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When I terminate the TERI program and choose to receive my account balance in a single-sum payment, will any taxes be taken out?

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Any distribution of your TERI account paid directly to you is subject to ordinary federal and state income taxes and may be subject to an additional 10 percent federal penalty tax for early withdrawal. The 10 percent withdrawal penalty is waived for public safety employees over age 50, and for military reservists and national guardsmen who are called to active duty for at least 180 days.

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