Take a refund
Your money + interest
A member who has terminated all Montana TRS-reportable employment (or will within 30 days) can withdraw the whole member account balance (member contributions plus interest; no partial withdrawals, no employer contributions). Withdrawal forfeits all service and any benefit, ends Tier One status, and is irrevocable once processed. A 30-day waiting period applies. Direct rollover, a lump sum less 20% federal withholding, or a mix; balances under $200 are paid directly with no withholding. A 10% IRS early-distribution penalty may apply under 59 1/2.
MCA 19-20-603; Withdrawing TRS Membership fact sheet (Apr. 10, 2026), pp. 1-5; Leaving Employment flyer (June 4, 2025), p. 1; Montana TRS web page: Understand Your Benefits (Interest rate)Leave it in
Vested at 5 years
Vested with 5 full years of membership service on which contributions were made (Montana TRS also counts certain other service toward vesting, such as free USERRA/MMSERA military credit). A member can't buy service to become vested.
MCA 19-20-101(35); Montana TRS web page: Understand Your Benefits (Becoming Vested; Purchasing Service); Creditable Service and Service Purchases fact sheet (Aug. 5, 2026), p. 1The facts
- You're vested after 5 full years of creditable service. Vested members can get a monthly benefit for life. You can't buy service to become vested.MCA 19-20-101(35); Montana TRS web page: Understand Your Benefits
- If you leave all Montana TRS work, you can withdraw your whole account (your contributions plus interest, 2.00% a year since July 1, 2025). You don't get your employer's contributions, and you give up all your service and any future benefit.MCA 19-20-603; Withdrawing TRS Membership fact sheet (Apr. 10, 2026), p. 1; Montana TRS web page: Understand Your Benefits
- There's a 30-day waiting period. You can roll the money over tax-deferred, take cash less 20% federal withholding, or both. Under 59 1/2, the IRS may add a 10% penalty.Withdrawing TRS Membership fact sheet (Apr. 10, 2026), pp. 3, 5; Leaving Employment flyer (June 4, 2025), p. 1
- If you're vested and under 60 when you leave, you can leave your money in and take a benefit later. Early retirement starts at 50 (Tier One) or 55 (Tier Two).Leaving Employment flyer (June 4, 2025), p. 1
What you've paid in
Members pay 8.15% of earned compensation (Tier One: 7.15% plus a 1% supplemental contribution; Tier Two: 8.15%), picked up pre-tax by the employer. Employer rates since July 1, 2023: 9.47% for school districts, co-ops, counties and community colleges (11.85% for working retirees; 20.11% for emergency-hire retirees); 11.85% for state agencies and the University System. The valuation shows a total employer rate of 11.96% (the difference is State contributions). Member accounts earn 2.00% interest from July 1, 2025 (was 4.25%). MCA 19-20-602, 19-20-608; Montana TRS web pages: Contribution Rates and Understand Your Benefits (Interest rate credited to member accounts); Actuarial Valuation (July 1, 2025), pp. 49-51, Appendix B (Contributions; Interest on Member Contributions)
When you must start
Inactive members must start benefits or withdraw by April 1 after the later of the year they stop all Montana TRS-reportable work or the year they reach 70 1/2 (born before July 1, 1949), 72 (born July 1, 1949 - Dec. 31, 1950), 73 (born 1951-1959) or 75 (born 1960 or later). MCA 19-20-703(3); Required Minimum Distributions fact sheet (Oct. 11, 2024), pp. 1-2
- Born February 1, 1949, stopped work in 2023: start by April 1, 2024.
- Born February 1, 1951, stopped work in 2026: start by April 1, 2027.
- Born February 1, 1965, stopped work in 2025: start by April 1, 2041 (our arithmetic; the fact sheet says only that this member isn't yet subject to the rule).
Thinking of buying back a refund later? See buying service credit. Coming back to teach changes your tier: see which tier. Taxes on a refund: taxes.
Questions
Can I get my Montana TRS contributions back if I leave?
Yes, once you've left all Montana TRS-reportable work: your whole account, your contributions plus interest (2.00% a year since July 1, 2025). Not your employer's contributions. There's a 30-day waiting period.
What do I give up with a refund?
All your service and any future benefit. If you were Tier One and come back later, you return as Tier Two.
What if I leave my money in?
With 5 years you're vested and can take a monthly benefit later: reduced from 50 (Tier One) or 55 (Tier Two), full at 60.
Source: Montana TRS: Understand Your Benefits (web page) and fact sheets, Fetched Nov. 12, 2026; fact sheets revised 2019-2026, fact sheets: Creditable Service and Service Purchases p. 1; Required Minimum Distributions pp. 1-2; Withdrawing TRS Membership pp. 1-5. Also: Montana TRS web page: Contribution Rates; Leaving Employment flyer (June 4, 2025); Actuarial Valuation (July 1, 2025); MCA §§ 19-20-101, 19-20-602, 19-20-603, 19-20-608, 19-20-703. Last reviewed .