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Employers Manual
Refunds
Special Tax Notice Regarding Plan Payments
Tax laws affect the way eligible rollover distributions are distributed
and taxed. In general, the member has three options for receiving payment:
a “direct rollover” to a traditional individual retirement
account (IRA) or an eligible retirement plan; all of the payment paid
directly to the member; or a portion paid as a rollover with the remaining
amount paid directly to the member. The choice will affect the tax treatment
of the payment.
When the member requests an application for a refund of deposits, STRS
Ohio will send the four-page application and a withdrawal brochure,
which includes information about the tax laws and the direct rollover
instructions. The tax information supplied to the member can help the
member decide how best to receive the payment from STRS Ohio.
