you are vested (through IMRF or reciprocal service), having money in
IMRF is a valuable asset for your future retirement.
decision to take a refund should not be made lightly. By accepting a
refund of your contributions you forfeit all rights to any future IMRF
benefits, although you may repay your refund at a later date if you
return to work with an IMRF or reciprocal employer for two years.
you have at least 12 months in IMRF and have service credit in another
Illinois Reciprocal System, this credit may be combined to meet
the vesting requirements for both systems.
you have less than 12 months of service in IMRF and do not plan to return
to an IMRF employer, we recommend that you consider a refund or rollover
of your IMRF funds.
one exception to this is if you participated in IMRF as a Teacher Aide
and earned less than 12 months of IMRF service credit, and you transferred
to a position covered by the Teachers’ Retirement System, you
may apply your IMRF service toward a reciprocal pension even though
it does not meet the 12-month requirement.
aware that you cannot take a refund of your contributions if you are
still working for the same IMRF employer, even if you no longer participate
you dont qualify for an IMRF pension when you reach retirement age,
we encourage you to consider a refund or rollover of your funds to a traditional
IRA or another retirement plan that will accept IMRF funds.
dollar signs start flashing before your eyes, be aware of the following
you take the refund rather than roll your contributions into another
plan, IMRF is required by federal law to withhold 20% of the taxable
portion of your separation refund for federal income tax. Depending
on your years of service and age, you may also be liable for a tax penalty
of 10% over your tax rate.
any of your IMRF contributions are previously taxed, IMRF
will not withhold the 20% for federal taxes when taken as a refund.
Previously taxed contributions are noted as such on your Member Statement
rollover means that you transfer or reinvest your IMRF funds (or other
qualified retirement money) into another vehicle for retirement savings
without incurring tax penalties. The plan you roll the money
into can be a traditional IRA, a 401(k), 457, 403(b) plan, or other
qualified retirement plan that will accept the rollover.