Using an IRA to manage your retirement savings–all in one place
Over time, it’s easy to wind up with retirement savings in different places—sometimes simply by changing jobs. Having multiple accounts makes it hard to get a comprehensive view of your retirement picture and to know if your investments are working together to help you manage risk and return. All of this can have an impact on your ability to meet retirement goals.
Know your options so you can make the best decision for your future
When you leave a job, you generally have four options1 for how to handle the money in your current employer’s retirement plan:
Withdraw your money in cash.
Leave your money in your former employer’s retirement plan.
Move your money directly into your new employer’s retirement plan (if permitted by your new employer).
Move your money directly into an IRA.
Cashing out may be tempting, but you may face a 20% federal income tax withholding, state taxes, and a potential 10% early-withdrawal penalty if you are under age 59½.
There are benefits to leaving money within your former employer’s plan, as well as rolling over your assets to an IRA or a new employer’s plan. Consider differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment. Speak with a TIAA financial consultant and your tax advisor. Learn more.
The power of one TIAA IRA
When you roll money from multiple retirement accounts over to one TIAA IRA, not only can you simplify your recordkeeping. You also tap into some powerful potential benefits:
Advice and guidance. Get professional support to help you set up the right IRA and appropriate investments.
Investment choices. Gain access to TIAA funds and annuities, as well as thousands of other mutual funds, stocks, bonds and much more.
Diverse income options. Tailor your retirement income strategy to meet your needs, with options like annuities and systematic withdrawals.2
Potential for reduced fees. Enjoy fees3 that are generally less than half the industry average—so more of your money stays in your account.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877-518-9161 or log on to www.tiaa.org for product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing.
1 Prior to rolling over, consider your other options. You may also be able to leave money in your current plan, withdraw cash or roll over the assets to your new employer’s plan if one is available and rollovers are permitted. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment. Speak with a TIAA consultant and your tax advisor regarding your situation. Learn more
2Availability of certain products is subject to eligibility requirements.
3Based on Morningstar data, the expense ratios on all TIAA-CREF Funds and Variable Annuity Accounts managed by TIAA-CREF are generally less than half the mutual fund industry average (72% are less than half the Morningstar U.S. Open-End Fund Universe average and 63% are less than half the Morningstar U.S. Open-End Fund Universe median.) Data as of 12/31/15.
There may be fees associated with certain additional products and services. Speak with an advisor or go to tiaa.org for more details on our products and services and their fees.