Leaving IPERS-Covered Employment Before Retirement Choosing the Best Alternative For You

Automatic Distributions

If you leave money in IPERS, do not make any contributions for 5 years, and have an account balance less than the maximum set by the IRS ($1,000 in 2007), IPERS will automatically send you a payout check. The gross amount of the check will include your contributions plus interest and, if you are vested, a portion of your employer’s contributions. If you receive an automatic distribution from IPERS, you may:

• Cash your check (you may be subject to early-withdrawal tax penalties if you are under age 59½).
• Restore your IPERS account by returning the check to IPERS within 60 days of the date on the check.
• Roll over the money to an eligible retirement plan within 60 days of the date on the check.
• Ask for a direct rollover to another eligible plan by returning the check to IPERS within 60 days of the date on the check.

For more information about restoring your account after an automatic distribution or rolling over an automatic distribution, contact IPERS. Please note that if you have an account balance less than the IRS maximum and IPERS cannot locate you, your account will stop earning interest.