I used to work for a Park District in which we paid into Ohio PERS instead of social security. I started working there when I was 16 years old and continued back there when I got out of college. During that time I accumilated 6.5 years of service credit and the money put into it plus employer contributions.
My question is what to do with this account now. I've been 3 years removed from working as a public employee and in all likelihood will stay in the private sector for the duration of my career. I'm told that the $ in the account is making 1%/yr; in effect losing little by little each year. Even if the chance of becoming a public employee again is 10%, I'm thinking it's still much wiser to yank the $ out of there, forgo the service credit and start putting these $oldiers to work.
specifics...
Already Taxed monies: $10,500
Taxable monies: $4,250
Is anyone familiar with the tax implications?
Would it be possible to roll over the 10,500 into a Roth and the taxable 4,250 into a regular IRA with Vanguard? If I were to do this, I want to make sure I'm not losing any of these cash soldiers to Uncle Sam. (at least not yet)
Thanks in advance!