acegolfer wrote:I left my old job 18 months ago and I still have the employer plan 403(b) at TIAA-CREF. I want to rollover this TIAA 403(b) to Vanguard IRA. I have other 403(b) plans with my current employer at TIAA-CREF.
1. Any reason not to rollover?
2. How difficult is it to rollover?
3. Anything that I should be aware of?
alec wrote:Make sure the money is sent directly to Vanguard and not sent to you. If you do receive some sort of check from TC, send the check to Vanguard without depositing it in your checking or savings accounts. If you deposit the check in your checking or savings accounts, you will incure taxes since the IRS considers that a distribution from the 403(b).
http://www.irs.gov/retirement/participa ... 27,00.htmlHOW do you roll over?
A rollover occurs when you withdraw cash or other assets from one eligible retirement plan and contribute all or part of it within 60 days to another eligible retirement plan. ..
WHEN should you rollover?
You have 60 days from the date you receive a retirement plan distribution to roll it over. Remember that any distribution paid to you will already have a mandatory income tax withholding of 20%, even if you intend to roll it over later. If you do roll it over, and want to defer tax on the entire taxable portion, you will have to add funds from other sources equal to the 20% income tax withheld.
Ibid.Note: You may be able to roll over the nontaxable part of a distribution to another qualified retirement plan or a §403(b) plan or to a traditional IRA. The transfer must be made either through a direct (trustee-to-trustee) rollover to a qualified retirement plan or a §403(b) plan that separately accounts for the taxable and nontaxable parts of the rollover or through a rollover to an IRA. Any taxable amount that is not rolled over must be included as income in the year of the distribution.
acegolfer wrote:1. Any reason not to rollover?
3. Anything that I should be aware of?
sscritic wrote:alec wrote:Make sure the money is sent directly to Vanguard and not sent to you. If you do receive some sort of check from TC, send the check to Vanguard without depositing it in your checking or savings accounts. If you deposit the check in your checking or savings accounts, you will incure taxes since the IRS considers that a distribution from the 403(b).
A 403(b) rollover is no different than any other tax-deferred rollover. You have 60 days to do the rollover. Cashing the check makes no difference. If you want, you can put the whole check in your checking account and use money from your money market account for the rollover. All that matters is the amount of money, not which account it went into or came out of.
Where did you get the idea that distributions from TIAA traditional can only be withdrawn over 10 years?
Lbill wrote:Where did you get the idea that distributions from TIAA traditional can only be withdrawn over 10 years?
I got the idea from TIAA. If that's wrong, I'd appreciate a link to the correct information.
The TIAA Traditional Account is a guaranteed contract backed by the claims-paying ability of TIAA. Part of what allows us to guarantee principal and interest is your promise not to take all your funds from the account at once. For Retirement and Group Retirement Annuities, transfers and withdrawals from TIAA Traditional can be scheduled via a Transfer Payout Annuity, where you receive your funds over a 10-year period, during which the balance remaining in the account continues to receive interest.
Lbill wrote:I wasn't able to find the difference between an RA (Retirement Annuity) and GRA (Group Retirement Annuity), but it appears that you can only take money out of Traditional in either one via a 10-year Transfer Payout Annuity (TPA). I find nothing about taking it as a lump sum. You can take lump sum transfers or withdrawals from Traditional in a GRSA (Group Supplemental Retirement Annuity). You earn a lower interest rate in Traditional in a GRSA in exchange.
If you have a Group Retirement Annuity (GRA) contract, lump-sum withdrawals are available from the TIAA Traditional Annuity only within 120 days after termination of employment and are subject to a surrender charge. All other withdrawals and transfers to the Real Estate Account or to CREF must be spread over a ten-year period (five years for withdrawals after termination of employment).
raywax wrote:It is from: http://www.tiaa-cref.org/administrators ... trans.html
TIAA Traditional in GRAs can be moved in a lump sum (assuming cashability) if done within 120 days from the date of termination, subject to a 2.5% surrender charge. After the 120-day window has expired, TIAA Traditional can be moved over a five-year period.
alec wrote:acegolfer wrote:2. How difficult is it to rollover?
In my experience, it's pretty easy from Vanguard's perspective. No idea how easy it is to deal w/ TC.
grabiner wrote:alec wrote:acegolfer wrote:2. How difficult is it to rollover?
second-guesser wrote:For anyone reading this that is five years away from retirement that has tiaa traditional in a 403-B and wants to be able to obtain your funds ;might consider doing what my wife is doing. She is allowed to transfer 20 % per year for five years to a stock , bond , or money market account. She is doing the same thing with an ING account. Each 403-B may be different so obviously check with tiaa if this is allowed. This plan allows her do do whatever she wants with her money on retirement and not have to wait for several years to have complete control of her funds.
In my experience you only have to complete the form certifying one's marital status once (unless that has changed). Thereafter you simply write in "On File" in the appropriate section of the T-C form.
Lbill wrote:raywax wrote:In my experience you only have to complete the form certifying one's marital status once (unless that has changed). Thereafter you simply write in "On File" in the appropriate section of the T-C form.
I believe there may be additional documentation required from some employers, as well as the marital status documentation you mentioned. For example, some plans require that the plan administrator for your employer certify the year that you left employment, others do not. In any event, once you have jumped through all the hoops and done a rollover from your plan(s), you can subsequently write "On File" on future rollover applications, as I have done.
second-guesser wrote:Raywax said above that he is unsure if money can be moved from TIAA Traditional to bond , stock, or money markets accounts; he could not when he retired. Well my wife is now transferring 20% of her traditional per year to a money market account at both TIAA and ING. She was told she could transfer to a stock or bond account as well. She has done this for the past three years and she is approximately two years from retirement.Different plans may have different requirements so one should check with TIAA.Maybe there is not a great advantage of doing this but she didn't like not having control of her money. For example when money is tied up in Traditional Accounts , one is not allowed to transfer from one company to another prior to retirement. Also Traditional rules seem overly complicated, why not simplify matters prior to retirement?