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Every time you get a paycheck, a certain percentage of your money is deposited in your TCDRS account. That money is tax deferred, so it reduces the income you have to pay taxes on. The money in your TCDRS account grows at an annual compound interest rate of 7%.
Vesting with TCDRS means you have enough service time to receive a lifetime monthly benefit when you become eligible and choose to retire. When you become vested, you are eligible to retire at age 60. Your employers plan, however, may have eligibility requirements that allow you to retire earlier.
If you chose to take some of your retirement money out of your TCDRS account as a lump sum, please be aware that the IRS considers that payment taxable income. TCDRS is required by the IRS to automatically withhold 20% of any lump-sum payment you received for taxes. You may also be subject to additional tax penalties.
The TRS retirement plan is a defined benefit plan. This means that the amount of your retirement benefit is determined using a formula established by Texas law and not on how much you have contributed to TRS.
To withdraw your money, sign into your TCDRS account online and complete the withdrawal process. We will send you a check made out to you for the total amount of your account balance, minus the tax withholding, two to four weeks after we receive your application.
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Your TCDRS retirement benefit is a fixed benefit payment. That means the benefit amount will be the same every month for the rest of your life once you start receiving it. However, your expenses can change even if your lifestyle doesnt. The cost of goods and services goes up a little bit each year.
Since the TCDRS is a qualified pension plan under Section 401(a) of the Internal Revenue Code, your current contributions are not subject to federal income taxes until paid out by the System.
A 403(b) plan is tax-deferred retirement savings plan offered to public school employees through their school districts or open-enrollment charter schools. Like 401(k) plans in the private sector, employees can make contributions to 403(b) plans on a pre-tax basis.
If you have questions about benefits, call the TMRS Member Service Center toll-free at 800-924-8677. TMRS is governed by the TMRS Act, Texas Govern- ment Code, Title 8, Subtitle G, and is a qualified, tax- deferred retirement plan under Section 401 of the Internal Revenue Code.
The 403(b) is a tax-deferred retirement plan like a 401(k), only for educators, non-profit employees, and certain ministers. It is a defined contribution plan, which means the participant makes contributions and investment decisions.

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