University of Massachusetts offers this plan as part of workplace benefits. Now is a great time to understand what is offered - think about taking advantage of any opportunities to save and invest for the future.
Learn what plans allow eligible employees to do.
Contact your benefits office to learn more.
Contributions to this account will be 100% vested immediately.
Optional Retirement Program for Employees does not offer a loan feature.
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.
If your plan allows, you can choose to receive regular income payments on a semimonthly, monthly, quarterly, semiannual or annual basis. You can increase, decrease or suspend the payments at any time.
When you leave your employer, you may be eligible to withdraw your retirement savings. Your plan may distribute your entire balance if the value does not exceed $2,000. Even if your plan doesn't allow cash distributions, 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 (either $1,000 or $5,000).
A set amount your beneficiary(ies) will receive from your retirement account if you die before taking income.
You can receive the current interest earned on your TIAA Traditional Account in monthly payments. Your principal remains intact while you receive the interest.
In order to more easily transition into retirement, you may be able to withdraw up to 10%, in cash, of your lifetime annuity income. The amount you withdraw will reduce your lifetime annuity income accordingly.
If you need some of your retirement savings in cash, you can withdraw your TIAA Traditional Account balance through a Transfer Payout Annuity (TPA) under the terms of the contract. A lump-sum payment, subject to a surrender fee, may be available depending on your plan rules and the terms of your contract.
For more information about the terms of your individual contract, contact your plan sponsor or financial advisor.
Plan participants may consider purchasing service credits when they directly transfer from a Section 403(b) tax sheltered annuity or governmental 457(b) plan to a governmental defined benefit plan allows the purchase of "permissive service credits."
A permissive service credit is credit for a period of service recognized by a defined benefit governmental plan only if you voluntarily contribute to the plan an amount that does not exceed the amount necessary to fund the benefit attributable to the period of service and the amount contributed is in addition to the regular employee contribution, if any, under the plan.
A permissive service credit may also include service credit for up to 5 years where there is no performance of service, or service credited to provide an increased benefit for service credit which a participant is receiving under the plan.
When purchasing service credits, keep in mind:
Prior to rolling over, consider your options. You may be able to leave money in your current plan or withdraw cash. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment.
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).
You must begin taking minimum distributions from your IRAs and employer retirement plan accounts by your required beginning date (or retirement, if later for employer retirement plan accounts). For IRAs (other than Roth IRAs), your required beginning date is April 1 of the year following the calendar year in which you reach your RMD Applicable Age. For employer-sponsored retirement plans, your required beginning date is April 1 of the year following the calendar year in which you reach your RMD Applicable Age or retire from the plan sponsor, if later.
Your RMD Applicable Age was 70 ½ if you were born before 7/1/49; 72 if you were born on or after 7/1/49 or in 1950; 73 if you were born between 1951 and 1958; 75 if you were born in 1960 or later. If you were born in 1959, federal guidance is needed to determine if your RMD Applicable Age is 73 or 75.
If you're married, you may be required to get spousal consent to receive any distribution option other than a qualified joint and survivor annuity.
This plan allows you to receive a cash withdrawal. This may be restricted by the terms of your TIAA contracts. Taxes and penalties may apply.
Understanding investment fees
Your financial well-being is TIAA's top priority and we are committed to helping you make informed decisions. Fees should be just one factor in your decision-making process since the lowest cost option may not be the best one for you.
Cost of plan services
Fees and expenses have always been part of a retirement savings plan-some fees are associated with the administration of the plan and may be covered by your employer, while others are paid by you based on the specific investments and services you choose. The following three categories of services are provided to your plan:
1. General record keeping and other plan services
Over the course of a year you pay for services like record keeping.
Many services are necessary for the day-to-day operation of your employer's retirement plan. General administrative services include recordkeeping, legal, accounting, consulting, investment advisory and other plan administration services. Some of these expenses are fixed and other expenses may vary from year to year. These costs are allocated to each participant in a uniform way.
A Services Fee is assessed to certain investments and deducted on a Quarterly basis. Details related to Plan Services Fees assessed to plan investments are listed in your Quarterly Investment UpdateOpens in a new window.
Your Plan provides credits to certain investments on a Quarterly basis, so that plan participants share equally in the cost of your Plan's record keeping and other plan services.
2. Specific investment services3. Personalized services
You can opt for extra features, like loan services.
Personalized services provide access to a number of plan features and investments that you pay for, only if you use them. The personalized services used most often are:
Retirement Plan Portfolio Manager is an optional service for professional account management.
Retirement Plan Portfolio Manager provides investment advice on your retirement portfolio based on your goals and needs. This managed account is an optional service with professional oversight and a systematic, disciplined approach to managing your money.
For an annual fee of 30 basis points, which will be deducted from your account on a quarterly basis, your portfolio is reviewed and adjusted as needed to help keep it on track. Features include:
More information about retirement plan fees and expenses is available at TIAA.org/fees.
