SPOUSAL IRAs

We understand that you have a lot on your mind besides retirement investing — like spending valuable time with family and loved ones. With the hectic pace of life today, it's not always easy finding time to manage your money.

Ask yourself this question: Do you or your spouse/domestic partner have retirement accounts at two or more financial services firms? The fact is, consolidating your retirement money by rolling your assets over to a single IRA can help you manage your retirement money effectively — and save you time. You should be aware, however, that there may be fees and tax consequences associated with the transfer of assets.

Non-direct transfers may be subject to mandatory withholding. Consult with your own advisor regarding your particular situation. And while we're on the subject of IRAs, did you know that at TIAA-CREF, your spouse/domestic partner is also eligible to establish an IRA?

Consolidation of the separate retirement accounts belonging to you and your spouse/domestic partner may help you overcome the following financial planning challenges:

The problem: Too many retirement accounts.

Yes, it is possible to have too many. Here's how to tell:

You're spending too much time on paperwork. Keeping track of multiple plans can become unmanageable. Getting multiple statements, keeping track of what's happening. Knowing what to keep, what to throw out. And if you have a spouse or domestic partner, the task can be twice as time consuming. By consolidating your IRA at one financial institution, you'll get one statement per investor.
You're having trouble getting a complete and clear picture of your financial position. Remember, you're not necessarily well diversified just because you have assets in several different retirement plans. By rolling over multiple retirement accounts to a single IRA, chances are you'll find it much easier to review and fine-tune your asset allocation strategy. And you'll be in a better position to track your potential returns and make sure they're in line with your retirement time horizon.
You're paying considerable expenses on your retirement money. Remember, you pay management fees on each retirement account you own. So if you have retirement money in two or more places, your expenses could be taking a large bite out of your returns.

The solution: Roll over multiple retirement accounts to a single IRA.

So you've decided it's time to consolidate. But which company should you roll over to? It's important to choose one that understands the specific needs of people saving for retirement. Here's what to look for:

A reputation for integrity and stability, as well as the highest ratings for its guaranteed product.
Opportunities to diversify over an array of asset classes, such as guaranteed, money market, fixed income, real estate and stocks.
Performance that speaks for itself. Check out the most recent numbers for TIAA-CREF's range of mutual fund and annuity accounts.
Lower expenses. In addition to any product features, look carefully at the associated fees and charges before you invest. Sales, surrender, and transaction costs vary widely from company to company. Even when such fees are low or waived, annual expense charges can make a big difference in your total return over time. You can use our interactive calculator to see just how dramatic the effect can be. In February 2007, Morningstar Direct reconfirmed that TIAA-CREF products feature some of the lowest expenses in the variable annuity and mutual fund industries.¹
A wide array of customized income options. When the time comes to receive income from your accumulation, you want a retirement company that can provide an income stream to help ensure a smooth transition from work to retirement. Examples: lump-sum and periodic payments, systematic withdrawals, minimum distributions, and lifetime annuity income. Withdrawals may be subject to ordinary income tax and a federal 10% early withdrawal penalty may apply prior to age 59½.

Find out more about IRAs and the rules for rollovers and transfers, or by calling our IRA Hotline at 1 800 842-2776.

¹Morningstar Direct (February 2007) based on Morningstar expense comparisons by category.

IRA annuity contract form series 1280.2; Roth IRA annuity contract form series 1280.3 is issued by Teachers Insurance and Annuity Association (TIAA), New York, NY.

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