Generally, you can only access your account assets when you terminate employment. However, if you are still working for a Minnesota public employer
and meet certain criteria, you may be eligible to take an "in-service withdrawal."

There are five types of in-service withdrawals

Age 59½ withdrawal

Once you reach age 59½, you are eligible to take a withdrawal from your MNDCP account regardless of your employment status.

Login to your account online to request a withdrawal or Contact Us to request an In-Service Withdrawal Request form.


Purchase of service credit

You may be eligible to use your pre-tax MNDCP account assets to purchase or reinstate service credit to your governmental defined benefit pension plan.

If you plan to use your MNDCP account assets to purchase permissible service credit, first request a cost estimate from your pension plan provider. After you receive your estimate, Contact Us to request a Purchase of Service Credit form.


De minimus withdrawal

You are allowed to withdraw your entire account balance prior to your severance of employment if your total balance does not exceed $5,000 and you meet BOTH of the following requirements:

  • You have not contributed to your MNDCP account in the previous 24 months, and

  • You have not previously taken a de minimus withdrawal

Contact Us to request an In-Service Withdrawal Request form.


Rollover withdrawal

You are eligible to withdraw any portion of your account balance that represents assets you rolled in to the MNDCP from another qualified employer sponsored retirement plan (i.e., 401(k), 457(b), 403(b), 401(a)) or IRA at any time.

A withdrawal of assets from these rollover sources (except 457(b) money) may be subject to the IRS 10% early withdrawal tax penalty.

Contact Us to request an In-Service Withdrawal Request form.

Unforeseeable emergency withdrawal

A withdrawal may be allowed in the event of an unforeseeable emergency which causes severe financial hardship that cannot be alleviated by any other means available. The withdrawal is limited to the amount necessary to satisfy the need.

To apply for an unforeseeable emergency withdrawal

Call MSRS (651-296-2761 or 800-657-5757) to request an Unforeseeable Emergency Withdrawal Request application. You must complete the form and provide requested documentation.

Approval for an unforeseeable emergency withdrawal is not automatic. MSRS will review your request to determine if you are eligible to receive a hardship withdrawal based on IRS rules.

You cannot contribute to your MNDCP account for at least six months after taking an emergency withdrawal.

Events that MAY qualify for withdrawal

  • Sudden and unexpected illness or accident to you, your spouse or beneficiary

  • Involuntary income loss caused by illness or layoff

  • Property loss or damage that is beyond your control that is not covered by homeowner's insurance

  • The imminent foreclosure of or eviction from your primary residence. The presence of an eviction or foreclosure does not guarantee an approval.  What was the unforeseen financial emergency that led to the eviction or foreclosure?

  • Payment for medical expenses to the extent you cannot otherwise pay such expenses

  • The need to pay for funeral expenses of a family member as defined in Section 152 of the Internal Revenue Code

  • Other similar, equally severe and unforeseeable circumstances beyond your control

Events that do not qualify for withdrawal

  • Ordinary consumer debt

  • Purchase of real estate or regular home maintenance

  • Payment of tuition

  • Purchase of or routine automobile maintenance

  • Unpaid rent or mortgage payments

  • Loan repayments

  • Personal bankruptcy (except when resulting directly and solely from illness or casualty loss)

  • Payment of income taxes, interest or penalties

  • Marital separation or divorce