After terminating service, you are eligible for a refund of your contributions plus 6 percent interest. If you take a refund in cash, we are required to withhold 20 percent for federal tax purposes. The refund will be subject to state and federal taxes. In addition, if you take a refund before age 59 1/2, you will have to pay a 10 percent excise tax when you file your tax return.

To avoid serious tax consequences, you can roll your money into an IRA, a qualified retirement plan, or most tax-deferred saving plans. By rolling the money into another tax-deferred savings plan, you delay the payment of state and federal taxes. You should contact the administrator of the plan to which you are rolling your money to make sure they will accept a rollover.

If you roll your money out of your MSRS account, you forfeit your rights to monthly retirement, survivor, or disability benefits. If you have questions about your decision to apply for a rollover, please contact MSRS and talk to a retirement counselor.

To apply for a rollover, you would request the Refund and Rollover Transfer Application. You cannot apply for a rollover until after you terminate your MSRS-covered employment. Your rollover form must be notarized. A representative of the financial institution receiving the rollover must also sign the back of the application.

Applications are generally processed within 30 days after the receipt of a properly completed form.