TIAA-CREF Plan Administrators

Help >

When an employee needs to withdraw funds from his/her savings and investment accounts, they must also consider the liquidity of their different holdings. Generally speaking, the more tax-advantaged the account, the greater the penalty for withdrawals before retirement. The liquidity spectrum runs from cash, which is very liquid, to guaranteed investments in retirement plan contracts, which can only be withdrawn over a 9-year period. For Retirement Annuities and Group Retirement Annuities alike, your institutional plan rules determine whether employees can withdraw some or all of their variable annuity accumulations upon retirement or termination of retirement.

Retirement Plan Contracts and IRAs

Mutual Funds & After-Tax Annuities

Mutual funds are liquid. When redeeming shares, an employee's money is sent to him/her within three days; any investment gains are subject to federal income tax. The same rules apply to eligible withdrawals from a Roth IRA held for at least five years. Funds in after-tax annuity accounts are less liquid: if the employee is 59½ years of age or older, withdrawals are taxed only on the investment gains, but if he/she needs funds before then, they will also pay a 10 percent penalty on withdrawals. Withdrawals from Classic IRAs before 59½ also face the 10 percent penalty and both contributions and potential earnings are taxed.

Withdrawals can be taken from a retirement accounts (including supplemental plans and Keoghs) before age 59½ only when an employee leaves a job, becomes disabled, or encounters "hardship" as defined by the IRS. (If the employee dies, their beneficiary will be able to make withdrawals on request.) These withdrawals are subject to federal income tax and a 10 percent penalty. The early-withdrawal penalty will be waived, however, if the employee: separates from service and begins lifetime annuity income; reaches age 55 in the same year as the withdrawal; uses the funds for unreimbursed medical expenses exceeding 7� percent of adjusted gross income; or takes the benefits as a result of death or disability.

The employee can see how much he/she may withdraw on-line. They need to log into their accounts and select "Make Withdrawals" from the right-hand column menu of the "Welcome..." screen. He/She will see their accumulations and the amounts available for withdrawal for each account. Click on "See Cash Rules" to read more about how withdrawals are governed for each of the accounts.To speak to a consultant about withdrawals, the employee may call 1 800 842-2776 Monday through Friday from 8 a.m. to 10 p.m., and Saturday from 9 a.m. to 6 p.m., ET.

Generally, the employee can take cash withdrawals from any account, including the TIAA Traditional Annuity, from their supplemental retirement plan contracts, Keogh, or IRA when he/she terminates employment, and anytime from IRAs. For a TIAA-CREF employer-sponsored retirement plan contracts (RA or GRA), the availability of cash withdrawals is subject to the individual employer's plan provisions, and withdrawals from the TIAA Traditional Annuity can only be taken over a 10-year period.

Systematic withdrawals offer periodic payments from a cashable accumulation over any period and in any amount the employee requests, subject to a minimum of $100 per payment per account. We'll send funds by check or deposit them in their bank account semimonthly, monthly, quarterly, semiannually, or annually. The employee can change, stop, or restart payments at will. The entire unused part of the employee's account remains payable as a death benefit, and they're free to choose any income option at any time. However, if the employee is using systematic payments for retirement income, remember, they do not guarantee lifetime income and may substantially reduce or even exhaust their retirement plan assets.

If the employee needs to take a withdrawal from an IRA to meet minimum distribution requirements and are planning to save and invest those funds, consider opening an after-tax annuity account or investing in mutual funds. If they are planning a lump-sum withdrawal, they may want to convert their distribution to an income stream with a Single Premium Immediate Annuity.

To redeem mutual fund shares or make a withdrawal from their after-tax annuity, have the employee call 1 800 223-1200 Monday through Friday from 8 a.m. to 10 p.m., ET.

•	Read Facts About Transfer Payout Annuities
•	Read 2005 Tax Guide
•	Read Your Financial Organizer
•	Read Building Your Portfolio with TIAA-CREF
•	Read TIAA-CREF Group SRA Loans

•	Read TIAA-CREF Retirement Plan Loans
•	Read Retirement Strategies
•	Read Planning Your Retirement With TIAA-CREF
•	Read Evaluating Your Retirement Income Portfolio

•	Get a login
•	Access their accounts
•	Use Retirement Illustrations
•	Transfer funds/change contribution allocation information
•	Request electronic document delivery