TIAA-CREF offers defined contribution retirement plans through your employer. Typically, contributions made in such plans are tax-deferred, which means you don't pay taxes until you take money out.1
Here's how they work:
TIAA-CREF managed investment options and mutual funds have no sales charges.2 We aim to keep expenses low to keep more of your dollars working for you.3
You can direct your contributions to a variety of investment options that are offered under your plan by your employer. You can change where you want future contributions to go at any time; and you can transfer some or all of your funds among accounts, with no tax implications.4
Plan contributions are either required by your employer or are made voluntarily by you. The Internal Revenue Code limits the total amount that can be contributed:
For 2015 and 2016, the maximum contribution is 100% of an individual’s salary or $53,000, whichever is less. This pertains to all contributions, including both employee and employer contributions, but not after-tax contributions.
Either within or outside of your plan, we have a variety of flexible options that can provide lifetime income 5 - where regular payments are based on:
Generally, you may also be able to take cash withdrawals, or use other options to design your own payout schedule. (Based upon contract type and plan provisions.)
No taxes are due on pretax contributions and earnings until the money is withdrawn. Because these plans are intended primarily for retirement, you can generally withdraw funds without penalties after you've reached age 59½.
Find out if you are eligible for a TIAA-CREF Defined Contribution / Retirement Plan account.
1 Withdrawals made prior to age 591/2 may be subject to an additional 10% penalty in addition to ordinary income tax.
2 Other fees and expenses do apply to a continued investment in the fund and are described in the fund’s current prospectus.
3 Lower expenses do not necessarily mean higher returns.
4 Certain restrictions may apply.
5 Any guarantees under annuities issued by TIAA are subject to TIAA's claims-paying ability. Payments from the variable accounts will rise or fall based on investment performance.
Please keep in mind that there are risks associated with investing in securities including loss of principal.
Learn more about opening a TIAA-CREF retirement plan account.