Simplify your retirement with an IRA rollover

TIAA IRA "Know Your Options" Video [music playing] (Off-camera host) If you have money in a previous employer’s retirement plan, it’s important to understand your options. What you do with it now could affect your future income. You generally have four choices: keep your money where it is; roll it into an individual retirement account, or IRA; transfer it into your current employer’s plan; or take a cash withdrawal. The first option is to leave your money in your former employer’s retirement plan. This gives your money the potential to continue growing tax-deferred. Your old plan may include lower-cost investment options offered through the employer as well as relatively low administrative fees compared to other options. However, you may also end up paying multiple administrative fees by having more accounts. You won’t be able to make any more contributions to the plan, and your investment choices may be limited. Having multiple accounts may also make it harder to track your savings and keep it properly diversified. The second option is to roll your money into an IRA. Like option one, consolidating your savings in an IRA also gives your money the potential to continue growing tax-deferred and, with everything in one place, can provide a clearer picture of your retirement assets. You’ll typically have a broader range of investment options, and in most cases there are no taxes or penalties for rolling over to an IRA. However, you cannot take a loan from an IRA, and some investment and account fees may be higher than an employer plan. If you choose a TIAA IRA, there are no annual account fees, and you’ll have options that can provide guaranteed income for life when you retire. With TIAA you can also get professional advice at no additional cost. The third option is to transfer your money into your current employer’s plan. If allowed, this option lets you consolidate your retirement assets into one account and provides continued tax-deferred growth potential. While investment choices are sometimes more limited than with an IRA, lower-cost investments may be available. Always compare fees and expenses before making a change. And be sure to confirm all costs and benefits with your employer. The fourth option is simply to withdraw your savings in cash. This gives you immediate access to your money, but if you’re under age 59½, you may be subject to a 10% early withdrawal penalty. If you withdraw the assets, pretax amounts would be taxed as ordinary income, and you would lose the potential for tax-deferred, long-term growth. The decisions you make about your retirement savings now can make a difference for your future. We’re here to help you make an informed choice. For more information, go to TIAA.org/knowyouroptions or call us at 800-842-2252. [music ends] You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877-518-9161 or go to TIAA.org/prospectuses for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing.