TRF Member Handbook: Receiving Benefits Before Retiring

Withdrawal of Your ASA Balance

If you are no longer in a TRF-covered position and you are not receiving a retirement pension benefit or a disability retirement benefit, you can withdraw your ASA balance.

You can withdraw money from your ASA if you:

  1.  do not plan to return to a TRF- or PERF-covered position.
  2. left your TRF- or PERF-covered position more than 30 days ago.
  3.  buy creditable service in another governmental retirement plan. You must be vested for this option.

Withdrawal of ASA without Employer Separation

If you are a member of TRF or PERF who is not age and service eligible for a retirement benefit, who is:

  1. no longer working in TRF or PERF-covered service with an employer;
  2. actively working with the same employer; and
  3. working in a non-TRF or non-PERF covered position,

you may suspend and withdraw the amounts in your ASA if you are at least 60 years of age at the time you apply for the withdrawal.

For example, Josh has worked in a PERF-covered position for four years. He is promoted to a non-PERF covered position with the same employer. When Josh is 60 years of age, he may withdraw his ASA so long as he's not working in a PERF or TRF-covered position and isn't age and service eligible to receive a PERF or TRF retirement benefit.

Getting Your Money

To withdraw money from your ASA, you can log in to your account. Or, you can call (888) 286-3544. We are available Monday through Friday from 8 a.m. to 8 p.m. EST.

If you leave a TRF-covered position before you have 10 years of qualified service, your membership in the fund will be automatically suspended five years after you leave that position. Account suspension means that you may automatically receive a disbursement of any funds in your account after five years, depending on the balance.

If you return to a position covered by TRF or PERF, the balance that was moved to the employer reserve will be credited back to your ASA. At any time, you or your beneficiary can withdraw the balance in your account. However, once credited to TRF, no more interest or investment earnings will accrue to your account.

If you are employed in a PERF-covered position, you will not be able to withdraw your funds from your TRF ASA.

If you have $1,000 or less in your Annuity Savings Account (ASA), INPRS can, by law, suspend your membership after only five years of leaving your TRF-covered position. You will be sent the balance of your ASA. If your account is greater than $1,000, it will continue to be invested as you choose, and gains and losses will continue to accrue. We may charge an administrative fee to the suspended account.

Note to members who are qualified for a reduced pension benefit. As of July 1, 2011, you may still withdraw your ASA, even if you have not worked for more than 30 days in a covered position. You will not forfeit your pension and you will not have to take a reduced retirement.


If you take money out of your ASA before you retire, you will pay a required 20 percent federal tax. If you are under age 59 ½, you may also have to pay a 10 percent tax penalty.

You will not pay federal taxes if you roll over money to an IRA or other qualified retirement plan. For more information, see the Taxes section.

Buying Service in another Plan

You can take money out of your ASA to buy service credit in another government retirement plan and you may only withdraw the exact amount. The money must be paid as a “trustee-to-trustee” transfer to the other governmental plan. This means INPRS would transfer the funds to the other government plan and you would not receive a cash payment.

If you should return to a TRF-covered position, you would need to buy back the service credit from the other government plan to have it count toward your retirement.


The way you choose to withdraw from your ASA can greatly affect your taxes. We urge you to talk to a tax advisor. We can explain your options, but cannot offer tax advice. Below are some facts you and your advisor should know.

The required 3 percent in contributions are not taxed. You will have to pay taxes on it when you retire or take money out of your ASA. Any extra money you put in your ASA pre-tax will also have to be taxed.

Money added to your ASA after taxes is your “tax basis.” When you retire, you do not need to pay any more taxes on this money. We report this money to the IRS. You receive an IRS Form 1099-R each year.

If you chose to withdraw all of your ASA when you retire, there are IRS rules that will apply to you. The IRS requires that some of the money you have in your account post-tax must be paid to you as part of your monthly pension benefit.

  • If the money in your account is from before Dec. 31, 1986, you will receive the entire amount when you retire. You have already paid taxes on this amount.
  • If you had post 1986 contributions, some of those contributions will be recovered in your withdrawal payment.

Your ASA and pension benefit are not separate accounts. Per IRS guidelines, if you added post-tax money into your ASA, you will recover the remainder of that money over a period of time as part of your monthly pension payment.

TRF Member Handbook: Important to Know