For members enrolled in the: DB Defined Benefit Plan DC Defined Contribution Plan CO Combined Plan

Account Withdrawal

Upon termination of public employment in Ohio, you may elect to withdraw your account. Withdrawal of your account will cancel your STRS Ohio membership.

If you are in the DB or CO Plan, withdrawal of your account will also cancel your accumulated service credit, eligibility to qualify for STRS Ohio retirement benefits and access to health care coverage if eligible.

DC Plan: If you withdraw your account before age 50, you must withdraw your entire account.

CO Plan: If you withdraw your account before age 50, you must withdraw both the defined benefit and defined contribution portions of your account.

Account withdrawal restrictions

You cannot withdraw your STRS Ohio account if you are:

Under any form of teaching contract, including substitute teaching with an STRS Ohio contributing employer;
Under any type of verbal or written agreement for future teaching with an STRS Ohio public employer under the retirement law;
On a leave of absence;
In the STRS Ohio DB Plan and terminated your employment in an STRS Ohio-covered position but are now working with the same employer in an Ohio Public Employees Retirement System (OPERS) or School Employees Retirement System (SERS) position;
Receiving service retirement or disability benefits from STRS Ohio; or
Currently contributing to a college or university alternative retirement plan (ARP). Only a transfer of STRS Ohio funds to the ARP is permitted.

Spousal consent on account withdrawals

As required by Ohio law, all married members must obtain spousal consent in the following retirement plans and situations:

DB Plan — Spousal consent is required if you are eligible for service retirement.
DC or CO Plan — Spousal consent is required if you are age 50 or older and your account value is $5,000 or more.

If required, your spouse must provide their consent by completing the spousal affidavit section of the withdrawal application. If your spouse does not sign and notarize the spousal affidavit and one is required, your withdrawal application will be considered an application for retirement and you will receive a monthly benefit paid as a Joint and Survivor Annuity with one-half to beneficiary.

Monthly payments vs. account withdrawal

Plan feature	Monthly payments	Account withdrawal
Lifetime monthly benefit
Survivor benefits	DB and CO Plan only
Access to health care coverage¹	DB and CO Plan only
Cost-of-living adjustments (COLA)²	DB Plan only
Direct control over funds
Possible rollover to a qualified plan
Possible tax penalties
Death benefits³
Possible investment costs
Individual investment risk
Subject to reemployment guidelines for Ohio public positions⁴

Note: Any payments you receive from STRS Ohio may affect your eligibility for Social Security benefits. For more information, call Social Security at 800‑772‑1213 (toll-free). ¹Members retiring on or after Aug. 1, 2023, must have at least 20 years of service credit to qualify for coverage. ²New STRS Ohio benefit recipients are eligible to receive a COLA beginning on the fifth anniversary of their retirement date. The State Teachers Retirement Board will periodically evaluate whether a cost-of-living increase is payable in accordance with the law in effect at that time (Section 3307.67, Revised Code). If a COLA is granted, you will receive it on the anniversary of your retirement date. ³DB Plan retirees have a $1,000 automatic death benefit with the option to purchase an additional $1,000 or $2,000. DC and CO Plan retirees may purchase an optional death benefit of $1,000 or $2,000. ⁴For the CO Plan, assumes both the defined benefit and defined contribution portions of the account are withdrawn.

Withdrawal Amount

DB Plan

Account withdrawals consist of member contributions plus an additional amount payable under Section 3307.563 of the R.C. The additional amount payable depends on years of qualifying service credit^* and the rates of interest established by the the board. The interest rates noted below are subject to change without notice. To confirm current interest rates, call us at 888‑227‑7877 (toll-free).

With 5.00 or more years of qualifying service credit,^* interest at a current rate of 3% compounded annually will be paid on your member contributions and an additional amount equal to 50% of the sum of your member contributions^**, plus interest, will also be paid.
With at least 3.00 years but less than 5.00 years of qualifying service credit,^* interest at a current rate of 3% compounded annually will be paid on your member contributions.
With less than 3.00 years of qualifying service credit,^* interest at a current rate of 2% compounded annually will be paid on your member contributions.

Interest for all years withdrawn begins to accrue at the beginning of the fiscal year following deposit. For example, interest on 2023–2024 contributions would begin accruing July 2024 and be payable August 2024 or later. No interest is payable if a member withdraws their account in July and contributed to STRS Ohio for only the year just ended. Interest stops accruing the month before account withdrawal.

^*When referring to withdrawals, “qualifying service credit” refers to Ohio teaching service, restored withdrawn credit, purchased service for Ohio public teaching from which no STRS Ohio contributions were withheld, and credit obtained for leaves of absence under Section 3307.77 of the R.C. ^**The additional 50% match only applies to Ohio teaching service, restored withdrawn credit to the extent the amount paid to restore the credit also includes matching funds, and credit obtained for leaves of absence under Section 3307.77 of the R.C.

DC Plan

Account withdrawal amounts consist of member contributions plus any gains or losses on those contributions. Withdrawal amounts will also include the employer portion of the account (consisting of the employer contributions plus any gains or losses), according to the following vesting schedule:

If your membership began before July 1, 2013, you are 100% vested in the employer portion of the account after one year of membership.
If your membership began on or after July 1, 2013, you are vested in 20% of the employer portion of the account for each full year of membership.

Your withdrawal amount might be affected by fees and early withdrawal penalties.

CO Plan

For the defined contribution portion of the account, the withdrawal amount consists of member contributions plus any gains or losses on those contributions. The withdrawal amount may be affected by low balance fees or early withdrawal penalties.

For the defined benefit portion of the account, members with 5.00 or more years of service credit are eligible for the greater of: (1) the present value of the future benefits, or (2) the member’s total contributions to the defined benefit portion of the account.

The defined benefit portion of the account consists of the member’s total contributions to the defined benefit portion of the account if the member withdraws before accumulating 5.00 years of service credit.

Important tax considerations

If you choose to withdraw your STRS Ohio account, there are important tax implications.

If you choose to have your withdrawal paid directly to you:

Your payment will be taxed in the year in which it is issued.
STRS Ohio will withhold federal tax at a rate of 20%.
If you receive the payment before age 59-1/2, you may have to pay a 10% tax penalty for an early withdrawal.

You may roll over your withdrawal amount to an eligible retirement account that will accept your rollover and:

Your payment will not be taxed in the current year and no taxes will be withheld.
The funds rolled over will be taxed when removed from the account to which they were deposited.

Beginning in the year you reach age 73 or terminate employment, whichever is later, a certain portion of your payment cannot be rolled over because it is a “required minimum distribution” that must be paid to you. STRS Ohio can tell you if your payment includes amounts that cannot be rolled over.

There are other tax implications if you withdraw your STRS Ohio account. For more information, check out our Account Withdrawal brochure and consult a professional tax advisor. STRS Ohio cannot provide tax advice.

Account withdrawal procedures

If you decide to withdraw your account after meeting with a benefits counselor and reviewing the Account Withdrawal brochure, you can complete and submit your withdrawal application through your Online Personal Account. Log in to your Online Personal Account, click the “Member Information” tab and then click “Apply for Account Withdrawal” under the Useful Links section.

Payment is typically made within 30 days after receipt of the valid, properly completed application or your last payroll date, whichever is later. STRS Ohio cannot expedite this process for any reason.

Return to employment

If you want to become reemployed after a full withdrawal of your account:

There are no restrictions on reemployment after you fully withdraw your STRS Ohio account. If you return to teaching after withdrawing your account, you will either be placed back in the same retirement plan or be eligible to make a new plan selection, depending on whether or not your current plan is considered to be your permanent choice.

If you want to become reemployed after a partial withdrawal of your CO Plan account:

Only withdraw the defined contribution portion of your account. Contributions upon reemployment will be deposited in an annuity account payable when you reach age 65 or terminate employment, whichever is later. You must wait two months before beginning Ohio public employment to avoid reemployment penalties.

Have questions about account withdrawal? View FAQ