Early Withdrawals

CalSTRS is required to withhold 20 percent federal income tax on all rollover-eligible payments distributed directly to you. If you choose to have state income tax withheld, CalSTRS will withhold at 10 percent of your federal withholding, or 2 percent.

You may be subject to an additional 10 percent federal and 2.5 percent state tax if you take an early withdrawal before age 59½ and do not roll over the funds to another eligible retirement plan.


You may transfer funds from other qualified retirement plans into the Cash Balance Benefit Program, as long as the transfers meet federal and state laws.