Transferring Unconverted TIAA Traditional Assets: What You Need to Know

Greg Shepard - S&A Financial Services, Inc.

In this informative video by Greg Shepard from S&A Financial Services, we delve into the often confusing realm of higher education retirement plans, specifically focusing on TIAA Traditional. Many individuals have asked the question, "Can I do anything with the money not dedicated to lifetime income?" Greg provides clarity and essential information to help you navigate your TIAA Traditional options.

Greg begins by highlighting the significance of understanding contract acronyms such as GSRAs, RAs, RCs, and RCPs, as they play a crucial role in determining what can be done with your TIAA Traditional balance. He clarifies the distinction between liquid and illiquid contracts, making it easier to grasp the available choices.

For those with TIAA Traditional in liquid contracts, the options are straightforward. You can choose the lifetime income annuity or roll over the balance as a 100% lump sum into an IRA. Flexibility is key in this case.

However, illiquid contracts require careful consideration. Upon separation of service (which doesn't have to be retirement), individuals with a Group Retirement Annuity (GRA) or Retirement Choice (RC) contract can opt for a lump sum rollover to an IRA within 120 days. It's important to note that a 2.5% penalty may apply. Greg encourages viewers to assess the potential impact of the penalty against the compound interest earned over time.

The Retirement Annuity (RA) contract is different, as lump sum withdrawals are not available. The only option, apart from the lifetime income annuity, is a 10-year TPA (Transfer Payout Annuity) paid out over nine years. Annual distributions are typically made to an IRA, which would be a non-taxable event.

Greg also announces an upcoming webinar series, where he will address real-life scenarios and popular topics related to higher education retirement plans. The webinar aims to provide additional guidance and insights within a concise timeframe. Interested viewers can find the signup link in the description below.

Join Greg Shepard in this illuminating video to gain a deeper understanding of TIAA Traditional in higher education retirement plans. Make informed decisions about your retirement assets and optimize your financial future.
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Disclosure S&A Financial Services, Inc. is a registered investment advisor. Content presented is for informational purposes only and should not be considered as investment advice or as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Always consult with your tax advisor or attorney regarding your specific situation.