TIAA-CREF Offers Guidance on Reinstated 2010 Required Minimum Distribution Payments

January 04, 2010

After a year's absence, required minimum distributions are returning for holders of tax-deferred accounts. Last year, Congress acted to suspend required payments on tax-deferred accounts, but, as of this writing, is not suspending payments for 2010.

In a year of unprecedented financial upheaval, thousands of TIAA-CREF participants took advantage of the relief and elected not to receive their distributions. But now, these participants are going to have to decide how and how often they want these payments.

Participants who are receiving payments through the TIAA-CREF Minimum Distribution Option will automatically start receiving their payments again in 2010 based on instructions the organization has on file. Participants should let TIAA-CREF know immediately if they have changed banks or if they would like their distributions sent to another account. They should also indicate if they would like to change how often they receive their distributions: monthly, quarterly, or annually…and on what date.

Generally, holders of tax-deferred accounts must begin taking distributions by April 1st following the year they attain age 70½, or when they separate from the employer sponsoring their retirement plan, whichever is later.

The actual periodic distributions participants receive will depend upon their accumulations, the frequency they select, and the actual investment experience of their TIAA-CREF accounts. Accountholders must receive the total amount of their distribution within 2010 regardless of the frequency they select.

TIAA-CREF participants can view their current payment information online by going to tiaa-cref.org and logging into their accounts with their user name and password. Once logged in, click on "My Profile" and then "Bank Information." Of course, if the information on file is correct, there's no further action they need to take.

In addition, some participants suspended their minimum distribution payments in 2009 because they returned to work for their previous employer. If these individuals anticipate working for these firms in 2010, they should contact TIAA-CREF to update their account information to ensure their payments remain suspended.

To confirm, update, or make changes to distribution instructions, participants should call 800 842-2252, Monday through Friday, 8 a.m. to 10 p.m., and Saturday, 9 a.m. to 6 p.m. ET.

It's in the participant's best interests to make sure this information is up-to-date. That way, TIAA-CREF can ensure that those required distributions are deposited into the right account at the right time.