What are the tax consequences if I take a refund of my retirement contributions?
Your contributions and all the interest you receive from your account are subject to federal income tax (with exception of any contributions made prior to January 12, 1988). When processing a refund of retirement contributions, the Retirement Office is required to withhold 20% of the taxable portion of your refund for federal tax. The 20% tax payment is required only if the refund is made directly to the member.

To defer tax payments, you must make a direct rollover of your retirement funds to an Individual Retirement Account (IRA) or another type of retirement account with a financial institution. With a direct rollover, no tax is withheld and the entire taxable portion of your refund is transferred. If you have both taxable and nontaxable contributions, you may accept receipt of the nontaxable portion of your refund without tax consequence and the taxable portion may be rolled over.

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1. Why do I have to contribute to the Hingham Retirement Board?
2. What do you do with my contributions?
3. Do you invest my money?
4. What is the most I can get as a retirement allowance?
5. Does a member's contribution to the Retirement System earn interest? If so, how is the interest calculated?
6. Are employee contributions used to fund the administrative expenses of the Retirement System?
7. What does it mean to be vested?
8. When is retirement an option?
9. What is the retirement allowance based on? How is it calculated?
10. Can I purchase creditable service earned in another Massachusetts public retirement system?
11. Will prior creditable service affect my membership date or contribution rate in the Hingham Retirement Board?
12. Is regular compensation the same as total compensation?
13. Does my participation in a deferred compensation plan affect my Hingham Retirement Board's retirement benefit in any way?
14. If I leave my job, what happens to my contributions?
15. If I leave my job and decide to withdraw my contributions, will I receive all my interest?
16. Is there any time limit after your termination for requesting a refund of your contributions?
17. Can a member who is vested and who terminates employment still be eligible for a refund?
18. If I terminate my employment and leave my money in the retirement system, can I retire at a later date?
19. Can a member withdraw or borrow money from his or her account in the retirement system without resigning or retiring?
20. What are the tax consequences if I take a refund of my retirement contributions?
21. If I die before retirement, what happens to my money?
22. I want to retire, what do I do?