Many employers offer a TIAA-CREF Retirement Annuity (RA). An RA is an annuity contract you make directly with TIAA-CREF — if you move to another institution that offers RAs, contributions may be able to go directly to the same contract. A growing number of institutions offer Group Retirement Annuities (GRAs), which are contracts between your employer and TIAA-CREF. If you join an institution that offers GRAs and you already have an RA, a new GRA contract will be opened for you.
TIAA-CREF pioneered the use of variable annuity contracts to fund retirement investing in the 1950s, and we've stood nearly alone in the financial community in our commitment to maintain low costs,* high quality and no pressure.
While we believe that the option to take lifetime income** is often the best way to assure that you won't outlive your assets, we offer several other income options including interest-only payments, minimum distributions, systematic withdrawals, and single-sum distributions, subject to what your employer allows. Learn more about Retirement Plan Income Options.
RAs and GRAs are defined contribution plans. Depending on your plan's rules, premiums paid to your account may come directly from your employer and/or from your salary. Therefore, your contributions reduce your taxable income. Plan rules also determine what investment and income options are available, as well as when you vest (or take ownership of your benefits). You decide how your funds will be invested, and you may change how new premiums are allocated or move funds from one investment to another.
Retirement plans are often referred to by the section of the tax code that governs them — such as 401(k) and 403(b). Most TIAA-CREF RAs fall under 403(b), the designation for most educational and not-for-profit institutions. We also offer "qualified plans," a special designation including 401(k), 401(a) and 403(a) plans. 401(k) qualified plans are designed for employees of private companies. Employers can deduct contributions they make to qualified plans, a benefit that tax-exempt institutions don't need. Employees of public (governmental) organizations may also be eligible to make contributions to 457(b) plans.
Many institutions that offer RA plans funded by employer contributions also offer supplemental plans: Supplemental Retirement Annuities (SRAs), or their group versions, Group Supplemental Retirement Annuities (GSRAs).
With SRAs and GSRAs:
Generally, you are allowed to contribute up to $15,000 in 2006 to a supplemental plan. Additional contributions may be available to individuals over age 50, or who have 15 or more years of service with certain institutions. Contact your benefits office for detailed information about what plans are available to you.
* Morningstar Datalab Charting Tool Report Peer Group Analysis (February 2006) based on Morningstar expense comparisons by category.
** Any guarantees under annuities issued by TIAA are subject to TIAA's claims-paying ability. Payments under CREF and the TIAA Real Estate Account are variable and will rise or fall based on investment performance.
Retirement Annuity contract form series 1000.24. Group Retirement Annuity contract form series G-1000.4 and G-1000.5.
Supplemental Retirement Annuity contract form series 1200.8.
Group Supplemental Retirement Annuity contract form series G1250.1. GSRA not available in all states.
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please click here or call 1 877 518-9161 for a prospectus that contains this and other information. Please read the prospectus carefully before investing.
TIAA (Teachers Insurance and Annuity Association), 730 Third Avenue, New York, NY 10017 issues annuities. Investment products are not FDIC insured, may lose value, and are not guaranteed.
© 2008 and prior years, Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017
