After 5 years of not teaching doesn't it STOP earning interest? I may be misremembering but I'm pretty sure that was the case. If I were positive that I was leaving education I would figure out how to roll that into another retirement account that I can control. DO NOT TAKE THE MONEY DIRECTLY. They will withhold 20% for taxes. If you don't pay that back when you put it in a qualified plan then that 20% is a distrobution and subject to both income tax and early withdrawal penalties.