TIAA-Traditional

[MrC1]

Haven't dealt with a TIAA-CREF client in a while. I sorta remember all the stickyness that the TIAA traditional has and wanted to get a quick refresher on a client's options with this holding in their 403b. I seem to remember that it can only come out over ten years or something along that line. Anybody deal with TIAA cref rollovers recently?

[tpondel]

You're on target. They can only withdraw 10% annually. Thus the 10 year thing.

Amber

[bullvs.bear]

There is two types of TIAA Traditional.

1) In RA Account - Higher Rate, typical 3 ways to get money from it
a) TPA - Transfer Payout Annuity, they calculate interest it will earn fron now till 10 yrs. And then divide by 10, so sort of 10%.
b) Annuity - Single/Joint, etc
c) Interest Only - Bad deal but a lot of participants are told to do it. They pay out interest of Traditional and principal stays untouched, idea is then at death goes to spouse or beneficiary as lump sum. Downside it is not interest that they have accumulated over years it is interest rate that traditional is paying out at the time and it can/will fluctuate

2) SRA Account - Lower Interest Rate, Fully Liquid

Differences between accounts, typically RA is where university contributions goes and whatever the particpant has to contribute to get match, etc. SRA is where partipant contributions goes above and beyond either mandatory contribution or contribution needed to get full match.

Problem once again, is that partipants aren't told this or their institution is small and does not have SRA option.

As you can tell I know a lot about TIAA-CREF. I am an ex from there and take my share of assets from them due to collection of hospitals and universities in area.

Mark

[Neumann]

Mr C
Are you talking about rolling the money over to an IRA?

I was able to roll over money that was in TIAA Traditional in a 403B account. Now there was a lot to be desired from a service standpoint from TIAA, but it got done with their distribution paperwork (took about three months and many phone calls) just like any other rolloever.
Neumann