Can I take a loan from my retirement plan? A retirement plan loan may be allowed depending upon your employer-sponsored plan rules. You can log into your account to see if you are eligible to borrow from your account and what amount is available for a loan.

If you need assistance with your login information or would like to have the loan forms mailed to you, please call 800 842-2252 weekdays from 8 a.m. to 10 p.m. (ET) and Saturdays from 9 a.m. to 6 p.m. (ET).

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How much can I borrow? There are two types of loans, the Retirement/Supplemental Loan (RL/GS) and the Payroll Advantage Loan (PAL), that may be available by your employer.

If you are eligible for a RL/GS, the minimum loan amount is $1,000. The maximum loan amount is $50,000 per employer. The amount you are eligible to borrow is determined by many different variables. For a precise loan calculation, log into Secure Access of your account to determine the loan amount available. The loan is secured by collateral which equals 110% of the outstanding loan balance. The loan collateral is kept as collateral in the TIAA Traditional Annuity. Repayment must be made monthly or quarterly within five years (ten years if the loan is used to purchase a primary residence).

If you are eligible for a PAL, the minimum loan amount is $1,000 and the maximum loan amount is the lesser of $50,000 or 50% of the eligible accumulation less outstanding loans from the same plan and total non-distributable defaults for all plans. Participants borrow from their own accumulation and pay themselves back through payroll deductions.

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When are loan payments due? Retirement/Supplemental Loan (RL/GS) payments are due on the first day of the month in which the payment is due. The due date of the first of the month is not eligible to be changed at this time. The first payment is due on the 1st business day of the month following 3 months after the loan is issued.

Payroll Advantage Loan (PAL) payments are automatically deducted from your payroll and sent to TIAA-CREF by your employer. The first payment is due approximately 92 days from issue date.

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Are loans taxed?There are no taxes associated with borrowing funds from your account as long as your loan balance is repaid in a timely manner. If all or a portion of your loan is not repaid in a timely manner, the amount of the loan that is outstanding is subject to default. A loan default is generally considered a taxable distribution from your account. You would be subject to paying ordinary income tax on the amount defaulted and a potential 10% early withdrawal penalty if you are under age 59½.

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Am I penalized for repaying my loan early? There is no pre-payment penalty for partial or full loan repayments.

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How can I make an additional payment to my loan?

You can make additional payments in the Manage Loans area of your secure account.

After logging into your account:

  1. Click the Manage My Portfolio tab. Locate and click Manage Loans.
  2. On the Loans Issued page, click the More button beside the loan to make a payment.
  3. Select Make a Payment from the left column and complete the request. Note: your regularly scheduled payments will still be due by the appropriate date.

You can also send an additional payment by mail. Be sure to include your contract number on your check and mail the payment to:

P.O. Box 4361
Carol Stream, IL 60197-4361

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Is it too late to make a payment to prevent a loan default?IRS regulations provide for a grace period before the loan will be declared in default and if the total overdue amount is not paid by the end of the calendar quarter (March, June, September, and December) following the calendar quarter in which the repayment is due, the outstanding loan balance (including accrued interest until the end of the grace period) will be deemed a distribution and reported to the IRS.

There are different ways to send a payment to prevent the loan default; Single Debit Transaction (ADT), check, or in extreme cases, Federal Funds Wire.

Single Debit: A one time electronic debit initiated by you via the TIAA-CREF secure online Web Center or a telephone call to the TIAA-CREF National Contact Center (800 842-2252). To ensure that the payment is applied in time to avoid a loan default, it is important to remember that an electronic debit payment must be processed and received at TIAA-CREF on or before the payment due date. Once a request for an electronic debit has been made, it takes 5 business days to process and post the money toward your loan balance. Make sure you allow enough time for the payment to post before the end of the quarter.

Check: In order to prevent a loan default, we must receive your check by regular/overnight mail on or before the close of business on the last business day the payment is due.

Regular mail:
PO Box 4361
Carol Stream IL 60197-4361

8500 Andrew Carnegie Blvd
Charlotte NC 28262

If you are concerned that your payment will not be received in time, you may also request to send a payment by Federal Funds Wire:

JP Morgan/Chase Bank
1 Chase Plaza, New York, NY 10081
Telephone ACH (800) 447-3593 FED (212) 623-1636
ABA # 021000021
A/C # 910-2-754315

Special Instructions: Please indicate loan number and name when sending funds via Fed Wire.

Federal Funds Wire must be received by 4:00 PM ET on the last business day of the month to prevent the loan from defaulting.

If you have questions about a loan that is at risk of defaulting, please call 800 842-2252 weekdays from 8 a.m. to 10 p.m. (ET) and Saturdays from 9 a.m. to 6 p.m. (ET). 

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Can I change the frequency of my payments? If you’re currently repaying your loan on a quarterly basis, you can change the repayment method from quarterly to monthly. You cannot go from monthly to quarterly. If you change your repayments from quarterly to monthly, you cannot go back to quarterly in the future. Additionally, if you are making loan repayments on a monthly basis, payments are required to be made by ADT. The changes may be made by logging in to your account, or by contacting us at 800 842-2776.

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Can I discontinue paying back my loan by ADT? Monthly Repayment Schedule — If your current payment method is monthly, you can not change it to manual. All monthly repayments are required to be made by ADT.

Quarterly Repayment Schedule — Quarterly payments may be made either by ADT or manually (by check or single debit.) Quarterly repayments may be changed between ADT and Manual at any time.

Some institutions require ADT repayments regardless of monthly or quarterly repayment methods. ADT can not be discontinued for these institutions.

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Why can I not have my loan check sent electronically?If your loan request is over $15,000 or if the highest outstanding balance within the past 12 months plus your current loan request is over $15,000, you cannot receive your funds electronically. Also, if you have changed your online login information within the past 14 days, you cannot receive your funds electronically.

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How do I change the bank where my loan repayment withdrawals are taken? After logging in to your account:

  1. Click the Manage My Portfolio tab. Locate and click Manage Loans.
  2. On the Loans Issued page, select View/Modify Automatic Repayment from the left column.
  3. Click the Modify button and enter in your new bank information.

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How long after applying for a loan can I expect to receive the check? Once we receive your completed application and spousal waiver (if applicable), your loan check will be mailed to you within a few business days, provided you have the collateral required to be transferred to the TIAA Retirement Loan annuity to secure the requested loan amount.

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Does my TIAA collateral amount continue to earn interest while the loan is outstanding? Yes. The amount held as collateral for your loan will earn TIAA contractual interest, and additional amounts as declared by TIAA’s Board of Trustees. This is not the interest rate to pay back your loan but rather the rate TIAA-CREF will credit your loan collateral. For more information regarding the loan interest rate, log into your account and click the Manage My Portfolio tab. Locate the Manage Loans section and click Apply for a New Loan.

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Can I get a loan if I have one outstanding?* In most cases, more than one loan is available; however, employer-sponsored plan rules or state and federal laws may limit or prohibit multiple loans available under certain circumstances. You can log into your account to see if you are eligible to borrow an additional loan from your account, and determine what amount is available for a loan. After logging into your account, click the Manage My Portfolio tab. Locate the Manage Loans section and click Apply for a New Loan.

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* If your employer’s GSRA contract was issued after December 31, 2003, and you’ve defaulted on a loan that has not been foreclosed, Internal Revenue Service regulations may prohibit you from taking additional loans under any plan of your employer.

State law limits rate changes in South Carolina to once each year.

© 2014 and prior years, Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017