Human Resources


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


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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