Questions and Answers on Relief from Required Minimum Distributions

Can I defer required minimum distributions in 2009?

President Bush signed into law new legislation that allows individuals who are subject to required minimum distribution rules to suspend required minimum distributions from their retirement plan or Individual Retirement Accounts in 2009 without penalty.

The law is intended to provide relief to people concerned about the potential impact of ongoing financial market volatility on their retirement accounts.

If you expect to receive a required minimum distribution in 2009 that you would like to suspend, you will need to contact TIAA-CREF at 1 800 842-2776 to request a voluntary suspension.

The relief treats equally individuals who usually take the "required distribution" amount monthly and those who take a lump sum amount at the end of the year.

Will suspensions be available for beneficiaries (such as spouses or partners), or will they be limited to the original account holder?

Account holders or their beneficiaries who are required to receive a required minimum distribution payment in 2009 may voluntarily request that the payment be suspended.

What if I receive a minimum distribution payment in 2009 that I did not want to receive?

Individuals may return any minimum distributions received in 2009, provided they do so within 60 days of the minimum distribution payment. The Minimum Distribution Statement you receive from TIAA-CREF in January will include instructions for returning your payment.

Can I take a partial distribution?

Yes. You would first need to receive your 2009 minimum distribution payment and then return whatever amount you don't want to take. The Minimum Distribution Statement you receive from TIAA-CREF in January will include instructions for returning all or part of your payment.

I depend on my distribution and do not want to suspend it. What should I do?

You do not need to take any action. Participants who receive minimum distributions will continue to receive them unless you notify TIAA-CREF that you would like the payment to be suspended.

If you choose to receive your minimum distribution payment, keep in mind that since your 2009 required distribution is based on your 2008 year-end account value, the amount you receive may be less because of recent fluctuations in the stock market  particularly if your allocation includes equities.

What if I do not want to take a required minimum distribution in 2008 or have already received a payment?

Individuals who are subject to required minimum distribution rules in 2008 will continue to be required to take their distribution. The new law applies to required minimum distributions in 2009. The U.S. Treasury Department has said it will not offer relief with respect to minimum distributions made in 2008.

If I suspend a minimum distribution in 2009, will I face any additional taxation or penalty when I take the distribution in subsequent years?

No. The law allows you to defer minimum distributions in 2009 without penalty.

Can I wait until the end of 2009 to decide whether to suspend a required minimum distribution?

It depends on when your minimum distribution payment normally is sent to you. The law gives individuals 60 days from the date you receive a minimum distribution payment to re-contribute the payment or roll it over to a qualified retirement account without penalty. If, for example, you receive a minimum distribution payment in January 2009, you would have 60 days from the day you receive it to return it. You would not be able to wait until after that time period to make a decision. Please contact TIAA-CREF at 1 800 842-2776 to learn more.

As described above, if you expect to receive a required minimum distribution in 2009 that you would like to suspend, you will need to contact TIAA-CREF at 1 800 842-2776 to request a voluntary suspension.

Annuity products are issued by TIAA (Teachers Insurance and Annuity Association), New York, NY