Human Resources

Q:

Teacher & Employee Retention Incentive (TERI): R. Will state and federal income tax be withheld from the retirement benefit payment held in my TERI account?



A:

No state or federal income tax will be withheld from the payments held in the tax-deferred TERI account. Upon separation from employment either during or at the end of the TERI period, the S.C. Retirement System will issue a taxable lump-sum payment to the participant, or the participant may roll the amount of the TERI account into an eligible tax-deferred plan, to the extent permitted by law. If a lump-sum distribution is made to the retiree and not rolled over into an eligible tax-deferred plan, state and federal taxes will be applicable.




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