Beginning with the first payment, STRS Ohio retirement benefits are taxable. STRS Ohio will withhold federal taxes from your benefits unless you direct otherwise. If federal taxes are not withheld, you will be responsible for filing federal quarterly estimates.
If you paid taxes on some of your contributions, a small percentage of your benefit will be tax-free until your taxed contributions are exhausted. For example, if you paid taxes on $25,000 of contributions and the IRS determines these contributions are to be spread over 25 years, $1,000 of your retirement benefits will be tax-free for the first 25 years of your
retirement. Information regarding any amount excludable from tax will be sent to you after your retirement account is finalized and will be reflected on your 1099-R form. A W-4 Tax Withholding calculator is available at www.strsoh.org. The calculator in the Online Personal Account area populates with your account information. DEFINED BENEFIT PLAN DEFINED BENEFIT PLAN 18 www.strsoh.org 888-227-7877 19
The taxable portion of a retirement benefit or a PLOP payment paid directly to you is subject to Ohio income tax for Ohio residents. On request, we will withhold Ohio income taxes.
If you are a resident of another state, your state tax liability is governed by the laws in that state. STRS Ohio cannot withhold tax for states other than Ohio.
STRS Ohio retirement benefits are exempt from local or municipal taxes in Ohio.
STRS Ohio retirement benefits may be subject to local school district income taxes in Ohio. Some districts in Ohio have a provision where the school district income tax applies to earned income only.
Following the end of the calendar year, benefit recipients who have not opted out of receiving paper copies will be mailed a 1099-R form for monthly benefits showing annual gross benefits and taxable amount as computed by STRS Ohio. You will receive a separate 1099-R form for a PLOP payment if elected
STRS Ohio offers medical, dental and vision coverage to eligible service retirement and disability benefit recipients, beneficiaries and survivors. Currently, members must have at least 20 years of service credit to qualify for coverage. Coverage is also offered to eligibile dependents.
Medicare enrollment is required at age 65 or earlier if eligible. Additionally, STRS Ohio offers a Health Care Assistance Program to help qualified benefit recipients who need financial assistance paying for their STRS Ohio health care plan.
Please refer to the STRS Ohio Health Care Program Guide and Health Care section of our website for detailed information about the STRS Ohio Health Care Program including eligibility requirements, Medicare enrollment, plan information and monthly premiums. You can also use your Online Personal Account to review your plan options and premiums
The STRS Ohio Health Care Program is not guaranteed. STRS Ohio may change or discontinue all or part of the program for all or a class of eligible benefit recipients and covered dependents at any time.
New STRS Ohio benefit recipients are eligible to receive a COLA beginning on the fifth anniversary of their retirement date. The State Teachers Retirement Board will periodically evaluate whether a cost-of-living increase is payable in accordance with the law in effect at that time (Section 3307.67, Revised Code). If a COLA is granted, you will receive it on the anniversary of your retirement date.
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