Who can benefit from having a TIAA Annuity in their IRA?

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When you contribute or roll over money to a TIAA IRA, you can earn a rate of 3.45% in TIAA Traditional* through February 28, 2023.1

*TIAA Traditional is a fixed annuity issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.

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Does a TIAA Annuity make sense in your IRA? It depends on what you are looking for.

The TIAA Traditional Annuity can give you:

Guaranteed growth towards retirement

  • TIAA Traditional is a fixed annuity and your balance is not impacted by market declines – it offers guaranteed growth.
  • Fully liquid with no surrender charges – which means there is no penalty for switching to another investment option in your IRA.

Guaranteed income in retirement

  • You may convert some or all of your balance into payments that last a lifetime.
  • Access your money anytime through a range of withdrawal options that can be customized to your personal situation.
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Direct exposure to real estate

TIAA Real Estate Account is a variable annuity designed to maximize the benefits of real estate investing, without the drawbacks of managing your own properties. TIAA Real Estate offers:

  • True diversification2
  • Alternative to the “safety” of bonds3
  • Hedges against inflation as rents rise with other prices
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1 Rate increase applies to new contributions to TIAA Traditional within TIAA IRAs and Investment Solutions (IS) IRAs. The rates TIAA credits are quoted as effective annual rates with interest compounded daily. Crediting rate may fluctuate based on the contribution month. New money allocated to TIAA Traditional will receive the rate for the month in which the contribution is made and is guaranteed through February 28, 2023. New money is defined as any contribution made to TIAA Traditional within an existing or new TIAA IRA or IS IRA. This includes dollars reallocated from another investment into TIAA Traditional as well as transfers, rollovers and contributions.

Returns are largely unaffected by movements in stock or bond markets  since returns are generated by rental income and changes in property values. For the 10-year period ended June 30, 2020, REA correlation to the S&P 500 Index and Barclay's Aggregate Bond Index was 0.11 and -0.07, respectively. Over this same period, correlation between the FTSE Nareit All Equity REIT Index and the S&P 500 Index was 0.76. You cannot invest directly in any index. Index returns do not reflect a deduction for fees and expenses.

Direct real estate has delivered higher risk-adjusted returns than bonds since the account's inception in 1995. As of June 30, 2020, the REA since-inception Sharpe ratio (a measure of risk-adjusted return) was 1.1, while the Bloomberg Barclays U.S. Aggregate Bond Index was 0.9 over the same period. The REA inception date is October 2, 1995. You cannot invest directly in any index. Index returns do not reflect a deduction for fees and expenses. Past performance does not guarantee future results.

Diversification is a way to help avoid risk and does not guarantee against loss. The real estate industry is subject to various risks including fluctuations in underlying property values, expenses and income, and potential environmental liabilities.

In general, the value of the TIAA Real Estate Account will fluctuate based on the underlying value of the direct real estate or real estate-related securities in which it invests. The risks associated with investing in the Real Estate Account include the risks associated with real estate ownership including among other things fluctuations in underlying property values, higher expenses or lower income than expected, risks associated with borrowing and potential environmental problems and liability, as well as risks associated with participant flows and conflicts of interest. For more complete discussion of these and other risks, please consult the prospectus.

This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor's own objectives and circumstances.

Prior to rolling over, consider your other options. You may be able to leave money in your current plan, withdraw cash or roll over the assets to a 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 at TIAA.org/reviewyouroptionsOpens pdf.

Annuity contracts may contain terms for keeping them in force. We can provide you with costs and complete details.

TIAA Traditional is a fixed annuity product issued through these contracts by Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY, 10017: Form series including but not limited to: 1000.24; G-1000.4; IGRS-01-84-ACC; IGRSP-01-84-ACC; 6008.8. Not all contracts are available in all states or currently issued.