Grand Rapids Nesties
Dear Community,

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Any tax people out there?

I was a substitute teacher for a few years. I am no longer working within the school district and I recieved a letter saying how much retirement I accrued while working for the public school system. Since I don't plan on going back it says that i can take the money out. But I says I need to talk to a tax preparer and see how much interest will be charged for taking the money out. Does anybody know how much I will be charged for taking the money out?

Re: Any tax people out there?

  • Not a tax person, but just from experience - usually you get charged a hefty tax for taking money out of retirement - like around 40%.  I would see if you can transfer the funds to your current retirement plan instead of withdrawing them from the old plan.
  • You are subject to regular federal income tax witholding based on your current tax bracket. Then on top of that, the IRS imposes another 10% penalty tax for early withdraw from a retirement fund.

    I would highly suggest that you roll that into another retirement fund of some sort or you risk paying out the nose to withdraw the money early.

  • image *blondiem*:

    I would highly suggest that you roll that into another retirement fund of some sort or you risk paying out the nose to withdraw the money early.

    This.  I currently have something set up with Huntington for your exact issue.  Give them a call and explain what you are looking to do.

  • That's what I was afraid of. I just really wanted a new bathroom!! Thanks for all of your help. I already have a retirement plan set up through a company so I could roll it over into there.
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