If you leave state service but remain a member of the MSERS, federal and state laws require you take a mandatory minimum distribution of your retirement account when you turn age 70 1/2 if you are not collecting a retirement benefit and are not employed under the MSERS. Your options are to 1) start collecting your pension, if eligible; 2) withdraw your contributions; or 3) roll your funds over to a qualified retirement account and have the account administrator handle your minimum distributions going forward. If you choose a rollover, a portion of your funds are considered a required minimum distribution and must be paid directly to you.
You may be liable for a federal tax penalty of up to 50% of the amount of your required distribution if you fail to take your distribution. We recommend you contact the Board if you have any questions regarding this law.