TIAA-CREF Rollover... or Not

[Josh]

I have a client that is retiring and wants to do a rollover to a SPIA because she has had a steady paycheck and she wants another steady income stream, easy enough, right?

Not at all.

Maybe someone here knows something I don't, but I just got off the phone with TIAA and they're claiming she can only pull out her money in 10 payments over nine years even though she's at the age of retirement and is retiring.

Is this pretty common? Anyone ran into this before and found a way around it?

 

[Franz Kafka]

I'm afraid that's the case.

TIAA CREF Annuity Questions

 

[somarco]

Sounds like the T-C folks want to hold on to THEIR money as long as possible.

 

[briko3]

This is from their website:

Cash withdrawals from TIAA Traditional must be made in ten annual installments from Retirement Annuities. Group Retirement Annuities may allow a lump-sum withdrawal within 120 days after your leave your employer, but a surrender charge applies. After the 120 period, withdrawals can be made over a five year period. Retirement Choice Annuities allow you to withdraw TIAA Traditional balances over a seven year period. Withdrawals from Supplemental and Retirement Choice Plus plans are generally available once you leave the sponsoring employer, reach age 59½, become disabled or meet the IRS definition of hardship.

 

[VolAgent]

This is from their website:

Cash withdrawals from TIAA Traditional must be made in ten annual installments from Retirement Annuities. Group Retirement Annuities may allow a lump-sum withdrawal within 120 days after your leave your employer, but a surrender charge applies. After the 120 period, withdrawals can be made over a five year period. Retirement Choice Annuities allow you to withdraw TIAA Traditional balances over a seven year period. Withdrawals from Supplemental and Retirement Choice Plus plans are generally available once you leave the sponsoring employer, reach age 59½, become disabled or meet the IRS definition of hardship.

In other words, the money now belongs to us, not you.

Shame they haven't been sued for this stuff like Allianz. Think the lack of agents has something to do with it?

 

[Norwayguy]

I have a client that is retiring and wants to do a rollover to a SPIA because she has had a steady paycheck and she wants another steady income stream, easy enough, right?

Not at all.

Maybe someone here knows something I don't, but I just got off the phone with TIAA and they're claiming she can only pull out her money in 10 payments over nine years even though she's at the age of retirement and is retiring.

Is this pretty common? Anyone ran into this before and found a way around it?

Medicare, I told you this very same thing weeks ago...If the client is in TIAA the fixed side they restrict to 10 equal payments.

 

[Mattschmidt]

tiaa side is a pain in the a** ...does she have anything invested with Cref??? Again, when the agents set these things up for the clients, they never tell them that they can't roll it out right away...I run into this about once a month, and the clients can't believe it...I'm surprised more people haven't complained/sued about this sort of thing

 

[Norwayguy]

tiaa side is a pain in the a** ...does she have anything invested with Cref??? Again, when the agents set these things up for the clients, they never tell them that they can't roll it out right away...I run into this about once a month, and the clients can't believe it...I'm surprised more people haven't complained/sued about this sort of thing

And you'll see TIAA-CREF quoted in artcles left and right denoucning agents and other annuities that pay commissions.

 

[VolAgent]

And you'll see TIAA-CREF quoted in artcles left and right denoucning agents and other annuities that pay commissions.

Ought to do a poll.

Would you rather:

A. An agent get paid a commission to help you invest/save your money?

OR

B. No one gets paid a commission, but it will take an Act of Congress for you to be able to access your money?

 

[Norwayguy]

Ought to do a poll.

Would you rather:

A. An agent get paid a commission to help you invest/save your money?

OR

B. No one gets paid a commission, but it will take an Act of Congress for you to be able to access your money?

Almost all of thier assets come from Qualified plans in which TIAA-CREF is the only option.