Guidelines
The minimum loan is $1,000. The maximum loan is the lesser of $50,000 or 45 percent of your client's combined TIAA and CREF accumulation. The maximum loan amount is limited by the IRC.

At least 110 percent of the loan must be kept as collateral in the TIAA Traditional Annuity gSRA. Repayment must be complete within five years, or within ten years if the loan is used to purchase a principal residence. Interest is at a variable rate, indexed to the Moody's corporate bond yield average and can be adjusted no more than once every three months if the Moody's rate increases or decreases by one half of one percent or more.

There are no application fees or processing charges for loans.

Loans from the Basic Retirement Plan
Some employers allow employees to borrow against their basic retirement plan accumulations (TIAA-CREF Retirement Annuities or Group Retirement Annuities). Again, TIAA-CREF imposes no charges or penalties on the loan. However, if repayments are not made as scheduled, we are required to report the defaulted amount to the IRS as a taxable distribution.

If Your Client's Employer Offers Retirement Loans
The minimum loan amount is $1,000. The maximum loan is the lesser of $50,000 or 45 percent of the combined TIAA and CREF accumulation. At least 110 percent of the loan must be kept as collateral in the Retirement Loan Certificate. Repayment is due within five years, or within ten years if the loan is used to purchase a principal residence. Interest is at a variable rate tied to the monthly average corporate yield, published by Moody's Investors Service. Interest remains the same for the first year. Thereafter, the rate can change each year if Moody's rate changes by one half of one percent or more.