Withdrawals, Distributions, and Loans 6.1.4 Separated from Employment (Fully Vested) If you are at least 62 years of age with 5 years of participation credit, you may withdraw your funds without waiting 30 days after separating from employment. See Chapter 7 for distribution options. Alternatively, you can leave your account balance in TRF My Choice: Retirement Savings Plan until you elect a final distribution, partial withdrawal, or until a required minimum distribution (RMD) payment is required. 6.2 Payment Options When you apply for a TRF My Choice DC and Rollover Pre-Tax Contributions distribution, you must choose how to receive the payments. You must select one payment option for the taxable portion and one payment for the non-taxable portion. See the specific options outlined in this section. 6.2.1 Direct Rollover Taxable Portion You may elect to have all or part of the taxable portion of your DC and Rollover Pre-Tax Contributions paid in the form of a direct rollover into an eligible 401(a), 403(b), or governmental 457(b) plan, or Traditional IRA, which has provisions allowing it to accept the rollover on your behalf. This option defers any taxes owed on the DC and Rollover Pre-Tax Contributions balance. Direct rollover payments are issued as a paper check made payable to the receiving financial institution for your benefit. The check is mailed to you, and you will need to deposit the check to the rollover institution within 60 days after the check date. If you choose to take a rollover distribution and do not complete the rollover by the 60th day following the day on which you receive the distribution, your distribution may be subject to taxes and/or penalties unless you qualify for a waiver. You should consult a tax professional for waiver qualifications. Non-Taxable Portion You may choose to have all or part of the non-taxable portion of your DC paid as a direct rollover into a qualified plan. The percentage of taxable to non-taxable funds that are rolled over must reflect the same percentage as currently in the DC account. Those plans include a 403(b) plan, or Traditional or Roth IRA. If you roll over only part of the non-taxable amount, the portion not rolled over is paid directly to you. Direct rollover payments are issued as a paper check made payable to the receiving financial institution for your benefit. The check is mailed to you, and you will need to deposit the check to the rollover institution within 60 days after the check date. If you choose to take a rollover distribution and do not complete the rollover by the 60th day following the day on which you receive the distribution, your distribution may be subject to taxes and/or penalties unless you qualify for a waiver. You should consult a tax professional for waiver qualifications. 6.2.2 Paid Directly to You You may elect to have all, or a portion of the entire vested account balance paid directly to you. The percentage of taxable to non-taxable funds that are paid must reflect the same percentage as currently in the DC and Rollover Pre-Tax Contributions account. INPRS will withhold 20% from your withdrawal of the taxable portion paid to you or to your surviving spouse. This is done whether the IRS imposes a 10% penalty or not. TRF My Choice: Retirement Savings Plan Member Page 19 of 30 Handbook Effective: 07/01/2024