What are the disadvantages of withdrawing my money and not rolling it over?
If you elect to withdraw taxable contributions and interest and not have that amount directly rolled into an Eligible Retirement Plan, PSERS must withhold 20 percent in federal withholding tax. Furthermore, if you are under the age of 55 in the year that you receive the funds, you are responsible for paying a 10 percent Tax on Early Distributions when you file your federal income tax return for that tax year. You must pay that money directly to the Internal Revenue Service (IRS).
