Income test drive
Unique benefit: Income Test Drive
Try out receiving payments from your CREF or other TIAA variable annuity before making a commitment1. Income test drive is unique to TIAA. No other firm allows you to test out retirement payments this way.
What is Income Test Drive?
Income Test Drive lets you try out receiving lifetime income payments from your
Why would I want to test drive my payments?
With most annuities, once you start receiving payouts you can't go back, which makes some people hesitant to activate lifetime income payments. We created Income Test Drive to make this decision easier.
You're in control:
- If you're not sure whether variable lifetime income is right for you, Income Test Drive allows you to try it out for up to two years before making a final decision.
- You have the flexibility to cancel anytime without cost or penalty during the two-year trial period.
- At the end of the trial period, you can either activate lifetime income payments (also called annuitizing) or cancel the test drive.2
Common questions.
How can I sign up for Income Test Drive?
If you’re 59½ or over and separated from service, you may be eligible to sign up for Income Test Drive. Please call 888-583-2535 for more information.
Is there a minimum age or amount required to participate?
Yes, the general minimum age for Income Test Drive is 59½. Since Income Test Drive is a series of systematic withdrawals during the two-year trial period, this is the age when most are eligible to take a withdrawal without incurring an early-withdrawal tax penalty.
However, your plan may allow for retirement at age 55, which may make you eligible for Income Test Drive at this age. Please call 888-583-2535 to check your eligibility.
The minimum amount required to participate in Income Test Drive is $10,000. If your variable annuity account balance is less than $10,000, you can still participate by "test-driving" your entire balance.
What happens at the end of the two-year trial period?
If you do not cancel Income Test Drive, the remaining balance will be turned into lifetime income payments through annuitization and converted to annuity units payable under the income option initially chosen when the feature was selected, which is irrevocable.2 You’ll start receiving lifetime income payments in the income option you chose when you first signed up.
We’re here to help.
Give us a call at 800-732-8353, weekdays, 8 a.m. – 8 p.m. (ET) or schedule an appointment.
1. There are no fees or charges to initiate or stop this income option. However, it’s important to note that your annuity’s balance will be reduced by the income payments you receive, independent of the annuity’s performance. Income Test Drive income payments are based upon the annuitization of the amount in the account, period (minimum of 10 years), and other factors chosen by the participant. If you do not stop the Income Test Drive within the 2-year test period, the remaining balance in the account you selected for the Income Text Drive Feature will be annuitized in accordance with the selections you made for the Income Test Drive. Annuitization is irrevocable. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance.
2. Converting some or all of your savings to income benefits (referred to as “annuitization”) is a permanent decision. Once income benefit payments have begun, you are unable to change to another option.
Income and withdrawal options are subject to the terms of the employer plan. Withdrawals prior to age 59½ may be subject to a 10% federal tax penalty, in addition to ordinary income tax.
There are no fees or charges to initiate this feature. However, it’s important to note that your annuity’s balance will be reduced by the income payments you receive, independent of the annuity’s performance.
This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.