I have been teaching for eight years. I want to quit teaching and take out my retirement. Can I take my retirement out now? If so, can I get an estimate of how much I would get?
If you’re wondering about your CalSTRS pension benefit, you should talk with a CalSTRS Benefits Counselor to learn about rules and choices for taking distributions and get an estimate of the amount you will receive. You can also use the CalSTRS Retirement Benefits Calculator to project your retirement benefit. (This will be an estimate.)
If you are at least age 55 when you leave your employer, you may take penalty-free distributions from your 403(b) plan. Prior to age 55 (or age 59½ if you’re not leaving your employer), you may owe a 10% tax penalty on withdrawals from a 403(b). Penalty-free distributions from a 457 plan are allowed when you leave your employer no matter what your age is.
If you’re not ready to retire, you can roll over the balance in your 403(b) or 457 plan to another tax-advantaged investment vehicle when you leave your district. You can roll it over to an individual retirement account (IRA) at a financial services company, such as a bank, credit union, broker, insurance company or mutual fund company. Or, if you take another job, you may be able to roll over your balance to your new employer’s retirement plan, if it accepts rollovers.
Back to FAQs