Tr 0026 Form PDF Details

For individuals who have been part of the Tennessee Consolidated Retirement System (TCRS), deciding to leave employment brings about several crucial financial decisions, not least of which is what to do with the accumulated contributions within the retirement system. The TR-0026 form serves as a critical bridge for members in this situation, offering a structured pathway to apply for a refund of these contributions. This application process necessitates that the member has ceased working for any TCRS-covered employer and has a balance within the TCRS to be eligible for the refund. A significant portion of the form is dedicated to understanding the tax implications of such a refund—a matter not to be taken lightly, given that it involves delicate decisions regarding direct transfers to other retirement plans or IRAs and potential tax withholding on the refunded amounts. Moreover, the form touches upon the choices members have to either reinvest the taxable portion of their refunds into other retirement savings vehicles to defer taxes or to receive it directly, thereby initiating tax obligations. Considering these complex choices and their long-ranging financial implications, members are prompted to thoroughly review income tax information provided by TCRS and to consult with the IRS or a tax advisor to make well-informed decisions. A notarization section within the form also ensures the authenticity of the member's request, while an employer certification segment verifies recent employment and contribution details, making the TR-0026 form a comprehensive document for managing one's transition away from active TCRS membership.

QuestionAnswer
Form NameTr 0026 Form
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namestaxability, nontaxable, RDA, includable

Form Preview Example

TENNESSEE CONSOLIDATED RETIREMENT SYSTEM

502 Deaderick Street Nashville, TN 37243-0201

APPLICATION FOR REFUND OF ACCUMULATED CONTRIBUTIONS

In order to qualify for a refund, a member must (1) have funds in TCRS, (2) no longer be employed by any employer covered by TCRS and (3) complete this application and return it to TCRS at the above address. Be sure to read the income tax information on the back of this page and in the Special Tax Notice Regarding Plan Payments before completing your application.

I. CERTIFICATION BY MEMBER (To be filled out by the member.)

Social Security Number

Date of Birth

Former Employer (Dept., County, City or Institution)

 

 

 

 

Name (Last, First, Maiden and Middle Name)

 

 

Street Address or P.O. Box

 

City

State

 

 

 

 

 

Zip Code

Telephone #

(

)

Enrollment Date

Termination Date

Employed as:

ˆ Teacher

ˆ

General Employee

ˆ Other (Specify):

II.NOTICE OF WITHHOLDING ON REFUNDS/DIRECT TRANSFER TO ANOTHER RETIREMENT PLAN

All refunds issued directly to former members of TCRS are subject to federal income tax withholding at a rate of 20% of the taxable portion of the refund. However, the taxable portion of the refund may be transferred directly from TCRS to a traditional IRA or other retirement plan, with the nontaxable portion (if any) being refunded directly to you. If you choose to have the taxable portion transferred directly to an IRA or other retirement plan, the distribution will not be taxable and federal income tax will not be withheld. Check one box:

ˆ

ˆ

I want the entire refund issued directly to me. (20% of the taxable portion will be( withheld) for federal income tax.)

I want my refund transferred directly to the IRA or retirement plan listed below. (The non-taxable portion of my balance, if any exists, will be mailed directly to you at the above address.) (Complete Section III.)

ˆ

I want $___________ of the taxable portion of my refund transferred directly to the IRA or retirement plan listed

below and the remainder issued to me. (Complete Section III.)

III.CERTIFICATION BY PLAN OR IRA ACCEPTING DIRECT TRANSFER (Must be completed by plan which will receive direct transfer if you have requested that all or part of your refund be transferred directly to another plan or to a traditional IRA.)

I agree to accept a direct transfer of the taxable portion of the refund due to the above named individual. I certify that the plan named below is eligible for a transfer from the Tennessee Consolidated Retirement System, a 401(a) plan.

Name of Plan: ________________________________________________ Telephone #: _____________________________

Contact Person and Account No: ___________________________________________________________________________

Address of Plan Administrator: _____________________________________________________________________________

Signature of Plan Administrator: _______________________________ Type of Plan ______________________________

IV. NOTARIZATION (To be signed by member and witnessed by a Notary Public.)

I hereby make application for the return of my contributions made to the Tennessee Consolidated Retirement System (TCRS) together with the interest credited thereon. I hereby waive for myself, my heirs and my beneficiary all my rights, title and interest in all funds under the care and control of the Retirement System. This includes eligibility to participate in the State Insurance Plan. I understand that this election is irrevocable.

I am aware that if I DO NOT withdraw my contributions, and not having acquired vesting rights, I will retain my status as a member of the Retirement System for seven years, and should I be reemployed within that period, I will retain my status as a member of the Retirement System, or having attained vesting rights, I may remain a member and elect to receive a monthly benefit at retirement age. I understand that if I DO withdraw my contribution, my membership in the Retirement System is terminated and if I am subsequently employed in a position requiring membership, I must enter the Retirement System with the status of a new member.

I certify that the above information is complete and correct and that I understand my rights as a member of the TCRS.

 

___________________________________

State of __________________ / County of __________________

Signature of Member

Personally appeared before me on this ________ day of ___________________, 20________, the within named

___________________________, and makes oath that (he)/(she) executed the foregoing instrument.

Notary Public Signature: _______________________________ My Commission Expires_______________ (Notary Seal)

V.CERTIFICATION BY EMPLOYER (To be completed by employer. Do not complete if member has been out of work six months or more.)

 

Political Subdivisions, Higher Education

 

 

 

 

State Departments paid by

 

 

 

 

 

 

 

 

and State Departments not paid by

 

Teachers

 

 

 

 

 

 

 

Finance and Administration

 

 

Finance and Administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dept. Code #: ___ ___ ___ z ___ ___

Number of months this teacher works

Dept. Code #: ____ ____ ____ z ___ ___

 

Effective Date of Termination

each year: (Check one.)

 

 

Effective Date of Termination

 

(Last Paid Day): ____/____/____

ˆ Nine ˆ Ten ˆ Eleven

ˆ Twelve

(Last Paid Day): ____/____/____

 

This employee’s final contribution will

Dept. Code #: ___ ___ ___ z ___ ___

This employee’s final contribution will

 

appear on the report for the month

Effective Date of Termination

 

 

appear on the report for the month

_____________, 20_____.

(Last Paid Day): ____/____/____

_____________, 20_____.

 

 

 

(Allow for annual leave, if applicable.)

This employee’s final contribution will

(Allow for annual leave, if applicable.)

 

 

appear on the report for the month

 

 

 

 

 

 

______________, 20_____.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature of Employer

 

Title

 

Date

 

Telephone # (

)

 

 

 

 

 

 

 

 

 

 

 

TR-0026 (Rev. 4/12)

RDA 413

TCRS REFUND TAX INFORMATION

The Tennessee Consolidated Retirement System is a qualified pension plan under Section 401(a) of the Internal Revenue Code. The following information is provided to highlight federal tax rules which may apply to your refund. Full tax information regarding refunds is contained in the IRS Special Tax Notice Regarding Plan Payments.

RECEIPT OF TAXABLE AND NONTAXABLE AMOUNTS

Your refund will consist of a taxable portion and possibly a nontaxable portion.

zThe nontaxable portion is the amount of your previously taxed contributions (if any). If you have made any after-tax contributions to TCRS, this amount will be refunded to you tax free.

zThe taxable portion includes any accumulated interest, employer contributions made on your behalf in lieu of employee contributions, and/or tax-deferred contributions made under the provisions of Section 414(h). The taxable portion of your refund may be taken in two ways. You may elect to have the taxable portion (1) transferred to another eligible retirement plan or an Individual Retirement Arrangement (IRA) in a direct rollover or, (2) paid to you. This choice will affect the tax you owe.

WITHHOLDING ON TAXABLE PORTION OF REFUND

If you choose to have the taxable portion transferred directly to another eligible retirement plan or a traditional IRA, payment will be made directly to that plan and no income tax will be withheld. It is required that Section III of this application be completed and signed by the receiving plan administrator. Your tax liability will be postponed until you take the money out of the new plan. Payment cannot be rolled over into a SIMPLE IRA, EDUCATION IRA, or into a 457 plan established by a nongovernmental entity. If you choose to roll your contributions to a Roth account, you will be subject to tax penalties.

If you choose to have the taxable portion of your refund paid to you, TCRS is required by federal law to withhold 20% of the taxable portion in federal income taxes. This withholding amount will be sent to the IRS to be credited toward your income tax. If you choose to have the taxable portion of your refund paid to you, it may be subject to two separate taxes: ordinary income tax and an early distribution tax.

ORDINARY INCOME TAX ON TAXABLE PORTION OF REFUND PAID TO YOU

Any taxable amount paid to you is includable in your gross income and taxed as ordinary income unless you use one or more of the following special tax treatments.

1.Rollover: You may make a tax-free “rollover” of the taxable portion of your refund to another retirement plan or to an Individual Retirement Account (IRA) within 60 days of the date you receive the refund. Your tax liability will then be postponed until you take the money out of the new plan. Since federal income taxes must be withheld from any payment issued to you, it may be more advantageous to arrange for a direct transfer. For more information, see IRS publication, Individual Retirement Arrangements (IRAs).

2.Capital Gains: If you were born before January 1, 1936 and if your refund includes employee contributions made before Jan. 1, 1974, you may elect to use long-term capital gain tax treatment on a percentage of the taxable amount of this refund. To qualify, you must have participated in the plan for five years or longer. The percentage of the refund which is eligible for capital gains treatment is generally determined by dividing the months of participation before 1974 by the total months of participation. If you qualify, you may write to TCRS for information regarding the amount of your refund which may be given this treatment. For more information, see IRS publication 575, Pension and Annuity Income and IRS form 4972.

3.Forward Averaging: If you were born before January 1, 1936, you may be eligible to treat the taxable portion of your refund under the special forward averaging provisions of the tax code. To qualify, you must also have participated in the plan for five years or longer. For more information, see IRS publication 575, Pension and Annuity Income and IRS form 4972.

EARLY DISTRIBUTION TAX ON TAXABLE PORTION OF REFUND PAID TO YOU

Any taxable amount paid to you by TCRS is also subject to a separate 10 percent early distribution tax unless you qualify for one of the following exemptions:

1.Rollover: If you roll over the taxable portion of your refund, it will not be includable in gross income, and so it will not be subject to this tax.

2.Age 59½: If you are 59½ or older when you receive the refund, it is exempt from this early distribution tax.

3.Age 55: If you were 55 or older when you separated from service, your refund is exempt from this early distribution tax. (If you roll over your refund to another type of plan, this exemption will not later be available from that plan.)

4.Disability: If you are receiving the refund as a result of your disability and can provide proof of this to the IRS, it is exempt from this tax.

5.Medical Expenses: If you have certain medical expenses which exceed 7½% of your gross income this year, your refund may be exempt from this tax.

For more information, refer to Taxes on TCRS Benefits and Special Tax Notice Regarding Plan Payments at tcrs.tn.gov/Taxes-on-Bene.html on the Internet. Any additional questions concerning the taxability of payments from TCRS should be directed to the Internal Revenue Service at 1-800-829-1040.

TR-0026 (Rev. 4/12)

RDA 413

How to Edit Tr 0026 Form Online for Free

Making use of the online tool for PDF editing by FormsPal, you can fill out or edit thereon here. To keep our editor on the forefront of convenience, we strive to put into action user-driven features and enhancements regularly. We are at all times grateful for any suggestions - help us with revolutionizing PDF editing. Should you be seeking to get started, here's what you will need to do:

Step 1: Hit the "Get Form" button at the top of this page to get into our PDF tool.

Step 2: Once you launch the online editor, you will see the document ready to be filled in. Besides filling out various fields, you can also do various other actions with the form, including writing any text, modifying the original textual content, inserting images, affixing your signature to the form, and more.

As a way to complete this PDF form, be sure you type in the necessary information in every blank field:

1. Start completing your thereon with a group of major blanks. Gather all the information you need and ensure absolutely nothing is missed!

How to fill out TCRS stage 1

Step 3: Ensure that the information is right and press "Done" to continue further. Right after setting up afree trial account at FormsPal, it will be possible to download thereon or email it immediately. The document will also be readily accessible via your personal account page with your each change. At FormsPal.com, we endeavor to be certain that your information is maintained secure.