Will I be taxed by the IRS on any refunded contributions that I may receive after my
resignation from public service?
Contributions Made Prior to January 12, 1988
That portion of your contributions made prior to January 12, 1988 will not be subject to federal taxation.
Contributions Made After January 12, 1988
That portion of your contributions made after January 12, 1988 is subject to federal taxation.
All interest that you receive from your account is also subject to federal taxation.
Refunds Received on or After January 1, 1993
Federal legislation may also require withholding for federal taxes on refunds received on or after January 1, 1993. When you request a refund, your retirement board will provide information on the federal requirements.
Age 59 1/2
In addition, if your withdrawal takes place prior to your reaching age 59 1/2, federal law may impose an additional penalty.