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Withdrawals

When can I withdraw funds from an employer-sponsored retirement plan? The availability of cash withdrawals from an employer-sponsored retirement plan is generally determined by your employer’s plan rules.  Your employer determines when and how you can withdraw funds from Retirement, Group and Retirement Choice Annuities.* 

Withdrawals from Supplemental and Retirement Choice Plus plans are generally available once you leave the sponsoring employer, reach age 59 ½, become disabled or meet the IRS definition of hardship.

You can log in to your account to see what rules apply to your account and the amount available for withdrawal.  You can also complete your request for withdrawal through your online account.

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How are retirement plan withdrawals taxed? Cash withdrawals are taxed as ordinary income unless you have after-tax funds in the account, which are returned to you free of taxes.  For certain withdrawals, we are required to withhold 20% of the taxable amount withdrawn as a prepayment of the taxes due.  

Additionally, withdrawals from employer sponsored plans before age 59 ½ are generally subject to a 10% early withdrawal penalty.  However, the penalty does not apply if you meet one of the following conditions:
  • You begin lifetime income
  • You leave the sponsoring employer at age 55 or older
  • You have unreimbursed medical expenses that exceed 7.5% of your adjusted gross income
  • You are disabled
  • The withdrawal is made by your beneficiary after your death
  •  The withdrawal is made from an account issued through a Qualified Domestic Relations Order

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When can I withdraw funds from an IRA You can withdraw funds from a Traditional, Roth or SEP IRA at any time.  You can log in to your account to view the amount available and request the withdrawal online.

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How are IRA withdrawals taxed? Withdrawals from Traditional and SEP IRAs are generally taxed as ordinary income.  However, if you have funded your IRA with non-deductible contributions (and have reported properly with the IRS), this portion of your IRA is not taxable upon withdrawal. Withdrawals before age 59 ½ are generally subject to a 10% early withdrawal penalty (unless certain conditions are met).   

Withdrawals from Roth IRAs are tax free if you are age 59 ½ or older and the account has been open for five years.  Prior to meeting these requirements, any earnings withdrawn are taxable as ordinary income and subject to the early withdrawal penalty before age 59 ½. 

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When can I withdraw funds a Mutual Fund or Brokerage Services account? You can withdraw funds from a regular Mutual Fund or Brokerage Services account at any time.  Please call 1 800 223-1200 to request a withdrawal from your Mutual Fund account or 1 800 927-3059 to withdraw funds from your Brokerage Services account.

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What should I consider when withdrawing funds? When you need to withdraw funds, consider the types of investment accounts you have and the associated taxes involved when withdrawing funds.  You should consult with your tax advisor to determine the right type of withdrawals to take for your situation. 

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How much can I withdraw? You can log in to your account to view the amount you can withdraw from your employer-sponsored retirement plans.  Your online account shows your balance and the amount available to withdraw.*

Generally, you can withdraw any amount (up to your total balance) from your IRA, mutual fund or brokerage accounts.

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*Cash withdrawals from TIAA Traditional must be made in ten annual installments from Retirement Annuities. Group Retirement Annuities may allow a lump-sum withdrawal within 120 days after your leave your employer, but a surrender charge applies.  After the 120 period, withdrawals can be made over a five year period.  Retirement Choice Annuities allow you to withdraw TIAA Traditional balances over a seven year period. 

The tax information contained herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed herein. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

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