When it's time to decide how to take income from your KBOR Mandatory Retirement Plan, you have a variety of options*:
Please note: You cannot access your funds while you are employed with a KBOR state university only individuals who execute phased retirement agreements are permitted to access a portion of the accumulated funds in their Regents Mandatory Retirement Plan.
- 59½ in Service
You generally can withdraw funds, attributable to elective deferrals, from your account while still employed once you have reached age 59½. The amount you can withdraw is subject to your plan's rules. Talk to your benefits office for details.
- 90-24 Transfer
You can directly transfer your 403(b) funds from one approved financial provider to another under your employer's retirement plan, or to another 403(b) annuity contract or mutual fund under another plan, as your plan and contract permit. This transfer is not considered a taxable distribution.
As permitted by your plan, you can withdraw elective deferrals and earnings from your retirement plan while employed by your institution but not working due to a disability. To qualify you must be totally and permanently disabled, and the deferrals and earnings must have been credited to your plan on or after January 1, 1989. Disability withdrawals are not subject to the 10% IRS penalty on withdrawals prior to age 59 1/2.
- Fixed Period
You can choose to receive income for a set period of two to 30 years, depending on the terms of our contract and your plan's rules (and not to exceed your life expectancy). Payments stop at the end of the period, during which you will have received all your principal and earnings.
- Hardship Distribution
If your plan permits, you can withdraw your elective deferrals (but not earnings) due to financial hardship while still employed. Generally, you must show an immediate, significant need that cannot be met with other resources, including loans from your retirement plan.
- Interest Only
You can receive the current interest earned on your TIAA Traditional Account in monthly payments. Your principal remains intact while you receive the interest. (Note: These payments are generally available to individuals between ages 55 and 70 1/2 when minimum distributions are required.)
- Lifetime Retirement Income
- One-life annuity
Provides income for as long as you live.
- Two-life annuity
Provides lifetime income for you and an annuity partner (your spouse or someone else you name) for as long as either of you live.
- One- or two-life annuity with guaranteed period
guarantees income for up to 20 years, as long as the period you choose does not exceed your life expectancy. It ensures that income continues to go to your beneficiaries if you (one-life annuity) or both you and your annuity partner (two-life annuity) die before the end of the guaranteed period for the remainder of the guaranteed period.
- Limited Periodic Option
If your're over age 55, you can withdraw as cash up to 7% of your holdings in the CREF and TIAA Real Estate accounts (currently available only in plans funded with TIAA-CREF group retirement annuity [GRA] contracts that don't allow CREF cash).
- Lump Sum
You can withdraw all or part of your account in a single cash payment, depending on your plan rules and the terms of your contracts. (Your right to a lump-sum distribution from your TIAA Traditional Account may be restricted under those terms).
- Minimum Distribution Option
Generally, you must begin taking minimum withdrawals from your account by April 1 following the year in which you turn age 70 ½ or retire, whichever is later. This can help you defer the minimum required distribution while keeping you in compliance with federal regulations..
If you have had an IRS-defined "triggering event," and your plan allows withdrawals, you can roll over your accumulations to another retirement plan that will accept them or to an Individual Retirement Account (IRA). Direct rollovers -- from one account to another -- are nontaxable and not reported as income to the federal government. Your plan's rules specify when you are eligible for a distribution.
- Retirement Transition Benefit
If your contract allows, you can withdraw, in cash, up to 10% of your accumulation at the beginning of a conversion to lifetime annuity income. The amount you withdraw will reduce your lifetime annuity income accordingly.
- Single-Sum Death Benefit
A set amount your beneficiary(ies) will receive from your retirement account if you die before taking income.
- Small-Sum Distribution
If your plan doesn't otherwise allow cash distributions, upon separation from service you can withdraw your entire retirement savings if your TIAA Traditional Account value does not exceed $2,000 and your overall account balance is below a limit set by your employer's plan (typically $4,000). If your plan does allow cash distributions, upon separation you may be able to withdraw your TIAA Traditional accumulation if the value does not exceed $2,000.
- Systematic Withdrawals
If your plan allows, you can choose to receive regular income payments (minimum $100) on a semimonthly, monthly, quarterly, semiannual or annual basis. You can increase, decrease or suspend the payments at any time. (Note: These withdrawals are not available from TIAA Traditional Account balances.)
- TPA to Cash
If your plan allows, you can withdraw your TIAA Traditional Account accumulation through a Transfer Payout Annuity (TPA) in 10 approximately equal annual payments. A lump-sum payment, subject to a surrender fee, may be available depending on your plan rules and the terms of your contract.
* The availability of certain distributions may depend on the type of contract underlying your plan. Also, if you're married, your right to choose an option may be subject to your spouses right to survivor benefits. Your KBOR Mandatory Retirement Plan is designed to provide you with income throughout your retirement. Leaving money in your account may allow the funds to grow on a tax-deferred basis. The KBOR Mandatory Retirement Plan allows you to receive a cash withdrawal. This may be restricted by the terms of your TIAA-CREF contracts Taxes and penalties may apply.