ohio-covered employment.
After you are eligible for service retirement, you
qualify for:
• Lifetime monthly pension.
• Continuing lifetime benets to survivors if you choose.
• STRS Ohio oers medical, dental and vision coverage to
eligible service retirement benet recipients and their
eligible dependents.* Members retiring on or after
Aug. 1, 2023, must have at least 20 years of service credit
to qualify for coverage.
If you are in the Dened Benet Plan, you also
qualify for:
• Cost-of-living adjustments (COLA) on the monthly
benet.**
• Automatic $1,000 death benet payable to a beneciary
you select.
Service credit canceled with account
withdrawal
If you are in the Dened Benet Plan:
• Your accumulated service credit will be canceled if you
withdraw your STRS Ohio account. You may restore
withdrawn service credit if you later earn 1.50 years
of service with an Ohio public retirement system. To
restore the service, you must pay an amount equal to
the amount you withdrew — including any interest
or matching funds paid to you — plus interest at a
rate established by STRS Ohio. The rate is currently 8%
compounded annually but is subject to change
without notice.
If you are in the Dened Contribution Plan or
Combined Plan:
• Withdrawn accounts, including with drawn service credit
on Combined Plan accounts, cannot be restored.
Reemployment after account withdrawal
If you want to become reemployed after a full
withdrawal of your account:
• There are no restrictions on reemployment after you
fully withdraw your STRS Ohio account. If you return
to teaching after withdrawing your account, you will
either be placed back in the same retirement plan or
be eligible to make a new plan selection, depending
on whether or not your current plan is considered to be
your permanent choice.
If you want to become reemployed after a partial
withdrawal of your Combined Plan account:
• Only with draw the dened contribution portion of
your account. Contributions upon reemployment will
be deposited in an annuity account payable when you
reach age 65 or terminate employment, whichever is
later. You must wait two months before beginning Ohio
public employment to avoid reemployment penalties.
If you are considering withdrawing your
account
If you are considering withdrawing your STRS Ohio account,
a conference with a benets counselor is recommended. A
counselor can explain the potential benets you will lose
by withdrawing your account, which may be substantial.
A benets counseling appointment can be scheduled at
www.strsoh.org using your Online Personal Account. (To
register for an Online Personal Account, go to the home
page of the STRS Ohio website and click “Register.”)
*The STRS Ohio Health Care Program is not guaranteed. STRS Ohio may change or
discontinue all or part of the program for all or a class of eligible benet recipients and
covered dependents at any time.
**New STRS Ohio benet recipients are eligible to receive a COLA beginning on the fth
anniversary of their retirement date. The State Teachers Retirement Board will periodically
evaluate whether a cost-of-living increase is payable in accordance with the law in eect
at that time (Section 3307.67, Revised Code). If a COLA is granted, you will receive it on the
anniversary of your retirement date.
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DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
Monthly payments vs. account withdrawal
Dened Benet and Combined Plan members are eligible
for a monthly service retirement benet with 5.00 or more
years of qualifying service credit once age requirements
are met. Dened Contribution Plan members are eligible
for a monthly service retirement benet after the age of 50
assuming the account balance is enough to provide at least a
$100 monthly benet for the plan of payment chosen.
Plan Feature
Monthly
Payments
Account
Withdrawal
Lifetime monthly benet
Yes No
Survivor benets
Yes
(Dened Benet and
Combined Plans only)
No
Access to health care
coverage
1
Yes
(Dened Benet and
Combined Plans only)
No
Cost-of-living adjustments
(COLA)
2
Yes
(Dened Benet Plan only
)
No
Direct control over funds
No Yes
Possible rollover to a
qualied plan
No Yes
Possible tax penalties
No Yes
Death benets
3
Yes No
Possible investment costs
No Yes
Individual investment risk
No Yes
Subject to reemployment
guidelines for Ohio public
positions
4
Yes No
Note: Any payments you receive from STRS Ohio may aect your
eligibility for Social Security benets. For more information, contact
Social Security toll-free at 800-772-1213.
1
Members retiring on or after Aug. 1, 2023, must have at least 20 years of service credit to
qualify for coverage.
2
New STRS Ohio benet recipients are eligible to receive a COLA beginning on the fth
anniversary of their retirement date. The State Teachers Retirement Board will periodically
evaluate whether a cost-of-living increase is payable in accordance with the law in eect
at that time (Section 3307.67, Revised Code). If a COLA is granted, you will receive it on the
anniversary of your retirement date.
3
Dened Benet Plan retirees have a $1,000 automatic death benet with the option to
purchase an additional $1,000 or $2,000. Dened Contribution and Combined Plan retirees
may purchase an optional death benet of $1,000 or $2,000.
4
For the Combined Plan, assumes both the dened benet and dened contribution portions
of the account are withdrawn.
*When referring to withdrawals, “qualifying service credit” refers to Ohio teaching service,
restored withdrawn credit, purchased service for Ohio public teaching from which no
STRS Ohio contributions were withheld, and credit obtained for leaves of absence under
Section 3307.77 of the Revised Code.
**The additional 50% match only applies to Ohio teaching service, restored withdrawn
credit to the extent the amount paid to restore the credit also includes matching funds,
and credit obtained for leaves of absence under section 3307.77 of the Revised Code.
If you decide to withdraw your account
If after meeting with a benets counselor and
reviewing this brochure, you decide to withdraw your
account:
Log in to your Online Personal Account, select “Member
Information” from the top menu and then select “Apply
for Account Withdrawal” under Useful Links. Follow the
instructions for completing the application.
Your withdrawal payment will be made within 30 days of
STRS Ohio’s receipt of a properly completed application
or your last payroll date, whichever is later. If you have
questions about completing the application, please call
STRS Ohio.
How withdrawal amounts are
calculated
Dened Benet Plan
Account withdrawals consist of member contributions plus
an additional amount payable under Section 3307.563 of
the Revised Code (R.C.). The additional amount payable
depends on years of qualifying service credit* and the rates
of interest established by the State Teachers Retirement
Board. The interest rates noted below are subject to
change without notice. To conrm current interest rates,
contact STRS Ohio toll-free at 888-227-7877.
• With 5.00 or more years of qualifying service
credit,* interest at a current rate of 3% compounded
annually will be paid on your member contributions and
an additional amount equal to 50% of the sum of your
member contributions**, plus interest, will also be paid.
• With at least 3.00 years but less than 5.00 years of
qualifying service credit,* interest at a current rate of
3% compounded annually will be paid on your member
contributions.
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DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
• With less than 3.00 years of qualifying service
credit,* interest at a current rate of 2% compounded
annually will be paid on your member contributions.
Interest for all years withdrawn begins to accrue at the
beginning of the scal year following deposit. For example,
interest on 2023–2024 contributions would begin accruing
July 2024 and be payable August 2024 or later. No interest
is payable if a member withdraws his or her account in
July and contributed to STRS Ohio for only the year just
ended. Interest stops accruing the month before account
withdrawal.
Dened Contribution Plan
Account withdrawal amounts consist of member contri-
butions plus any gains or losses on those contributions.
Withdrawal amounts will also include the employer portion
of the account (consisting of the employer contributions
plus any gains or losses), according to the following vesting
schedule:
• If your membership began before July 1, 2013, you
are 100% vested in the employer portion of the account
after one year of membership.
• If your membership began on or after July 1, 2013,
you are vested in 20% of the employer portion of the
account for each full year of membership.
Your withdrawal amount might be aected by fees and early
withdrawal penalties.
Combined Plan
For the dened contribution portion of the account, the
withdrawal amount consists of member contributions plus
any gains or losses on those contributions. The withdrawal
amount may be aected by low balance fees or early
withdrawal penalties.
For the dened benet portion of the account, members
with 5.00 or more years of service credit are eligible for the
greater of: (1) the present value of the future benets, or
(2) the member’s total contributions to the dened benet
portion of the account.
The dened benet portion of the account consists of
the member’s total contributions to the dened benet
portion of the account if the member with draws before
accumulating 5.00 years of service credit.
Account withdrawal payment options
If you are eligible for and wish to withdraw your STRS
Ohio account, payments can be:
• Paid directly to you, or
• Rolled over to either an IRA (an individual retirement
account or individual retirement annuity) or an
employer plan (a tax-qualied plan, section 403(b) plan
or governmental section 457(b) plan) of the Internal
Revenue Code that will accept the rollover.
Account withdrawals are nal when your account is closed.
If you are currently contributing only to a college or
university alternative retirement plan (ARP), you are not
eligible to receive direct payment or to roll over your STRS
Ohio account; however, you may be eligible to withdraw
your STRS Ohio account and transfer the funds to your
ARP account.
If you transfer your funds, you could lose the oppor tunity to
qualify for valuable STRS Ohio benets. Contact STRS Ohio
toll-free at 888-227-7877 for additional information.
*When referring to withdrawals, “qualifying service credit” refers to Ohio teaching service,
restored withdrawn credit, purchased service for Ohio public teaching from which no
STRS Ohio contributions were withheld, and credit obtained for leaves of absence under
Section 3307.77 of the Revised Code.
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DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
Special tax notice regarding
lump-sum payments
This notice contains important information you will need
before you decide how to receive your payment from STRS
Ohio, including information about rollovers. A payment
from STRS Ohio can be processed in three ways. You can
have: (1) all of the payment paid by direct rollover to an
IRA or an eligible employer plan; (2) all of the payment
paid to you; or (3) some portion paid as a rollover with the
remaining amount paid to you. Rules that apply to most
payments are described below under “General information
about rollovers.” Special rules that only apply in certain
circumstances are described under “Special rules and
options” on Page 14.
General information about rollovers
Your right to waive the 30-day notice period
Neither a direct rollover nor a payment can be made by
STRS Ohio before 30 days and no later than 180 days after
your receipt of this notice. After receiving this notice, you
have at least 30 days to decide whether or not to have all or
part of your payment directly rolled over. If you do not wish
to wait until this 30-day notice period ends before making
your decision, you may waive the notice period. Your
withdrawal will then be processed as soon as possible after
it is received by STRS Ohio.
How a rollover aects your taxes
You will be taxed on a payment from STRS Ohio if you
choose not to roll over the payment. If you are under
age 59-1/2 and choose not to roll over the payment, you
will also have to pay a 10% additional income tax on
early distributions (generally, distributions made before
age 59-1/2 unless an exception applies). However, if you
choose a rollover, you will not have to pay tax until you
receive payments at a later date and the 10% additional
income tax will not apply if those payments are made after
you are age 59-1/2 (or if an exception applies).
Where you may roll over the payment
You may roll over the payment to an IRA (an individual
retirement account or individual retirement annuity) or an
employer plan (a tax-qualied plan, section 403(b) plan or
governmental section 457(b) plan) of the Internal Revenue
Code that will accept the rollover. A rollover of a lump-sum
payment due to the death of a member may be permitted
or required to be rolled into an inherited IRA. The rules of
the IRA or eligible employer plan that holds the rollover
will determine your investment options, fees and rights to
payment from the IRA or eligible employer plan (e.g., no
spousal consent rules apply to IRAs and IRAs may not provide
loans). Further, the amount rolled over will become subject
to the tax rules that apply to the IRA or employer plan.
An eligible employer plan is not legally required to accept
a rollover. Before you decide to roll over your payment to
an eligible employer plan, you should nd out whether the
plan accepts rollovers and, if so, the types of distributions
it accepts as a rollover. You also need to know about any
documents that are required before the receiving plan will
accept a rollover. Even if a plan accepts rollovers, it might
not accept rollovers of certain types of distributions, such as
after-tax amounts.
If an eligible employer plan accepts your rollover, the plan
may restrict subsequent distributions of the rollover amount
or may require your spouse’s consent for any subsequent
distribution. A subsequent payment from the plan that
accepts your rollover may also be subject to dierent tax
treatment than payments from STRS Ohio. Check with the
administrator of your eligible employer plan before making
the rollover.
How you roll over the payment
There are two ways to roll over the payment. You can do
either a direct rollover or a 60-day rollover.
• If you choose a direct rollover, STRS Ohio will make the
payment directly to your IRA or an eligible employer plan.
You should contact the IRA sponsor or administrator of
the plan for information on how to make a direct rollover.
• If you do not choose a direct rollover, you may still
make a rollover by depositing the payment from STRS
Ohio into an IRA or eligible employer plan that will accept
it. You will have 60 days after you receive the payment to
make the deposit. If you do not choose a direct rollover,
STRS Ohio is required to withhold 20% of the payment for
federal income taxes. This means that, in order to roll over
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DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
the entire payment in a 60-day rollover, you must use
other funds to make up for the 20% withheld (e.g., your
savings, a loan, etc.). If you do not roll over the entire
amount of the payment, the portion not rolled over
will be taxed and will be subject to the 10% additional
income tax on early distributions if you are under
age 59-1/2 (unless an exception applies).
How much you may roll over
If you choose to roll over, you may roll over all or part of the
amount eligible for rollover. Any payment from STRS Ohio
is eligible for rollover except:
• Certain payments spread over a period of at least
10 years or over your life or life expectancy (or the lives
or joint life expectancy of you and your beneciary).
• Required minimum distributions after age 72 (if you
were born before Jan. 1, 1951), after age 73 (if you were
born after Dec. 31, 1950) or after death.
STRS Ohio can tell you what portion of a payment is eligible
for rollover.
A 10% additional income tax on early
distributions may apply if you do not choose
a rollover
If you are under age 59-1/2, you will have to pay the
10% additional income tax on early distributions for any
payment from STRS Ohio (including amounts withheld
for income tax) that you do not roll over, unless one of the
exceptions listed below applies. This tax is in addition to
the regular income tax on the payment not rolled over.
The 10% additional income tax does not apply to the
following payments from STRS Ohio:
• Payments made after you separate from service if you
will be at least age 55 in the year of the separation;
• Payments that start after you separate from service if
paid at least annually in equal or close to equal amounts
over your life or life expectancy (or the lives or joint life
expectancy of you and your beneciary);
• Payments after your death;
• Payments made directly to the government to satisfy a
federal tax levy;
• Payments made under a division of property order
(DOPO);
• Payments up to the amount of your deductible medical
expenses (without regard to whether you itemize
deductions for the taxable year); or
• Certain payments made while you are on active duty if
you were a member of a reserve component called to
duty after Sept. 11, 2001, for more than 179 days.
A 10% additional income tax on early
distributions may apply to distributions
from an IRA
If you receive a payment from an IRA when you are under
age 59-1/2, you will have to pay the 10% additional
income tax on early distributions from the IRA (unless an
exception applies). In general, the exceptions to the 10%
additional income tax for early distributions from an IRA
are the same as the exceptions listed on Pages 12–13 for
early distributions from a plan. However, there are a few
dierences for payments from an IRA, including:
• There is no exception for payments after separation
from service that are made after age 55.
• The exception for payments made under a DOPO does
not apply (although a special rule applies under which,
as part of a divorce or separation agreement, a tax-free
transfer may be made directly to an IRA of a spouse or
former spouse).
• The exception for payments made at least annually in
equal or close to equal amounts over a specied period
applies without regard to whether you have had a
separation from service.
• There are additional exceptions for: (1) payments for
qualied higher education expenses; (2) payments up
to $10,000 used in a qualied rst-time home purchase;
and (3) payments for health insurance premiums after
you have received unemployment compensation for
12 consecutive weeks (or would have been eligible to
receive unemployment compensation but for self-
employed status).
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DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
Special rules and options
If your payment includes after-tax
contributions
After-tax contributions included in a payment are not
taxed. If a payment is only part of your benet, an allocable
portion of your after-tax contributions is generally included
in the payment. If you have pre-1987 after-tax contributions
maintained in a separate account, a special rule may apply
to determine whether the after-tax contributions are
included in a payment.
You may roll over to an IRA a payment that includes
after-tax contributions through either a direct rollover or
a 60-day rollover. You must keep track of the aggregate
amount of the after-tax contributions in all of your IRAs (in
order to determine your taxable income for later payments
from the IRAs). If you choose a direct rollover of only a
portion of the amount paid from STRS Ohio and at the
same time the rest is paid to you, the portion directly rolled
over consists rst of the amount that would be taxable if
not rolled over. For example, assume you are receiving a
complete distribution of your benet, which totals $12,000,
of which $2,000 is after-tax contributions. In this case, if you
roll over $10,000 to an IRA in a 60-day rollover, no amount
is taxable because the $2,000 amount not rolled over is
treated as being after-tax contributions. If you do a direct
rollover of the entire amount paid from STRS Ohio to two or
more destinations at the same time, you can choose which
destination receives the after-tax contributions.
If you do a 60-day rollover to an IRA of only a portion of
a payment made to you, the after-tax contributions are
treated as rolled over last. For example, assume you receive
a distribution of $10,000, of which $2,000 is after-tax
contributions, and no part of the distribution is directly
rolled over. In this case, if you roll over $8,000 to an IRA that
is not a Roth IRA in a 60-day rollover, no amount is taxable
because the $2,000 amount not rolled over is treated as
being after-tax contributions.
You may roll over to an eligible employer plan all of a
payment that includes after-tax contributions, but only
through a direct rollover (and only if the receiving plan
separately accounts for after-tax contributions and is not
a 457(b) plan). You can make the rollover within 60 days
to an eligible employer plan of part of a payment that
includes after-tax contributions, but only up to the amount
of the payment that would be taxable if not rolled over.
If you miss the 60-day rollover deadline
Generally, the 60-day rollover deadline cannot be
extended. However, the Internal Revenue Service (IRS) has
the limited authority to waive the deadline under certain
extraordinary circumstances, such as when external events
prevented you from completing the rollover by the 60-day
rollover deadline. Under certain circumstances, you may
claim eligibility for a waiver of the 60-day rollover deadline
by making a self-certication. Otherwise, to apply for a
waiver, you must le a private letter ruling request with
the IRS. Private letter ruling requests require the payment
of a nonrefundable user fee. For more information, see IRS
Publication 590-A, Contributions to Individual Retirement
Arrangements (IRAs).
If you were born on or before Jan. 1, 1936
If you were born on or before Jan. 1, 1936, and receive a
lump-sum distribution that you do not roll over, special
rules for calculating the amount of the tax on the payment
might apply to you. For more information, see IRS
Publication 575, Pension and Annuity Income.
If you roll over your payment to a Roth IRA
You can roll over a payment from STRS Ohio to a Roth
IRA, but not to a designated Roth account in an eligible
employer plan.
If you roll over the payment to a Roth IRA, a special
rule applies under which the amount of the payment
rolled over (reduced by any after-tax amounts) will be
taxed. However, the 10% additional income tax on early
distributions will not apply (unless you take the amount
rolled over out of the Roth IRA within ve years, counting
from Jan. 1 of the year of the rollover).
If you roll over the payment to a Roth IRA, later payments
from the Roth IRA that are qualied distributions will not
be taxed (including earnings after the rollover). A qualied
distribution from a Roth IRA is a payment made after
you are age 59-1/2 (or after your death or disability, or
as a qualied rst-time home buyer distribution of up to
888-227-7877 17www.strsoh.org16
DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
$10,000) and after you have had a Roth IRA for at least
ve years. In applying this ve-year rule, you count from
Jan. 1 of the year for which your rst contribution was
made to a Roth IRA. Payments from the Roth IRA that are
not qualied distributions will be taxed to the extent of
earnings after the rollover, including the 10% additional
income tax on early distributions (unless an exception
applies). You do not have to take required minimum
distributions from a Roth IRA during your lifetime. For more
information, see IRS Publication 590-A, Contributions to
Individual Retirement Arrangements (IRAs).
If you are not a member of STRS Ohio
• Payments after death of the member. If you receive
a distribution after the member’s death that you do
not roll over, the distribution will generally be taxed
in the same manner described elsewhere in this
notice. However, the 10% additional income tax on
early distributions does not apply, and the special rule
described under “If you were born on or before
Jan. 1, 1936” on Page 15, applies only if the member
was born on or before Jan. 1, 1936.
— A surviving spouse, receiving a payment from
STRS Ohio, has the same rollover options that the
member would have had, as described elsewhere in
this notice. In addition, if you choose to roll over to
an IRA, you may treat the IRA as your own or as an
inherited IRA.
An IRA you treat as your own is treated like any
other IRA of yours, so that payments made to you
before you are age 59-1/2 will be subject to the
10% additional income tax on early distributions
(unless an exception applies) and required minimum
distributions from your IRA do not have to start until
after age 72 (if you were born before Jan. 1, 1951) or
after age 73 (if you were born after Dec. 31, 1950).
If you treat the IRA as an inherited IRA, payments
from the IRA will not be subject to the 10%
additional income tax on early distributions.
However, if the member had started taking required
minimum distributions, you will have to receive
required minimum distributions from the inherited
IRA. If the member had not started taking required
minimum distributions, you will not have to start
receiving required minimum distributions from the
inherited IRA until the year the member would have
been age 72 (if the member was born before
Jan. 1, 1951) or after the member would have been
age 73 (if the member was born after Dec. 31, 1950).
— A surviving beneciary other than a spouse,
receiving a payment from STRS Ohio, has only one
rollover option — a direct rollover to an inherited
IRA. Payments from the inherited IRA will not be
subject to the 10% additional income tax on early
distributions. You will have to receive required
minimum distributions from the inherited IRA.
• Payments under a DOPO. A division of property order
(DOPO) is an order issued by a court in connection with
a divorce or legal separation. If you are the spouse or
former spouse of the member who receives a payment
from STRS Ohio under a DOPO, you generally have the
same tax options the member would have. You may
choose to have the payment paid in a direct rollover to
an IRA or an eligible employer plan that will accept it.
You may also choose to have the payment paid to you.
If the payment is made directly to you, you can keep it
or you may roll over the payment to an IRA. Payments
under a DOPO will not be subject to the 10% additional
income tax on early distributions.
If you are a nonresident alien
If you are a nonresident alien and you do not choose a
direct rollover to a U.S. IRA or U.S. eligible employer plan,
instead of withholding 20%, STRS Ohio is generally required
to withhold 30% of the payment for federal income taxes.
If the amount withheld exceeds the amount of tax you
owe (as may happen if you do a 60-day rollover), you may
request an income tax refund by ling Form 1040NR and
attaching your Form 1042-S. See Form W-8BEN for claiming
that you are entitled to a reduced rate of withholding
under an income tax treaty. For more information, see
also IRS Publication 519, U.S. Tax Guide for Aliens and IRS
Publication 515, Withholding of Tax on Nonresident Aliens
and Foreign Entities.
888-227-7877 19www.strsoh.org18
DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
Other special rules
A direct rollover will not be processed by STRS Ohio if the
payment is payable to a trust, an estate or for amounts
totaling less than $200. There will also be no federal income
tax withheld from amounts less than $200. In addition,
eligible rollover distributions less than $500 cannot be split
between a direct rollover and a payment made payable
to you. You may have special rollover rights if you recently
served in the U.S. Armed Forces. For more information, see
IRS Publication 3, Armed Forces’ Tax Guide.
For more information
This notice summarizes only the federal (not state or
local) tax rules that may apply to your payment. The rules
described in this notice are complex and contain many
conditions and exceptions that are not included in this
notice. You should consult with a professional tax advisor
before taking a payment from STRS Ohio. You can also nd
more detailed information on the federal tax treatment of
payments from eligible employer plans in: IRS Publication
575, Pension and Annuity Income; IRS Publication 590-A,
Contributions to Individual Retirement Arrangements
(IRAs); IRS Publication 590-B, Distributions from Individual
Retirement Arrangements (IRAs) and IRS Publication
571, Tax-Sheltered Annuity Plans (403(b) Plans). These
publications are available from a local IRS oce, online at
www.irs.gov or by calling toll-free 800-829-3676.
Questions and answers
What kind of retirement plan is STRS Ohio?
STRS Ohio is a qualied pension plan under Section 401(a)
of the Internal Revenue Code.
How much will I receive when I withdraw my
account?
The exact amount of your withdrawal depends on the
month your distribution is paid and the amount of
contributions and service credit certied by your employer.
Based on this information, STRS Ohio will calculate your
contributions plus, if applicable, any interest or additional
funds to determine the total amount of your distribution. In
most cases, withdrawal estimates are available from STRS
Ohio. See Pages 7–9 for information on how withdrawal
amounts are calculated and the various factors that might
aect the calculation.
Can I withdraw only a portion of my Dened
Benet Plan or Dened Contribution Plan
account?
No, partial withdrawals or loans are not allowed under
the law.
Can I withdraw only a portion of my Combined
Plan account?
If you withdraw your account before age 50, you
must withdraw both the dened benet and dened
contribution portions of your account. At age 50 or after,
you may withdraw the dened contribution portion
upon terminating employment and leave the dened
benet portion on account for a benet at age 60. You
may withdraw the dened benet portion only if you are
withdrawing the dened contribution portion or receiving
a monthly benet from the dened contribution portion.
If you are at least 50 years of age, you may receive the
dened contribution portion as a lifetime annuity. For more
information, call STRS Ohio toll-free at 888-227-7877.
888-227-7877 21www.strsoh.org20
DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
Why should I keep my STRS Ohio account if I
am no longer contributing to STRS Ohio?
The withdrawal of your account cancels potential benets
for you and your family. For more information about
benets you might be forfeiting, contact STRS Ohio
toll-free at 888-227-7877.
Can I withdraw my account instead of applying
for a monthly retirement benet or annuity?
Yes. However, before withdrawing your account, you
should consider carefully the potential benets you are
forfeiting. For more information, contact STRS Ohio
toll-free at 888-227-7877.
How quickly will I receive my account
withdrawal?
Payment of an account withdrawal is generally made
within 30 days after receipt of the valid, properly
completed application from the certifying employer or
your last payroll date, whichever is later.
What are my rollover options and tax
consequences?
All or part of your account value may be rolled over
to either an IRA (an individual retirement account or
individual retirement annuity) or an employer plan (a tax-
qualied plan, section 403(b) plan or governmental section
457(b) plan) of the Internal Revenue Code that will accept
the rollover. STRS Ohio will forward these amounts directly
to your nancial institution if the amount eligible to be
rolled over exceeds $200. Eligible amounts less than $200
are taxable but are exempt from federal withholding and
can be rolled over by the member. Taxable amounts rolled
over remain in a tax-deferred status until withdrawn.
For further information, refer to the special tax notice
starting on Page 10.
Is there a penalty for early withdrawal?
You may roll over taxable and nontaxable amounts to
another eligible retirement account without taxes or
penalties. Taxable amounts that you do not roll over are
subject to a mandatory 20% federal tax withholding. In
addition, you may be subject to a 10% penalty for early
withdrawal if you withdraw before age 59-1/2. (For further
information, consult your tax advisor.) Nontaxable amounts
are not subject to additional taxes or penalties because you
have already paid taxes on these contributions.
888-227-7877 23www.strsoh.org22
By phone: 888-227-7877 (toll-free)
Our dedicated team of member service representatives is
available to answer your questions when you need them.
• Call Monday–Friday, 8 a.m.–5 p.m.
When you need more detailed information, our benets
counselors can provide you with one-on-one consultation
in our Columbus oce, through a teleconference,
videoconference or during eld counseling sessions.
On the Internet: www.strsoh.org
A quick way to access information is through STRS Ohio’s
website, where you will nd the items below and much
more.
• Benet information (while teaching and in retirement)
• Online Personal Account information
• Your Annual Statement of Account providing your
account withdrawal value
• An online account withdrawal application
• A special section for higher education faculty
By email:
• Go to www.strsoh.org and select “Contact” from the
top menu.
Email news service
STRS Ohio updates members about legislation, benets
and other issues aecting the STRS Ohio membership
through our email news service — eUPDATE. All members
with an email on le receive the eUPDATE.
DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN DEFINED BENEFIT, DEFINED CONTRIBUTION OR COMBINED PLAN
STRS Ohio Resources
Publications available
The following STRS Ohio publications are available on the
STRS Ohio website at www.strsoh.org.
• Account Withdrawal
• Annual Comprehensive Financial Report
• Death Bene ts
• Disability Allowance
• Disability Bene ts (Combined Plan)
• Disability Retirement
• Employment After Retirement
• Preparing for Retirement
• Purchasing Service Credit
• Service Credit Guidelines
• Service Retirement and Plans of Payment
• Summary Annual Financial Report
• Survivor Bene ts
• Understanding Your STRS Ohio Benets — Plan Summary
888-227-7877www.strsoh.org
51-104, 6/24/6M
State Teachers Retirement System of Ohio
275 East Broad Street
•
Columbus, OH 43215-3771
888-227-7877
•
www.strsoh.org
