TIAA 403b - SRA to RCP

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adam1712
Posts: 355
Joined: Fri Jun 01, 2007 5:21 pm

TIAA 403b - SRA to RCP

Post by adam1712 » Wed Jun 13, 2018 9:20 pm

Next month my University's 403b plan with TIAA is being transitioned from a GSRA/SRA account to an RCP account. My understanding is my mutual funds will be transferred automatically and be the same. However, it appears that my TIAA Traditional GSRA/SRA can either stay in the old account or transition to TIAA Traditional RCP.

It appears that the Traditional RCP will yield 3.5% currently instead of 3.25% in SRA. But the guaranteed rate is lower (1% vs 3%). Both allow lump-sum transfers.

Has anybody else gone through this? Even though the guaranteed rate is lower, I'm still inclined to just make the transfer to RCP. Both for the higher current rate as well as simplicity.

ofckrupke
Posts: 531
Joined: Mon Jan 10, 2011 2:26 pm

Re: TIAA 403b - SRA to RCP

Post by ofckrupke » Wed Jun 13, 2018 11:43 pm

adam1712 wrote:
Wed Jun 13, 2018 9:20 pm
Has anybody else gone through this?
Have the option, though would involve rollover from ex-employers plan to current employer's that has made the RC/RCP switch.
Since the 3% floor was for us Trad's main attraction, no way will we be doing this; if we give up the floor on the old money, it will be for some other provider, whether IRA or the current employer plan's other provider offering Vanguard institutional & plus share funds.
RC/RCP seem barely preferable to a poke in the eye with a sharp stick.

adam1712
Posts: 355
Joined: Fri Jun 01, 2007 5:21 pm

Re: TIAA 403b - SRA to RCP

Post by adam1712 » Thu Jun 14, 2018 5:49 pm

ofckrupke wrote:
Wed Jun 13, 2018 11:43 pm
adam1712 wrote:
Wed Jun 13, 2018 9:20 pm
Has anybody else gone through this?
Have the option, though would involve rollover from ex-employers plan to current employer's that has made the RC/RCP switch.
Since the 3% floor was for us Trad's main attraction, no way will we be doing this; if we give up the floor on the old money, it will be for some other provider, whether IRA or the current employer plan's other provider offering Vanguard institutional & plus share funds.
RC/RCP seem barely preferable to a poke in the eye with a sharp stick.
Curious why you say that about RCP? Are you talking just Traditional in RCP or RCP in general?

Since RCP is fully liquid, I'm not sure if the floor makes much difference to me. I'll just move to something else if the rate drops too much.

ofckrupke
Posts: 531
Joined: Mon Jan 10, 2011 2:26 pm

Re: TIAA 403b - SRA to RCP

Post by ofckrupke » Thu Jun 14, 2018 9:28 pm

adam1712 wrote:
Thu Jun 14, 2018 5:49 pm
ofckrupke wrote:
Wed Jun 13, 2018 11:43 pm
adam1712 wrote:
Wed Jun 13, 2018 9:20 pm
Has anybody else gone through this?
[...]
RC/RCP seem barely preferable to a poke in the eye with a sharp stick.
Curious why you say that about RCP? Are you talking just Traditional in RCP or RCP in general?

Since RCP is fully liquid, I'm not sure if the floor makes much difference to me. I'll just move to something else if the rate drops too much.
Good point. In the general case liquid RCP is fine. But in spouse's current employer plan, all other TIAA options but a MMF were long ago dropped from the menu - plainly, an investment committee goal has long been to drive participants to the other provider (naturally, transfers are a one-way door). Before the recent switch to RC/RCP, one might actually enjoy a period of deep financial repression at 3.0% in the SRA/GSRA. Now if SHTF and RC/RCP rates drop below 3% it's likely straight to the eject (or TPA for RC) button for post-switch accumulations.
So yeah...I was just bleating.

3of3
Posts: 4
Joined: Fri May 11, 2018 9:21 pm

Re: TIAA 403b - SRA to RCP

Post by 3of3 » Thu Jun 14, 2018 10:01 pm

i went through the same exact thing last year. in my case, my GSRA stayed as is and a new account was created for the RCP which is where all of my new contributions are now being deposited. since this was a new account, i had to review the RCP funds and setup my new contribution allocations for the account.

TIAA tradition is available in the GSRA and RCP, but they have different rates.

adam1712
Posts: 355
Joined: Fri Jun 01, 2007 5:21 pm

Re: TIAA 403b - SRA to RCP

Post by adam1712 » Thu Jun 14, 2018 10:03 pm

ofckrupke wrote:
Thu Jun 14, 2018 9:28 pm
Good point. In the general case liquid RCP is fine. But in spouse's current employer plan, all other TIAA options but a MMF were long ago dropped from the menu - plainly, an investment committee goal has long been to drive participants to the other provider (naturally, transfers are a one-way door). Before the recent switch to RC/RCP, one might actually enjoy a period of deep financial repression at 3.0% in the SRA/GSRA. Now if SHTF and RC/RCP rates drop below 3% it's likely straight to the eject (or TPA for RC) button for post-switch accumulations.
So yeah...I was just bleating.
OK, thanks. That does sound pretty different from my situation. I have lots of good choices in my TIAA account so I'm not too worried. Just seeing if I my understanding is correct.

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