I worked for a Massachusetts-based university for a brief period of time in 2003-2004. The university’s retirement contributions were put into a TIAA CREF account and invested in TIAA’s Traditional Annuity. It’s a small amount of money (now about $14,500) relative to my whole portfolio, but it annoys me that it’s in an annuity account, and that it’s with TIAA when the rest of my investments are elsewhere.
Per TIAA: “Income/Withdrawal Options: GRA – Group Retirement Annuity: In addition to lifetime income and subject to the terms of your employer’s plan, lump-sum withdrawals are available only within 120 days after termination of employment and are subject to a 2.5% surrender charge. All withdrawals and transfers from the account must be paid in ten annual installments.”
If I understand the above correctly, as well as this guidance, it means that I’m limited to a Transfer Payout Annuity (TPA) which pays out the balance once a year for the next 10 years. I have the option to set up the TPA so that it functions as a roll over into my IRA.
Before I initiate this, am I missing any other options that get this to-do list item completed sooner than 2036?
Options for rolling over a TIAA Traditional Annuity account
byu/Serengeti1234 inpersonalfinance
Posted by Serengeti1234
1 Comment
Yeah, that’s pretty typical for TIAA Traditional in a GRA contract, the 10-year Transfer Payout Annuity is usually the only way out once you’re past the 120-day window. It’s frustrating, but it’s basically how TIAA preserves the guaranteed rate structure.
If the amount is small relative to your portfolio, the TPA rolling into your IRA each year is usually the cleanest path, just set it and forget it while it gradually moves out.