If you leave judicial service, you may withdraw your JRS contributions or rollover your contributions to another qualified plan or IRA. All termination refunds must be approved by the Board of Trustees. If you are immediately eligible for retirement, you cannot withdraw your contributions.
If You Have Your Contributions Refunded
- You will receive no interest on your contributions.
- You will forfeit all rights to a JRS benefit for yourself and your beneficiaries.
- You may be subject to additional tax withholding and penalties.
When Refunds are Paid to You
- You pay no Illinois state income tax.
- You will pay federal tax on most benefits. Specific information will be furnished when benefits are payable.
- All benefits and refunds must be declared as income in the year in which they are received.
- You may postpone taxation of refunds by ‘rolling-over’ the taxable portion of the payment to another employer plan that accepts it, or to an Individual Retirement Account (IRA). JRS is a qualified retirement plan under Section 401(a) of the Internal Revenue Code. Therefore, you will not be taxed on your contributions until you receive them.
The best tax treatment for you depends on your individual financial situation. Therefore, JRS advises all members to check with a qualified tax consultant before receiving benefits or refunds.