I am pulling out my teachers retirement early from texas it is about 8900. how much I will be taxed? Also can it wait before being taxed the 20% federal withholding?

cssk2011 · ‎May 31, 2019

I am not planning on rolling it over. I would like to know if I can request that they not take the 20% out and I will have the taxes taken out of my tax refund.

SteamTrain · ‎May 31, 2019

According to a TRS publication, the 20% is mandatory :

"Refunded amounts that represent tax-sheltered contributions are subject to a mandatory 20 percent federal income tax withholding unless you elect to roll over all eligible amounts to another qualied plan or to a traditional Individual Retirement Account (IRA). A 10 percent early withdrawal penalty assessed by the Internal Revenue Service (IRS) may also be applicable. "

"https://www.trs.texas.gov/TRS%20Documents/request_refund.pdf

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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SteamTrain · ‎May 31, 2019

According to a TRS publication, the 20% is mandatory :

"Refunded amounts that represent tax-sheltered contributions are subject to a mandatory 20 percent federal income tax withholding unless you elect to roll over all eligible amounts to another qualied plan or to a traditional Individual Retirement Account (IRA). A 10 percent early withdrawal penalty assessed by the Internal Revenue Service (IRS) may also be applicable. "

"https://www.trs.texas.gov/TRS%20Documents/request_refund.pdf

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

SweetieJean · ‎May 31, 2019

The tax depends upon your overall tax situation for 2016. Try this estimating tool:

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

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I am pulling out my teachers retirement early from texas it is about 8900. how much I will be taxed? Also can it wait before being taxed the 20% federal withholding?